Sage NEWS!Sage Contiguous to Mexivada Molybdenum Discovery
12:01 EST Tuesday, November 20, 2007
TORONTO, ONTARIO--(Marketwire - Nov. 20, 2007) - Sage Gold Inc. (TSX VENTURE:SGX) is pleased to announce that its 100% owned Sugarloaf property in Northern Nevada is contiguous with a new molybdenum discovery by Mexivada Mining Corp. (TSX VENTURE:MNV) as announced in their news release of November 8, 2007. Mexivada stated that "Mexivada is pleased to report that it has discovered a previously unknown porphyry molybdenum-rhenium-gold-silver system at its 100 percent owned Moly Dome property, in the first drill hole of its Phase 1 exploration program."
Sage Gold has completed gravity and ground magnetic surveys on the Sugarloaf property (Wright Geophysics, January 2005). Sage has also conducted a limited surface sampling program (A.C.A. Howe, February 2005). The geophysical and geological data suggest that the Sugarloaf property is associated with an east -northeast trending basement horst (uplifted block) where a gravity high and a magnetic low were produced by an igneous (i.e. intrusion or caldera) volcanic event (Wright, 2005). This interpreted blind caldera structure exhibits a circular topographic relief pattern having a diameter of 1 mile (1.6km), supported by the coincident gravity/magnetic anomalies.
Nigel Lees, President and C.E.O., stated: "This discovery by our neighbour is an unexpected addition to the list of Sage properties where our neighbours have discovered significant mineral occurrences. Sage's current exploration programs on the Jacobus property (adjacent to Kodiak's Golden Mile), the Pony Creek property (adjacent to Grandview's Pony Creek gold resource), and the Sugarloaf property, are all enhanced by the exploration efforts of our neighbours. We are currently expanding the property block at Sugarloaf in order to cover the structural and geophysical targets associated with both the epithermal gold and porphyry molybdenum styles of mineralization and are planning an aggressive exploration program for 2008."
The Sugarloaf property is underlain by Tertiary volcanic rocks, and has the potential for fault-controlled, high-grade, bonanza-type, epithermal gold-silver mineralization, such as at Newmont's Midas (Ken Snyder - reserves of 3.4 million tons grading 0.58 oz/t Au and 7.06 oz/t Ag) Mine. There is also the possibility of disseminated mineralization either in the Paleozoic "basement rocks" (the molybdenum porphyry style of mineralization at the Moly dome property) beneath the volcanic strata, or at the volcanic/basement unconformity (e.g. the Hollister deposit on the Ivanhoe property). Outcrops of Ordovician Age Valmy Formation occur about 1.5 mi (2.5 km) east of the property which suggest that the Tertiary-Age volcanic underlying the property is relatively thin, and that the Tertiary-basement contact is relatively shallow.
The geological material in this release has been reviewed by Peter Hubacheck, P.Geo., A.P.G.O., P.Geol., A.P.E.G.G.A., of W.A. Hubacheck Consultants Ltd., a qualified person as defined by NI 43-101 regulations.
Sage has recently completed one drill hole at Pony Spur and is awaiting assay results. The balance of the planned drilling program of approximately four (4) holes will be completed in 2008 when weather conditions will allow completion of the program.
In addition, Sage plans to drill a minimum of 3,000 metres on Triple Junction and/or Dixie Fork properties in Nevada in 2008.
SAGE is a mineral exploration and development company which has interests in exploration properties in Ontario and Quebec, Nevada and Arizona. Its main properties are the Jacobus, Onaman and Kerrs properties in Ontario, the Dixie Fork, Triple Junction, Pony Spur, Dike, Corridors and Sugarloaf properties situated in Nevada, and the Gold Hill and Big Bend gold properties in Arizona. Technical reports relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at