Sage Gold Inc SGGDF

GOLDEN MILE N W EXTENSIONS

[tentongold]

Central Golden Mile Long Section – A Description The Golden Mile long section illustrates the distribution of Kodiak drill holes in the western portion of the Golden Mile vein system. A long section is a view of the vein as if the vein has been tilted up on edge, allowing the viewer to see the vein from the side. This vantage point clearly shows where each drill hole has “cut” or intercepted the vein and provides an undistorted view of various geologic features. In the case of the attached long section, the overall gold abundance, as determined by drill holes, is shown. This type of section is called a grade-thickness section and is created by multiplying the thickness of a given drill hole intercept times the gold grade in grams per ton. This number provides a very accurate indication of the strength or abundance of gold mineralization. For each drill hole, the grade-thickness value is plotted and the data are then contoured, revealing patterns in the distribution of gold and the overall geometry of the gold mineralization. These patterns seen are very important because high grade gold mineralization typically has a distinct form or shape within the vein system and by identifying its orientation, a geologist can accurately target the higher grade portion of the vein system. A geologist typically requires multiple evenly-spaced drill holes in order to accurately model gold grade distribution. This includes “step-out” drilling adjacent to high grade gold intercepts. The “step-out” drill holes often outline an envelope of lower grade gold mineralization that forms a halo around the higher grade portion of the gold deposit. These lower grade envelopes are used by the geologist to define drill targets and aid in the discovery of additional high grade ore shoots. In the western portion of the Golden Mile vein system, Kodiak has completed 45 drill holes which are defining multiple high grade ore shoots. The grade-thickness value for each of the drill holes has been contoured using intervals of 3 gram-meters (yellow), 10 gram-meters (green) and 20 gram-meters (red). The lowest contour interval, 3 gram-meters, is actually one of the most important contour intervals because it outlines the extent of significant gold mineralization and reveals the size and shape of the envelope of lower grade gold mineralization that typically surrounds the higher grade ore shoots. In the case of the Golden Mile, the western portion of the vein system is almost continuously mineralized over its entire 850 meter length. A 3 gram-meter envelope of lower grade gold mineralization is well-developed and forms a very distinct halo around the higher grade gold mineralization shown by the 10 and 20 gram-meter contours (red). The higher grade mineralization has a clear plunge or “rake” towards the lower left corner of the section (northwesterly). Of particular importance is that the same plunge occurs in lower grade areas, mimicking the high grade shoots, and potentially outlining new high grade ore shoots with the same pattern of gold distribution seen in the known high grade areas. Examination of the long section shows that there at least six distinct northwest plunging zones of gold mineralization that occur in a regular, repeating pattern, in this section of the Golden Mile. All of these plunging gold zones are open at depth and are the focus of Kodiak’s ongoing drill program. Because ore shoots in this geologic environment can extend 1,000 to 2,000 meters below the surface, these drill targets provide an excellent opportunity to expand the size of the Golden Mile resource. If this pattern persists https://www.kodiakexp.com/_resources/golden_mile/CentralGoldenMileLongSectionDescription.pdf CentralGoldenMileLongSectionDescription.pdf (application/pdf Object)