Sage Gold Inc (SGGDF)

[NYBob]

Sage Reports New Clavos Mineral Resource-194,600 Indicated Ounces Au at 4.81 g/t and 120,000 Inferred Ounces Au at 4.7 g/t
TORONTO, ONTARIO--(Marketwire - Oct. 23, 2012) -

http://tmx.quotemedia.com/article.php?newsid=55218042&qm_symbol=SGX

Sage Gold
(TSX VENTURE:SGX) ("the Company") is pleased to announce that Roscoe Postle Associates ("RPA") has completed a National Instrument 43-101 mineral resource estimate for the Company's Clavos Gold deposit located in the Timmins Gold Camp.

Highlights:

The total resource includes Indicated mineral resources of 1,258,400 tonnes at 4.81 g/t Au totalling 194,600 ounces of gold and Inferred mineral resources of 796,000 tonnes at 4.7 g/t Au representing 120,000 ounces. These resources are reported at a base case cut-off grade of 2.75 g/t Au and individual assays have been capped at 60 g/t.

The gold mineralisation is contained within the Hangingwall, Footwall and Sediment deposits in the 960 Zone and within the Hangingwall, Footwall, Contact and Sediment deposits in the Main Zone. Gold mineralisation is closely associated with mafic-felsic intrusions in the Hangingwall and Footwall deposits and with banded sections of argillite and greywacke in the Sediment and Contact zones.

This 2012 resource estimate represents a 113% increase in total ounces relative to the last published resource of October 2006 and is based on a long term gold price assumption of USD$1600/Oz and a cut-off grade of 2.75 g/t Au. The 2006 mineral resource was calculated at a gold price assumption of USD$500/Oz and a cut-off grade of 4 g/t Au.

All deposits remain open down dip and along strike providing a continuing opportunity to potentially increase the mineral resource with additional drilling.

Nigel Lees (President and CEO) stated, "We are very pleased with this new resource study. The growth in gold ounces relative to the previous published mineral resources reflects the inclusion of additional underground and surface drilling into the drill database and the addition of the 960 zone and Sediment deposits. A Preliminary Economic Assessment (PEA) is being prepared which will analyse the economic potential of the mineral resources within the footprint of the existing infrastructure. This PEA is anticipated to be completed in six weeks. A closure plan has been filed and a project description of the proposed advanced exploration program is being prepared. Public and First Nation consultation is currently underway. Assuming a positive PEA and completion of financing, Sage anticipates that it will commence dewatering the existing Clavos workings in the first quarter of 2013."

The Clavos Gold property comprises 2,540 hectares and is located in the prolific Timmins Gold Camp where over 110 million ounces of gold have been produced historically. To date, $46 million has been spent on the infrastructure at Clavos. The formation of the Clavos Joint Venture (Sage - 60%, St Andrew Goldfields Ltd (TSX:SAS) - 40%) was announced in a Press Release on August 13, 2012.

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