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Sage Options Gold Hill Property -- Arizona Historical Resource 102,600 Ounces - Au

Posted on: Tuesday, 13 March 2007, 12:01 CDT

Sage Gold Inc. (TSX-V: SGX) has entered into an option agreement to earn a 50% undivided interest in the mineral rights of the Gold Hill property located in the Cave Creek district north of Phoenix, Arizona. There is a historical resource of 380,000 tons of 0.27ounces/ton Au based on vein sampling from the existing workings.

The property comprises six patented mining claims located in Maricopa County, Arizona and is located in schist intruded by a granite porphyry of Proterozoic age. The mineralized fault structure has a strike length exceeding 4,000 feet and has been delineated by numerous exploratory surface pits, development tunnels, shafts, and adits.

The Gold Hill mine development consists of a 300 ft haulway with three production raises completed. Several exploratory winzes and underhanded stopes have also been developed to determine the continuity of the mineralized structure below the haul level. The existing workings were resampled in 1981 (Promet Services - December 1981, Duane Brown PhD) yielding the resource estimate defined below:

 * Proven Reserve - 30,000 tons x 0.27 oz Au/ton * Probable Reserve - 150,000 tons at 0.27 oz Au/ton * Possible Reserve - 200,000 tons at 0.27 oz Au/ton 

Sage will have an option to earn a 50% undivided interest in the mineral rights and be the operator of the Gold Hill property by fulfilling the following;

 1) On the closing date issuing 500,000 common shares. 2) Expending U.S. $250,000 in exploration within 12 months. 3) Issuing U.S. $50,000 worth of common shares to the vendor at the first    anniversary. 

The vendor will complete a U.S. $250,000 private placement financing with Sage Gold Inc. and receive approximately 2,500,000 common shares and will retain a 2.5% NSR on the property.

The Company has not yet conducted sufficient exploration to define the indicated and inferred mineral resources. As such, the potential quantity and grade disclosed above is conceptual in nature based on sampling of underground workings at the Gold Hill property. The sample results are relevant in that they represent the most recent work conducted on the property. The reserve/resource categories predate NI 43-101 and given that there has been no feasibility study completed on the property these reserve categories should be defined as inferred, indicated and measured mineral resources. Further exploration may not result in the discovery of additional mineral resources. All resource estimates quoted herein are based on prior data and reports obtained and prepared by previous operators.

The Company has not completed the work necessary to verify the classification of the mineral resource estimates. The Company is not treating the mineral resource estimates as NI 43-101 defined resources verified by a qualified person. The historical estimates should not be relied upon. The Company has not completed a feasibility study and there is no certainty that the Company's planned operations will be economically viable. Sage intends to verify the historical results through an underground sampling program followed by underground drilling to test the lateral and vertical extent of the vein structures.

Dr.Ulrich Kretschmar, Ph.D, P.Geo (APGO #1160), a qualified person as defined by NI 43-101, has read and approved the technical content of this news release.

This transaction will be subject to regulatory approval.

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 Kerrs, Onaman, and Jacobus properties in Ontario, the Dixie Fork, Triple Junction, Pony Spur and Dike properties situated in Nevada, and the Big Bend gold property, located in Arizona. Technical reports relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com

This release was prepared by management of the Company who takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Some statements contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production. The Company disclaims any obligation to update forward-looking statements.

Distributed by Filing Services Canada and retransmitted by Market Wire

 For further information, contact:  Nigel Lees President and C.E.O., or Mike O'Brien Manager/Investor Relations  SAGE GOLD INC. 365 Bay Street, Suite 500 Toronto, Ontario, Canada. M5H 2V1 Tel.: 416 204-3170 Fax: 416 260-2243 Contact via http://www.marketwire.com/mw/emailprcntct?id=71AA8D28279A367D  

SOURCE: Sage Gold Inc.

Source: MARKET WIRE

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