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Sage Gold rallies on latest drill results from Clavos deposit

Sage Gold (CVE:SGX) announced Wednesday additional 2011 drill results from the Clavos deposit in Timmins, Ontario, sending shares up by more than nine percent.

The Clavos deposit was optioned to Sage by St Andrew Goldfields (TSE:SAS) for a 60 percent interest.

The latest results relate to geotechnical drilling conducted on behalf of St Andrew, as well as additional results from down plunge and 960 zone drilling.

Sage has so far has spent $2.8 million at Clavos and is close to completion of the 60 percent earn-in schedule, it said.

Among the geotechnical drilling results, highlights included 8.3 metres at 2.16 grams per tonne (g/t) of gold in hole CL-11-22, including 0.7 metres of 8.3 g/t gold, and 7.5 metres of 2.51 g/t gold, including 0.7 metres at 15.55 g/t gold in hole CL-11-24.

In addition, hole CL-11-25 intersected 4.6 metres of 14.53 g/t gold, including 1.1 metre of 52.96 g/t gold.

Sage said the mineralization in CL-11-22 and CL-11-25 occurs outside of stope void and is within both the hanging wall and footwall resource outlines from the St Andrew Goldfields' resource of 2006.

Sage completed sampling and assaying of the mineralized zones in order to test the continuity and grade of gold mineralization within the existing measured resource blocks, it said.

The best mineralization was intersected in CL-11-24 and CL-11-25 with multiple specks of visible gold noted, Sage added, reflecting the extent of high grade gold mineralization close to existing stopes.

Meanwhile, holes CL-11-15 and CL-11-16 were drilled to test the down plunge extension of the DL alteration zone approximately 370 metres below surface, and 150 metres down plunge of the eastern end of the underground workings.

Notable results include 1.0 metre of 6.74 g/t gold and 1.0 metre of 13.6 g/t gold in hole CL-11-15, and 0.8 metres of 18.5 g/t gold in hole CL-11-16.

Holes CL-11-14 and CL-11-31 were drilled into the upper portions of the 960 zone, 670 metres and 700 metres east, respectively, of the Clavos deposit. Hole CL-11-14 returned 2.0 metres of 1.95 g/t gold, while hole CL-11-31 intersected 4.35 metres of 1.84 g/t gold, including 1.0 metre of 2.62 g/t gold.

Sage is a mineral exploration company with its main properties including the Clavos Gold deposit in Timmins, and the Lynx deposit and other exploration properties in the Beardmore -Geraldton Gold Camp. Its shares rose 9.5 percent on Wednesday, to trade at $0.115 as of 9:30am ET.