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Sage channel samples 0.35 m of 78.9 g/t Au at Gold Hill

2008-02-29 09:43 ET - News Release

Mr. Nigel Lees reports

SAGE GOLD INC.: 78.92 G AU/T CHANNEL-GOLD HILL-ARIZONA

Sage Gold Inc. has completed additional underground and surface channel sampling on several quartz breccia vein structures hosted in a quartz monzonite intrusive complex at the Gold Hill property located in Maricopa county, Arizona.

The highest grade in the channel samples assays is 78.92 grams of gold per tonne (2.302 ounces per ton) over a width of 0.35 metre (1.15 feet) and the highest-grade grab sample is 16.18 grams of gold per tonne (0.472 ounce per ton).

The assays in the table are greater than five grams of gold per tonne (0.15 ounce per ton). All assays are reported on the Sage website.

Sample No.        Au g/t     Au oz/t        True width -- metres (feet)

67619              78.92       2.302                 0.35 m (1.15 feet)
67620              10.49       0.306    Grab -- same location as 67619
67621              12.07       0.352                 0.45 m (1.48 feet)
67622              33.46       0.976                  1.2 m (3.93 feet)
67625              20.13       0.587                  1.5 m (4.92 feet)
67629              16.18       0.472                              Grab
67705               7.51       0.219                 0.44 m (1.44 feet)
67706              12.03       0.351                 0.45 m (1.48 feet)
67707               13.3       0.388                 0.41 m (1.34 feet)
67594               5.42       0.158                              Grab
67618               5.66       0.165                  1.5 m (4.92 feet)

Drilling

Sage has also completed the first hole of a 2,745-metre (9,000-foot) drill program on the Gold Hill project.

The first hole, collared at minus 47 degrees, intersected a hematized quartz breccia zone at a downhole depth from 694 feet to 718 feet, approximately 107 metres (350 feet) below the lowest level of the historical workings. The zone is characterized by the presence of hematite, limonite and goethite associated with a brecciated quartz monzonite with quartz stringers. Additional quartz breccias and quartz veins have been intersected in three other locations within the hole. Core samples will be sent to Jacobs Laboratories in Tuscon, Ariz., with assay results expected shortly. The next series of holes will target the East Vein structure, approximately 100 feet (33 metres) below the workings, on a 50-foot-by-50-foot step-out pattern to delineate and determine the continuity of grade within the gold-bearing zone. Additional exploratory drilling to determine the strike extent of the vein structures is also planned from strategically located drill pads.

Sage has an option to acquire a 50-per-cent interest in the property by expending $250,000 (U.S.) and issuing $50,000 (U.S.) worth of common shares.

The channel and grab samples were crushed and pulped by Jacobs Laboratories in Tucson, Ariz. The samples were then dry screened to 100 micron (150 mesh) to produce plus and minus fractions for screen fire assay. The samples were dissolved using acid digestion. The gold results were reported as the weighted average grade of gold based on the coarse and fine fractions.

Pony Spur -- Carlin trend, Nevada

During the month of October, 2007, Sage completed the first hole of a permitted four-hole program on the Pony Spur property in Nevada. The Pony Spur property is contiguous to Grandview Gold's Pony Creek property which is reported to host a 1,426,000-ounce inferred resource. Grandview Gold Inc.'s news in Stockwatch Oct. 9, 2007, reported that it had intersected 2.18 grams of gold per tonne over 120 feet on its Pony Creek property.

The first hole of the drill program was designed to test a prominent northwest-trending jasperoid breccia zone flanking a major high-angle graben structure. Drill hole PS-07-01 was abandoned at a depth of 280 metres (934 feet) after traversing an open space cavity from 275 metres (917 feet) to 278.7 metres (929 feet). This hole was planned to intersect the high-angle fault at 360 metres (1,200 feet). Anomalous gold and silver values along with pathfinder elements consisting of arsenic, antimony, barium, copper, mercury, zinc, manganese, thalium and cerium were returned from hematitic matrix hydrothermal vein breccias and siliceous, sooty collapse breccias, similar to the Rain mine gold zones. The gold and silver values returned over the 330-foot-wide jasperoid zone range from 30 parts per billion to 410 ppb and 89 ppb to 3,010 ppb. Further details pertaining to the Pony Spur drill program are available at the company's website.

Sage is planning to drill three inclined holes designed to intersect the jasperoid zone and adjacent Chainman formation contact. Drilling will be from permitted drill pads located on the north side of the graben structure. The program is scheduled to commence in early June, 2008. Project geological management for both the Pony Spur and Gold Hill projects was conducted by Hubacheck Consulting Geologists, an affiliate of W.A. Hubacheck Consultants Ltd.

Core processing, logging and storage for the Pony Spur project were carried out in secure facilities located in Elko, Nev. The NQ-size core was sawn and samples prepared in 0.75-metre (2.5-foot) to 1.5-metre (five-foot) standard lengths in breccias zones and variable lengths when necessary to sample veining, geological and alteration contacts. ALS Chemex labs in Elko were retained to perform sample preparation, QA/QC procedures for the gold AAS analyses which were conducted at Chemex's Reno facility and ICP-AES spectroscopy at Vancouver.

We seek Safe Harbor.