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Sage Gold’s (SGX.v) highly-advanced, past producing Clavos gold mine is located in the prolific Abitibi greenstone belt, 32 kilometres northeast of the city of Timmins, Ontario.

The Abitibi is one of the world’s largest greenstone belts that in the past 100 years has produced more than 170 million ounces of gold.

Current operations include the Black Fox Mine which has a mineral reserve and resources of 2-million ounces and Goldcorp’s Hoyle Pond mine, 20 kilometres to the west which has produced more than 2.8 Mozs since 1985.

The city of Timmins is a major gold mining hub with a host of specialized service providers and experienced mining crews.

The Clavos property has ready access to advanced project infrastructure, including Brigus Gold’s 2,000-tonne-per-day mill, just 10 kilometres off site.

The Clavos property comprises 73 mining claims covering 25.4 square kilometres along an east-west direction.

Sage Gold optioned the Clavos project from St. Andrew Goldfields in 2010 and can earn up to a 60% interest in the property.

The site has $72 million worth of significant above-and below-ground infrastructure, including power to the site, access to major roads, and on-site water treatment facilities.

And Sage Gold retains the existing mining permit until 2019.

As a past producing mine Clavos has substantial underground infrastructure as well. The existing ramp, which can accommodate extensive underground exploration, reaches a depth of 310-metres with access levels at 25-metre intervals.

Historically, more than 150,000 metres of surface and 50,000 metres of underground drilling have been completed on the site.

A 2006 NI 43-101 resource estimate on the Clavos Project defined an inferred resource of 114,000 ounces gold, plus an additional 47,200 oz gold in the indicated category.

The strike zone of the Clavos deposit appears to measure approximately 2.1km and extends from 15 to 50 metres wide. The deposit remains open to the east. Presently the depth of the deposit remains unknown; many drill holes are mineralized at a depth of 400 metres; one drill hole intersected mineralization to a depth of 600 metres.

St. Andrew’s brief period of mining extracted 19,563 ounces of gold from the Central Structural Zone between July 2005 and August 2006.

Sage is presently conducting a 12,500 metre drill program to update the inferred resources to indicated, and to identify new resources outside the Central Structural Zone.

Five exploration blocks surround this zone, including three underground and two surface exploration blocks.

These surface exploration blocks east and updip of previous drilling, has been the site of numerous high grade results in 2011.

Due to the success of this drilling, Sage Gold has added a second drill rig and expanded the drill program.

Sage Gold believes that recent exploration at the Clavos Mine indicates this deposit is a likely, near-term producer. With the incorporation of previously unreported drilling, plus historic and ongoing drilling, Sage Gold plans to release an updated resource estimate by Q4 2011.

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