Sage rallies on nickel numbers (June 25, 2007)

Vancouver — Junior explorer Sage Gold (SGX-V, SGGDF-O), a dime stock, saw its value double on over 21 million shares traded in less than four hours recently, after the company announced strong drill results out of its Jacobus nickel-copper project in Ontario.

Sage reported the highest-grade nickel hole to date from the project in mid-June: drill hole 07-06 intersected 0.95% nickel and 1.16% copper over 11.5 metres (true width 8.5 metres), including 6.5 metres grading 1.23% nickel and 1.4% copper. Assay results also showed platinum and palladium in anomalous amounts of up to 0.123 gram per tonne, and up to 0.134 gram gold per tonne.

“This is certainly the best drill hole we’ve ever drilled, and it’s the best hole ever on this property,” says Sage president and CEO Nigel Lees. “It’s very exciting both because of the high grade and the increase in tonnage.”

A historical estimate pegged resources for the project at roughly 1 million tonnes grading 0.43% copper and 0.4% nickel, but the estimate only included the zone from surface down to 150 metres. Drilling by Sage has extended the zone to 580 metres down-plunge from surface, with thicknesses varying between 5 and 40 metres. The width ranges from 30 to 90 metres.

“We have very good grades and a good extension of mineralization,” Lees says. “Now we have to do a lot more drilling to move the property in the compliant-resource category.”

Previous drilling by Sage combined with historical drill results suggest a trough-like mineralized structure plunging at 45. Mineralization consists of disseminated chalcopyrite-pyrrhotite-pentlandite in anorthositic gabbro.

Sage is currently completing a 9-hole drill program. When results from that program are complete, the company plans to begin on infill drilling between historical holes to move towards a resource estimate.

Sage owns a number of other properties in Ontario, as well as a group of projects in Nevada and Arizona. The company is exploring the nearby copper-gold-silver Onaman project, which saw 3,000 metres of drilling in 2006.

Sage’s Kerr project is a joint venture with privately held Sheltered Oak Resources. The gold project has been explored with more than 18,000 metres of drilling, and Sheltered Oak is planning a third-phase drill program for the summer.

In Nevada, Sage holds a number of gold properties in early stages of exploration. One of those projects, Pony Spurr, is located beside Grandview Gold (GVX-T, GVGDF-O) and Mill City Gold’s (mc-v, mcygf-o) Pony Creek property, which has an inferred re- source of 1.4 million contained ounces gold.