Sage Gold (CVE:SGX) provided Wednesday an update on its operations at the Clavos gold deposit, located in Timmins, Ontario.
The company said it has completed the $3.0 million expenditure required under its earn-in agreement with St. Andrew Goldfields (TSE:SAS), in order to earn a 60 percent interest in the deposit.
Sage said it has sent the expenditure data to St. Andrew for approval.
In addition to this $3.0 million, Sage must pay $75,000 in cash to St. Andrew, issue $75,000 in shares of its common stock, and replace the $250,000 closure bond, in order to earn its 60 percent interest.
The company also announced that Roscoe Postle Associates (RPA) is in the final stages of completing all required wire framing and block modeling associated with the completion of an updated NI 43-101 compliant resource estimate for the Clavos deposit.
The estimate is expected for completion during the first quarter of 2012, and will contain mineral resources for the "Existing Clavos" deposit zone, the Sediment zone, the 960 zone, and the Contact zone.
The Sediment, 960, and Contact zones were not included in the previous estimate for the deposit, which was completed in October 2006, also by RPA.
The previous report estimated a measured and indicated resource of 143,000 tonnes at 8.0 g/t gold containing 37,000 ounces, and an additional inferred resource of 529,000 tonnes at 6.5 g/t gold for 110,000 ounces of gold.
Following the completion of the updated resource estimate, Sage said it will undertake a scoping study, which it expects will provide it with the data required to evaluate the feasibility of several development options on the property.
These options include the potential for near term cash flow related to the extraction of tonnage identified with the existing Clavos deposit, the feasibility of developing the 960 zone with one or two exploration drives, and the position of the Sediment zone, in relation to the 960 zone.
The 960 zone is located 600 metres east of the existing Clavos underground workings. Sage said it is possible that the Sediment zone could offer access to the 960 zone, reducing capital expenditures.
Finally, Sage announced Wednesday the completion of 2,400 metres of drilling within the 960 zone, for which assays are pending. The drilling targeted the potential down-dip extension of the zone, as well as tested the Sediment zone to the south of 960.
Sage is a mineral exploration company with its main properties being the Clavos Gold deposit in Timmins, and the Lynx deposit and other exploration properties in the Beardmore -Geraldton Gold Camp.