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Tuesday, 20 November 2012
Sage Gold secures permit to re-open Clavos
Toronto-based Sage Gold (CVE:SGX) says it has secured the permit and completed the necessary change of ownership to re-open its Clavos mine site in Timmins, Ontario, for exploration, development and eventual production.
The company said Tuesday the required environmental compliance approvals have been received from the Ontario Ministry of Environment, comprising the "Permit to Take Water", and "Industrial Sewage Works Approval".
Both of these approvals came under the Ontario Water Resources Act, and an Air Approval granted under the Environmental Protection Act.
Sage's closure plan has been filed by the Ministry of Northern Development and Mines, with the receipt of this permit allowing it to dewater the Clavos mine, continue advanced exploration and development, as well as start production at 700 tonnes per day.
The company is expected to wrap up a preliminary economic assessment of the project by the end of this year.
Sage Gold has just come off more than doubling the gold ounces at its Clavos deposit in the Timmins gold camp of Ontario, and is now set for further expansion at the project – which it hopes to advance to production.
Just weeks ago, the company announced that the new NI 43-101 compliant resource estimated indicated resources of 1.26 million tonnes at 4.81 grams per tonne (g/t) gold, for a total of 194,600 ounces of gold.
This is in addition to the inferred mineral resources of 796,000 tonnes at 4.7 g/t gold, representing a total of 120,000 ounces.
The growth in gold ounces reflects additional underground and surface drilling within the last two years, and the addition of the 960 zone and Sediment deposits at the property, which is owned 60 per cent by Sage and 40 per cent by St. Andrew Goldfields (TSE:SAS).
Though some surface drilling is planned to expand the resource, Sage’s CEO Nigel Lees recently told Proactive Investors that drilling at the site is more effective from underground. The company plans to tighten the spacing of the holes through definition drilling, with the aim to upgrade resources to the reserve category.
“All we have to do is go back down the ramp and dewater – this is planned for the end of the first quarter next year. A large part of our planned budget will go toward definition drilling to convert resources to reserves, and our capex estimates are very modest,” he affirmed.
Both Sage and St Andrew Goldfields have agreed to split expenditures at Clavos 60/40, according to their respective interests.
Aside from Clavos, Sage also holds the polymetallic copper-silver-gold Lynx deposit in the Beardmore-Geraldton gold camp, which has an NI 43-101 resource.