Sage Gold Making Progress to Restart Clavos Underground Gold Mine, Ontario
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Sage Gold Inc. has made considerable progress in restarting production at the Clavos gold mine site in Timmins, Ontario.
Approximately $35 million was spent on the Clavos underground infrastructure and the mine was briefly in production from 2005 to 2007. Since acquiring an interest, Sage has spent approximately $4 million on compilation and analysis of the deposit, including surface exploration drilling, a new 43-101 resource study and preliminary economic assessment. Before production can commence the existing mine workings will be dewatered and rehabilitated. The company will then undertake underground definition and exploration drilling.
Sage is proceeding with advanced negotiations for project financing of Clavos including working capital needs of the company as well as arrangements with nearby milling facilities for Clavos ore. The company is preparing the necessary documentation to meet all regulatory requirements including filing with the Ministry of Northern Development and Mines a “Notice of a Change of Status” of the Clavos mine site from inactive to active. The change of status will allow Sage to produce up to 700 tonnes per day of mineralized material from the Clavos mine pursuant to the existing closure plan of 2004 as amended and accepted November 9, 2012.
“We remain very bullish on the future price of gold. The Clavos gold deposit is one of the few gold deposits in Canada with advanced permits situated in one of the most prolific and active gold camps in Canada. The improved investment environment for precious metal companies and the relatively low capital costs required to place Clavos into production has greatly facilitated the company’s ability to move the project ahead,” said Nigel Lees, president and CEO of Sage Gold.
About Sage Gold
The company is a mineral exploration and development company which has primary interests in near-term production and exploration properties in Ontario. Its main properties are the Clavos Gold property in Timmins and the 100 percent owned Lynx copper, gold, silver property and other exploration properties in the Beardmore-Geraldton Gold Camp.
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