Nigel Lees, President & CEO of Sage Gold, discusses this company with a gold deposit in one of the most prolific gold mining areas.
Sage Gold Inc. is a company that focuses primarily on gold. Their flagship project is the Clavos gold deposit in Timmins, Ontario, known as one of the most prolific gold mining areas in the world.
The previous owner had already spent over $60 million dollars of infrastructure and information when Sage bought it. So that its cap-ex to put it back in production is only $7.25 million.
This is one of the few gold deposits in Canada that is permitted, and the time to go into production is very short. The company started de-watering in January, and expects to be in production this year.
Permitted to do 700 tons a day, it will be doing about 600 tons a day. It’s a deposit with about 320,000 ounces, and the company will be mining over a seven-year period, approximately 146,000 ounces. Average grade is just under five grams.
On budget and on time, the company is positioned to put Clavos back in production. Expecting a very profitable operation, they should be producing ore this year.
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