Canadian Mining Journal

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GOLD: Sage to study natural gas use in mining vehicles at Clavos property

ONTARIO – Sage Gold of Toronto has agreed to study the viability of using compressed natural gas to supplement and/or replace diesel fuel for surface equipment and haulage trucks. The study is to be undertaken with CNG Canada and Change...



ONTARIO – Sage Gold of Toronto has agreed to study the viability of using compressed natural gas to supplement and/or replace diesel fuel for surface equipment and haulage trucks. The study is to be undertaken with CNG Canada and Change Energy with the intention of using gas supplied by the Union Gas pipeline on the Clavos gold project property in Timmins.

The study will also examine the potential to use natural gas instead of propane for underground mine air heating and as an alternative energy source for electric power generation.

Sage Gold president and CEO Nigel Lees said in a release, “Natural gas is the cleanest burning fossil fuel and enjoys a significant price advantage over both hydro and petroleum based fuels available today. Engines that use natural gas produce at least 25% fewer greenhouse gas emissions than their conventional petroleum-fueled counterparts and also contribute to cleaner air by decreasing nitrous oxide and sulphur dioxide compared to gasoline. We are optimistic that the study will indicate substantial cost savings to the proposed mining operation.
With known reserves of natural gas supply in excess of 100 years, natural gas prices are expected to be predictable and stable for the foreseeable future.”

The Clavos gold project is being investigated under the terms of a joint venture agreement between Sage (60%) and St Andrew Goldfield (40%). The property hosts indicated mineral resources of 1.26 million tonnes at 4.81 g/t Au totaling 194,600 oz of gold and inferred mineral resources of 796,000 tonnes at 4.7 g/t representing 120,000 oz. A base case cut-off grade of 2.75 g/t Au with individual assays capped at 60 g/t Au was used to make the estimate.

The preliminary economic assessment of the Clavos project is available at SageGoldInc.com.


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