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Sage, Gryphon drill 21.3 m of 1.47 g/t Au at Borealis

2010-05-28 09:41 NT - News Release

See News Release (C-SGX) Sage Gold Inc (2)

Mr. Nigel Lees of Sage Gold reports

SAGE-GRYPHON EXPANDING THE BOREALIS GOLD DEPOSIT; 21.3 METRES AT 1.47G/T AU

Gryphon Gold Corporation (TSX:GGN) and Sage Gold Inc. (TSX VENTURE:SGX) are pleased to announce the assays for the next six reverse circulation holes in the oxide drilling program on the Borealis project. These holes are distributed into three targets that represent over a mile of the mineralized trend. Individual drill holes were terminated once the oxide- sulphide boundary was reached since the potentially extensive deeper sulphide mineralization is not being evaluated at the present time since the last press release (May 25, 2010) one additional hole (FF-16) was drilled into the Freedom Flats pit area with good results. This hole, along with the earlier announced three holes continue to confirm that the western side of the Freedom Flats has good grades and potentially mineable thicknesses of gold mineralization.

The following summary table highlights the gold intercepts in the Freedom Flats hole.

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Hole                Total Depth      From/To    Interval      Gold      Gold
Number                      (m)          (m)         (m)     (g/t)     (opt)
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FF-16                       102  57.9 - 79.2        21.3      1.47     0.043
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A cut off grade of .005 opt (0.17g/t Au) was used in calculating assay intervals. The true widths of the intercepts are not known. FF-16 was drilled vertically.

Echo Bay Mines Ltd. produced 195,000 ounces of oxide gold at an average grade of 0.15 opt (5.23g/t Au) from Freedom Flats during the period 1987-1989 using conventional open pit and heap leach technology. Sage and Gryphon have determined that additional step out drilling is warranted on the south-western extension of the Freedom Flats deposit.

A second drilling area focused on the south-eastern corner of the East Ridge Pit floor where no drilling data existed. This area was tested for both grade and oxidation level with good results. East Ridge is located about a mile to the northeast of Freedom Flats. Historically, it produced about 3.4 million tons of 0.03 opt (1.03g/t Au) for about 102,000 ounces of gold. Follow - up drilling in other areas of the pit floor will be conducted along with drilling the high wall.

The following summary table highlights the gold intercepts in the East Ridge holes.

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Hole                Total Depth      From/To    Interval      Gold      Gold
Number                      (m)          (m)         (m)     (g/t)     (opt)
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ER-28                      12.2      0 - 6.1         6.1      0.63    0.0185
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ER-29                      10.7     0 - 10.7        10.7      0.41     0.012
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ER-30                      15.2     0 - 15.2        15.2      0.72     0.021
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ER-31                       7.6      0 - 7.6         7.6      5.07     0.148
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A cut-off grade of .005 opt (0.17 g/t Au) was used in calculating assay intervals. The true widths of the intercepts are not known. Drill hole ER-28 was drilled vertically and 29,30,31 were minus 45 degrees.

Drilling is underway in the Middle Ridge area, located on trend to the northeast from East Ridge Pit as part of the overall 6000 ft drill program in Phase 1. Drilling is being conducted in an area where few historical drill holes were drilled. By infilling the drilling pattern, Sage- Gryphon expects to convert the inferred resources in the area to indicated. The first hole on the lower reaches of Middle Ridge returned some low grade values that will help support a long mineralized trend as drilling moves up the Ridge. No previous mining has been conducted in this area, but Sage- Gryphon believes that when Middle Ridge is fully developed, then it will be part of a mile long pit trending from East Ridge up to Northeast Ridge Pits.

The following table highlights the gold intercepts from Middle Ridge.

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Hole                Total Depth      From/To    Interval      Gold      Gold
Number                      (m)          (m)         (m)     (g/t)     (opt)
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MR-14                      62.5  16.7 - 27.4        13.7      0.41     0.012
                                 30.5 - 54.9        24.4      0.38     0.011
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A cut-off grade of .005 opt (0.15 g/t Au) was used in calculating assay intervals. The true widths of the intercepts are not known. MR-14 was drilled at minus 45 degrees.

The current drilling program is designed to upgrade inferred oxide resources reported in Gryphon's 2008 NI 43-101 "Technical Report on the Mineral Resource of the Borealis Gold Project Located in Mineral County, Nevada, USA" to the Measured and Indicated category and to potentially add additional oxide ounces to the Borealis resource. Drilling will test multiple targets within the permitted mining area with the designed intent of increasing resources for the short term mine plan. Targets include extensions of known ore zones, infill drilling and identification of additional mineralized zones.

One reverse circulation drill continues to operate and is currently finishing the Middle Ridge program. The drill will then be moved to a target to extend the old Borealis Pit to the northeast area and then move back to Freedom Flats to finish testing the oxide gold zone which is trending to the west.

Gryphon and Sage entered into an option agreement on March 5, 2010, as amended. Under the terms of the Option Agreement Gryphon has agreed to grant Sage the right to earn a 50% interest in the Borealis property, including the permitted Borealis oxide gold project located in the Walker Lane Mineral Belt of Southwest Nevada. SRK Consulting (U.S.) Inc. has been engaged to prepare a bankable study.

The Borealis property is described in a technical report dated April 28, 2008 titled "Technical Report on the Mineral Resources of the Borealis Gold Project Located in Mineral County, Nevada, U.S.A" and prepared in accordance with National Instrument 43-101 of the Canadian Securities Administrators ("NI 43-101") filed on www.sedar.com. This technical report describes the exploration history, geology and gold resources at the Borealis property. Disclosure in this press release of mineral resources is based on the technical report. Details of the quality or grade of each category of mineral resources and key assumptions, parameters and methods used to estimate the mineral resources is included in the technical reports. The technical report also includes a description of environmental and permitting matters.

The technical information in this press release was approved by Mr. Steven Craig, VP of Exploration of Gryphon Gold, who is a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators.

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