Sabina Gold & Silver Continues to Extend Strike Length at Exciting Llama Lake Gold Discovery at Back River Project, Nunavut Significant Results From Hole 10GSE63 Returning 18.66 g/t Gold Over 13 Meters Including 29.46 g/t Gold Over 7 Meters
Significant Results From Hole 10GSE63 Returning 18.66 g/t Gold Over 13 Meters Including 29.46 g/t Gold Over 7 Meters
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/21/10 -- Sabina Gold & Silver Corp (TSX: SBB) announced today additional drill hole results on the new Llama Lake discovery on its 100% owned Back River project in Nunavut, Canada.
LLAMA LAKE
As announced on May 4, 2010, a significant new gold discovery has been made at Llama Lake approximately 5 km northwest of the Goose deposit. The zones are part of the Company's 100% owned Back River Project.
Assay results have been received from an additional four holes at Llama Lake as shown in the table below. These holes effectively extend the mineralized Llama Lake zone along strike an additional 100 metres to a current length of 425 meters and include the deepest intercept received to date at 250 meters below surface. They also demonstrate the continuity of the deposit and its potential as a significant new gold discovery.
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Hole Notes From (m) To (m) Width (m) Grade (g/t)
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10GSE65 Upper East Zone 18.0 24.0 6.0 14.65
Including 18.0 22.6 4.6 18.72
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10GSE63 Lower West Zone 341.0 354.0 13.0 18.66
Including 345.0 352.0 7.0 29.46
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10GSE62 Upper East Zone 65.6 73.0 7.4 2.96
Lower West Zone 107.6 114.8 7.2 11.36
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10GSE34 Upper East Zone 44.0 50.0 6.0 21.98
Lower West Zone 139.0 143.0 4.0 5.40
Lower West Zone 159.0 169.0 10.0 6.08
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To see these holes plotted please link to http://www.corebox.net/properties/back_river/
'Llama Lake could very well shift the centre of gravity at Back River from the Goose deposit,' said Tony Walsh, President & CEO. 'We continue to be excited about the potential of this new discovery to add to the critical mass of ounces we believe we need to advance the project to economic studies.'
To date a total of 43 holes totalling 11,000 meters have been completed or are in progress at Llama Lake, with partial intercepts from fourteen holes being reported to date (May 4, 2010 and May 10, 2010 and June 09, 2010). During the spring break up, two drills are currently operational at Back River, one at Llama Lake and one approximately 1.3 km to the south at the Umwelt target. When the thaw is over in mid-July, four rigs will resume on the area to continue testing the Llama structure as we follow it onto land.
Llama Lake Geological Setting - Primary Findings
Llama Lake was initially targeted based on a similar geophysical and geological signature as is found at the Goose deposit located 8 kilometres to the south.
Preliminary geological interpretation models suggest that Llama Lake is a fold structure consisting of both an Upper and Lower Iron formation with an interbedded sediment core all of which have been intruded by a series of late stage felsic and gabbro dykes. Mineralization is associated with quartz veining, felsic dykes and significant concentrations of sulphides. Visible gold has been noted in a number of the holes. The geological model and mineralization style are very similar to the Goose Lake deposit.
Initially a budget of $10 million and 20,000 metres of drilling had been approved for Back River's 2010 program. However, due to the success at Llama Lake, the Board has approved additional spending of $2.5 million for this year to accomplish approximately 10,000 metres more drilling.
The exploration objectives at Back River for this year are to drill the Echo Zone, discovered last year, to resource by the end of the year, to complete a partial resource on the Llama Lake deposit by the end of the year, and to complete drilling and internal studies for a conceptual open pit at the Goose Lake deposit. If all these objectives are accomplished and positive, the Company can move forward to a preliminary economic assessment on the Back River project early next year.
SABINA GOLD & SILVER CORP.
Sabina Gold & Silver Corp. is an emerging precious metals company with district scale, world class undeveloped assets in one of the world's newest, most politically stable mining jurisdictions: Nunavut, Canada.
The properties consist of the Hackett River silver-zinc Project, the Back River Gold Project, both advanced exploration properties, as well as the Wishbone Claims, a vastly prospective grass roots project.
The combined holdings total approximately 3,000 square kilometres and cover the largely unexplored Wishbone Greenstone belt.
Hackett River is one of the largest undeveloped silver - zinc volcanic massive sulphide ('VMS') deposits in the world with indicated resources totalling 43.6 million tonnes with diluted (recovery) grades of 4.15% zinc, 129 g/t silver, 0.35% copper, 0.58% lead and 0.27 g/t gold. An additional inferred open resource totalling 16.0 million tonnes with diluted (recovery) grades of 3.53% zinc, 111 g/t silver, 0.24% copper, 0.46% lead and 0.25 g/t gold is also contained at Hackett River.
The Back River Project is comprised of the George and Goose Lake gold deposits and contain measured & indicated gold resources of 3.4 million tonnes grading 10.9 g/t Au for 1.19 million ounces and inferred resources of 3.6 million tonnes grading 10.2 g/t Au for 1.16 million ounces of gold.
Quality Assurance
Mr. Doug Cater, P. Geo, and Project Manager, Back River Project of Sabina Gold & Silver Corp is a Qualified Person under the terms of NI43-101 and has reviewed the technical content of this press release and approved its dissemination.
Mineral resources for Goose Lake and George Lake were generated by RSG Global Consulting Pty Ltd (Coffey Mining) in September 2007, and are posted on www.sedar.com.
Diamond drill core was sent to TSL Laboratories in Saskatoon, Sask. Quality control is monitored on a continual basis and utilizes a system of standards, blanks and duplicates to ensure analytical accuracy. The protocols and procedures used in 2010 are the same as those used in earlier campaigns by Sabina Gold & Silver Corp. and Dundee Precious Metals (previous operator at Back River) and have been deemed appropriate in the above noted 43-101 compliant resource reports.
Forward Looking Statements
Statements relating to exploration, pre-feasibility work and future operations at the Back River Project and the expected results of this work are forward-looking statements within the meaning of securities legislation of certain Provinces in Canada. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words 'expects', 'plans', 'anticipates', 'believes', 'intends', 'estimates', 'projects', 'potential' and similar expressions, or that events or conditions 'will', 'would', 'may', 'could' or 'should' occur. Information inferred from the interpretation of drilling results may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in metal prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from Sabina's operations and other risks and uncertainties, including those described in Sabina's Annual Report for the year ended December 31, 2009.
Forward-looking statements are based on the beliefs, estimates and opinions of Sabina's management on the date the statements are made. Sabina undertakes no obligation to update these forward-looking statements should management's beliefs, estimates or opinions, or other factors, should change.
This news release has been authorized by the undersigned on behalf of Sabina Silver Corporation.
Tony Walsh, President & CEO
To view the maps associated with this press release, please click on the following link: http://media3.marketwire.com/docs/sbb620.pdf
Contacts:
Sabina Gold & Silver Corp.
Nicole Hoeller
Director, IR
1-888-648-4218
nhoeller@sabinagoldsilver.com
Sabina Gold & Silver Corp.
Tony Walsh
President & CEO
604-998-4175
604-998-1051 (FAX)
www.sabinagoldsilver.com