Sabina Gold & Silver Announces Further Success at Back River Project, Nunavut Significant Results From Umwelt Hole 10GSE98 Returns 10.52 g/t Gold Over 65.55 Metres Including 17.64 g/t Gold Over 28 Metres
Significant Results From Umwelt Hole 10GSE98 Returns 10.52 g/t Gold Over 65.55 Metres Including 17.64 g/t Gold Over 28 Metres
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/11/10 -- Sabina Gold & Silver Corp (TSX: SBB) is pleased to announce further significant results from drilling at its new Llama Lake, Umwelt Lake and Echo discoveries at the Goose Lake property on its 100% owned Back River project in Nunavut, Canada.
'We continue to be encouraged by results generated from our drilling at Back River,' said Tony Walsh, President & CEO. 'Our technical team continues to successfully utilize their exploration toolbox to advance these zones. As with all banded iron formation gold deposits, these units tend to be complex, and interpretations of the deposits are evolving as more drilling is completed and data received. The significance of these new areas is very apparent however, and we plan to aggressively continue to drill for the remainder of the season until time and supplies run out. With increased funding for work on Back River this year, we plan to continue to move this project forward.'
The target areas have all been identified using an exploration model based on geological and geophysical signatures used to identify areas with significant alteration and mineralization. Typically these areas display iron formation units where the magnetic expression has been 'washed out' or demagnetised by alteration and structural deformation. Sabina continues to refine their exploration methodology to develop a disciplined strategic approach to identifying the numerous new targets at Back River and the adjoining Wishbone project. Targets are currently being evaluated for next year's drilling program.
Originally 20,000 metres at a cost of $10 million was budgeted for the 2010 Back River program. Due to the new discoveries at Llama and Umwelt, the budget has increased. It is likely that by the end of the campaign, 41,000 metres of drilling will have been completed at Back River. Four drill rigs will continue to operate until September subject to adequate supplies.
While time and supplies are running short at camp, the Company's 2010 objectives are to complete a partial resource on the Llama and potentially Umwelt Lake areas and possibly Echo, 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 commence a preliminary economic assessment on the Back River project early next year. Subject to a positive preliminary economic assessment, permitting efforts could commence later in 2011.
UMWELT LAKE
As announced on June 21, 2010, the new Umwelt Lake area is situated approximately 1.3 kilometres to the south of the recently discovered Llama Lake Zone at Goose Lake and was targeted based on its similar geophysical signature to both the Llama and Goose deposits. To date a total of 31 holes totalling 8,404 meters have been completed or are in progress on this target with assays reported for 9 holes.
Additional drilling at Umwelt has identified two gold mineralized zones which appears to be an anti-form feature with an upper East and a lower West Zone. The fold hinge is interpreted to plunge to the south. Hole 10GSE98 has been the most successful hole drilled to date at Umwelt, returning 10.52g/t over 65.55 metres. This hole was drilled on the same section and above the discovery holes reported on June 21, 2010 (10GSE66 and 10GSE69 which returned 11.32 g/t gold over 10.9 metres). Initial interpretations are that this hole appears to have cut the folded portion of the antiform feature with true widths estimated to be at least 65% of the drill width. Complete assay results and further drilling in 2010 will be required to confirm this interpretation.
Results from the East Zone indicate that it is the stronger of the two returning some wide zones of moderate grade mineralization. Hole 10GSE81 drilled approximately 200 metres south of the discovery holes, returned 5.40 g/t over 44 metres including 9.05 g/t over 11 metres. Although the West Zone tends to be narrower, it is well mineralized and displays good continuity. Hole 10GSE94 returned 4.10 g/t over 5 metres.
To date the continuity of mineralization in the Umwelt area has been established over a 300 metre strike length and has been encountered to a depth of 250 metres. Visible gold has been noted in many but not all of the holes drilled to date. The zone remains open both along strike and to depth and drilling continues.
Drilling highlights include:
Umwelt Drilling Results
-------------------------------------------------------------------------
East- North- Depth From To Length Au
Hole ID ing ing (m) (m) (m) (m) (g/t) Comment
-------------------------------------------------------------------------
10GSE73 429840 7270946 365 93.00 137.75 44.75 2.84 East
including 94.60 95.75 1.15 48.9 Zone
-------------------------------------------------------------------------
10GSE76 429889 7270984 356 139.00 151.00 12.00 11.29 East
11.29 Zone
-------------------------------------------------------------------------
10GSE81 429946 7270913 302 160.00 204.00 44.00 5.40 East
including 170.00 180.00 10.00 7.74 Zone
and 185.00 196.00 11.00 9.05
-------------------------------------------------------------------------
10GSE83 429946 7270913 332 177.00 180.00 3.00 9.20 East
Zone
-------------------------------------------------------------------------
10GSE98 429728 7270992 251 28.45 94.00 65.55 10.52 East
including 30.00 58.00 28.00 17.64 Zone
and 89.00 94.00 5.00 19.84
-------------------------------------------------------------------------
LLAMA LAKE
On May 4, 2010, Sabina announced that a potentially significant new gold discovery had been made at Llama Lake approximately 8 km to the north west of the Goose Lake deposit. Llama Lake was also initially targeted due to its similar geophysical and geological signature to that found at the Goose Lake deposit.
To date a total of 53 holes have been completed or are in progress at Llama with assays being reported for 32 holes. Initial interpretations of Llama suggest that it 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 dykes. However, the geological interpretation of the area is still evolving and is largely based on visual interpretation of mineralization and structures in the core.
New results at Llama Lake include Hole 10GSE 53 returning 7.65 g/t over 7.2 metres. Drilling continues to extend the strike length at Llama and continuous mineralization can now be seen over 500 metres of strike length to a depth of 250 metres. Drilling continues to test south of Llama Lake.
Drilling highlights include:
Llama Lake Drilling Results
-------------------------------------------------------------------------
East- North- Comm- From To Length Au
Hole ID ing ing ent (m) (m) (m) (g/t) Comment
-------------------------------------------------------------------------
10GSE34 428813 7272368 44.00 50.00 6.00 21.98 East
Zone
and 139.00 143.00 4.00 5.40 West
Zone
and 159.00 169.00 10.00 6.08 West
Zone
-------------------------------------------------------------------------
10GSE49 429054 7272161 177.00 195.00 18.00 3.21 West
including 182.00 189.00 7.00 5.80 Zone
-------------------------------------------------------------------------
10GSE53 429110 7272135 218.00 225.20 7.20 7.65 West
Zone-
HW
and 230.60 237.00 6.40 8.12 West
including 230.60 234.00 3.40 11.96 Zone
-------------------------------------------------------------------------
10GSE54 428755 7272421 33.00 36.00 3.00 8.32 East
Zone
and 116.00 121.00 5.00 11.84 West
Zone
-------------------------------------------------------------------------
ECHO ZONE
As announced on October 7, 2009, the Echo Zone was discovered approximately 2 km to the southwest of the Goose Lake deposit in the summer of 2009. The Echo Zone was also targeted for its geological and geophysical similarity to the Goose deposit. A total of 3,782 metres were drilled in 15 holes in 2009 with significant assay results obtained from hole 09GSE08 and follow up hole 09GSE09. The best results were obtained in hole 09GSE25 which returned 8.17g/t over 15.15 metres.
With a view to drilling the Echo Zone to a resource estimate, in 2010 a total of 22 holes have been completed at Echo. After the discovery of Llama Lake, drills were redirected from Echo to Llama. Results from the 2010 Echo drilling have been reported in the updated Back River technical report filed on SEDAR on July 26, 2010. The best intercept from the 2010 drilling was 20.65 g/t Au over 6.7m including 119.7 g/t Au over 1.0m.
It appears that values are strongest where the east-west striking-south dipping zone and the north-south striking east dipping zones intersect. Assay values drop off gradually as you move away from this intersection area. The geometry of the two mineralized zones creates a wedge shaped zone that will require further drilling to complete resource calculations, but it is unsure if this drilling will be fully completed in 2010 due to the priority to evaluate the stronger mineralization encountered at Llama and Umwelt. Further target definition work and possibly drilling will also be undertaken to determine if and how the Echo Zone connects with the Goose Lake deposit.
GOOSE LAKE
Drilling has started on the Goose deposit in order to generate a new resource that would be better suited to assess the possibility that the Goose mineralization could be mined as an open pit. Previous historical studies had assumed underground mining. Three holes have been completed in the 'hinge area' above the shallow plunging iron formation. Mineralization has been noted in the holes and all assays are pending. A further 5-8 holes are planned for 2010.
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.
The mineral resource estimate for Hackett River was prepared as part of the Preliminary Economic Assessment (PEA) update by Gordon Zurowski, P.Eng., Principal Mine Engineer of PEG Mining Consultants Inc. CIM Definition Standards (2005) have been used in defining the mineral resource categories.
Project Management of the PEA study was conducted by Eric Harkonen, P.Eng. and Principal Project Manager/Mine Engineer of PEG Mining Consultants Inc. Both individuals are qualified persons as defined by NI43-101. The report can be found at 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, change.
This news release has been authorized by the undersigned on behalf of Sabina Gold & Silver Corp.
Tony Walsh, President & CEO
To view the maps accompanying this press release please click on the following link: http://media3.marketwire.com/docs/SBB0811.pdf
Umwelt Drilling Results
-------------------------------------------------------------------------
East- North- Depth From To Length Au
Hole ID ing ing (m) (m) (m) (m) (g/t) Comment
-------------------------------------------------------------------------
10GSE66 429819 7271062 338 127.00 128.10 1.10 7.20 East
Zone
-------------------------------------------------------------------------
10GSE71 429734 7271126 263 79.60 80.10 0.50 1.41 East
Zone
and 80.70 81.20 0.50 1.03 East
Zone
-------------------------------------------------------------------------
10GSE73 429840 7270946 365 93.00 137.75 44.75 2.84 East
including 94.60 95.75 1.15 48.9 Zone
and 101.95 103.30 1.35 2.57
and 107.50 110.50 3.00 3.25
and 125.30 126.25 0.95 3.64
and 127.15 128.40 1.25 3.52
and 132.20 137.75 5.55 3.95
-------------------------------------------------------------------------
10GSE76 429889 7270984 356 132.55 134.65 2.10 2.56 East
and 139.00 151.00 12.00 11.29 Zone
-------------------------------------------------------------------------
10GSE78 429900 7270874 263 134.00 137.00 3.00 3.25 East
Zone
-------------------------------------------------------------------------
10GSE81 429946 7270913 302 160.00 204.00 44.00 5.40 East
including 170.00 180.00 10.00 7.74 Zone
and 185.00 196.00 11.00 9.05
-------------------------------------------------------------------------
10GSE83 429946 7270913 332 177.00 180.00 3.00 9.20 East
Zone
-------------------------------------------------------------------------
10GSE94 429774 7271095 323 257.00 262.00 5.00 4.10 West
Zone
-------------------------------------------------------------------------
10GSE98 429728 7270992 251 28.45 94.00 65.55 10.52 East
including 30.00 58.00 28.00 17.64 Zone
and 89.00 94.00 5.00 19.84
-------------------------------------------------------------------------
Llama Lake Drilling Results
-------------------------------------------------------------------------
East- North- Depth From To Length Au
Hole ID ing ing (m) (m) (m) (m) (g/t) Comment
-------------------------------------------------------------------------
10GSE29 429025 7272322 419 91.00 91.75 0.75 1.29 undef-
ined
and 158.00 159.00 1.00 4.15 East
Zone
and 162.00 163.00 1.00 1.15 East
Zone
-------------------------------------------------------------------------
10GSE34 428813 7272368 208 44.00 50.00 6.00 21.98 East
Zone
and 53.00 58.00 5.00 1.52 East
Zone
and 124.00 125.50 1.50 1.42 West
Zone
and 139.00 143.00 4.00 5.40 West
Zone
and 144.00 148.00 4.00 2.02 West
Zone
and 159.00 172.00 13.00 4.95 West
Zone
including 159.00 169.00 10.00 6.08 West
Zone
-------------------------------------------------------------------------
10GSE35 428706 7272480 316 12.00 13.00 1.00 2.14 East
Zone
and 15.00 19.00 4.00 4.50 East
Zone
and 29.50 32.50 3.00 1.31 East
Zone
and 36.00 41.50 5.50 1.86 East
Zone
and 271.00 272.00 1.00 1.59 West
Zone
-------------------------------------------------------------------------
10GSE37 428764 7272345 121 53.00 56.35 3.35 2.49 undef-
ined
-------------------------------------------------------------------------
10GSE38 428934 7272224 224 117.25 118.00 0.75 8.90 West
Zone
-------------------------------------------------------------------------
10GSE39 428654 7272563 259 No Significant Values
-------------------------------------------------------------------------
10GSE40A 428811 7272248 155 51.70 52.25 0.55 71.66 undef-
ined-
above
fold
nose
and 67.95 68.50 0.55 26.89 undef-
ined-
above
fold
nose
-------------------------------------------------------------------------
10GSE42 428640 7272674 249 No Significant Values
-------------------------------------------------------------------------
10GSE43 428865 7272224 254 No Significant Values
-------------------------------------------------------------------------
10GSE44 428873 7272405 310 No Significant Values
-------------------------------------------------------------------------
10GSE45 428651 7272102 307 No Significant Values
-------------------------------------------------------------------------
10GSE47 428806 7272306 203 No Significant Values
-------------------------------------------------------------------------
10GSE49 429054 7272161 311 177.00 195.00 18.00 3.21 West
including 182.00 189.00 7.00 5.80 Zone
-------------------------------------------------------------------------
10GSE50 428877 7272175 167 No Significant Values
-------------------------------------------------------------------------
10GSE51 429111 7272252 293 No Significant Values
-------------------------------------------------------------------------
10GSE52 428907 7272135 248 29.50 30.50 1.00 2.55 West
Zone-
HW
44.85 45.60 0.75 7.34 West
Zone
50.00 50.50 0.50 3.67 West
Zone-
FW
-------------------------------------------------------------------------
10GSE53 429110 7272135 338 218.00 225.20 7.20 7.65 West
Zone-
HW
and 230.60 237.00 6.40 8.12 West
Zone
including 230.60 234.00 3.40 11.96
-------------------------------------------------------------------------
10GSE54 428755 7272421 206 33.00 36.00 3.00 8.32 East
Zone
and 116.00 121.00 5.00 11.84 West
Zone
-------------------------------------------------------------------------
10GSE55 428657 7272451 200 No Significant Values
-------------------------------------------------------------------------
10GSE56 429144 7272038 317 177.00 178.00 1.00 1.66 Central-
undef-
ined
-------------------------------------------------------------------------
10GSE57 428630 7272495 158 75.00 76.00 1.00 2.31 Central-
undef-
ined
-------------------------------------------------------------------------
Contacts:
Sabina Gold & Silver Corp.
Nicole Hoeller
Director, IR
1 888 648-4218
nhoeller@sabinagoldsilver.com
www.sabinagoldsilver.com