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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 12, 2012) - Sabina Gold & Silver Corp. (News - Market indicators) announced today the completion of the technical report for the previously announced Back River Gold Project resource update. The detailed 43-101 technical report was filed on SEDAR on January 9, 2012. A summary of the resources was announced in November of 2011.
The resource update was the third update to be announced in 2011 and comprised results of drilling for the 2010 and 2011 seasons. This new estimate has significantly expanded the resource at Back River and is the basis on which a preliminary economic assessment ("PEA") on the project is being prepared. SRK Consulting (Canada) Inc. is currently working on the PEA anticipated early in 2012.
To view accompanying graph, visit the following link: http://media3.marketwire.com/docs/SBB_Graph_2010-2011.jpg
As previously announced, the majority of the resource additions are a result of expansion drilling at the Umwelt deposit, which was extended along strike to over 1.14km and 1.5km down plunge in 2011. Drilling in 2011 increased the size of Umwelt and also established its continuity. Towards the end of the drilling season, deeper drilling at Umwelt identified a new G2 zone (Good Grade, Good Width). The G2 zone is a thicker higher grade zone at depth which is still open and has great potential to keep adding to the resource.
| Back River Resource Estimate - November 2011 |
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| Classification |
Location |
Tonnes |
Au (g/t) |
Ounces Au |
| |
| Open Pit Indicated |
Goose |
7,697,000 |
4.45 |
1,101,000 |
| |
Llama |
1,860,000 |
9.41 |
562,000 |
| |
Umwelt |
6,532,000 |
4.89 |
1,026,023 |
| Total Open Pit Indicated |
|
16,089,000 |
5.20 |
2,689,023 |
| |
| Underground Indicated |
Umwelt |
4,407,000 |
5.31 |
751,900 |
| |
George |
1,838,000 |
10.00 |
590,000 |
| Total Underground Indicated |
|
6,245,000 |
6.69 |
1,341,900 |
| |
| Total Indicated OP + UG |
|
22,334,000 |
5.62 |
4,030,923 |
| |
| Open Pit Inferred |
Goose |
436,000 |
3.53 |
50,000 |
| |
Llama |
981,000 |
5.71 |
180,000 |
| |
Umwelt |
1,160,000 |
4.00 |
149,300 |
| Total Open Pit Inferred |
|
2,577,000 |
4.57 |
379,300 |
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| Underground Inferred |
Goose |
570,000 |
5.81 |
106,000 |
| |
Umwelt |
4,328,000 |
4.75 |
665,100 |
| |
George |
2,563,000 |
10.50 |
866,000 |
| Total Underground Inferred |
|
7,461,000 |
6.81 |
1,637,100 |
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| Total Inferred OP + UG |
|
10,038,000 |
6.23 |
2,016,400 |
| Notes: |
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| 1. |
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The Qualified Person for the George, Goose and Llama Mineral Resource estimates is Doug Cater P. Geo, Project Manager Sabina. The Qualified Person for the Umwelt Resource Estimate is Marek Nowak, P.Eng., SRK Consulting (Canada) Inc. |
| 2. |
|
Mineral Resources for Goose are estimated at a 1.50 g/t cut-off within an optimised pit shell using a pit discard cut-off grade of 0.70 g/t Au (Goose) and a 0.76 g/t Au ( Llama) and 90% recovery at an average long-term gold price of US$1300 per ounce (Goose) and US$1200 per ounce ( Llama). Pit optimizations were used to constrain the resources. |
| 3. |
|
All mineral resource within a 5.00 g/t Au wireframe shell was used to determine the George resource estimate. |
| 4. |
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The Umwelt deposit open pit mineral resources are reported at a cut-off grade of 1.00 g/t. Underground resources are reported at a cut-off grade of 2.00 g/t. cut-off grades are based on a long-term gold price of US$1,360 per ounce and a process recovery of 90%. |
| 5. |
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Numbers may not add due to rounding. |
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| Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied. |
The Qualified Person under NI 43-101 is Doug Cater, Project Manager for Sabina Gold & Silver Corp, who has approved this release as it applies to the Llama, Goose and George mineral resource estimates.
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.
Sabina's primary properties consist of the Back River Gold Project, as the Wishbone Claims, a vastly prospective grass roots project and the Hackett River silver royalty all located in Nunavut. The Company has announced the completion of the sale of Hackett River and certain claims in the Wishbone greenstone belt to Xstrata Zinc Canada Division (Xstrata) for which the Company received $50 m cash and a silver royalty on Xstrata's Hackett River silver production of 22.5% of the first 190 million ounces produced and 12.5% of all silver produced thereafter.
The Company finished 2011 with approximately $160 million in the treasury with no debt.
Forward Looking Statements
Statements relating to mineral resource estimates at Llama, Umwelt, George and Goose and the expected impact of these mineral resources 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, 2010.
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.
Rob Pease, President & CEO
Sabina Gold & Silver Corp.
Nicole Hoeller
Vice-President, IR
1 888 648-4218
nhoeller@sabinagoldsilver.com
or
Sabina Gold & Silver Corp.
Rob Pease
President & CEO
(604) 998-4175 or Toll Free: (888) 648-4218
www.sabinagoldsilver.com
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