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Sabina Gold & Silver Corp. (TSX:SBB - News) is pleased to announce
further significant assay results from drilling completed in 2010 at its Umwelt discovery at the Goose property on its 100% owned
Back River Project in Nunavut, Canada.
Drilling results continue to grow the
deposit and demonstrate the continuity of the mineralization found at Umwelt. The mineralized zone has now been traced for over
650 metres with intercepts as deep as 250 metres. The mineralization remains open along strike and
down plunge. To date, approximately 15 holes remain at the lab with assays
pending.
Significant new results from the East
Zone have been recently returned which continue to extend the Umwelt discovery to the south.
Hole 10GSE132 located 450 metres south of the discovery fence of holes (10GSE66,
69, 98) returned 3.25 g/t Au over 18.00 metres at a
vertical depth of 250 metres. This hole is the
southernmost hole drilled to date on the zone.
Similar results were encountered in hole
10GSE126 (4.12 g/t Au over 27.60 metres), hole
10GSE119 (4.65 g/t Au over 23.95 metres) and hole
10GSE117 (2.52 g/t Au over 36.40 metres) located
50, 100 and 150 metres respectively north of hole
10GSE132.
Noteworthy new results were also
returned for holes drilled to confirm continuity in the core of the East Zone
and include hole 10GSE109 which returned 12.15 g/t Au over 14.20 metres and hole 10GSE 129 which intersected a narrow but
high grade interval of 442.1 g/t Au over 1.25 metres.
Hole 10GSE115 drilled below discovery
hole 10GSE66 returned 6.03 g/t Au over 10.35 metres
at a down hole depth of 169 metres indicating an
increase in thickness at depth. Mineralization remains open down dip. Hole 10GSE115 encountered some drilling difficulties and
did not reach the projected West Zone.
"Results continue to impress at Umwelt," said Tony Walsh, President & CEO.
"Drilling results received to date have encountered gold mineralization
in approximately 90% of the holes in the zone. This is a considerable success
rate. While a great deal of the work towards the end of the 2010 campaign focussed on infill drilling to allow for a resource
calculation on a portion of Umwelt, our step-out
holes continue to identify new opportunities to make the deposit
bigger," he said. "Both the Llama and Umwelt
discoveries remain open along strike and down plunge and we look forward to a
more aggressive program in 2011 to advance the projects."
Sabina's work at Back River has focussed on the Goose property which is just one of the
seven claim blocks on the Back River property. The target areas at Goose are
within an 8 km corridor and have been identified using an exploration tool
box developed by Sabina's geological team. This tool box is based on (among
other things) interpreting geological and geophysical signatures used to
identify areas on the iron formation that have been altered by high
temperature geological events. Each of the other claims blocks, as well as, the
adjacent 100% owned Wishbone Property host similar iron formations and the
assessment of these areas using the tool box will begin in 2011. These
targets represent years of prospective gold exploration on claims in close
proximity to each other.
The Company is currently planning its
2011 exploration campaign and expects to spend approximately $40 - $45
million at its Nunavut properties with a major focus on Back River. The 2011
plan and budget are subject to final board review and approval.
Pursuant to a private placement
completed with Silver Wheaton ("SLW") in 2006, SLW holds warrants
to purchase 3.9 million common shares of the Company at a strike price of
$2.75 per share. SLW has advised the Company that they plan to exercise these
warrants. The exercise of these warrants represents an additional $10,725
million to Sabina's treasury and enhances SLW's shareholding in the Company.
Post-exercise, SLW will hold 11.7 million shares or 8.7% of the Company.
Including the proceeds from the SLW
warrants, the Company expects to end the year with more than $80 million in
cash. This significant cash position will enable continued aggressive
exploration and development of the Company's Nunavut projects for 2011 and
through 2012.
UMWELT
The Umwelt
discovery was announced on June 21, 2010 and is located approximately 1.3 km
south of the new Llama zone discovered in May 2010 and approximately 3 km to
the north of the Goose deposit. The discovery was targeted based on its
similar geological and geophysical signature to both these deposits. A total
of 15,950 metres in 58 holes have been drilled at Umwelt and new assay results confirm the continuity of
mineralization at Umwelt over a 650 metre strike length to vertical depths as deep as 250 metres. The strong continuity and shallowness of this
zone could provide the opportunity for open pit extraction.
The mineralized zones are hosted within
a turbiditic sedimentary sequence containing
silicate and oxide facies iron formations. Gold
dominantly occurs with quartz +/- carbonate veining and arsenopyrite
+/- pyrite +/- pyrrhotite in the iron formation.
Visible gold has been noted in many but not all holes drilled to-date.
Drilling at Umwelt has identified an anti-form
structure with a fold hinge that plunges to the south. Thick zones of gold
mineralization are associated with the fold hinge in what is now known as the
East Zone. Mineralization also occurs along a separate iron formation horizon
immediately to the west known as the West Zone. The relationship between the
East and West zones is uncertain but the West Zone may be a refolded limb of
the East zone and will be targeted early in 2011.
True widths are estimated to be 70% of
the drill widths.
Complete assay results will be required
to confirm this interpretation.
Recently received Drilling highlights
include:
------------------------------------------------------------------
Umwelt Drilling Significant Results
Hole ID From (m) To (m) Length (m) Au (g/t) Zone
------------------------------------------------------------------
10GSE109 24.50 32.80 8.30 2.48 East
49.00 50.00 1.00 6.55 East
54.00 68.20 14.20 12.15 East
72.50 75.70 3.20 18.57 East
10GSE115 169.00 179.35 10.35 6.03 East
10GSE117 221.60 258.00 36.40 2.52 East
10GSE119 237.20 238.90 1.70 20.31 East
247.15 271.10 23.95 4.65 East
including 248.20 249.00 0.80 66.6 East
including 260.00 271.10 11.10 3.29 West
10GSE126 271.00 272.00 1.00 7.18 East
291.00 318.60 27.60 4.12 East
including 292.00 295.00 3.00 14.65 East
including 315.90 316.50 0.60 54.12 West
339.00 344.70 4.70 5.97 West
10GSE129 98.09 113.63 15.54 2.19 East
123.00 124.00 1.00 3.19 East
131.00 132.00 1.00 3.55 East
190.75 192.00 1.25 442.1 East
10GSE132 318.70 320.80 2.10 4.23 East
337.00 355.00 18.00 3.25 East
including 337.00 338.00 1.00 16.39 East
including 347.00 352.00 5.00 4.85 East
------------------------------------------------------------------
(i) Drill
widths reported. True widths to be determined
Continued evaluation of geology and
mineralization within the Umwelt Lake area is
ongoing.
RESOURCE UPDATES
The Company recently retained the
services of Scott Wilson / Roscoe Postle Associates
(SW / RPA) to generate 43-101 compliant resource updates for the Llama and Umwelt deposits once all assays have been received. A
representative of SW / RPA visited the site in early September. These updated
resource estimates are expected in early 2011.
The Company is also preparing a new
resource estimate for the original Goose deposit to determine its potential
for an open pit. If all studies are positive, the Company anticipates moving
to a scoping study early in 2011.
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.
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
Table 2 - All unreported results received to date. (as of Nov 11, 2010)
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Depth From To Length Au
Hole ID Easting Northing (m) (m) (m) (m) (g/t) Comment
---------------------------------------------------------------------------
10GSE102 429324 7270781 245 NSV
---------------------------------------------------------------------------
10GSE103 429921 7271022 285.2 NSV
---------------------------------------------------------------------------
10GSE106 429609.2 7271155 266 161.45 162.24 0.79 11.68 West
---------------------------------------------------------------------------
10GSE106 179 179.5 0.5 13.07 West
---------------------------------------------------------------------------
10GSE107 429920.7 7271022 389 NSV
---------------------------------------------------------------------------
10GSE109 429784.6 7270908 233 24.5 32.8 8.3 2.48 Other
---------------------------------------------------------------------------
10GSE109 49 50 1 6.55 East
---------------------------------------------------------------------------
10GSE109 54 68.2 14.2 12.15 East
---------------------------------------------------------------------------
10GSE109 72.5 75.7 3.2 18.57 East
---------------------------------------------------------------------------
10GSE109 80 81.3 1.3 2.07 East
---------------------------------------------------------------------------
10GSE109 85 86 1 1.2 East
---------------------------------------------------------------------------
10GSE109 89 89.6 0.6 1.54 East
---------------------------------------------------------------------------
10GSE109 94.7 101.3 6.6 1.9 East
---------------------------------------------------------------------------
10GSE109 147 148.5 1.5 1.11 Previously
released
---------------------------------------------------------------------------
10GSE109 170 171.5 1.5 1.32 Previously
released
---------------------------------------------------------------------------
10GSE110 429649.9 7271320 317 207.6 208.45 0.85 1.06 East
---------------------------------------------------------------------------
10GSE111 428477.4 7272405 185 91 96.8 5.8 1.19
---------------------------------------------------------------------------
10GSE113 NSV
---------------------------------------------------------------------------
10GSE114 NSV
---------------------------------------------------------------------------
10GSE115 429869.6 7271111 347 169 179.35 10.35 6.03 East
---------------------------------------------------------------------------
10GSE115 186 187 1 1.9 Other
---------------------------------------------------------------------------
10GSE115 269 270 1 1.47 Other
---------------------------------------------------------------------------
---------------------------------------------------------------------------
10GSE117 430055.5 7270875 327.3 209 211 2 2.63 East
---------------------------------------------------------------------------
10GSE117 221.6 258 36.4 2.52 East
---------------------------------------------------------------------------
10GSE117 includes 221.6 225 3.4 6.59 East
---------------------------------------------------------------------------
10GSE117 and 228 232 4 4.14 East
---------------------------------------------------------------------------
10GSE117 and 243 246 3 4.75 East
---------------------------------------------------------------------------
10GSE117 290 291 1 8.28 East
---------------------------------------------------------------------------
10GSE117 293 293.7 0.7 1.2 East
---------------------------------------------------------------------------
10GSE118 429626.3 7271037 143 6 9 3 1.37 East
---------------------------------------------------------------------------
10GSE118 12 15 3 2.26 East
---------------------------------------------------------------------------
10GSE118 120 121 1 1.06 West
---------------------------------------------------------------------------
10GSE118 127 128 1 2.61 West
---------------------------------------------------------------------------
NSV = No significant value
---------------------------------------------------------------------------
Depth From To Length Au
Hole ID Easting Northing (m) (m) (m) (m) (g/t) Comment
---------------------------------------------------------------------------
10GSE119 430091.1 7270839 356 223.15 224 0.85 1.8 East
---------------------------------------------------------------------------
10GSE119 237.2 238.9 1.7 20.31 East
---------------------------------------------------------------------------
10GSE119 247.15 271.1 23.95 4.65 East
---------------------------------------------------------------------------
10GSE119 includes 248.2 249 0.8 66.6 East
---------------------------------------------------------------------------
10GSE119 260 271.1 11.1 3.29 East
---------------------------------------------------------------------------
10GSE119 includes 264 269 5 6.04 East
---------------------------------------------------------------------------
10GSE121 429617.9 7270965 119 49 52 3 1.12 West
---------------------------------------------------------------------------
10GSE122 429720.4 7270920 209 5.8 7.2 1.4 15.52 East
---------------------------------------------------------------------------
10GSE122 18 19 1 3.34 East
---------------------------------------------------------------------------
10GSE122 24.45 25.35 0.9 5.54 East
---------------------------------------------------------------------------
10GSE122 42 42.8 0.8 5.66 East
---------------------------------------------------------------------------
10GSE122 121 124.05 3.05 4.28 West
---------------------------------------------------------------------------
10GSE126 430147 7270820 410 250.85 253 2.15 2.01 East
---------------------------------------------------------------------------
10GSE126 259 259.08 0.08 4.7 East
---------------------------------------------------------------------------
10GSE126 263.8 268 4.2 2.37 East
---------------------------------------------------------------------------
10GSE126 271 272 1 7.18 East
---------------------------------------------------------------------------
10GSE126 291 318.6 27.6 4.12 East
---------------------------------------------------------------------------
10GSE126 includes 292 295 3 14.65 East
---------------------------------------------------------------------------
10GSE126 and 315.9 316.5 0.6 54.12 East
---------------------------------------------------------------------------
10GSE126 339 344.7 4.7 5.97 East
---------------------------------------------------------------------------
10GSE127 429726.4 7271054 257 24 25 1 1.2 East
---------------------------------------------------------------------------
10GSE127 45 49 4 3.84 East
---------------------------------------------------------------------------
10GSE127 includes 45 46.34 1.34 7.99 East
---------------------------------------------------------------------------
10GSE129 429826.7 7271008 314 98.09 113.63 15.54 2.19 East
---------------------------------------------------------------------------
10GSE129 123 124 1 3.19 East
---------------------------------------------------------------------------
10GSE129 128 129 1 1.1 East
---------------------------------------------------------------------------
10GSE129 131 132 1 3.55 East
---------------------------------------------------------------------------
10GSE129 190.75 192 1.25 442.1 East
---------------------------------------------------------------------------
10GSE129 199 200 1 1.34 East
---------------------------------------------------------------------------
10GSE129 204 205 1 1.25 East
---------------------------------------------------------------------------
10GSE129 and 258.8 264.28 5.48 1.55 West
---------------------------------------------------------------------------
NSV = No significant value
---------------------------------------------------------------------------
Depth From To Length Au
Hole ID Easting Northing (m) (m) (m) (m) (g/t) Comment
---------------------------------------------------------------------------
10GSE131 429656.4 7270932 191 66.31 72.35 6.04 2.45 West
---------------------------------------------------------------------------
10GSE131 includes 68.33 72.35 4.02 3.31 West
---------------------------------------------------------------------------
10GSE131 74.8 75.75 0.95 1.85 West
---------------------------------------------------------------------------
10GSE132 430217.5 7270814 452 161 163 2 1.05 Other
---------------------------------------------------------------------------
10GSE132 318.7 320.8 2.1 4.23 East
---------------------------------------------------------------------------
10GSE132 337 355 18 3.25 East
---------------------------------------------------------------------------
10GSE132 includes 337 338 1 16.39 East
---------------------------------------------------------------------------
10GSE132 and 347 352 5 4.85 East
---------------------------------------------------------------------------
10GSE133 429834 7270885 257 22.68 24 1.32 12.45 East
---------------------------------------------------------------------------
10GSE133 29 31 2 5.11 East
---------------------------------------------------------------------------
10GSE133 50 55 5 5.58 East
---------------------------------------------------------------------------
10GSE133 includes 53 54 1 25.09 East
---------------------------------------------------------------------------
10GSE133 69 69.5 0.5 4.75 East
---------------------------------------------------------------------------
10GSE133 81.8 82.4 0.6 14.71 East
---------------------------------------------------------------------------
10GSE133 93.8 94.45 0.65 33.06 East
---------------------------------------------------------------------------
10GSE133 and 95.5 96.57 1.07 1.34 East
---------------------------------------------------------------------------
10GSE135 429390.7 7271606 206 8.5 10 1.5 2.16 West
---------------------------------------------------------------------------
10GSE137 430145 7270753 386 249.9 251 1.1 2.45 Previously
released
---------------------------------------------------------------------------
10GSE137 272.8 273.8 1 2.38 East
---------------------------------------------------------------------------
NSV = No significant value
To view the maps accompanying this press
release please click on the following link: http://media3.marketwire.com/docs/UmweltMaps.pdf
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