Sabina Gold & Silver Reports Continued Positive Results at Back River Gold Project, Nunavut
Published : July 18, 2011

New Discovery at Lookout Hill Target on George Claim Block

Recent Drilling Extends Both Umwelt and Llama, Umwelt Now Extends Over 1.4 km

Hole 11GRL022 at George (Lookout Hill Target) Returns 5.14 g/t Au Over 16.0 m incl. 11.31 g/t Au Over 6.95 m

Hole 11GSE052 at Umwelt Returns 12.58 g/t Au Over 26.0 m incl. 27.16 g/t Au Over 9.0 m

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VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 18, 2011) - Sabina Gold & Silver Corp (News - Market indicators) is pleased to announce additional assay results from holes drilled as part of the 2011 exploration program on its Umwelt and Llama deposits at the Goose property and new results from exploration drilling on the George property at its 100% owned Back River Project in Nunavut, Canada. 

The 2011 drilling campaign at Back River has two objectives: 1) to expand and extend the existing deposits at Umwelt and Llama, and 2) to make new discoveries using the Company's exploration tool box focussing on open pit targets on the Goose and George claim blocks, as well as the Wishbone claims retained after the Hackett River transaction.

"We are approximately half way through our drilling campaign for 2011 and we are very encouraged with our results. Drilling continues to increase the size of the Umwelt deposit and despite the complexity at Llama, we have also demonstrated that it is still open to the south," said Tony Walsh, President & CEO. "We are particularly encouraged by the success rate our "tool box" is having at the George claim block. While not all discoveries we make will be of the nature and size we are looking for, we can see that the method of applying our assumptions to make gold discoveries is working. We are very excited to start working on the many new discovery targets at Goose."

Two new discoveries have been made on the George property in 2011. The first was at Trigger (announced June 2011) and more recently at Lookout Hill. Drilling at the Lookout Hill target has returned a number of strong intercepts in Hole 11GRL022 returning 5.14 g/t Au over 16.00 including 11.31 g/t Au over 6.95 m. 

The Lookout Hill discovery consists of a significant intersection of moderately folded oxide iron formation with strong quartz veining in a sheared controlled mineralized (dominantly pyrite with minor arsenopyrite) zone with visible gold. The zone is interpreted to be similar to the Llama deposit.

Drilling continues at the Lookout Hill target while further drilling options at the Trigger target are being assessed as the target is best drilled in winter conditions.

Drilling of new targets has also begun on the Goose property with assay results from the first hole of the program returning 4.10 g/t Au over 5 m within a broader zone of 2.12 g/t Au over 13.45 m in the Camp Zone. This zone is situated approximately 400 m northeast of the Goose deposit. Drilling continues on this target to evaluate its potential to become another deposit on the Goose block.

These new discoveries continue to validate the Company's strategy of applying the exploration "tool box" to finding new, potentially large scale, open pit deposits.

At Umwelt, two drills continue to infill drill the 2011 extensions of the zone. Highlights include hole 11GSE052, a resource expansion hole, approximately 500 m to the north of hole SE049, which returned 12.58 g/t Au over 26.0 m including 27.16 g/t Au over 9.0 m. This is the best hole drilled to date in the 2011 campaign. The intersection is at a vertical depth of 375 m and further demonstrates the strong continuity and grade at Umwelt.

Step-out Hole 11GSE049, the southernmost hole in which assays have been returned, has extended the Umwelt mineralized structure by a further 100 metres to 1.4 km in total. This hole returned a broad zone lower grade zone grading 2.04 g/t Au over 18.0 m including 4.17 g/t Au over 4.0 m. Hole 11GSE049 is the first hole completed on this section with the mineralization in this hole being similar to the holes drilled on the periphery of the core Umwelt deposit to the north. Further drilling will be required to define the overall grade on this section as well as continue to follow the structure south.

2011 drilling at Llama has been challenging as it is a complicated structure marked by faulting and displacement of the host iron formation as the system moves to the south. In order to maximize resources during the season, drills were redeployed from Llama to carry out other priority work on the Goose block. Since that time, assays for Hole 11GSE046 were received returning 3.57 g/t Au over 43.7 m on the East Limb, effectively extending the Llama strike length approximately 50 m south of the known zone. This hole is significant as it confirms the system is open to the south. Step-out holes are in progress to trace the mineralization further to the south.

There are currently eight drills operating at Back River. Six rigs are in the Goose area, where two are shifting from resource expansion to focussing on the numerous untested targets within the 5 km corridor containing the Goose, Llama and Umwelt deposits. One rig continues at George and one rig is operating on the Wishbone property.

To date, at Back River a total of 94 holes and 33,000 metres of core have been completed, or are in progress, with many assays still pending. 

GEORGE CLAIM BLOCK

To date, a total of 32 holes comprising 6,700 m have been completed or are in progress at George. 

Application of the Exploration Tool Box is also in progress at the George claim block, where the Company is looking to find new large shallow open pit deposits in the area that would enhance economics of the existing underground resource at George.

Sabina continues to experience a high level of exploration success, demonstrated by some encouraging results at the Company's Lookout Hill discovery. 

The Lookout Hill target is interpreted to be similar to the Llama gold deposit. Both locations are interpreted as synformal structures with common features including a highly disrupted magnetic signature, an interpreted fault structure located centrally within the fold, a large break, an isolated magnetic feature along the eastern limb, a subtle resistivity response, as well as anomalous and significant Au samples in the area. 

Table 1: George – Lookout Hill assay results
 
Hole Id Area   Depth (m)   From (m)   To (m)   Length (m)   Au (g/t)   Comment/Mineral Zone
11GRL022 Lookout Hill   250.0   188.0   204.0   16.0   5.14   New Discovery
Including         192.5   199.45   6.95   11.31    
and         197.0   198.0   1.0   31.38    

Target areas for priority testing at George in 2011 include the Bullwinkle, Rifle, Trigger, Lookout Hill, Shadow Pond and NZ locales, all of which are identified as having geological, geochemical, and geophysical attributes analogous to the deposits at the Goose claim block. 

George contains a current indicated resource of 1,840,000 tonnes grading 10.9 g/t Au for a total of 590,000 oz and an additional inferred resource of 2,600,000 m tonnes grading 10.5 g/t Au for a total of 866,000 oz of Au and drilling of this area is 100% focused on looking for new shallow open pit discoveries. 

Planned drilling has been extended at George to test the extension of this new discovery at Lookout Hill.

UMWELT

Based on last year's drilling, the Company reported indicated resources at Umwelt of 4,601,000 tonnes grading 6.0 g/t Au for a total of 900,000 oz Au and an additional inferred resource of 1,067,000 tonnes grading 6.4 g/t Au for a total of 221,000 oz Au over a strike length of 550 metres.

To date a total of 27 holes totalling 15,200 m have been drilled or are in progress on the Umwelt zone at the Goose property. Results continue to demonstrate that Umwelt is a strong, well mineralized system with excellent continuity and grade. 

Currently at Umwelt, one drill is completing 100 m step out holes tracing the deposit to the south, with two drills following behind with infill holes to advance the new mineralization to resource level. Most significantly, Hole 11GSE049, the furthest hole to the south in which assays have been returned, intersected 2.04 g/t Au over 18.0 m including 4.17 g/t Au over 4.0 m. This hole is situated 650 m south of the drilling completed in 2010 and extends the overall strike length of the deposit to over 1.4 km. It is at a vertical depth of 575 m. The deposit continues to remain open along strike and to depth and plunges at a consistent 25 degrees. Other highlights include Hole 11GSE052, an infill hole approximately 500 m to the north of Hole SE049 which returned 12.58 g/t Au over 26.0 m including 27.16 g/t Au over 9.0 m. 

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. 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 Main Zone. Mineralization also occurs along a separate iron formation horizon immediately to the west known as the West Zone. The relationship between the Main and West zones is uncertain but the West Zone may be a refolded limb of the Main zone.

Table 2: Umwelt recent assay results.
 
Hole Id Area Section Depth (m) From (m) To (m) Length (m) Au (g/t) Comment/Mineral Zone
11GSE023 Umwelt 4450N 545 340.00 376.00 36.00 2.37 Main Zone East
Including       347.75 353.20 5.45 4.89 Main Zone East
And       350.50 351.20 0.70 17.73 Main Zone East
And       358.00 359.00 1.00 19.53 Main Zone East
And       371.00 376.00 5.00 4.40 Main Zone East
11GSE047 Umwelt 4350N 572 402.15 402.6 0.45 2.57 East BIF
        424 425.35 1.35 1.13 East BIF
        493.1 494.25 1.15 2.52 Main Zone East
        500 505.9 5.90 3.36 Main Zone East
Including       500 501.6 1.60 8.41 Main Zone East
        511.75 512.3 0.55 1.29 Main Zone East
        516.35 520.65 4.30 1.23 Main Zone East
11GSE049 Umwelt 3950N 728 695. 713 18.0 2.04 Main Zone East
        695 703.1 8.1 2.78 Main Zone East
        695 699 4.0 4.17 Main Zone East
11GSE052 Umwelt 4450N 551 382 408 26.00 12.58 Main Zone East
Including       393 402 9.00 27.16 Main Zone East
True widths are estimated to be 70% of the drill widths.

LLAMA DEPOSIT

Based on last year's drilling the Company reported indicated resources at Llama of 1,860,000 tonnes grading 9.4 g/t Au for a total of 562,000 oz Au and an additional inferred resource of 980,000 tonnes grading 5.7 g/t Au for a total of 180,000 oz Au over a strike length of 520 metres.

Initial drilling at Llama focussed on minor gaps in the resource model and attempting to extend and expand the mineralized zone both along strike and down plunge. 

To date, a total of 27 holes totalling approximately 8,700 m have been drilled or are in progress on the Llama deposit. The deposit has been challenging to expand, as it has a complicated structure marked by faulting and displacement of the host iron formation to the south.

As drilling had not been as productive as anticipated at Llama, drills were redeployed to the Umwelt and new discovery targets. However, the results from Hole 11GSE046, which returned 3.57 g/t Au over 43.7 m on the East Limb confirms that the Llama system is still open to the south along strike at more moderate grade but thicker intervals. A substantial amount of silicification, sulphidation and visible gold was noted in this hole. Two step out holes are planned by Sabina to follow-up on this assay intercept along strike.

Table 3: Llama deposit – 2011 assay results.
Hole Id Area Section From (m) To (m) Length (m) Au (g/t) Comment/Mineral Zone
11GSE046 Llama 4700 278.3 322 43.70 3.57 Main Zone West
      281.5 282.5 1.00 9.07 Main Zone West
      286.95 288 1.05 23.18 Main Zone West
      290 292 2.00 11.65 Main Zone West
      300 302 2.00 6.80 Main Zone West
      318 322 4.00 7.44 Main Zone West

GOOSE RESOURCE UPDATE

The Company has retained Roscoe Postle Associates to prepare a new resource estimate for the original Goose deposit to determine its potential for an open pit. This study is still underway.

If all studies are positive, the Company anticipates moving to a scoping study in Q3 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 Back River Gold Project as well as the Wishbone Claims, a vastly prospective grass roots project. 

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 and George were generated by RSG Global Consulting Pty Ltd (Coffey Mining) in September 2007. Mineral resources for Llama and Umwelt deposits were generated by Roscoe Postle Associates (RPA) in March 2011. These are all 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 2011 are the same as those used in earlier campaigns by Sabina Gold & Silver Corp. 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, 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, should change.

This news release has been authorized by the undersigned on behalf of Sabina Gold & Silver Corp.

Tony Walsh, President & CEO
930 West 1st Street, Suite 202
North Vancouver, BC V7P 3N4
Tel 604 998-4175 Fax 604 998-1051
http://www.sabinagoldsilver.com

To view the image "Figure 1: Umwelt Drill hole collar plan with collars highlighted for reported holes," please visit the following link: http://media3.marketwire.com/docs/umwelt1.jpg 

To view the image "Figure 2: Umwelt geological section 3950N – view looking north – Hole 11GSE049," please visit the following link: http://media3.marketwire.com/docs/umwelt2.jpg

To view the image "Figure 3: Umwelt geological section 4450N – view looking north – Hole 11GSE052," please visit the following link: http://media3.marketwire.com/docs/umwelt3.jpg

To view the image, "Figure 4: Llama Drillhole collar plan – with collars highlighted for reported holes," please visit the following link: http://media3.marketwire.com/docs/llama1.jpg

To view the image "Figure 5: Llama geological section 4700N- section on Hole 046," please visit the following link: http://media3.marketwire.com/docs/llama2.jpg

To view the image "Figure 6: George Claim Block drilling targets," please visit the following link: http://media3.marketwire.com/docs/george1.jpg



Sabina Gold & Silver Corp.
Nicole Hoeller
Director, IR
1 888 648-4218
nhoeller@sabinagoldsilver.com
www.sabinagoldsilver.com
Data and Statistics for these countries : Canada | All
Gold and Silver Prices for these countries : Canada | All

Sabina Gold & Silver Corp

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CODE : SBB.TO
ISIN : CA7852461093
CUSIP : 785271 10 7
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Sabina is a gold and silver development stage company based in Canada.

Sabina develops gold, silver, copper, lead and zinc in Canada, and holds various exploration projects in Canada.

Its main asset in development is HACKETT RIVER in Canada and its main exploration properties are DEL NORTE, ROCKSTONE, GOLDEN SIDEWALK, SKINNER, BACK RIVER - GOOSE LAKE, BACK RIVER, BACK RIVER - GEORGE LAKE, NEWMAN-MADSEN and WISHBONE in Canada.

Sabina is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 339.8 millions as of today (US$ 265.9 millions, € 234.7 millions).

Its stock quote reached its lowest recent point on July 12, 2002 at CA$ 0.05, and its highest recent level on April 21, 2011 at CA$ 7.63.

Sabina has 223 580 000 shares outstanding.

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US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 2.69-0.37%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 42.54+1.14%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
Terramin(Ag-Au-Cu)TZN.AX
2nd Quarter Report
AU$ 0.03+0.00%Trend Power :