Sabina Gold & Silver Reports Positive Results From Early 2011 Drilling at the Back River Project, Nunavut
Published : April 27, 2011

Hole 11GSE002 (Goose) returns 18.99 g/t Au over 27.2m including 63.51 g/t Au over 4.1m

Hole 11GSE009 (Umwelt) returns 10.14 g/t Au over 25.0m including 16.62 g/t Au over 10.0m

Umwelt mineralization extended a further 200m South

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Keywords :   Canada | Diamond | Gold | Iron | Market | Precious Metals | Silver | Zinc |

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 27, 2011) - Sabina Gold & Silver Corp (News - Market indicators) is pleased to announce significant assay results from the first holes drilled as part of the 2011 exploration program on its Umwelt and Goose deposits at its 100% owned Back River Project in Nunavut, Canada. 

The 2011 drilling campaign at Back River started on the Goose claim block in March. To date, a total of 39 holes and 7,872 metres of core have been completed or are in progress, with most assays still pending.

The focus of work in 2011 is to extend and expand the new deposits at Llama and Umwelt, as well as, identify potential new deposits not only on the Goose claim block but elsewhere on the Back River property. 

A total of four rigs are currently drilling at the Goose claim block, generating approximately 300 metres of core per day. The four drill rigs are focusing on resource expansion at Llama and Umwelt. Each deposit has one drill completing aggressive 100 metre step outs to the south with a second drill following up with 50 metre infill holes.

2010 drilling had extended the Umwelt corridor of mineralization approximately 750 m along strike. However, only 535 m of strike length had been drilled sufficiently to enable a resource calculation on that deposit. The new drill holes reported today now extend the Umwelt mineralized zone by a further 200m to the south along strike. Hole 11GSE009 drilled 100 m south of last year's drilling returned 10.14 g/t Au over 25.0 m including 16.62 g/t Au over 10.0 m. Hole 11GSE016 drilled 100 m south of Hole 11GSE009 returned 5.55 g/t Au over 19.2 m including 25.39 g/t Au over 2.2 m at a vertical depth of 340 m. Most assays remain pending however it is encouraging to note that grades and widths to date are similar to those encountered in the 2010 drilling program. Both Llama and Umwelt remain open along strike.

Initial 2011 drilling also targeted the Goose deposit to aid in the geological/resource modelling interpretation in support of a calculation of an open pit resource. Most significantly, hole 11GSE002 returned 18.99 g/t Au over 27.2m including 63.51 g/t Au over 4.1m at a vertical depth of 170 metres in a central area of the deposit that was originally thought to be barren. The historical Goose resource is being recalculated to include recent drilling and new resource modelling to determine its potential as an open pit. This calculation is nearing completion and is expected within the next 3-4 weeks.

A fifth rig will be operational shortly and will begin testing regional targets at the Goose claim block.

"Our 2011 drilling campaign is off to a good start," said Tony Walsh, President & CEO, "While 70% of our $30 million Back River budget is focussed on extending the deposits at Llama and Umwelt, we are also very excited about applying our exploration tool box to find new discoveries. At the Goose claim block there are over 15 such targets alone and we have started to direct some of our resources to these anomalies."

The new deposits and target areas at Goose are within a 5 km corridor that have been identified using an exploration tool box developed by Sabina's geological team. This new tool box is based on a set of assumptions that specifically target large buried alteration and mineralized features in folded iron formation units. These types of folded units have the potential to be extracted by open pit methods.

Initial exploration drilling is also underway at the George claim block where two drills are testing large, shallow but covered alteration and mineralization targets similar to that at Llama and Umwelt. The George deposit contains an existing indicated resource of 590,000 oz of Au and an additional inferred resource of 866,000 oz of Au at an average grade of 10.5 g/t Au. While the George deposit itself is more amenable to underground mining methods, the development and application of the new tool box has identified numerous opportunities to find additional large shallow open pit deposits close to the existing resource. 

UMWELT

Drilling at Umwelt is planned to extend and expand the mineralized zone both along strike and down plunge. 

To date a total of eight holes totalling 3,773m have been drilled or are in progress on the Umwelt target. Assay results have been returned for four holes.

New results include step-out holes 11GSE009 located 100 metres south of the drilling completed in 2010 and 11GSE016 located a further 100 metres south of 11GSE009. Hole 11GSE009 returned 10.14 g/t Au over 25.0m including 16.62 g/t Au over 10.0m. Hole 11GSE016 returned 5.55 g/t Au over 19.2m including 25.39 g/t Au over 2.2m at a vertical depth of 340 metres within the Main Zone.

In addition, results have been returned for holes 11GSE001 and 11GSE006 which targeted the Main Zone immediately below the southern extent of the 2010 drilling. Hole 11GSE001 returned 5.62 g/t Au over 23.3m including 13.70 g/t Au over 5.2m in Main Zone East limb and 15.27 g/t Au over 3.0m in Main Zone West limb. Hole 11GSE006 returned 6.72 g/t Au over 12.5m within a broader zone of 3.40 g/t Au over 31.33m.

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 1: Umwelt deposit – 2011 assay results.
Hole Id Area Section From (m) To (m) Length (m) Au (g/t)   Comment/Mineral Zone
11GSE001 Umwelt 4600 325.50 326.50 1.00 7.99   Main Zone East
      333.50 356.75 23.25 5.62   Main Zone East
including     351.60 356.75 5.15 13.70   Main Zone East
      402.00 405.00 3.00 15.27   Main Zone West
                 
11GSE006 Umwelt 4550 355.00 367.50 12.50 6.72   Main Zone East
      355.00 386.33 31.33 3.40   Main Zone East
including     360.00 364.50 4.50 15.12   Main Zone East
      Additional assays pending          
                 
11GSE009 Umwelt 4450 314.00 339.00 25.00 10.14   Main Zone Centre
including     317.00 320.00 3.00 22.67   Main Zone Centre
and     329.00 339.00 10.00 16.62   Main Zone Centre
including     330.00 332.70 2.70 35.08   Main Zone Centre
      Additional assays pending          
                 
11GSE016 Umwelt 4350 368.00 387.20 19.20 5.55   Main Zone Centre
including     375.00 379.00 4.00 8.32   Main Zone Centre
and     385.00 387.20 2.20 25.39   Main Zone Centre

True widths are estimated to be 70% of the drill widths. Interpretation is currently in progress to confirm the geological relationships at the Umwelt deposit.

Llama Deposit

Initial drilling at Llama focussed on gaps in the resource model and going forward, the plan is to extend and expand the mineralized zone both along strike and down plunge. 

To date, a total of 13 holes totalling 2,939m have been drilled or are in progress on the Llama deposit target. Assay results are still pending.

Goose Deposit

A total of 3 holes totalling 590 metres were drilled on the Goose deposit. The holes were drilled to provide information for the ongoing geological / resource modelling interpretation in support of an open pit resource estimate.

Hole 11GSE002, located on local grid section 5180N, was drilled to validate the interpretation that an early hole drilled on this section is inappropriately located due to erroneous down hole deviation tests. Hole 11GSE002 returned 18.99 g/t Au over 27.2m including 63.51 g/t Au over 4.1m at a vertical depth of 170 metres. Both the geology and mineralized zones correlates very well with adjacent holes confirming the interpretation.

Hole 11GSE004B, located on local grid section 4730N targeted a gap in the drilling of the greywacke core within the folded iron formation. The hole intersected numerous gold bearing mineralized zones within the greywacke unit including 9.57 g/t Au over 3.0m at a vertical depth of 55 metres. Currently the known mineralization within the greywackes represents only a small portion of the overall Goose deposit resource. There is excellent potential to expand this greywacke component of the resource with further drilling particularly in an open pit scenario.

Table 2: Goose deposit – 2011 assay results.
Hole Id Area Section From (m) To (m) Length (m) Au (g/t)   Comment/Mineral Zone
11GSE002 Goose 5180 156.25 170.50 14.25 2.60   Goose Main
including     156.25 157.20 0.95 9.72   Goose Main
      193.70 196.60 2.90 5.30   Goose Main
including     195.60 196.60 1.00 13.68   Goose Main
      204.80 232.00 27.20 18.99   Goose Main
including     215.80 219.90 4.10 63.51   Goose Main
and     225.00 226.00 1.00 75.87   Goose Main
and     229.00 230.10 1.10 102.00   Goose Main
                 
11GSE004B Goose 4730 28.00 33.00 5.00 5.95   Greywacke
      35.80 38.80 3.00 1.39   Greywacke
      43.20 43.70 0.50 8.78   Greywacke
      48.30 54.50 6.20 3.38   Goose Main
including     48.30 49.40 1.10 9.88   Greywacke
      63.20 66.20 3.00 9.57   Greywacke

RESOURCE UPDATES

The Company has retained RPA to prepare a new resource estimate for the original Goose deposit based on an open pit model. This estimate is due shortly and if positive, the Company anticipates moving to a scoping study in mid-2011.

GEORGE LAKE DRILLING

Diamond drilling started at George in mid April using two rigs to explore for near surface open pitable targets. No assay results have yet been received. A total of six initial high priority target areas have been defined using Sabina's toolbox with the intention of discovering another Banded Iron Formation gold hosted deposit comparable to Goose, Llama or Umwelt. Approximately 4,000 to 6,000m of drilling is planned as part of the initial phase of exploration drilling. The George property is located 60 km northwest of the Goose property. 

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 9.9 million tonnes grading 8.33 g/t Au for 2.655 million ounces of gold and inferred resources of 5.6 million tonnes grading 8.65 g/t Au for 1.56 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. 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 Silver Corporation.

Table 3: 2011 Back River project – Goose Lake property Drill results as of April 27, 2011
Hole Id Area Section Easting Northing Depth From (m) To (m) Length (m) Au (g/t)   Comment/Mineral Zone
11GSE001 Umwelt 4600 430200 7270864 479 325.50 326.50 1.00 7.99   Main Zone East
            333.50 356.75 23.25 5.62   Main Zone East
Including           351.60 356.75 5.15 13.70   Main Zone East
            402.00 405.00 3.00 15.27   Main Zone West
11GSE002 Goose 5180 433831 7269560 287 156.25 170.50 14.25 2.60   Goose Main
Including           156.25 157.20 0.95 9.72   Goose Main
            184.70 185.70 1.00 1.30   Goose Main
            193.70 196.60 2.90 5.30   Goose Main
Including           195.60 196.60 1.00 13.68   Goose Main
            204.80 232.00 27.20 18.99   Goose Main
Including           215.80 219.90 4.10 63.51   Goose Main
And           225.00 226.00 1.00 75.87   Goose Main
And           229.00 230.10 1.10 102.00   Goose Main
11GSE003 Goose 4730 434394 7269504 169 NSV          
11GSE004B Goose 4730 434376 7269481 134 28.00 33.00 5.00 5.95   Greywacke
            35.80 38.80 3.00 1.39   Greywacke
            43.20 43.70 0.50 8.78   Greywacke
            48.30 54.50 6.20 3.38   Greywacke
Including           48.30 49.40 1.10 9.88   Greywacke
            63.20 66.20 3.00 9.57   Greywacke
11GSE006 Umwelt 4550 430252 7270843 545.6 355.00 367.50 12.50 6.72   Main Zone East
            355.00 386.33 31.33 3.40   Main Zone East
including           360.00 364.50 4.50 15.12   Main Zone East
            467.00 468.00 1.00 1.13   Main Zone West
            472.00 476.00 4.00 2.51   Main Zone West
            Additional assays pending          
11GSE009 Umwelt 4450 430186 7270658 431.7 339.00 314.00 25.00 10.14   Main Zone Centre
Including           314.00 320.00 6.00 11.81   Main Zone Centre
Including           317.00 320.00 3.00 22.67   Main Zone Centre
And           324.25 325.75 1.50 9.76   Main Zone Centre
And           329.00 339.00 10.00 16.62   Main Zone Centre
Including           330.00 332.70 2.70 35.08   Main Zone Centre
            Additional assays pending          
11GSE014 Umwelt 5000 429998 7271215 352.3 Assays Pending          
11GSE016 Umwelt 4350 430279 7270608 500 368.00 387.20 19.20 5.55   Main Zone Centre
Including           375.00 379.00 4.00 8.32   Main Zone Centre
And           385.00 387.20 2.20 25.39   Main Zone Centre
            Additional assays pending          

To view the maps associated with this press release, please click on the following link: http://media3.marketwire.com/docs/sbb426.pdf



Sabina Gold & Silver Corp.
Nicole Hoeller
Director, IR
1 888 648-4218
nhoeller@sabinagoldsilver.com
or
Sabina Gold & Silver Corp.
Tony Walsh
President & CEO
604 998-4175
604 998-1051 (FAX)
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$ 335.4 millions as of today (US$ 262.0 millions, € 231.2 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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Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
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Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
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McEwen Mining(Cu-Le-Zn)MUX
TO ACQUIRE BLACK FOX FROM PRIMERO=C2=A0
US$ 0.99+0.00%Trend Power :
Rentech(Coal-Ngas)RTK
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
KEFIKEFI.L
Reduced Funding Requirement
GBX 0.85+0.00%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
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Imperial(Ag-Au-Cu)III.TO
Closes Bridge Loan Financing
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Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
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Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
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Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.43-2.27%Trend Power :
Havilah(Cu-Le-Zn)HAV.AX
Q A April 2017 Quarterly Report
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Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 2.62-2.96%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
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Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
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Terramin(Ag-Au-Cu)TZN.AX
2nd Quarter Report
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