1066 West Hastings, 20th Floor
Vancouver, BC V6E
October 16, 2008
SBB NR 08-16
SBB ? TSX.V
SABINA SILVER ANNOUNCES HACKETT RIVER STUDY UPDATE
Opportunities to Enhance Project Economics Continue to be Identified -
Vancouver, BC ? Sabina Silver Corporation (SBB.V) announced
today an update on work progressing at its 100% owned Hackett River silver-zinc
project in Nunavut, Canada.
Hackett River is a major silver-zinc deposit located
approximately 75 kilometres from tide water in the Canadian arctic. Not only is
it one of the largest undeveloped silver deposits of its type in the world, but
it is located in one of the world?s most appealing mining jurisdictions.
Nunavut Territory, Canada, is a pro-mining jurisdiction subject to a rigorous
achievable permitting process. The Territory is eager to create infrastructure
and economic sustainability through the responsible development of mineral
projects in the region.
Hackett River is currently in the pre-feasibility
phase. As previously announced, the
on-site pre-feasibility work required at Hackett for this year has been
completed. The Company and its
consultants are now waiting for the results of this work, along with other
studies to be able to compile the data into a pre-feasibility study.
?It is essential, in today?s economic environment, that the
study is completed in a manner that is conservative but realistic, especially
in light of anticipated increases in capital and operating costs,? said Tony
Walsh, President & CEO ?Work continues to identify opportunities for
optimizing project economics for the pre-feasibility study as well as to look
for opportunities to grow Hackett River.
As previously announced a recent Hackett River exploration review indicates
excellent potential for the discovery of additional resources.?
One of these opportunities is the potential
for increased tonnage. The Hackett
River Project will need to utilize a road and port. The costs of either building or using
these facilities are fixed, however increased tonnage could mitigate these
fixed costs and enhance project economics.
The Company plans to look for increased tonnage by: completing further
exploration at Hackett River; revising mine sequencing and from potential
additional through put from proximal projects.
A review of the proposed mining technology
is currently underway. For example, management now believes that the Boot Zone,
originally an underground target, might be amenable to open pit mining. This would result in a synergistic open
pit mining operation as well as deferring the capital requirements for
underground development further into the life of the project. This would significantly bolster the
economics of the project.
Other work continues on optimizing mill
size, concentrate trucking, and metal recoveries.
Management still expects the pre-feasibility study and the
updated mineable resource will be completed during the first quarter of 2009.
The Company is committed to the Hackett River project and
to the relationships and partnerships it has created in Nunavut to date. Sabina supports the territory?s plans
for infrastructure, in particular the Bathurst Inlet Port and Road project as
Hackett River operations will rely on a port and road. Nunavut remains one of the most
prospective mining jurisdictions in the world.
All contemplated production at the Hackett River project is
subject to positive feasibility studies, the availability of financing and permitting
and regulatory approval.
As previously announced, management believes there are
opportunities in this market to mitigate against the effects of Hackett River?s
long lead time on the Company?s share price. As part of the corporate strategy,
management continues to evaluate opportunities and proposals for accretive
corporate transactions. The current
market presents many affordable opportunities which combined with the Company?s
very strong balance sheet, puts Sabina in a strong position. Management is favouring assets that are
non-grass roots precious metals preferably in North America, although
consideration will be given to opportunities in other politically stable
SILVER CORPORATION is a Canadian public mineral exploration and development
company with assets at the Hackett River silver-zinc project in Nunavut, the
Del Norte project in the Stewart-Eskay Creek Mining District and several
projects in the Red Lake gold camp.
The Company is well capitalized with $44 million in cash and marketable
securities at June 30, 2008.
Management believes the Company has the financial resources to complete
its pre-development initiatives at Hackett River.
information please contact:
Nicole Hoeller, Director, IR: 604 648-4216
Forward Looking Statements
Statements relating to exploration,
pre-feasibility work and future operations at the Hackett 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, 2007.
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 &
1066 West Hastings St, 20th
Vancouver, BC V6E 3X2
Tel 807-766-1799 Fax 807-343-0232