Sabina Gold & Silver Reports Expanded Second Phase Drilling Campaign at Back River
VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 20, 2017) - Sabina Gold & Silver Corp. (TSX:SBB) ("Sabina" or the "Company") is pleased to announce that an expanded second phase program of drilling will commence at the Goose camp on its 100%-owned Back River gold project ("Back River" or the "Project") in Nunavut, Canada. Camp will open on July 27th, 2017.
Approximately 7,000 metres of drilling was planned for 2017 in two drill programs, with the first 3,000 metres completed this spring, and the balance planned for a summer drill campaign.
Following successful drilling of priority targets, selected for their potential to enhance project economics at both Llama and Umwelt, additional metres have been added to the summer program for a total of 13,000 metres for 2017.
"The substantial widths and grades at the Umwelt Vault zone provide considerable opportunity to commence underground mining earlier making the Vault Zone a focus of the summer drilling campaign. Starting underground production at the Vault earlier in the mine life requires bringing a portion of sustaining capital forward into initial capital and offers opportunities to positively impact the project payback period. At Llama we have demonstrated that the mineralized structure continues well below the current resource limits and this extension also warrants further drilling," said Bruce McLeod, President and CEO. "In addition, we believe that there other opportunities for resource expansion at the Goose property that could potentially extend the life at our proposed Goose Mine. These opportunities warrant an expanded program and we look forward to receiving further results later in the third quarter."
Summer Drilling Program
Vault Zone - Umwelt
During the spring campaign, one drill hole tested the Vault zone at approximately 650 metres vertical depth where an interpreted high grade zone at the lower limits of the current Umwelt reserves, merited follow up. This interpreted high grade zone is partly characterized by historic drillhole 12GSE217, which returned 49.24 g/t Au over 17.0 metres, drillhole 11GSE106 which returned 10.91 g/t Au over 29.85 metres and drillhole 11GSE075 which returned 13.43 g/t Au over 24.40 metres.
Sabina is highly encouraged by the results of the spring 2017 hole (17GSE511B) returning 16.86 g/t Au over 13.5 m from 734.00 m to 747.5 m, including 27.11 g/t Au over 7.95 m from 736.75 to 744.70 m. This strongly mineralized zone was intersected at a vertical depth of 675 m and is open to the east in the down dip direction (see News Release May 23, 2017).
Approximately 4,000 metres are planned at the Vault zone this summer which will continue to test for robust mineralization extensions of the zone through immediate drilling of the target eastward and down dip. High priority focused drilling is also planned for exploration areas both up and down plunge of the zone where the potential for resource optimization and growth is recognized. Increasing confidence through additional drill resolution and updated modelling of the mineralization associated with the Vault is aimed to add significant value through resource growth and increased resource confidence all while strengthening vectoring concepts for exploration applications within other priority target areas of the Back River.
Llama Extension
At Llama, Drill holes 17GSE512 and 17GSE513 were designed for testing the down plunge extension of the Llama mineralized structure approximately 300 meters down plunge from the current resource limits at a vertical depth of approximately 550 m.
Significant assays returned from this drilling included 6.30 g/t Au over 2.65m (Hole 17GSE512) and 6.52 g/t Au over 8.30 m (Hole 17GSE513), (see News Release June 13, 2017). These assays confirm that the Llama mineralized structure continues approximately 300 metres below the existing Llama resource.
Approximately 3,000 metres of drilling is planned for the summer campaign which comprises further aggressive step out drilling that will focus on the extension of the Llama deposit in the down plunge direction, as well as the testing of numerous additional high priority target areas that are located within the immediate geologic framework. Significant opportunities for additional discoveries have been identified by Sabina including the Llama Surprise target and the untested iron formation stratigraphy that is located vertically below and/or adjacent to the Umwelt deposit. Successful drilling of the targets is aimed to continue to extend the mineralization trends while highlighting the exceptional continuity and discovery potential of the gold endowment hosted at Back River.
Additional Targets
Sabina summer drilling exploration is also planned to actively test a series of advanced targets located on the Goose Property that includes Kogoyok, GNS, and Echo. Previously drilling at each of these targets indicates similar geological characteristics representing potential resources for continued growth. Approximately 3,000 metres is planned for this testing.
Qualified Persons
The Qualified Person as defined by NI 43-101 as pertains to the Back River Project, is James Maxwell, Exploration Manager, for the Company.
All drill core samples selected within the exploration program are subject to a company standard of internal quality control and quality assurance programs which include the insertion of certified reference materials, blank materials and duplicates analysis. All samples are sent to SGS Canada Inc. located in Burnaby, British Columbia where they are processed for gold analysis by 50 gram fire assay with finish by a combination of atomic absorption and gravimetric methods. Additionally, analysis by screen metallic processes is performed on select samples. SGS quality systems conform to requirements of ISO/IEC Standard 17025 guidelines and meets assay requirements outlined for NI 43-101.
Sabina Gold & Silver Corp.
Sabina Gold & Silver Corp. is a well-financed, emerging precious metals company with district scale, world class undeveloped assets in one of the world's newest, politically stable mining jurisdictions: Nunavut, Canada.
In September, 2015, Sabina released a Feasibility Study on its 100% owned Back River Gold Project which presents a project that has been designed on a fit-for purpose basis, with the potential to produce ~200,000 ounces a year for ~11 years with a rapid payback of 2.9 years. At a US$1,150 gold price and a 0.80 exchange rate, the Study delivers a potential after tax internal rate of return of approximately 24.2% with an initial CAPEX of $415 million.
The Project is advancing through the environmental assessment process with final public hearings with the Nunavut Impact Review Board completed during May 31 - June 3, 2017 in Cambridge Bay.
In addition to Back River, Sabina also owns a significant silver royalty on Glencore's Hackett River Project. The silver royalty on Hackett River's silver production is comprised of 22.5% of the first 190 million ounces produced and 12.5% of all silver produced thereafter.
The Company had cash and equivalents of C$43m at March 31, 2017.
All news releases and further information can be found on the Company's website at www.sabinagoldsilver.com or on SEDAR at www.sedar.com. All technical reports have been filed on www.sedar.com.
Forward Looking Information
This news release contains "forward-looking information" within the meaning of applicable securities laws (the "forward-looking statements"), including our belief as to the extent, results and timing of exploration programs and various studies, permitting and environmental assessment outcomes, exploration results, and access to project funding. These forward-looking statements are made as of the date of this news release. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. While we have based these forward-looking statements on our expectations about future events as at the date that such statements were prepared, the statements are not a guarantee that such future events will occur and are subject to risks, uncertainties, assumptions and other factors which could cause events or outcomes to differ materially from those expressed or implied by such forward-looking statements. Such factors and assumptions include, among others, the effects of general economic conditions, commodity prices, changing foreign exchange rates and actions by government and regulatory authorities and misjudgments in the course of preparing forward-looking statements. In addition, there are known and unknown risk factors which could cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Known risk factors include risks associated with exploration and project development; the need for additional financing; the calculation of mineral resources and reserves; operational risks associated with mining and mineral processing; fluctuations in metal prices; title matters; government regulation; obtaining and renewing necessary licenses and permits; environmental liability and insurance; reliance on key personnel; the potential for conflicts of interest among certain of our officers or directors; the absence of dividends; currency fluctuations; labour disputes; competition; dilution; the volatility of the our common share price and volume; future sales of shares by existing shareholders; and other risks and uncertainties, including those relating to the Back River Project and general risks associated with the mineral exploration and development industry described in our Annual Information Form, financial statements and MD&A for the fiscal period ended December 31, 2016 filed with the Canadian Securities Administrators and available at www.sedar.com. Although we have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. We are under no obligation to update or alter any forward-looking statements except as required under applicable securities laws. This news release has been authorized by the undersigned on behalf of Sabina Gold & Silver Corp.
Bruce McLeod, President & CEO
Suite 375 - Two Bentall Centre
555 Burrard Street
Vancouver, BC V7X 1M7
Tel 604 998-4175 Fax 604 998-1051
http://www.sabinagoldsilver.com
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Contact
Nicole Hoeller
Vice-President, Communications
1 888 648-4218
nhoeller@sabinagoldsilver.com