Sabina Gold & Silver Reports Umwelt Mineralization Now Extended Over a Strike Length of 1.2 km Encouraging Targets Identified at George Claim Block-Back River Project, Nunavut
Encouraging Targets Identified at George Claim Block-Back River Project, Nunavut
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/28/11 -- Sabina Gold & Silver Corp. (TSX: SBB) -
-- Hole 11GSE037 at Umwelt returns 8.71 g/t Au over 25.2 m incl. 18.98 g/t
Au over 5.5 m
-- Hole 11GSE042 at Umwelt returns 10.54 g/t Au over 10.3 m incl. 16.70 g/t
Au over 3.4 m
Sabina Gold & Silver Corp. 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 the first 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 started on the Goose claim block in March. The focus of work is to extend and expand the new deposits at Umwelt and Llama and to identify new deposits. There are currently eight drills operating at Back River. Five rigs are in the Goose area, where two are shifting focus from resource expansion to focus on the numerous untested discovery targets within the 5 km corridor containing the Goose, Llama and Umwelt deposits. One rig continues at George and two rigs are soon to be operating on the Wishbone properties testing gold targets on those claims retained by Sabina after the Hackett River transaction.
Results continue to demonstrate that Umwelt is a strong, well mineralized system with good continuity and grade. Based on last year's drilling, the Company reported indicated resources at Umwelt of 4.6 m tonnes grading 6 g/t Au for a total of 900,000 oz and an additional inferred resource of 980K tonnes grading 6.4 g/t Au for a total of 221,000 oz over a strike length of 550 metres.
In 2011 one drill is completing 100 m step out holes tracing Umwelt to the south, with two drills following up behind with infill holes. Most significantly, Hole 11GSE042, the furthest hole to the south in which assays have been returned, intersected 10.54 g/t Au over 10.3 m including 16.70 g/t Au over 3.4 m. This hole is 550 m south of the drilling completed in 2010 and extends the overall strike length of the deposit to over 1.2 km. It is at a vertical depth of 550 m. The deposit continues to remain open along strike and to depth and plunges at a consistent 25 degrees. Other highlights include Hole 11GSE037 which returned 8.71 g/t Au over 25.2 m including 18.98 g/t Au over 5.5 m, located approximately 300 m to the south of the drilling that was completed in 2010. This intersection is at a vertical depth of 420 m.
'We continue to extend and add to the Umwelt deposit at the Goose property,' said Tony Walsh, President & CEO. 'The system remains open and we continue to see the structure, mineralization and visible gold as we keep drilling the deposit at depth to the south. There remains excellent potential for Umwelt to continue to grow and add ounces. Also, our Exploration Tool Box is proving successful on other areas on the property. At the George claim block, the application of the tool box has yielded very encouraging prospects for new large scale open pitable discoveries. Additionally, the sale of the Hackett River Project to Xstrata Canada Zinc has also enabled us to focus entirely on looking for new gold discoveries on our retained claims on the Wishbone greenstone belt. A drill and crew have been mobilized and work has begun on the south east portion of the belt adjacent to Back River.'
To date, at Back River a total of 82 holes and 28,700 metres of core have been completed, or are in progress, with many assays still pending. A total of five rigs are currently drilling on the Goose claim block generating approximately 325 m of core per day.
The deposits and target areas at the Goose claim block are within a 5 km corridor that have been identified using an exploration system developed by Sabina's geological team. This new Exploration Tool Box is based on a set of assumptions that specifically target large buried alteration and mineralized features in folded iron formation units that have the potential to be extracted by open pit methods.
Application of the Exploration Tool Box is also in progress at the George claim block. George contains a current indicated resource of 1.84m tonnes grading 10.9 g/t Au for a total of 590,000 oz and an additional inferred resource of 2.6 m tonnes grading 10.5 g/t Au for a total of 866,000 oz of. The current deposits at George are mainly amenable to being mined by underground methods; however, with the development and application of the new tool box, numerous opportunities to find additional large shallow open pit deposits in the area have been identified.
Work has focused on one relatively underexplored area to-date and this work has resulted in a number of encouraging new discoveries. For example, at the Trigger target, silicified and sulphidized breccia zones in sediments associated with iron formations have returned a number of strong intercepts including 9.12 g/t Au over 6.00 m in hole 11GRL001. Most assays from George are still pending.
UMWELT
To date a total of 22 holes totalling 12,500 m have been drilled or are in progress on the Umwelt zone at the Goose property.
Drilling at Umwelt has effectively extended and expanded the mineralized zone both along strike and down plunge. At this time, the Umwelt zone mineralized trend has been traced over a strike length of 1.2 km and down to a vertical depth of 550 m below surface. The zone remains open both along strike and to depth.
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 at 25 degrees. 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 recent assay results
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Comment/
From Length Au Mineral
Hole Id Area Section Depth (m) To (m) (m) (g/t) Zone
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11GSE026 Umwelt 4350 554 327.0 328.0 1.00 9.89 Undetermined
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412.5 424.5 12.00 9.09 Main Zone East
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including 413.5 416.5 3.00 22.07 Main Zone East
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481.0 482.0 1.00 1.61 Main Zone West
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11GSE031 Umwelt 4500 458 144.0 145.0 1.00 2.93 East BIF
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252.9 253.9 1.00 1.68 Undetermined
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260.0 261.0 0.95 5.40 Undetermined
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316.3 317.3 1.00 1.46 Main Zone East
----------------------------------------------------------------------------
336.0 337.3 1.30 1.25 Main Zone East
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350.0 367.0 17.00 4.78 Main Zone East
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including 362.0 364.0 2.00 29.26 Main Zone East
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384.3 389.5 5.20 3.21 Main Zone West
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403.5 404.5 1.00 3.69 Main Zone West
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11GSE037 Umwelt 4350 683 298.7 299.2 0.50 11.09 Eastern BIF
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450.3 452.6 2.30 1.30 Main Zone East
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465.0 469.0 4.00 1.45 Main Zone East
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472.0 497.2 25.20 8.71 Main Zone East
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including 487.5 493.0 5.50 18.98 Main Zone East
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and 495.0 496.0 1.00 32.61 Main Zone East
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11GSE040 Umwelt 4500 590 399.0 432.0 33.00 3.43 Main Zone East
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including 399.0 402.0 3.00 1.91 Main Zone East
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including 416.0 426.2 10.16 8.18 Main Zone East
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and 423.0 425.0 2.00 25.52 Main Zone East
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11GSE042 Umwelt 4050 719 636.5 646.8 10.30 10.54 Main Zone East
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637.5 640.9 3.40 16.70 Main Zone East
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11GSE043 Umwelt 4350 662 428.0 428.8 0.75 5.66 Main Zone East
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433.8 436.4 2.55 4.56 Main Zone East
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457.1 469.7 12.65 3.38 Main Zone East
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457.1 458.0 0.95 10.56 Main Zone East
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467.0 468.8 1.80 6.87 Main Zone East
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491.7 492.6 0.95 17.87 Main Zone West
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True widths are estimated to be 70% of the drill widths.
GEORGE CLAIM BLOCK
To date, a total of 29 holes comprising 5,672 m have been completed or are in progress at George.
Sabina continues to experience a high level of exploration success, demonstrated by some encouraging results at the Company's Trigger discovery located on the George Property. The first hole of the diamond drilling program confirms a significant gold endowment at this target and validates the company's exploration strategy. Numerous gold intercepts were returned within hole 11GRL001 (Trigger) including; 9.12g/t Au over 6.00 m, 1.87g/t Au over 8.00 m, 4.37g/t Au over 1.00 m, 2.45g/t Au over 1.00 m, 2.11 g/t Au over 1.00 m and 7.99 g/t over 0.50 m within brecciated, silicified and sulphidized sediments associated with oxide iron formation.
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. Diamond drilling of this area is 100% focused on looking for new shallow open pit discoveries. Assays are still outstanding for much of this drilling.
One drill continues to test the targets at George.
LLAMA DEPOSIT
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. Many assay results are still pending. 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.
Noteworthy results from the drill program include Hole 11GSE035, which returned 8.79 g/t Au over 5.0 m on the East Limb.
Table 2: Llama deposit - 2011 assay results
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Comment/
Length Mineral
Hole Id Area Section From (m) To (m) (m) Au (g/t) Zone
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11GSE035 Llama 4950 266.00 271.00 5.00 8.79 Main East
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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. No additional holes have been collared on the Goose deposit.
The open pit resource estimate is currently underway.
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
Table 3: 2011 Back River project - Goose Lake property Drill results as of
June 24, 2011
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Comment/
From Length Au Mineral
Hole Id Area Section Depth (m) To (m) (m) (g/t) Zone
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11GSE026 Umwelt 4350 554 327.0 328.0 1.00 9.89 Undetermined
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412.5 424.5 12.00 9.09 Main Zone East
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including 413.5 416.5 3.00 22.07 Main Zone East
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481.0 482.0 1.00 1.61 Main Zone West
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11GSE027 Llama 4650 488 314.0 344.0 30.00 0.70 Main Zone West
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including 315.9 318.0 2.13 3.72 Main Zone West
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and 333.0 334.0 1.00 2.38 Main Zone West
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and 343.0 344.0 1.00 2.26 Main Zone West
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464.0 468.0 4.00 3.35 Main Zone West
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11GSE028 Umwelt 4250 590 212.9 213.6 0.70 1.47 East BIF
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319.5 321.0 1.50 3.12 Undetermined
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401.7 402.7 1.00 3.04 Main Zone East
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468.5 470.3 1.80 5.83 Main Zone East
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490.5 491.5 1.00 1.34 Main Zone East
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499.2 500.2 1.00 2.40 Main Zone East
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545.3 546.3 1.00 1.11 Main Zone West
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11GSE029 Llama 5500 194 110.9 112.1 1.25 2.43 Undetermined
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11GSE030 Llama 4750 512 340.0 340.5 0.50 10.05 Main Zone East
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11GSE031 Umwelt 4500 458 144.0 145.0 1.00 2.93 East BIF
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252.9 253.9 1.00 1.68 Undetermined
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260.0 261.0 0.95 5.40 Undetermined
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316.3 317.3 1.00 1.46 Main Zone East
----------------------------------------------------------------------------
336.0 337.3 1.30 1.25 Main Zone East
----------------------------------------------------------------------------
350.0 367.0 17.00 4.78 Main Zone East
----------------------------------------------------------------------------
including 362.0 364.0 2.00 29.26 Main Zone East
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384.3 389.5 5.20 3.21 Main Zone West
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403.5 404.5 1.00 3.69 Main Zone West
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11GSE032 Llama 5350 248.6 NSV
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11GSE033 Umwelt 4150 719 244.4 245.0 0.65 1.41 East BIF
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530.1 530.9 0.80 9.88 Main Zone East
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541.0 542.0 1.00 1.20 Main Zone East
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552.7 564.0 11.30 1.17 Main Zone East
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11GSE034 Llama 5000 362 149.5 150.5 1.00 1.56 Midway BIF
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239.2 240.2 1.00 1.34 Main Zone East
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11GSE035 Llama 4950 609.5 266.0 271.0 5.00 8.79 Main Zone East
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11GSE036 Llama 5200 188 NSV
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11GSE037 Umwelt 4350 683 298.7 299.2 0.50 11.09 Eastern BIF
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450.3 452.6 2.30 1.30 Main Zone East
----------------------------------------------------------------------------
465.0 469.0 4.00 1.45 Main Zone East
----------------------------------------------------------------------------
472.0 497.2 25.20 8.71 Main Zone East
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including 487.5 493.0 5.50 18.98 Main Zone East
----------------------------------------------------------------------------
and 495.0 496.0 1.00 32.61 Main Zone East
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11GSE038 Llama 4750 323 NSV
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11GSE039 Llama 4650 341 NSV
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11GSE040 Umwelt 4500 590 399.0 432.0 33.00 3.43 Main Zone East
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including 399.0 402.0 3.00 1.91 Main Zone East
----------------------------------------------------------------------------
including 416.0 426.2 10.16 8.18 Main Zone East
----------------------------------------------------------------------------
and 423.0 425.0 2.00 25.52 Main Zone East
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11GSE041B Llama 4900 209.5 NSV
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11GSE042 Umwelt 4050 719 636.5 646.8 10.30 10.54 Main Zone East
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including 637.5 640.9 3.40 16.70 Main Zone East
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11GSE043 Umwelt 4350 662 319.6 320.1 0.50 1.18 Eastern BIF
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323.2 323.8 0.55 1.35 Eastern BIF
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428.0 428.8 0.75 5.66 Main Zone East
----------------------------------------------------------------------------
433.8 436.4 2.55 4.56 Main Zone East
----------------------------------------------------------------------------
437.7 438.8 1.10 1.90 Main Zone East
----------------------------------------------------------------------------
457.1 469.7 12.65 3.38 Main Zone East
----------------------------------------------------------------------------
including 457.1 458.0 0.95 10.56 Main Zone East
----------------------------------------------------------------------------
including 467.0 468.8 1.80 6.87 Main Zone East
----------------------------------------------------------------------------
491.7 492.6 0.95 17.87 Main Zone West
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To view the Figures associated with this press release, please click on the following link: http://media3.marketwire.com/docs/s627m.pdf.
Contacts:
Sabina Gold & Silver Corp.
Nicole Hoeller
Director, IR
1 888 648-4218
nhoeller@sabinagoldsilver.com
www.sabinagoldsilver.com