Sabina Gold & Silver Reports Continued Positive Results at Back River and Wishbone Gold Projects, Nunavut New Discoveries Reported at Wishbone Gold and Goose Neck TargetsUmwelt Drilling Continues to Expand the DepositHole 11GSE075 at Umwelt Returns 1
New Discoveries Reported at Wishbone Gold and Goose Neck Targets
Umwelt Drilling Continues to Expand the Deposit
Hole 11GSE075 at Umwelt Returns 13.43 g/t Au over 24.40 m Including 34.40 g/t Au over 8.25 m Including 72.80 g/t Au over 3.0 m
Hole SWB11-07 at Wishbone - Bullwinkle / Lucky 7 Target Returns 71.30 g /t Au over 1.5 m and 3.35 g/t Au over 14.65m Including 6.45 g/t Au over 4.50 m
Hole 11GSE087 at Goose Neck Target Returns 3.44 g/t Au over 10.25 m
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/25/11 -- Sabina Gold & Silver Corp. (TSX: SBB) is pleased to announce additional assay results from holes drilled as part of the 2011 exploration program on its targets at the Goose property and new results from exploration drilling on the Wishbone 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 that were retained after the Hackett River transaction.
A new discovery has been made on the Wishbone claim block adjacent to the Back River assets. The Bullwinkle - Lucky 7 target is approximately 30 km southwest of the George claim block and is from the first drilling of a new regionally extensive horizon that can be traced for over 60 km. Drilling at the target intersected two zones of mineralization in hole SWB-11-07. The first zone consists of an altered fault gouge zone with shearing and quartz veining with up to 5% pyrite and pyrrhotite. This zone graded 71.30 g/t Au over 1.50 m. A second zone consisting of silica rich breccia fragments in a dark quartz-feldspar-biotite-pyrrhotite matrix graded 3.35 g/t Au over 14.65 m including 6.45 g/t Au over 4.50 m.
At Goose, a new tool box discovery has been made at Goose Neck South, located 1.3 km southeast of the Umwelt deposit. Hole 11GSE087 returned 3.44 g/t Au over 10.85 m in silicified and sulphidized iron formation and is similar in style to that of the Umwelt deposit.
The Umwelt deposit at Goose continues to expand. Most significantly, new assay results from Umwelt Hole 11GSE075 returned 13.43 g/t Au over 24.40 m including 34.40 g/t Au over 8.25 m which included 3.0 m grading 72.80 g/t Au. Separate intervals returned values of 1.57 g/t Au over 5.45 m and 4.25 g/t Au over 1.00 m. This hole is 50 m north of the southernmost drill hole at Umwelt and is the deepest to-date at a vertical depth of 640 m. Additional assay results have also been returned for Umwelt Hole 11GSE052 (reported previously on July 18) which has increased the width of the mineralized zone by an additional 7.00 m. This hole now grades 10.19 g/t Au over 33.00 m including 27.16 g/t Au over 9.00 m. Umwelt has been traced for 1.4 km along strike and an increase in resources is anticipated as a result of this year's drilling.
'Our work at Back River continues to be successful. In our 2011 campaign, we have extended and expanded our Umwelt deposit and we have made a number of new discoveries, at Goose, George and now on the Wishbone claim block,' said Tony Walsh, President & CEO. 'As we apply our 'tool box' to other claim blocks, including Wishbone, we are very encouraged by the success we are having in identifying gold structures. While not all the discoveries we make will be of the nature and size we are looking for, our success rate in finding gold on the limited number of targets tested this year is excellent. We have years and years of targets still to test on these prospective land packages and we are confident that we will continue to find gold.'
There are currently nine drills operating at Back River and Wishbone. Seven drills are operating on the Goose property, where two drills are shifting from resource expansion to focussing on the numerous untested targets within the 5 km corridor containing the Goose, Llama and Umwelt deposits. Two rigs are operating on the Wishbone property. The current phase of drilling on the George property is now complete, with numerous assays still pending.
To date, at Back River (Goose and George) a total of 160 holes and 51,000 metres of core have been drilled in 2011. At our Wishbone Gold project, we have drilled 6,830 metres in 26 holes. Many assays from both projects are still pending.
WISHBONE DRILLING
Drilling is underway on the Wishbone project that is located 30 kilometres southwest of George in a similar geological setting for gold. To date, three holes have returned significant gold intersections. Assays are pending on 10 of the 26 holes.
Hole SWB-11-07 drilled on the Lucky 7 target in the Bullwinkle area in the northern portion of the project intersected two zones of mineralization. The first graded 71.3 g/t Au over 1.50 m in a fault structure and a second breccia zone returned 3.35 g/t Au over 14.65 m including 6.45 g/t Au over 4.50 m. Drilling in the Bullwinkle area is continuing and we will be aggressively following up this discovery and the regionally extensive feature that can be traced for over 60 km.
Drilling in the Rocky area in the southern portion of the Wishbone project has also intersected significant gold mineralization over wide widths. Assays for two holes have been received: Hole SWB-11-10 returned 1.07 g/t Au over 34.15 m including 2.26 g/t Au over 8.40 m including a higher grade section that returned 5.97 g/t Au over 1.85 m. A second separate interval in the hole graded 1.04 g/t Au over 7.20 m. Hole SWB-11-11, located 375 metres northeast of hole 10, returned 0.83 g/t Au over 26.2 m including 1.19 g/t Au over 8.90 m and a separate zone that graded 0.92 g/t Au over 6.4 m including 2.46 g/t Au over 1.80 m. These intersections occur in strongly pyrrhotite mineralized silicate and oxide iron formation. A Max-Min EM anomaly associated with the mineralization can be traced for over 1.0 km. Assay results are pending on additional holes drilled in this area.
Table 1: Wishbone Gold Target - Recent Assay Results
--------------------------------------------------------------------------
From To Length Au
Hole Id Area Easting Northing Depth (m) (m) (m) (g/t)
--------------------------------------------------------------------------
SWB-11-07 Bullwinkle- 638520(i) 7292045 287 98.00 99.50 1.50 71.30
Lucky 7
--------------------------------------------------------------------------
And 287.00 301.65 14.65 3.35
--------------------------------------------------------------------------
Including 294.20 298.70 4.50 6.45
--------------------------------------------------------------------------
SWB-11-10 Rocky 375438(ii) 7254775 299 62.40 69.60 7.20 1.04
--------------------------------------------------------------------------
And 235.30 269.45 34.15 1.07
--------------------------------------------------------------------------
Including 256.25 264.65 8.40 2.26
--------------------------------------------------------------------------
Including 261.95 263.80 1.85 5.97
--------------------------------------------------------------------------
SWB-11-11 Rocky 375418(ii) 7255144 221 4.00 10.40 6.40 0.92
--------------------------------------------------------------------------
Including 7.00 8.80 1.80 2.46
--------------------------------------------------------------------------
And 103.20 129.40 26.20 0.83
--------------------------------------------------------------------------
Including 110.35 119.25 8.90 1.19
--------------------------------------------------------------------------
(i) NAD83 Zone 12; (ii) NAD83 Zone 13; True widths have not been
determined at this time.
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 m.
To date, a total of 46 holes totalling 24,150 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 geological and gold grade continuity.
Currently at Umwelt, five drills are active, drilling the deposit to the south, with holes designed to advance the new mineralization to the resource level. New assay results have been returned for holes 052, 056, 057, 061, 062, 065, 068 and 075. Additional assay results have been returned for hole 11GSE052 on section 4450N (reported previously on July 18 and 100 m south of the drilling conducted in 2010) increasing the width of the mineralized zone by 7.00 m to 10.19 g/t Au over 33.0 m including 27.16 g/t Au over 9.0 m. This intersection is at a vertical depth of 375 m. Hole 065 located on section 4400N is an infill resource hole that returned 4.79 g/t Au over a width of 20.84 m and includes a zone which returned 10.0 g/t Au over 7.23 m and a separate zone that graded 15.42 g/t Au over 6.00 m. The mineralized zone was intercepted at a vertical depth of 300 m. Hole 062 is an infill hole drilled on section 4250N. This hole returned 3.35 g/t Au over a width of 19.2 m and includes a zone which returned 5.1 g/t Au over 5.1 m. Visible gold was noted at a number of intervals in the core and this intersection is at a vertical depth of 450 m. Holes 057 and 068 are both from section 4050N which is 100 m north of the southern-most drill hole at Umwelt. Hole 057 intersected 5.64 g/t Au over 6.70 m at a vertical depth of 575 m and hole 068 intersected 3.28 g/t Au over 22.00 m at a depth of 570 m. Most significantly hole 075, drilled 50 m to the north of our southernmost hole at Umwelt (11GSE049) returned 13.43 g/t Au over 24.40 m including 34.40 g/t Au over 8.25 m at a vertical depth of 640 m. These new results continue to demonstrate the strong continuity, thickness and grade of the mineralization at Umwelt.
The deposit continues to remain open along strike and to depth and plunges at a consistent 25 degrees. 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 Midway Banded Iron Formation. The relationship between the Main and West zones is uncertain but the Midway Banded Iron Formation Zone may be a refolded limb of the Main zone.
Table 2: Umwelt - Recent Assay Results
---------------------------------------------------------------------------
Len- Comment/
From To gth Au Mineral
Hole Id Section Easting Northing Depth (m) (m) (m) (g/t) Zone
---------------------------------------------------------------------------
11GSE052 4450 430298 7270752 551 237.00 238.00 1.00 2.09 Eastern
BIF
---------------------------------------------------------------------------
380.00 413.00 33.00 10.19 Main Zone
East
---------------------------------------------------------------------------
Including 393.00 402.00 9.00 27.16 Main Zone
East
---------------------------------------------------------------------------
11GSE056 4450 430402 7270835 563 492.00 501.75 9.75 2.53 Main Zone
East
---------------------------------------------------------------------------
11GSE057 4050 430739 7270599 758 673.00 675.00 2.00 5.45 Main Zone
East
---------------------------------------------------------------------------
676.80 677.30 0.50 21.35 Main Zone
East
---------------------------------------------------------------------------
686.00 692.70 6.70 5.64 Main Zone
East
---------------------------------------------------------------------------
including 690.00 692.00 2.00 15.91 Main Zone
East
---------------------------------------------------------------------------
11GSE061 4400 430287 7270675 504 318.53 319.60 1.07 3.33 Main Zone
East
---------------------------------------------------------------------------
380.00 390.00 10.00 3.34 Main Zone
East
---------------------------------------------------------------------------
Including 383.00 384.00 1.00 7.03 Main Zone
East
---------------------------------------------------------------------------
And 389.00 390.00 1.00 20.90 Main Zone
East
---------------------------------------------------------------------------
11GSE062 4250 430482 7270643 601 448.00 452.00 4.00 5.78 Main Zone
East
---------------------------------------------------------------------------
513.80 514.80 1.00 14.22 Main Zone
East
---------------------------------------------------------------------------
535.80 555.00 19.20 3.35 Main Zone
East
---------------------------------------------------------------------------
including 538.90 544.00 5.10 5.11 Main Zone
East
---------------------------------------------------------------------------
11GSE065 4400 430228 7270625 441 319.39 340.20 20.84 4.79 Main Zone
East
---------------------------------------------------------------------------
333.00 340.20 7.23 10.00 Main Zone
East
---------------------------------------------------------------------------
Including 353.50 359.50 6.00 15.42 Main Zone
East
---------------------------------------------------------------------------
11GSE068 4050 430681 7270551 729 667.00 689.00 22.00 3.28 Main Zone
East
---------------------------------------------------------------------------
Including 667.00 671.00 4.00 6.08 Main Zone
East
---------------------------------------------------------------------------
683.00 689.00 6.00 7.08 Greywacke
core
---------------------------------------------------------------------------
11GSE075 4000 430737 7270523 776 691.15 696.60 5.45 1.57 Main Zone
East
---------------------------------------------------------------------------
713.00 737.40 24.40 13.43 Main Zone
East
---------------------------------------------------------------------------
726.00 734.30 8.25 34.40 Main Zone
East
---------------------------------------------------------------------------
728.00 731.00 3.00 72.80 Main Zone
East
---------------------------------------------------------------------------
749.20 750.30 1.10 4.25 Greywacke
---------------------------------------------------------------------------
True widths are estimated to be 70% of the drill widths.
Goose Neck
The Goose Neck area located midway between the Goose and Umwelt deposits was identified by our tool box targeting methodology and has discovered thickened silicified and sulphidized oxide iron formation. Assay results for 3 holes have been returned for the zone, with hole 11GSE087 grading 3.44 g/t Au over 10.25 m. To date, 8 holes totalling 1,700 m have been drilled or are in progress at Goose Neck and the zone has been tested to a depth of 220 m across a 175 m strike length. The zone appears to plunge shallowly to the southeast and averages between 10 and 15 m in thickness. Drilling continues on this new discovery.
Table 3: Goose Neck - Recent Assay results
---------------------------------------------------------------------------
Len- Comment/
From To gth Au Mineral
Hole Id Section Easting Northing Depth (m) (m) (m) g/t) Zone
---------------------------------------------------------------------------
11GSE081 J3850N 431825 7269695 260 152.40 169.00 16.60 1.71 Undeter-
mined
---------------------------------------------------------------------------
11GSE087 J3850N 431785 72649628 188 84.75 95.00 10.25 3.44 Undeter-
mined
---------------------------------------------------------------------------
11GSE090 J3900N 431748 7269682 188 79.45 90.30 10.85 1.59 Undeter-
mined
---------------------------------------------------------------------------
True widths are estimated to be 70% of the drill widths.
GEORGE LAKE
Application of the exploration tool box was employed to search for new large shallow open pit deposits in the George area that would enhance economics of the existing underground resource at George has resulted in two new discoveries.
The Lookout Hill discovery consists of moderately folded oxide iron formation with strong quartz veining, shear controlled mineralization (dominantly pyrite with minor arsenopyrite) and visible gold. Assay results from Hole 11GRL025, a 100 m south step-out on hole 11GRL022 (previously reported on June 28) returned 2.95 g/t Au over 9.0 m.
Table 4: George - Lookout Hill Assay Results
--------------------------------------------------------------------------
Comment/
From To Length Au Mineral
Hole Id Area Depth (m) (m) (m) (g/t) Zone
--------------------------------------------------------------------------
11GRL022 Lookout Hill 250 188.00 204.00 16.00 5.14 New Discovery
--------------------------------------------------------------------------
Including 192.50 199.45 6.95 11.31
--------------------------------------------------------------------------
And 197.00 198.00 1.00 31.38
--------------------------------------------------------------------------
11GRL025 Lookout Hill 288 234.00 243.00 9.00 2.95 New Discovery
--------------------------------------------------------------------------
Including 236.00 243.00 7.00 3.65
--------------------------------------------------------------------------
True widths are estimated to be 70% of the drill widths.
At the Trigger discovery (reported on July 18), two follow-up holes were completed and assay results are pending. Drilling at George is complete for 2011 as our supplies have been exhausted. We are awaiting additional assay results and going forward we will be evaluating further work on these discoveries.
George contains a current indicated resource of 1.84 million tonnes grading 10.9 g/t Au for a total of 590,000 oz and an additional inferred resource of 2.6 million 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.
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 in progress and should be finalized shortly.
If all studies are positive, the Company anticipates moving to a scoping study in Q4, 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 for the Back River Project and has approved its dissemination. Mr. Stanley Clemmer, P. Geo, and Project Manager, Wishbone 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 for the Wishbone Project and has 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, 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 5: Recent Umwelt Assay results.
---------------------------------------------------------------------------
Len- Comment/
From To gth Au Mineral
Hole Id Section Easting Northing Depth (m) (m) (m) (g/t) Zone
---------------------------------------------------------------------------
11GSE052 4450 430298 7270752 551 237.00 238.00 1.00 2.09 Eastern
BIF
---------------------------------------------------------------------------
258.00 259.00 1.00 1.18
---------------------------------------------------------------------------
380.00 413.00 33.00 10.19 Main Zone
East
---------------------------------------------------------------------------
including 393.00 402.00 9.00 27.16 Main Zone
East
---------------------------------------------------------------------------
11GSE055 4250 430539 7270691 617 416.75 417.40 0.65 1.47 Eastern
BIF
---------------------------------------------------------------------------
551.00 553.00 2.00 3.79 Main Zone
East
---------------------------------------------------------------------------
557.00 558.00 1.00 1.32 Main Zone
East
---------------------------------------------------------------------------
567.00 568.00 1.00 1.41 Main Zone
East
---------------------------------------------------------------------------
587.50 588.00 0.50 2.95 Main Zone
East
---------------------------------------------------------------------------
11GSE056 4450 430402 7270835 563 477.00 478.00 1.00 1.42 Main Zone
East
---------------------------------------------------------------------------
492.00 501.75 9.75 2.53 Main Zone
East
---------------------------------------------------------------------------
11GSE057 4050 430739 7270599 758 552.50 553.50 1.00 1.82 Main Zone
East
---------------------------------------------------------------------------
673.00 675.00 2.00 5.45 Main Zone
East
---------------------------------------------------------------------------
676.80 677.30 0.50 21.35 Main Zone
East
---------------------------------------------------------------------------
686.00 692.70 6.70 5.64 Main Zone
East
---------------------------------------------------------------------------
including 690.00 692.00 2.00 15.91 Main Zone
East
---------------------------------------------------------------------------
715.00 716.00 1.00 1.03 Main Zone
East
---------------------------------------------------------------------------
11GSE061 4400 430287 7270675 504 311.88 312.81 0.93 1.54 Main Zone
East
---------------------------------------------------------------------------
318.53 319.60 1.07 3.33 Main Zone
East
---------------------------------------------------------------------------
380.00 390.00 10.00 3.34 Eastern
BIF
---------------------------------------------------------------------------
including 383.00 384.00 1.00 7.03 Eastern
BIF
---------------------------------------------------------------------------
and 389.00 390.00 1.00 20.90 Eastern
BIF
---------------------------------------------------------------------------
11GSE062 4250 430482 7270643 601 448.00 452.00 4.00 5.78 Main Zone
---------------------------------------------------------------------------
513.80 514.80 1.00 14.22 Main Zone
---------------------------------------------------------------------------
535.80 555.00 19.20 3.35 Main Zone
---------------------------------------------------------------------------
including 538.90 544.00 5.10 5.11 Main Zone
---------------------------------------------------------------------------
11GSE065 4400 430228 7270625 441 319.39 340.20 20.84 4.79 Main Zone
East
---------------------------------------------------------------------------
including 333.00 340.20 7.23 10.00 Main Zone
East
---------------------------------------------------------------------------
353.50 359.50 6.00 15.42 Main Zone
East
---------------------------------------------------------------------------
11GSE068 4050 430681 7270551 729 608.00 609.00 1.00 12.00 Main Zone
---------------------------------------------------------------------------
626.00 627.50 1.50 2.21 Main Zone
---------------------------------------------------------------------------
667.00 689.00 22.00 3.28 Mixed
zone
---------------------------------------------------------------------------
including 667.00 671.00 4.00 6.08 Main Zone
---------------------------------------------------------------------------
and 683.00 689.00 6.00 7.08 Mixed
zone
---------------------------------------------------------------------------
11GSE075 4000 430737 7270523 776 691.15 696.60 5.45 1.57 Main Zone
East
---------------------------------------------------------------------------
713.00 737.40 24.40 13.43 Main Zone
East
---------------------------------------------------------------------------
726.00 734.30 8.25 34.40 Main Zone
East
---------------------------------------------------------------------------
728.00 731.00 3.00 72.80 Main Zone
East
---------------------------------------------------------------------------
749.20 750.30 1.10 4.25 Greywacke
---------------------------------------------------------------------------
To view Figures 1-11 please click on the following link: http://media3.marketwire.com/docs/0825SBB.pdf
Contacts:
Sabina Gold & Silver Corp.
Peter Manojlovic
Vice President Exploration
1 888 648-4218
pmanojlovic@sabinagoldsilver.com
www.sabinagoldsilver.com