Sabina Announces New Shallow High Grade Discovery at Back River Project, Nunavut
Hole 12GSE226 Returns 12.68 g/t Au Over 15.45 m from 52.00 m Down-Hole;Infill Drilling at George Confirms High-Grade Nature of Locale 1 Deposits
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/17/12 -- Sabina Gold & Silver Corp. (TSX: SBB) is pleased to announce new assay results from holes drilled at its Goose and George properties as part of the 2012 exploration program at its 100% owned Back River Gold Project in Nunavut, Canada.
Near-Surface Discovery
At the Goose property, a shallow new zone of gold mineralization has been discovered between the proposed Umwelt and Llama open pits. The Wing Zone was discovered by drill holes targeting the extension of the Llama deposit at depth. This new zone lies predominantly on the west limb of a south-plunging anticlinally folded iron formation sitting above and to the west of the deep extension of the Llama deposit.
Hole 12GSE226 intersected 12.68 g /t Au over 15.45 m in the western part of the zone starting at a down-hole depth of 52.00 m. The hole then went on to intersect the eastern limb of the fold returning several significant intercepts including 5.86 g/t Au over 1.05 m, 3.91 g/t Au over 3.00 m, 4.19 g/t Au over 2.95 m and 17.63 g/t Au over 0.60 m between 213.10 and 245.80 m.
The hole finally intersected its target at depth, returning 7.14 g/t Au over 4.05 m in the deep extension of the Llama Main West zone, Below the zone, a sample from a sediment-hosted dyke yielded 7.08 g/t Au over 0.80 m.
A step out hole 100 metres to the southeast of 12GSE226 encountered the Wing Zone again. Hole 12GSE231 returned various lower-grade intersections in both the eastern and western parts of the zone including 2.43 g/t Au over 19.15 m. At target depth in the Llama Main West deep extension zone, 12GSE231 returned intercepts of 14.31 g/t Au over 2.00 m, and 16.34 g/t Au over 1.55 m. Ongoing drilling is continuing to trace the Wing Zone mineralization as it plunges to the south.
"We are pleased to have another high-grade near surface discovery to follow-up on," said Rob Pease, President & CEO. "The Wing Zone's strategic location, near the proposed mining infrastructure and right in between the proposed Llama and Umwelt open pits, makes it of significant interest to us. Results like these continue to demonstrate the prospectivity of our vast land holdings at Back River."
Llama Drilling Highlights
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From To Length Au
Hole Id (m) (m) (m) (g/t) Zone Name
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12GSE226 43.90 45.20 1.30 2.28 Wing Zone West
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52.00 67.45 15.45 12.68 Wing Zone West
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including 57.20 59.00 1.80 0.00 Wing Zone West
(core loss interval)
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and 59.00 64.70 5.70 28.30 Wing Zone West
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213.10 214.15 1.05 5.86 Wing Zone East
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227.10 230.10 3.00 3.91 Wing Zone East
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245.20 248.15 2.95 4.19 Wing Zone East
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including 245.20 245.80 0.60 17.63 Wing Zone East
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260.15 260.65 0.50 3.00 Wing Zone East
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518.70 522.75 4.05 7.14 Main West
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including 518.70 520.10 1.40 12.77 Main West
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539.65 540.45 0.80 7.08 Gwky Core
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True widths have not yet been determined
George Infill Drilling
The George property sits approximately 60kms north of the Goose claim block and contains underground resources of 2,727,000 tonnes grading 8.14 g/t Au for a total of 714,000 indicated ounces of gold and an additional 1,857,000 tonnes grading 8.92 g/t Au for a total of 533,000 inferred ounces of gold. The resources at George are made up of a series of deposits on the property and are the Preliminary Economic Assessment contemplates these deposits to be mined at Back River.
Currently three drills are focussed on infill drilling at George to upgrade the resources from Inferred to Indicated. The program is currently focused on the Locale deposits which contain the bulk of the George resources. Five of the first six holes at Locale 1 have confirmed the robust nature of the gold mineralization. Highlights include hole 12GRL058 (16.16 g/t Au over 7.85 m), 12GRL063 (6.12 g/t Au over 18.40 m) and 12GRL064 (16.85 g/t Au over 4.82 m).
Locale 1 Drilling Highlights
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From To Length Au
Hole Id (m) (m) (m) (g/t) Zone Name
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12GRL058 215.4 223.25 7.85 16.16 Locale 1
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including 217.45 218.55 1.1 74.69 Locale 1
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and 220.5 221.15 0.65 25.29 Locale 1
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12GRL060 245.95 255.6 9.65 6.37 Locale 1
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12GRL061 103.3 104 0.7 24.4 Locale 1
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233 243 10 6.31 Locale 1
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including 238 241 3 17.41 Locale 1
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246 247.7 1.7 2.02 Locale 1
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252 261.1 9.1 16.83 Locale 1
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including 253 258 5 28.91 Locale 1
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including 255 258 3 37.83 Locale 1
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12GRL063 217 235.4 18.4 6.12 Locale 1
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12GRL064 257 260 3 1.43 Locale 1
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271 272 1 2.37 Locale 1
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277 278 1 4.44 Locale 1
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281 288 7 3.9 Locale 1
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294.18 299 4.82 16.85 Locale 1
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True widths have not yet been determined
The 2012 exploration program is expected to continue until the beginning of October with a combination of extension, resource conversion and geotechnical drilling on the Goose and George properties. The resource conversion and geotechnical drilling are intended to provide the technical information necessary to complete the ongoing Pre-Feasibility Study anticipated in 2013.
Quality Assurance
The Qualified Person under NI 43-101 is Kaesy Gladwin, P. Geo, Senior Geologist for Sabina Gold & Silver Corp., who has approved this release as it pertains to the Llama results and Stanley Clemmer, P. Geo, Project Manager for Sabina Gold & Silver Corp., who has approved this release as it pertains to the George results.
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 2012 are the same as those used in earlier campaigns by Sabina Gold & Silver Corp. and have been deemed appropriate in the Company's 43-101 compliant resource reports.
SABINA GOLD & SILVER CORP.
Sabina Gold & Silver Corp. is an emerging precious metals developer with district scale, world class assets in one of the world's newest, most politically stable mining jurisdictions: Nunavut, Canada.
Sabina's primary assets, all located in Nunavut, consist of: the Back River Gold Project, currently in the pre-feasibility and permitting phase; the Wishbone Claims, a vastly prospective grass roots project; and the Hackett River Silver Royalty, a silver production royalty on Xstrata Zinc's Hackett River project comprising 22.5% of the first 190 million ounces produced and 12.5% of all the silver produced thereafter. The Company had cash of $153 million at June 30, 2012 and plans to end the year with approximately $115 million in the treasury.
All news releases and further information regarding drill results for the 2012 campaign can be found on the Company's website at www.sabinagoldsilver.com or on SEDAR at www.sedar.com.
Forward Looking Statements
Statements relating to mineral resource estimates at Llama, Umwelt, George and Goose and the expected impact of these mineral resources 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, 2011.
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.
Rob Pease, President & CEO
To view Figures 1, 2, 3 and 4 please click on the following link: http://media3.marketwire.com/docs/SBB0917.pdf
Contacts:
Sabina Gold & Silver Corp.
Nicole Hoeller
Vice-President, IR
1 888 648-4218
nhoeller@sabinagoldsilver.com
www.sabinagoldsilver.com