| May 12, 2010 Sabina Gold & Silver Announces Q1 2010 Financial Results | |
| VANCOUVER -- Sabina Gold & Silver Corp (the "Company") (SBB -- TSX) reported today the financial results for the quarter ended March 31, 2010. Q1 Highlights The first quarter culminated in a number of events for the Company: Exploration programs were set for the year; in total, the Company plans to drill approximately 46,000 meters and expend roughly $25.0 million on exploration programs in 2010. The first quarter culminated in a number of events for the Company:
Significant events which occurred just subsequent to the quarter include:
"2010 is going to be an exciting year for us," said Tony Walsh, President & CEO "We are spending $25 million on field work and exploration, the largest campaign ever for the Company. After qualifying our targets in 2009, this is the year we focus on quantifying them. We are very pleased with the successes we've had to date, especially with the new discovery at Back River." Financial Results For the first quarter ended March 31, 2010, the Company reported a net loss of $1.5 million or $0.01 per share compared to a net loss of $0.4 million in the corresponding period of 2009. The loss for Q1 2010 was $1.1 million higher than in 2009 due largely to higher stock based compensation expense and lower interest income and lower unrealized gains on held for trading investments. The difference of $0.7 million for stock-based compensation expense was mainly timing related in that the annual grant of employee stock options occurred in Q1 2010, rather than in Q2, as in 2009. The company had cash and cash equivalents of $40.1 million at March 31, 2010 compared to cash and cash equivalents of $45.0 million at December 31, 2009. For the full March 31, 2010 financial statements and Management's Discussion and Analysis, please see the Company website at www.sabinagoldsilver.com. 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 Hackett River silver-zinc Project, the Back River Gold Project, both advanced exploration properties, as well as the Wishbone Claims, a vastly prospective grass roots project. The combined holdings total approximately 3,000 square kilometres and cover the largely unexplored Wishbone Greenstone belt. Hackett River is one of the largest undeveloped silver - zinc volcanic massive sulphide ("VMS") deposits in the world with indicated resources totaling 43.6 million tonnes with diluted (recovery) grades of 4.15% zinc, 129 g/t silver, 0.35% copper, 0.58% lead and 0.27 g/t gold. An additional inferred open resource totaling 16.0 million tonnes with diluted (recovery) grades of 3.53% zinc, 111 g/t silver, 0.24% copper, 0.46% lead and 0.25 g/t gold is also contained at Hackett River. The Back River Project is comprised of the George and Goose Lake gold deposits and contain measured & indicated gold resources of 3.4 million tonnes grading 10.9 g/t Au for 1.19 million ounces and inferred resources of 3.6 million tonnes grading 10.2 g/t Au for 1.16 million ounces of gold. Quality Assurance Mr. John Wakeford, PGeo, and Sr. Vice President Corporate Development 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 Lake and George Lake were generated by RSG Global Consulting Pty Ltd (Coffey Mining) in September 2007. The mineral resource estimate for Hackett River was prepared as part of the Preliminary Economic Assessment (PEA) update by Gordon Zurowski, P.Eng., Principal Mine Engineer of PEG Mining Consultants Inc, and can be found on SEDAR at www.sedar.com. Gordon Zurowski is a qualified person as defined by National Instrument (NI) 43-101. CIM Definition Standards (2005) have been used in defining the mineral resource categories. All technical reports have been filed on www.sedar.com For further information please contact: Nicole Hoeller, Director, IR: 1 888 648-4218 nhoeller@sabinagoldsilver.com Statements relating to development, feasibility and exploration work at the Hackett River project the Back River gold project and the Wishbone Greenstone Belt, the Terms Sheet on the Cook Lake properties 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 and information concerning mineral resource estimates 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 gold 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; uncertainties involved in the estimation of metal reserves and resources; the possibility that required permits may not be obtained on a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; 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, failure to negotiate a formal option agreement on the Cook Lake property, unsatisfactory due-diligence results on the Cook Lake property and other risks and uncertainties, including those described in Sabina's Annual Report for the year ended December 31, 2009. 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 and CEO 930 West 1st Street, suite 202 North Vancouver, BC V7P 3N4 Tel 1 888 648-4218 http://www.sabinagoldsilver.com | |
