| June 09, 2010 Sabina Gold & Silver Announces More Exciting Drill Results At Llama Lake Gold Discovery At Back River Project, Nunavut | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Results From Hole 10GSE 41 returns 25.43 g/t gold over 20 meters including 31.55 g/t gold over 16 meters. Vancouver, BC -- Sabina Gold & Silver Corp (SBB.T) announced today additional drill hole results on the new Llama Lake discovery on its 100% owned Back River project in Nunavut, Canada. In approximately five months of field work in 2009 and 2010, Sabina has made two new gold discoveries very close to the Goose deposit area at Back River: the Echo Zone reported last summer (best hole 09GSE26 returning 8.17 g/t gold over 15.15 meters including 9 g/t gold over 13.20 meters); and the exciting Llama Lake Zone this year (best hole 10GSE 41 returning 25.43 g/t gold over 20 meters including 31.55 g/t gold over 16 meters. Llama Lake is a very significant discovery in light of the Company's plans for the project going forward and further demonstrates the excellent potential for new gold discoveries at Back River. Highlights of recent drill results from Llama Lake include:
"We are enjoying continued success at the Llama Lake Zone and are excited about the potential of this new deposit to be a significant addition to the existing Back River resource," said Tony Walsh, President & CEO "The significance of results reported by Sabina in all Llama Lake releases to date and as encountered in drill hole 10GSE41 is that it confirms that the Llama discovery contains a high grade mineralized zone with strike length of at least 325m. We will continue to aggressively drill at Llama Lake with the objective of completing a resource calculation on part of the deposit by year end." OBJECTIVES FOR BACK RIVER Acquired in June 2009, Back River offers the opportunity for Sabina to become a mid-tier gold producer. Prior to moving towards scoping or economic studies, the Company's objective is to increase the global resource at Back River by an additional 750,000 ounces. This could enable an initial gold production profile of 200,000 ounces per year for a minimum of 10 years. With this target in mind, the Company's focus at Back River has been at the Goose Lake deposit where gold is hosted within a thick unit of folded iron formation. This results in a deposit with thick widths, and good grades, potentially amenable to open pit extraction. Sabina's exploration to date has focused on targets with similar geological and geophysical settings proximal to the existing Goose resource. By the end of the year, Sabina hopes to have drilled the Echo and part of the Llama Lake zones to a calculable resource as well as complete an open pit resource and internal pit studies on the Goose Lake deposit. Plans also include continuing to look for new discoveries in the area. If all are successful, Sabina could move to a preliminary economic assessment on Back River in early 2011. LLAMA LAKE As announced on May 4, 2010 and May 10, 2010, a significant new gold discovery has been made at Llama Lake approximately 8 km northwest of the Goose deposit and 5 km northwest of the new Echo zone. To date a total of 43 holes totalling 10,570 meters were completed or are in progress at Llama Lake, with partial intercepts from five holes being reported earlier in May. The best hole returned to date is hole 10GSE41 which targeted the Llama Lake structural corridor and mineralized system. The zone is characterized by well mineralized and altered oxide iron formation. The mineralization is cut by numerous quartz porphyry dykes and quartz veins. With the onset of spring breakup we have recently reduced from four drills to two. Targets tested include the north and south extensions of the Llama Lake gold zone. Holes 10GSE33, 36A, 41and 48 intersected strong mineralization hosted in silicate and oxide iron formation. Llama zone mineralization has the characteristics of a well defined hydrothermally altered gold bearing system, which now has a confirmed mineralized strike length of at least 325 meters. The deepest intercept to date occurs approximately 180m below surface. Llama zone mineralization remains open both along strike and at depth. One of the currently active drills is testing similar exploration targets located 1 km to the south of Llama Lake. Initial interpretations indicate that drill hole density should be sufficient to support a partial mineral resource calculation planned for later this year. Holes have been prioritized to evaluate targets that could best be accessed while there remain ice-covered conditions on Llama Lake. Nine holes were identified as high priority targets based on geological merit. These holes will investigate both the north and south extensions of the mineralized system within the structural corridor and splays off the former. In-fill resource holes are confined to short step-outs from known mineralization. Holes are being sent to the lab on a priority basis with assay results being received out of sequence. To date Sabina has received partial assays for a total of 10 holes. Samples from an additional 31 holes await analysis at the lab. In light of the success at Llama Lake, Sabina's Board of Directors has approved additional spending of $2.5 million for exploration at Back River. 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 Back River project is comprised of the George and Goose Lake gold deposits which host 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. These gold assets along with the Company's Hackett River silver-zinc project and Wishbone Greenstone belt consolidate a significant land package, in Nunavut, Canada, one of the world's safest mining jurisdictions prolific for large mineral deposits. 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 Lake and George Lake were generated by RSG Global Consulting Pty Ltd (Coffey Mining) in September 2007, and are 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 2010 are the same as those used in earlier campaigns by Sabina Gold & Silver Corp. and Dundee Precious Metals (previous operator at Back River) and have been deemed appropriate in the above noted 43-101 compliant resource reports. For further information please contact: Nicole Hoeller, Director, IR: 1 888 648-4218 nhoeller@sabinagoldsilver.com 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, 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 & 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 1. Assays used for calculated intervals in this press release, June 09, 2010
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