Sabina Announces More Positive Drill Results from 2012 Drilling at the Back River Gold Project, Nunavut
Hole 12GSE182 at Llama returns 21.76 g/t Au over 11.70 m including 51.52 g/t Au over 4.50 m;
Hole 12GSE173 at Umwelt extends deposit by 200 m and returns 9.50 g/t Au over 7.15 m;
Vancouver, BC — Sabina Gold & Silver Corp (SBB.T) is pleased to announce new assay results from holes drilled on the Goose claim block as part of the 2012 exploration program at its 100% owned Back River Gold Project in Nunavut, Canada.Initial work on the Goose property in 2012 has focussed on infill and extension drilling at the Llama and Umwelt deposits, as well as high priority regional new discovery targets proximal to the existing deposits.
Infill drilling within the Llama pit shell has been particularly successful. Hole 12GSE182 returned 21.76 g/t Au over 11.70 m including 51.52 g/t Au over 4.50 m. This intercept begins at a down hole depth of only 15.80 m and confirms the presence of a high grade mineralized core in the Llama pit. These results, in addition to the Llama results announced on April 26, 2012, should provide strong grade early in the mine plan as envisaged in the recently completed Preliminary Economic Assessment (“PEA”).
Drilling at Llama has also targeted the extension of the deposit down plunge. Hole 12GSE180 returned 8.40 g/t Au over 10.90 m including 12.33 g/t Au over 5.55 m and hole 12GSE168 at the fold crest between the East and West Limbs intersected 6.73 g/t Au over 9.25 m. These holes continue to identify a continuous zone of mineralization down plunge of the open pit resource and are in an area that has not yet been included in any resource calculation.
Positive first results from extension drilling at the G2 Zone at Umwelt have also been received. Hole 12GSE173 returned9.50 g/t Au over 7.15 m and extends the mineralization 200 m down plunge from the previous known limits of the deposit. Deep drilling continues at Umwelt with further assays pending.
“We are very happy with the results coming in from this year’s program to date,” said Rob Pease, President & CEO. “In particular, the results reported from Llama demonstrate one of the opportunities for this year’s drilling to optimize the mine plan in our recently announced PEA. The Llama deposit is envisioned to be one of first areas mined in the PEA due to its near surface high-grade attributes; therefore, we expect there will be a positive impact on the economics. Our property wide exploration continues to discover significant new mineralization and the high-grade continuous nature of our deposits demonstrate the unique character and strength of the future Back River project.”
On May 29th, the Company announced a positive PEA on the Back River Gold Project. According to the PEA, the base case scenario for the project generates a post-tax NPV of $650 million and an IRR of 25% at a $1250 gold price. The mine plan would feed 5,000 tonnes per day of mineralized material to the mill to produce approximately 300,000 ounces of gold per year for 12.3 years. Mine sequencing envisions initial production from a Llama open pit and the Umwelt and Goose underground resources for up front capital of approximately $450 million. Thereafter, open pits at Umwelt and Goose followed by underground mining at George will come on line over the rest of the life of the mine with mine development capital being funded from cash flow. Total capital for the project has been estimated at $838 million. Total cash costs are anticipated to be $542/oz life of mine including royalties, refining and transport. Capital and operating costs were estimated using a combination of first principle calculations, experience and factored costs; experience includes actual results from comparable northern projects.
Back River Exploration
There are currently 5 drills operating at the Goose property based out of the Goose camp. One drill is working on the down plunge extension of the Llama deposit, one drill is beginning Umwelt resource conversion drilling, two drills are exploring the down dip and down plunge extension of the Umwelt G2 Zone, and one drill is conducting property wide exploration. There are three drills operating out of the George camp with one drill assigned to regional Wishbone drilling and two drills focused on new targets at George.
Llama Resource Conversion Drilling
Drilling began at the Llama deposit in early March and was initially focussed on lake-based targets situated on the East and West limbs of the deposit. Drilling targeted the core of the current open pit concept and was designed to upgrade resources from the inferred category to the indicated category. This program is now complete and drilling has moved to the south in an effort to expand the deposit down plunge.
Additional results from the resource upgrade program have been returned and include hole 12GSE182 located at the north end of the Llama deposit which intersected high grade mineralization associated with the thickened fold hinge of the iron formation. Results from the hole included 21.76 g/t Au over 11.70 m including 51.52 g/t Au over 4.50 m. This intercept begins at a down-hole depth of only 15.80 m and confirms the presence of a high grade mineralized core at Llama that should provide strong grade early in the mine plan as envisaged in the recently completed PEA study.
Other significant intercepts from the Llama in-fill program include hole 12GSE171 also at the north end of the deposit which returned 24.96 g/t Au over 6.60 m at a vertical depth of approximately 50 m.
Llama Resource Expansion Drilling
Efforts to expand the Llama deposit down plunge and to the south have also been successful. Hole 12GSE180 returned8.40 g/t Au over 10.90 m including 12.33 g/t Au over 5.55 m in the West Limb at a vertical depth of approximately 280 m below surface and hole 12GSE168 at the fold crest between the East and West Limbs intersected 6.73 g/t Au over 9.25 mat a vertical depth of approximately 180 m. These intercepts occur below and to the south of the current resource as defined and used in the PEA and continue to identify a continuous zone of mineralization down plunge of the open pit resource.
Umwelt Resource Expansion Drilling
Other highlights from the drill program to-date include the first results from the down plunge drilling of the Umwelt G2 Zone. Hole 12GSE173 was designed to test 200 m down plunge of the known zone and to intersect the lower part of the limb that hosts the Umwelt deposit. This hole successfully intersected mineralization at the base of the lower Main Zone East limb returning 9.50 g/t Au over 7.15 m at a vertical depth of approximately 800 m below surface and some 200 m down dip of our previous intersection of the zone. The main portion of the deposit is believed to lie up dip of this intercept. A second hole targeting approximately 100 m above hole 12GSE173 is currently in progress.
Goose Property Exploration
A new discovery has been made at a target located immediately to the west of the Goose deposit termed the Goose Hook. The Goose Hook is interpreted to be an extension of the Goose deposit that has been folded sharply from a northeast — southwest orientation to a southwesterly orientation. Hole 12GSE178, following-up on encouraging results from earlier holes 12GSE133 (2.06 g/t Au over 2.70 m) and 12GSE138 (1.69 g/t Au over 25.00 m), intersected 3.65 g/t Au over 9.0 mwithin a broader mineralized zone grading 1.76 g/t Au over 41.90 m. A number of grains of visible gold were noted in the interval. This intercept is approximately 300 m west of the main Goose deposit and represents a significant zone of altered and mineralized oxide iron formation. Ongoing drilling should provide us with additional information necessary to better understand the geology of this new Goose Hook discovery.
Table 1: Significant assay results from this release:
|Hole Id||Area||Section||Easting||Northing||Depth||From (m)||To (m)||Length (m)||Au (g/t)||Zone Name|
Abbreviations: LL = Llama; UM = Umwelt; Hook = Goose Hook
The Qualified Person under NI 43-101 is Peter Manojlovic PGeo, Vice President Exploration for Sabina Gold & Silver Corp., who has approved this release.
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 above noted 43-101 compliant resource reports.
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.
Sabina’s primary properties consist of the Back River Gold Project as well as the Wishbone Claims, a vastly prospective grass roots project all located in Nunavut. In late 2011 the Company has announced the completion of the sale of Hackett River and certain claims in the Wishbone greenstone belt to Xstrata Zinc Canada Division (Xstrata) for which the Company received $50 m cash and a silver royalty on Xstrata’s Hackett River silver production of 22.5% of the first 190 million ounces produced and 12.5% of all silver produced thereafter.
The Company had cash of $147.4 million at March 31, 2012.
All news releases can be found on the Company’s website at www.sabinagoldsilver.com or on SEDAR at www.sedar.com.
Nicole Hoeller, Vice-President, IR
1 888 648-4218
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
930 West 1st Street, Suite 202
North Vancouver, BC V7P 3N4
1 888-648-4218 http://www.sabinagoldsilver.com
Table 2: Complete assay results from 2012 drilling
|Hole Id||Area||Section||Easting||Northing||Depth||From (m)||To (m)||Length (m)||Au (g/t)||Zone Name|
|12GSE149||UM||4100U||430766||7270675||200.0||NSV - Hole
|12GSE157||GM||4730G||434300||7269401||77.0||NSV - Hole
|12GSE160||UM||4200U||430647||7270708||80.0||NSV - Hole
|12GSE172||LL||4830L||429031||7272132||23.0||NSV - Hole
|12GSE173W1||UM||3900U||430883||7270497||402.0||NSV - Hole
|12GSE174W1||UM||3750U||430883||7270497||455.0||NSV - Hole
|12GSE175||LL||4925L||429013||7272225||0.0||NSV - Hole
Abbreviations: GNS = Goose Neck South; LL = Llama; GM = Goose Main; UM = Umwelt; GB = Goose Butt; Hook = Goose Hook; NSV = No Significant Values
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