Sabina Announces Updated Resource Estimate for Back River Gold Project, Nunavut
Additional Resources from Llama & Umwelt comprised of Indicated Resources of 6.5 million tonnes grading 7.04 g/t Au for a total of 1.46 million ounces gold and additional Inferred Resources of 2.0 million tonnes grading 6.09 g/t Au for a total of 401,000 ounces of gold
Vancouver, BC - Sabina Gold & Silver Corp. (SBB-T) is pleased to announce new resource estimates from its Llama and Umwelt discoveries at the Company’s 100% owned Back River gold project in Nunavut, Canada. The Back River gold project contained an existing mineral resource of 1.19 million indicated ounces of gold and 1.16 million inferred ounces of gold in the George and Goose deposits. The new Llama and Umwelt resources are in addition to the existing resource.
“We are very excited to announce these additional resources at Back River,” said Tony Walsh, President & CEO. “The Back River gold Project now contains an indicated resource of 2.58 million ounces of gold and an inferred resource of 1.56 million ounces of gold. In addition, Llama and Umwelt deposits have only partially been drilled and we are confident that we will continue to see growth at these two new discoveries. Although we had anticipated having re-worked the existing Goose deposit from an underground to an open pit model by this time, capacity restraints have resulted in a delay and we expect to have the new Goose resource calculation completed in early April. Once completed we expect to release an updated resource estimate for Back River”
The Llama and Umwelt deposits were discovered during the Company’s 2010 drilling Campaign and are located approximately 5km away from an existing resource on the Goose claim block, one of seven claim blocks that make up the Back River Gold Project. The Goose deposit contains an Indicated Resource of 603,000 ounces and an Inferred Resource of 295,000 ounces of gold. The Company’s objective in 2010 was to drill portions of these new discoveries to enable resource calculations so that the Company could proceed to a preliminary economic assessment in 2011.
The Llama and Umwelt initial Mineral Resources are reported inside a US$1200 per ounce Au pit shell which includes drilling to a depth of 175 metres and all of the mineralized 2010 drill holes that fell within the pit shells. Both deposits are still open at depth and a significant component of the 2011 budget has been designated to extend both of these deposits.
TABLE 1 BACK RIVER MINERAL RESOURCES — MARCH 3, 2011
- CIMM definition standards were followed for Mineral Resources.
- The Qualified Person for the Llama and Umwelt Mineral Resource estimate is Patti Nakai-Lajoie, P.Geo.
- Mineral Resources are estimated at a pit discard cut-off grade of 0.76 g/t Au and 90% recovery. Pit optimizations were used to constrain the resources.
- Mineral Resources are estimated using an average long-term gold price of US$1200 per ounce.
- Bulk densities used were 3.02 t/m3 in iron formation, 2.80 t/m3 in greywacke, 3.0 t/m3 in gabbro, 2.73 t/m3 in felsic dyke, and 1.80 t/m3 in overburden.
- High assays were capped at 70 g/t Au at Llama and 60 g/t Au at Umwelt.
- The Llama drill hole database contains 74 surface diamond drill holes and the Umwelt drill hole database contains 60 surface diamond drill holes, at approximate spacings of 25m , 50m and 100m.
- The Qualified Person for the George and Goose Mineral Resource estimate is Doug Cater, P.Geo.
- Numbers may not add due to rounding.
The RPA Qualified Person under NI 43-101 is Patti Nakai-Lajoie, P. Geo., who has reviewed and approved this news release as it applies to the Llama and Umwelt mineral resource estimates.
The Qualified Person under NI 43-101 is Doug Cater, Project Manager for Sabina Gold & Silver Corp, who has approved this release as it applies to the Goose and George mineral resource estimates.
2011 Program and Budget
The Board of Directors has approved a $29 million 68,000 metre program at Back River for 2011. Approximately 70% ($20 million) of this program will be aimed at expanding and extending the Llama, Umwelt, Goose and potentially Echo deposits. The remaining 30% will focus on looking for new gold deposits on the Goose claim block, as well as on some of the other Back River Claim blocks where similar geological settings have been indicated. In particular, the Company plans to look for new discoveries at the George Claim block, which contains an existing indicated resource of 590,000 ounces and an inferred resource of 866,000 ounces of gold.
The Company plans to file an updated 43-101 compliant technical report by March 30, 2011.
Once the updated resource for the Goose deposit has been completed, the Company will embark on a Preliminary Economic Assessment (PEA) on the project anticipated to be completed during the second half of 2011. In addition to the $29 million planned for exploration, the Company has planned to spend $2.8 million in 2011 on the PEA and supporting environmental baseline studies.
SABINA GOLD & SILVER CORP. is a Canadian public mineral exploration and development company. Key assets include the Hackett River silver project, the Back River gold project and the Wishbone grassroots exploration project all in Nunavut. Additionally, the Company has several projects in the Red Lake gold camp and an option on the Cook Lake North & South properties directly adjacent to the recently discovered Lalor deposit in Manitoba.
For further information please contact:
Nicole Hoeller, Director, 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, 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, should change.
This news release has been authorized by the undersigned on behalf of Sabina Gold & Silver Corp.
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