Sabina Gold & Silver Reports Positive Results From Early 2011 Drilling At The Hackett River Silver Rich Vms Project, Nunavut
-Initial drilling continues to demonstrate additional mineralization within current pits and improvements in grade and thicknesses-
Vancouver, BC - Sabina Gold & Silver Corp (SBB.T) is pleased to announce significant assay results from the first holes drilled as part of the 2011 exploration program on its 100% owned Hackett River project in Nunavut, Canada.
Hackett River, located 45 km west of the Company’s Back River gold project in Nunavut, is a silver rich volcanic massive sulphide (“VMS”) project and is one of the largest undeveloped projects of its type. The project contains a potentially mineable resource of approximately 60 million tonnes including an indicated resource of 200 million ounces of silver (144 g/t) and 2 million tonnes of zinc (4.65%) along with an additional inferred resource of 64 million ounces of silver (136 g/t) and 652,000 tonnes of zinc (4.46%). The project also contains appreciable copper, lead and gold.
A very encouraging preliminary economic assessment (“PEA”) was completed on the project at the end of 2009 in which the project could potentially produce 13 million ounces of silver and 370 million pounds of zinc per year over 16 years through open pit and underground extraction. This scenario would generate $1.8 billion in free cash (pre-tax) and an IRR of 26%. The Company believes, however, that the project economics could be further enhanced.
Beginning in 2010 and continuing this year, work has focussed on looking for opportunities to increase through put and extend the open pit life of the operation by:
- expanding existing deposits;
- finding higher value copper/gold/silver mineralization; and
- finding new deposits.
“Our initial 2011 results at Hackett River continue to demonstrate the quality and size of these deposits” said Tony Walsh, President & CEO “Hackett River is already one of the largest undeveloped VMS projects of its type and it is continuing to grow. Work also steadily continues to improve the grade of the project, which along with increasing size, enhances the projects already positive economics.” said Tony Walsh, President & CEO “Since the PEA was completed, we have been working hard to identify and quantify opportunities towards these objectives and continue the work this year with 70% of our work directed at infill drilling the pit shells and 30% of our work looking for new deposits on this vastly underexplored project.”
Sabina opened the Hackett River camp on February 21st and drilling for the 2011 campaign began on March 16th. To date, 5,964 m of drilling has been completed in 24 holes with assay results returned for six.
Main Zone East
Drilling at Main Zone East highlights the precious metal-rich nature of the Hackett River deposits. The initial gap drilling has focused on shallow targets located within the proposed pits. This drilling has resulted in increased confidence in the resource model and has significantly improved the grade in many areas.
Holes SHR-11-01 and SHR-11-03 targeted gaps in the resource model at the southern end of the Main Zone East deposit. Hole SHR-11-01 was designed to test a 115 m gap between historical drilling. Hole SHR-11-01 intersected significantly higher grades in this portion of the deposit returning 268 g/t Ag, 0.52 g/t Au and 6.26% Zn over 21.70 m at a down hole depth of 122.1 m. Included were a 0.90 m interval that graded 929 g/t Ag and 4.71 g/t Au and a 0.70 m interval that graded 1,095 g/t Ag and 1.02 g/t Au.
Hole SHR-11-03 tested an 80 m gap in historical drilling and returned 141 g/t Ag, 3.65% Zn and 1.09% Cu over 43.90 m at a down hole depth of 70.4 m. Included was a 16.80 m interval that graded 266 g/t Ag and 9.03% Zn.
At the north end of Main Zone East, hole SHR-11-07 targeted a 100 m wide area where historical information was in doubt due to imprecise survey methods uses at the time. Hole SHR-11-07 intersected a number of mineralized zones over a 110.65 m section including 285 g/t Ag, 4.03 g/t Au and 2.65% Zn over 11.30 m (which also included a 1.30 m interval that graded 1,500 g/t Ag and 33.00 g/t Au) and 325 g/t Ag and 0.82 g/t Au over 8.35 m.
|Main Zone East|
|Hole Number||From |
|To (m)||Interval |
|Zn (%)||Cu |
Initial drilling at East Cleaver is also targeting extensions and gaps within the resource model with initial focus on shallow targets within the proposed pit shell. Drilling to-date continues to demonstrate the substantial thicknesses of mineralization found at East Cleaver.
Hole SHR-11-06 was designed to fill a 60 x 100 m gap in the near surface drilling of the East Cleaver deposit and returned 134 g/t Ag and 5.47% Zn over 99.75 m starting at a down hole depth of only 5.0 m. This interval included is a silver-rich copper stringer zone which graded 298 g/t Ag, 0.52 g/t Au and 1.10% Cu over 10.45 m and a zinc-rich massive sulphide interval that graded 264 g/t Ag and 11.73% Zn over 10.90 m.
|Hole Number||From |
|To (m)||Interval |
|Ag (g/t)||Zn |
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.
The Back River Project is comprised of the George and Goose Lake gold deposits and contain measured & indicated gold resources of 9.9 million tonnes grading 8.33 g/t Au for 2.655 million ounces of gold and inferred resources of 5.6 million tonnes grading 8.65 g/t Au for 1.56 million ounces of gold.
Mr. Peter Manojlovic, P. Geo, and Vice-President, Exploration 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.
Project management of the PEA was conducted by Eric Harkonen, P.Eng. and Principal Project Manager/Mine Engineer of PEG. He is a Qualified Person under the terms of 43-101 and can be found on www.sedar.com.
Diamond drill core was sent to ALS Chemex preparation laboratory in Yellowknife, NWT. From there coarse rejects and pulps go to the ALS Chemex lab in North Vancouver BC. 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 2011 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.
For further information please contact:
Nicole Hoeller, Director, IR: 1 888 648-4218
Forward Looking Statements
Statements relating to exploration, pre-feasibility work and future operations at the Hackett 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, 2010.
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.
930 West 1st Street, Suite 202
North Vancouver, BC V7P 3N4
Tel 604 998-4175 Fax 604 998-1051
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