Sabina Gold & Silver Corp.
TSX : SBB

Sabina Gold & Silver Corp.

August 24, 2010 14:35 ET

Sabina Gold & Silver Announces Discovery of New Mineralized Lenses and Copper Stringer Zones at Hackett River Project, Nunavut

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 24, 2010) - Sabina Gold & Silver
Corp. (TSX:SBB) -

  • SHR10-39A at East Cleaver encounters new lens returning 118.5 m of 106 g/t Ag and 2.13% Zn including 211 g/t Ag and 3.55% Zn over 59.80m
  • SHR10-48 at Main Zone West encounters new stringer zone returning 24.4m of 3.56% Cu
  • SHR10-41 at Main Zone West intersects 17.1m of massive sulphides grading 598g/t Ag, 22.81% Zn, 0.02% Cu, 2.96% Pb, 3.42 g/t Au

Sabina Gold & Silver Corp. (TSX:SBB) announced today additional positive drill results on its 100% owned Hackett River silver-zinc and Wishbone projects in Nunavut, Canada.

Hackett River

A total of 19,465 metres in 84 holes have been drilled to date in a planned 20,000 metre $10 million program at Hackett River. Drilling will continue into mid-September.

Exploration programs in 2010 at Hackett focused on quantifying previously identified targets with a view to increasing the existing resource by at least 10%. To this end, drilling has focused on finding higher value mineralization (copper/silver/gold stringer zones), drilling peripherally to the current deposits to identify additional mineralization, and infill drilling the currently proposed pit shells in an effort to convert waste material to mineralization.

Drilling continues to intersect new mineralization within and outside but proximal to the currently proposed pits at East Cleaver, both of the Main deposits and the Boot deposit.

Highlights include: at East Cleaver, the discovery of a significant new lens of massive sulphide mineralization immediately to the west of the deposit, which may represent the extension of the East Cleaver deposit and which remains open at depth and to the west; and at Main Zone West the definition of a new strong zone of copper stringer mineralization in the immediate footwall to the deposit.

"Our accomplishments at Hackett River in 2010 continue to move us towards our objectives to positively impact the early year economics of the proposed Hackett River Silver-Zinc mine by increasing the global resource of the project and enhancing existing open pit models," said Tony Walsh, President & CEO "Additionally, the Company has engaged BMO Capital Markets to solicit investors or partners in the Hackett River project and to advise the Company in its pursuit of strategic alternatives to advance the tremendous potential of this project."

East Cleaver

A total of 14 holes have been drilled to test the south limb of the Cleaver fold structure immediately to the west of the known East Cleaver deposit.

Work in 2010 has demonstrated that the south limb of the Cleaver structure dips to the south at surface and then folds back on itself at a shallow depth and reverses to a northward dip.

This new massive sulphide lens was first identified by recently completed hole SHR-10-39A which was drilled in the hinge of this fold nose and returned 118.55 metres of stringer, semi massive and massive sulphide mineralization averaging 106 g/t Ag and 2.13% Zn. Within this is a core of massive sulphide which returned 211 g/t Ag and 3.55% Zn over 59.80 metres. The drilling of 30 metre step-outs to the west has intersected similar style mineralization in holes SHR-10-45, SHR-10-47 and SHR-10-49. Hole SHR-10-49 returned 53.95 metres of massive sulphide averaging 200 g/t Ag and 4.37% Zn. Hole SHR-10-51 approximately 30 metres east of hole SHR-10-39A also encountered massive sulphides.

This significant new zone of massive sulphide mineralization may be an extension of the East Cleaver deposit which is immediately to the east. This new zone remains open at depth and to the west and is situated within and slightly below the currently proposed pit outline in an area that was previously considered not mineralized due to lack of drilling. Continued drilling will attempt to trace this new lens westward. Additional drilling at East Cleaver is also targeting gaps in the resource model near surface (e.g. SHR-10-42: 79.25 m averaging 76 g/t Ag, 3.66% Zn including higher grade zones) and along strike between East Cleaver and Knob Hill.

East Cleaver Highlights

East Cleaver Hole Number From To Interval Ag Zn Cu Pb Au
    (m) (m) (m) (g/t) (%) (%) (%) (g/t)
  SHR-10-39A 81.00 140.80 59.80 211 3.55 0.04 0.88 0.13
   including 113.65 127.10 13.45 341 7.69 0.04 1.94 0.07
 
  SHR-10-42 25.65 59.50 33.85 93 8.15 0.13 0.77 0.10
   including 43.60 56.55 12.95 148 13.47 0.08 1.59 0.09
 
  SHR-10-45 47.50 62.55 15.05 46 0.20 1.23 0.00 0.23
   and 69.15 78.15 9.00 39 0.81 1.01 0.01 0.15
  SHR-10-47 123.45 127.40 3.95 90 2.54 2.18 0.01 0.12
   and 223.50 226.55 3.05 1058 0.03 0.02 0.19 9.15
   and 229.50 242.35 12.85 18 7.12 0.04 0.04 0.09
 
  SHR-10-49 159.30 213.25 53.95 200 4.37 0.06 0.78 0.16
   including 182.95 203.30 20.35 267 7.88 0.03 1.49 0.06
   including 186.90 187.70 0.80 2440 1.94 0.20 14.35 0.12
  SHR-10-51                
   including 4.05 8.10 4.05 182 0.56 2.55 0.77 0.26
   including 33.50 34.70 1.20 163 1.89 0.84 0.23 17.05
* Drill widths reported.  True widths have yet to be determined.

Main Zone West

A total of 4,719 metres of drilling in 17 holes have been completed at Main Zone West in 2010 where drilling is focussing on defining high grade footwall copper stringer mineralization. At least two sub parallel zones of copper stringer mineralization occur below the massive sulphide horizon at Main Zone West and historical drilling has locally intersected significant thicknesses of copper mineralization grading in excess of 2% copper.

In order to explore these footwall targets, a number of zones require drilling through the main massive sulphide horizon to get to the target horizon. This will provide additional pierce points for confirming the results of earlier holes which did not have accurate drill hole location information. An example of this is hole SHR-10-41 which intersected 17.10 metres of massive sulphide averaging 598 g/t Ag, 22.81% Zn, 0.02% Cu, 2.96% Pb and 3.42 g/t Au.

A highlight of the copper stringer drilling is evident in hole SHR-10-48 which intersected a well developed copper horizon that averaged 1.58% Cu over 72.15 metres including a 24.4 metre interval grading 3.56% Cu. This intersection is immediately below the northern wall of the proposed Main Zone pit and is not included in the existing resource. Drilling to define the extent of this zone continues.

The copper/gold/silver stringer mineralization targeted by the program is near surface, not included in the current resource and in an area on the property that is virtually untested.

Main Zone West Highlights

Main Zone West Hole Number From To Interval Ag Zn Cu Pb Au
    (m) (m) (m) (g/t) (%) (%) (%) (g/t)
  SHR-10-40 113 152.78 39.78 30 2.09 0.03 0.25 0.14
   including 146.9 152.78 5.88 255 7.11 0.09 0.62 0.08
 
  SHR-10-41 6.45 23.55 17.1 598 22.81 0.02 2.96 3.42
   and 54.4 92.03 37.63 37 2.23 0.38 0.17 1.12
 
  SHR-10-43 51.5 54.5 3 269 1.1 0 0.37 0.66
 
  SHR-10-48 37 61.3 24.3 50 2.94 0.64 0.14 0.38
   and 102.1 108.3 6.2 22 0.03 1.03 0 0.18
   and 136.85 209 72.15 9 0.02 1.58 0 0.02
   including 160.5 198.1 37.6 15 0.02 2.61 0.01 0.04
   including 160.5 184.9 24.4 20 0.05 3.56 0 0.05
* Drill widths reported.  True widths have yet to be determined.

Boot

A total of 2,393 metres in eight holes were completed in 2010 during the winter program at the Boot deposit targeting the shallow northern and southern margins of the deposit as well as gaps in the resource model where earlier holes had incompletely tested the mineralized horizon.

These holes were also used as platforms to test for copper stringer mineralization immediately below the massive sulphide horizon.

New unreported results from this drilling include hole SHR10-33 which returned a near surface intercept of 136 g/t Ag and 5.32% Zn over 11.60 metres. This hole extends the Boot deposit an additional 50 metres to the north.

Boot Highlights

Boot Hole Number From To Interval Ag Zn Cu Pb Au
    (m) (m) (m) (g/t) (%) (%) (%) (g/t)
  SHR-10-33 20.70 32.30 11.60 136 5.32 0.13 0.64 0.32
* Drill widths reported.  True widths have yet to be determined.

Main Zone East

Drilling at Main Zone East was focused on extending the known mineralized zone to the south and east.

A total of 1,697 metres in eight holes have been completed at the Main Zone East to date. Drilling during the winter was focused on extending the known mineralized zone to the south and east. Significant silver- rich intersections have been returned from drilling immediately to the south of the known deposit and just beyond the currently proposed pit outline. Final results from this program include hole SHR10-21 which intersected a 8.75 metre wide zone grading 559 g/t Ag, and 1.34 g/t Au.

Main Zone East Highlights

Main Zone East Hole Number From To Interval Ag Zn Cu Pb Au
    (m) (m) (m) (g/t) (%) (%) (%) (g/t)
  SHR-10-21 53.25 62.00 8.75 559 1.10 0.15 0.33 1.34
* Drill widths reported.  True widths have yet to be determined.

WISHBONE

May Zone/D'Arcy Corridor

A 5,000 metre program for a total of $6 million was planned at Wishbone for 2010. Currently 4,558 metres in 25 holes have been completed.

Drilling focused on the May Zone to the North D'Arcy corridor and continues to intersect massive, semi massive and stringer sulphide mineralization within a highly altered felsic volcanic unit.

The May Zone has been traced over a 2,000 metre strike length, is tabular and plunges shallowly to the south. The best intercepts from the 2010 drilling include: SWB-10-25 (5.07% Zn, 0.96% Cu over 5.90 m), SWB-10-27 (10.70% Zn, 0.25% Cu over 3.90 m) and SWB-10-29 (5.56% Zn, 0.45% Cu over 10.30 m).

The zone has been explored southward to the North D'Arcy area where hole SWB-10-02 returned 261 g/t Ag, 5.61% Zn, 5.22% Cu, 0.55% Pb, 0.48 g/t Au over 1.55 metres. Plans to complete sufficient drilling to define a NI43-101 resource on the May zone will likely be deferred until 2011 as supplies and personnel have been redirected to meet expanded drilling of the new discoveries at the Company's adjacent Back River gold project.

Watson Lake

The Watson target is an extensive EM target that can be traced for over 1,000 m from north of Watson Lake, where a surface grab sample in 2009 returned 5,160 g/t Ag, 30.3 g/t Au, 5.2% Zn, 2.21% Pb, to mid D'Arcy Lake. 1,376 metres in 11 holes were drilled to test this anomaly.

Results were returned for hole SWB-10-6 where 53 g/t Ag, 0.93% Cu, 5.86% Zn, 0.04% Pb, 0.02 g/t Au was intersected over 1.63 m at a down hole depth of 79.00 m and for hole SWB-10-08 where 20 g/t Ag, 0.22% Cu, 6.53% Zn, 0.16% Pb, 0.03 g/t Au was intersected over 3.49 m at a down hole depth of 99.90m (reported June 7, 2010).

Zone Hole Number From (m) To (m) Interval (m) Ag (g/t) Zn (%) Cu (%) Pb (%) Au (g/t)
North D'Arcy SWB-10-02 69.2 70.75 1.55 261 5.61 5.22 0.55 0.48
 
Watson SWB-10-10 101.48 107.02 5.54 12 4.54 0.2 0.05 0.01
  SWB-10-20 39.1 43.2 4.1 24 3.83 0.38 0.01 0.03
 
 
May SWB-10-21 89.9 98.7 8.8 29 2.02 0.56 0.06 0.05
  SWB-10-25 156.95 162.85 5.9 44 5.07 0.96 0.05 0.05
  SWB-10-27 58.7 62.6 3.9 47 10.7 0.26 0.94 0.09
  SWB-10-28 165.55 174.4 8.85 47 3.58 0.29 0.29 0.01
  SWB-10-29 173.45 183.75 10.3 37 5.56 0.45 0.08 0.04
* Drill widths reported.  True widths have yet to be determined.

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.

Quality Assurance

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.

Diamond drill core was sent to ALS Chemex 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 2010 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.

Forward Looking Statements

Statements relating to exploration, pre-feasibility work and future operations at the Hackett River and Wishbone Projects 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.

Zone Hole Number From (m) To (m) Interval(m) Ag (g/t) Zn (%) Cu (%) Pb (%) Au (g/t)
Main Zone East SHR-10-21 53.25 62 8.75 559 1.1 0.15 0.33 1.34
Boot SHR-10-33 20.7 32.3 11.6 136 5.32 0.13 0.64 0.32
East Cleaver SHR-10-39A 22.25 140.8 118.55 106 2.13 0.03 0.41 0.11
   including 81 140.8 59.8 211 3.55 0.04 0.88 0.13
   including 113.65 127.1 13.45 341 7.69 0.04 1.94 0.07
  SHR-10-42 14.8 94.05 79.25 76 3.66 0.11 0.38 0.18
   including 25.65 59.5 33.85 93 8.15 0.13 0.77 0.1
   including 43.6 56.55 12.95 148 13.47 0.08 1.59 0.09
  SHR-10-45 47.5 62.55 15.05 46 0.2 1.23 0 0.23
   and 69.15 78.15 9 39 0.81 1.01 0.01 0.15
  SHR-10-47 112 165.8 53.8 27 2.09 0.52 0.01 0.08
   including 123.45 127.4 3.95 90 2.54 2.18 0.01 0.12
   and 222.05 226.55 4.5 788 0.06 0.02 0.18 6.85
   and 229.5 242.35 12.85 18 7.12 0.04 0.04 0.09
  SHR-10-49 159.3 213.25 53.95 200 4.37 0.06 0.78 0.16
   including 182.95 203.3 20.35 267 7.88 0.03 1.49 0.06
   including 182.95 188.5 5.55 473 9.71 0.04 2.71 0.05
  SHR-10-51 4.05 21 16.95 63 0.34 0.98 0.2 0.1
   including 4.05 8.1 4.05 182 0.56 2.55 0.77 0.26
   including 33.5 34.7 1.2 163 1.89 0.84 0.23 17.05
   and 144 189.55 45.55 84 1.65 0.07 0.21 0.14
Main Zone West SHR-10-40 43.67 63.5 19.83 133 1.14 0 0.33 0.1
   and 113 152.78 39.78 30 2.09 0.03 0.25 0.14
   including 146.9 152.78 5.88 255 7.11 0.09 0.62 0.08
  SHR-10-41 6.45 23.55 17.1 598 22.81 0.02 2.96 3.42
   and 54.4 92.03 37.63 37 2.23 0.38 0.17 1.12
   including 59.65 65.5 5.85 61 8.5 0.04 0.71 0.32
   including 81.2 85 3.8 132 1.57 2.77 0.01 0.69
  SHR-10-43 51.5 54.5 3 269 1.1 0 0.37 0.66
   and 119.15 129.2 10.05 15 3.33 0.05 0.12 0.14
   including 119.15 122.5 3.35 19 6.76 0.03 0.29 0.14
   and 140.55 144.5 3.95 12 4.43 0.11 0.04 0.11
  SHR-10-48 37 78.1 41.1 37 1.78 0.55 0.09 0.3
   including 37 61.3 24.3 50 2.94 0.64 0.14 0.38
   including 47 49.4 2.4 60 12.21 0.68 0.18 0.14
   and 102.1 108.3 6.2 22 0.03 1.03 0 0.18
   and 136.85 209 72.15 9 0.02 1.58 0 0.02
   including 160.5 198.1 37.6 15 0.02 2.61 0.01 0.04
   including 160.5 184.9 24.4 20 0.05 3.56 0 0.05
   including 168.4 184.9 16.5 27 0.06 4.72 0.01 0.06
   including 174.75 177.7 2.95 55 0.11 9.94 0.01 0.15
   including 181.8 182.78 0.98 78 0.21 14.7 0.01 0.15
   including 184 184.9 0.9 113 0.27 19.5 0.01 0.06
North D'Arcy SWB-10-02 69.2 70.75 1.55 261 5.61 5.22 0.55 0.48
Watson SWB-10-10 101.48 107.02 5.54 12 4.54 0.2 0.05 0.01
  SWB-10-11 73.5 74.6 1.1 50 6.1 1.14 0 0.03
  SWB-10-18 48.9 51 2.1 23 5.07 0.27 0.01 0.05
  SWB-10-19 6.15 14.65 8.5 28 1.26 0.02 0.33 0.10
   and 38.9 39.9 1 44 10.35 0.55 0.02 0.04
  SWB-10-20 8.65 17.2 8.55 38 1.2 0.07 0.37 0.11
   including 8.65 10.15 1.5 74 3.19 0.11 1.48 0.30
   and 39.1 43.2 4.1 24 3.83 0.38 0.01 0.03
May SWB-10-21 80.75 81.05 0.3 18 24.8 0.1 0.04 0.04
   and 89.9 98.7 8.8 29 2.02 0.56 0.06 0.05
  SWB-10-22 91 92.4 1.4 6 5.65 0.17 0.01 0.01
  SWB-10-25 156.95 162.85 5.9 44 5.07 0.96 0.05 0.05
  SWB-10-27 58.7 62.6 3.9 47 10.7 0.26 0.94 0.09
  SWB-10-28 165.55 174.4 8.85 47 3.58 0.29 0.29 0.01
   including 172.15 174.4 2.25 49 8.31 0.52 0.42 0.03
  SWB-10-29 173.45 183.75 10.3 37 5.56 0.45 0.08 0.04
   including 182.25 184.05 1.8 85 13.3 0.98 0.13 0.04
* Drill widths reported.  True widths have yet to be determined.

To view the maps accompanying this press release please visit the following link: http://media3.marketwire.com/docs/sabinamaps82410.pdf

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