Sabina Gold & Silver Corp.

Sabina Gold & Silver Corp.

May 04, 2010 10:57 ET

Sabina Gold & Silver Announces Significant New Gold Discovery at Back River Project, Nunavut

High grade mineralization encountered at newly discovered Llama Target

Hole 10GSE21 returns 7.61 g/t gold over 22.2 meters and hole 10GSE27 returns 68.6 g/t gold (uncut) over 7.20 meters

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 4, 2010) - Sabina Gold & Silver Corp. (TSX:SBB) announced today initial results of a new discovery from the 2010 drilling campaign on its 100% owned Back River project in Nunavut, Canada.


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, discovered last year and are shown on Figure 1. Exploration was targeted on Llama based on its similar geophysical signatures with the Goose Deposit. This the first time this target has been drilled. The zones are part of the Company's 100% owned Back River Project that contains an indicated resource of 3.4 million tonnes at 10.9 g/t for 1.19 million ounces gold and an additional inferred resource of 3.6 million tonnes at 10.2 g/t for 1.16 million ounces gold.

"We are very excited about our continuing success at Back River," said Tony Walsh, President & CEO. "Our strategy at Back River has been to identify more ounces of gold prior to embarking on economic studies.  Not only do the two new discoveries at Goose bring us closer to that objective, they continue to validate our exploration strategy and the tremendous skill set of our exploration team."

To date a total of 14 holes totalling 3,036 meters were completed or are in progress at Llama Lake. Strong thick intervals of sulphides, veining and a number of observations of fine visible gold have been intersected in several holes with initial assays indicating a significant gold bearing system. Given the strength and widths of the mineralization being encountered, all three of the drills at Back River have been mobilized to the Llama Lake target which is the focus of all current activity at Goose.

The Goose Lake camp was opened on February 14, 2010 for preparation and drilling commenced on March 17, 2010 quickly ramping up from one drill to three. All are now working at Llama Lake testing highly fractured strongly magnetic and demagnetized zones under the Lake. The newly discovered mineralization occurs within tightly folded sections of iron formation that was defined by a Fugro airborne magnetic/electromagnetic survey conducted in 2005.

Drilling at Llama Lake has established a strike length of approximately 250 meters and encountered mineralization to a depth of 160 meters both of which are open. The geological model and mineralization style are very similar to the Goose Lake deposit.

Partial assays have been received for three of the holes and significant intercepts are listed below. Hole 21 has partial assay returns from a broad 46 meter wide zone, mineralization has been noted in the gap samples and the lower zone where assays are pending.

Hole 25 was drilled 40 meters above hole 21 and 27 was drilled 100 meters north of hole 21.

Drill hole locations are shown on Figure 2.

Table 1 Significant Assays

Hole Notes From To Width Grade   Comments
    m m m g/t Au    
GSE-10-21 Upper Zone 1 80.0 102.2 22.2 7.61    
Partial Upper Zone 1 105.3 106.3 1.0 71.91   gap assays pending
  Upper Zone 2 123.3 126.3 3.0 6.12   gap assays pending
  Lower Zone           assays pending
GSE-10-25 Upper Zone 1 61.1 74.8 13.7 2.01    
Partial Upper Zone 2 99.0 152.6 53.6 2.30    
  including 131.2 149.6 18.4 4.71    
  including 131.2 138.0 6.8 9.24    
  Lower Zone           assays pending
GSE-10-27 Upper Zone 154.9 166.0 11.1 9.21    
Partial Lower Zone 238.8 246.0 7.2 68.62   uncut
  Cut 238.8 246.0 7.2 27.87   cut to 100 g/t
  including 243.0 244.0 1.0 393.40    

The three drills will continue to test the Llama Target from the ice before moving onto the land portion of the target both north and south of the lake. Drilling will resume on the Echo Zone later this year. Sabina plans to complete resource level drilling at the Echo Zone and to some extent on the Llama Target in conjunction with a review of the open pit potential of the Goose Deposit prior to embarking on development studies early next year.


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.

Hackett River is one of the largest undeveloped silver - zinc volcanic massive sulphide ("VMS") deposits in the world with indicated resources totaling 43.6 million tonnes with diluted (recovery) grades of 4.15% zinc, 129 g/t silver, 0.35% copper, 0.58% lead and 0.27 g/t gold. An additional inferred open resource totaling 16.0 million tonnes with diluted (recovery) grades of 3.53% zinc, 111 g/t silver, 0.24% copper, 0.46% lead and 0.25 g/t gold is also contained at Hackett River.

The Back River Project is comprised of the George and Goose Lake gold deposits and contain 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.

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

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.

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, should change.

This news release has been authorized by the undersigned on behalf of Sabina Gold & Silver Corp.

Tony Walsh, President & CEO

To view Figures 1 and 2 please click on the following link:

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