Sabina Gold & Silver Corp.

Sabina Gold & Silver Corp.

February 01, 2010 08:30 ET

Sabina Gold & Silver Provides Update on Nunavut

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 1, 2010) - Sabina Silver Corporation (SBB) (TSX:SBB) provided an update on the second annual Investing In Nunavut event held at the Fairmont Hotel in Vancouver on January 17, 2010.

The event took place to follow up on the successful inaugural event held last year in April. Several companies active in exploration and development in Nunavut sponsored the evening as a venue to inform investors of the benefits of working and investing in Nunavut.

The evening was marked by a presentation from the Honourable Deputy Premier, Peter Taptuna, the Government of Nunavut's Minister of Economic Development and Transportation and Minister Responsible for Mines. Presentations were also heard from David Coffin, Editor of the Hard Rock Analyst news letter and Mr. Larry Connell, Corporate Director of Sustainable Development for Agnico-Eagle Mines Limited.

"Sabina and Sabina's management team have an extensive history working in Nunavut," said Tony Walsh, Sabina's President & CEO. "We have always been encouraged by the support we've received from all levels of Nunavut government and Inuit agencies for responsible sustainable development of our projects. Those of us working in Nunavut, view the territory as a vast new mining frontier. The area is rich geologically and hosts prolific opportunities to find oil, precious metals, base metals and diamonds. This is a huge opportunity for those investors on the ground floor of what we believe will become a major mining region in the world."

These sentiments were conveyed in Minister Taptuna's speech which addressed Nunavut's recently unveiled Tampata document, a mandate which guides the Government of Nunavut over the next four years and which strongly endorses the implementation of a mineral exploration and mining strategy. Tampata translates into English as "Building our Future Together". 

Since 2007, over $800 million has been invested by companies exploring for minerals in Nunavut. The past 10 years have also seen a number of projects advance through the permitting process and towards development. Agnico-Eagle's Meadowbank Mine is now being commissioned and is expected to pour its first gold this quarter. Major projects such as Newmont's Hope Bay gold deposit, Baffinland's Mary River iron ore deposit, and Areva's Kiggavik uranium deposits have reached feasibility and are poised to move forward.

"Right behind these projects, MMG, and Sabina Gold & Silver have world class base and precious metals deposits that are approaching the development stage," said the Minister.

The territory of Nunavut has remarkable potential for major mineral discoveries. The territory encompasses two million square kilometres, much of it underlain by Archean aged rocks analogous to those of prolific mining camps in parts of Ontario, Quebec, South Africa, Australia and Brazil. The opportunity for discovery has been demonstrated by the successes of the 130 junior explorers working in the territory.

As a result of the Nunavut Land Claims Act, Nunavut also boasts the advantage of certainty of tenure which provides a level of stability for mining companies and their shareholders not seen in any other jurisdiction of Canada or perhaps the world.

"This certainty of tenure, coupled with the lack of past exploration activity, have allowed aggressive forward looking acquire mineral rights to entire diamond fields and entire greenstone belts," said Minister Taptuna. "Would you invest in a company that held the exploration rights to the entire Kirkland lake or Timmins greenstone belt? Even if the great ore bodies had not yet been proven?"

"As it was with the Timmins and Kirkland Lake belts in their infancy, in Nunavut, locations are remote and logistics costly and challenging," said Tony Walsh. "However, the infrastructure that we now see around those world class mining districts in Ontario and Quebec grew because of development. We see that opportunity in Nunavut also. As has been demonstrated by Agnico-Eagle's Meadow Bank project, as projects become large enough to sustain initial development, create jobs, and become economic, infrastructure to serve these operations begins to grow around them: investments and partnerships between the constituents of the land, industry and government start to solidify."

Before he wrapped up his presentation, Minister Taptuna emphasized, "From our smallest communities to the individuals that make up our government, Nunavummiut agree that an economically strong and self reliant territory will be built alongside a strong and sustainable minerals industry."

If you would like to read more about the Investing in Nunavut event or listen to the presentations given by all of the speakers, please link to


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 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 kilometers and cover the largely unexplored Hackett River Greenstone belt. 

Hackett River is one of the largest undeveloped silver - zinc volcanic massive sulphide ("VMS") deposits in the world with indicated resources totalling 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 totalling 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.

The Company has recently announced a Preliminary Economic Assessment on Hackett River, filed on SEDAR in December, 2009. According to the assessment, Hackett River would generate $1.8 billion in free cash flow, an IRR of 25.9% and an NPV of $975 million at a 5% discount.

The consolidation of these projects has enabled Sabina to amass an entire district with significant exploration and development potential. This significant toehold in the region, along with the advanced nature of the Hackett River Project positions Sabina to potentially strongly influence this emerging mining district.

Quality Assurance

Mr. John Wakeford, PGeo, and Sr. Vice President Corporate Development of Sabina Silver Corporation 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.

The mineral resource estimate for Hackett River was prepared as part of the Preliminary Economic Assessment (PEA) update by Gordon Zurowski, P.Eng., Principal Mine Engineer of PEG Mining Consultants Inc, and can be found on SEDAR at Gordon Zurowski is a qualified person as defined by National Instrument (NI) 43-101. CIM Definition Standards (2005) have been used in defining the mineral resource categories.

Project Management of the PEA study was conducted by Eric Harkonen, P.Eng. and Principal Project Manager/Mine Engineer of PEG Mining Consultants Inc. He is a qualified person as defined by NI43-101.

All technical reports have been filed on

Forward Looking Statements

Statements relating to future operations at the Hackett River Project, the Back River Project and the Wishbone 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, 2008.

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.

Tony Walsh, President & CEO

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