SOURCE: Sabina Silver Corporation

September 20, 2006 08:00 ET

Sabina's Hackett River Assay Update Includes Deep Stepout Hole With 42.95m of 8.35% Zinc and 180.5g/T Silver

THUNDER BAY, ON -- (MARKET WIRE) -- September 20, 2006 -- SABINA SILVER CORPORATION (TSX-V: SBB) (PINKSHEETS: SBBFF) is pleased to present an assay update for Holes 22-45 from 2006 drilling at Hackett River. A total of 17,293m in 53 holes was drilled at Hackett River this year. The silver and zinc-rich character of the Hackett River massive sulphide mineralization continues to be confirmed down plunge on the Boot Lake deposit with a stepout hole at 500m vertical depth, SHR-06-32, which intersected 42.95m grading 8.35% zinc and 180.5 g/T silver. A second 50m down plunge stepout hole from the same setup, SHR-06-37, contains 49.85m of 9.18% zinc and 141.6 g/T silver. A separate copper and precious metal-enriched footwall stringer zone underlying the Boot Lake massive sulphide deposit was intersected in Hole SHR-06-37 with copper-silver-gold stringer mineralization over 20.15m grading 1.59% copper, 259.9 g/T silver and 3.1 g/T gold.

Sabina is currently updating the Hackett River deposit model and is on track to meet its 2006 goal of an updated 43-101 compliant mineral resource estimate and independent scoping level discounted cash flow economic analysis of the Hackett River project. Approximately 40% of the total 17,293m drilled this year was devoted to infill work upgrading the inferred mineral resource at Hackett River to the higher confidence level Indicated mineral resource. The balance (60%) was stepout work, as all three deposits (Boot Lake, Main Zone and East Cleaver) remained open. Optimized metallurgy and baseline environmental work is in progress.

Sabina has an undivided 100% interest in its polymetallic Hackett River Project, which contains a NI 43-101-compliant Indicated Mineral Resource based on 2005 drilling (Table 1). The magnitude of the contained silver resource alone at Hackett River ranks Sabina Silver Corporation among the top 12 silver-focused companies operating in the Western Hemisphere. A substantial zinc endowment with appreciable copper, lead and gold, will also factor prominently in the 2006 mineral resource update and scoping level discounted cash flow analysis.

Table 1: 2005 NI 43-101 Cumulative Indicated Mineral Resource - Hackett River deposits

--------------------------------------------------------------------------
Cutoff Ag              Ag Eq*  Zn Eq*     Ag    Zinc    Cu   Lead   Au g/T
Eq oz/ton    Tons      oz/ton     %     oz/ton    %      %     %
--------------------------------------------------------------------------
>20       11,046,617   26.57    12.17    5.67   7.69   0.41   1.19   0.52
--------------------------------------------------------------------------
>15       20,251,800   22.41    10.26    4.75   6.35   0.40   1.00   0.49
--------------------------------------------------------------------------
>10       31,300,755   18.88     8.64    3.92   5.30   0.37   0.84   0.45
--------------------------------------------------------------------------
>5        39,347,008   16.65     7.62    3.40   4.63   0.36   0.73   0.41
--------------------------------------------------------------------------

Ag Eq = silver equivalent; Zn Eq = zinc equivalent; derived after
normalizing 43-101 indicated mineral resource contained silver, zinc,
lead, copper and gold to silver and zinc respectively using historical
metallurgical recoveries and conservative metal prices.*
*Present Metal Recoveries (Cominco, 1981) Zinc 81.8%, Silver 66.7%, Copper
69.6%, Lead 70.0%, Gold 50.0% Metal Price (US$) (Wardrop, 2005) Zinc $0.53
lb, Copper $1.23 lb, Lead $0.38 lb, Gold $434 oz, Silver $6.56 oz troy

Updated 2006 drill core assay highlights from Hackett River are presented at the following link (Table 2). The Company is waiting on assays for 7 additional holes pending at this time and will publish a complete list of all 2006 program results when available as drilling is now complete.

Table 2: 2006 Hackett River Assay Update

http://www.usetdas.com/maps/sabina/sabinahackettriver.pdf

Sabina spent a total of $12 Million in 2004 and 2005 to gain a 100% interest in the Hackett River Project subject to a 2% NSR royalty held by Cominco Mining Partnership (CMP), an affiliate of Teck Cominco Limited. CMP relinquished all back-in rights to the Hackett River Project in November 2005.

The Hackett River drill program is being carried out under the supervision of Douglas Kim, P.Geo. Resource Development Manager and a Qualified Person under National Instrument 43-101. Mr. Kim supervised drill hole planning, implementation and application of a quality assurance/quality control (Qa/Qc) sampling system incorporating the regular use of sample standards, blanks and duplicates and has approved the technical content of this news release. Core was one-half split, with half sent to ISO-accredited Accurassay Laboratories, Thunder Bay along for sample preparation and analysis.

Sabina Silver Corporation is debt free and has a strong treasury. Sabina also holds 5.3% of the issued share capital of Wolfden Resources Inc. (TSX: WLF) and Premier Gold Mines Inc. (TSX: PG). In addition to the Hackett River Project, the Company is drilling the high grade Del Norte Silver-Gold Project in the Stewart-Eskay Creek Mining District, British Columbia from which drill core assays are awaited. The Company is also presently conducting fieldwork on four pure gold projects in the Red Lake Mining District, Ontario.

In other matters, John Trinnear, CA has been appointed as acting Chief Financial Officer of Sabina in place of Duncan Caldwell who has taken a leave of absence. Mr. Trinnear is currently working as Controller for Sabina and worked as Finance and Administration Consultant for MacKinnon Transport Inc. in Ontario during 2004 and 2005. Prior to this, Mr. Trinnear was the Corporate Controller / Vice President Finance for FTI Consulting in London, Ontario from 1992 - 2004, as well as Controller for two other companies from 1979 to 1992.

In addition, the Company has granted 50,000 stock options, exercisable at a price of $1.23 per share, up to and including September 19, 2011.

ON BEHALF OF THE BOARD OF DIRECTORS

"Abraham Drost, P.Geo., President"

For further information, please contact:
Abraham Drost
Suite 401-1113 Jade Court
Thunder Bay, Ontario
Phone: 807-766-1799
Fax: 807-345-0284

Email: info@sabinasilver.com

Visit our web site http://www.sabinasilver.com/hackett.htm

The foregoing securities have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation or sale would be unlawful. Sabina Silver Corporation has a Moody's/Mergent Manual ("Blue Sky") exemption allowing distribution without registration in 39 states for secondary trading transactions only. Always consult a Registered Investment Advisor.

This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may," "will," "plan," "expect," "anticipate," "estimate," "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. Sabina does have an ongoing obligation to disclose material information as it becomes available.

The TSX Venture Exchange does not accept responsibility for the accuracy or the adequacy of this release.

Contact Information

  • For further information, please contact:
    Abraham Drost
    Suite 401-1113 Jade Court
    Thunder Bay, Ontario
    Phone: 807-766-1799
    Fax: 807-345-0284
    Email: Email Contact