Sabina Gold & Silver Corp.
TSX : SBB

Sabina Gold & Silver Corp.

June 04, 2012 12:24 ET

Sabina Announces More Positive Drill Results from 2012 Drilling at the Back River Gold Project, Nunavut

Hole 12GSE182 at Llama Returns 21.76 g/t Au Over 11.70 m Including 51.52 g/t Au Over 4.50 m;

Hole 12GSE173 at Umwelt Extends Deposit by 200 m and Returns 9.50 g/t Au Over 7.15 m;

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 4, 2012) - Sabina Gold & Silver Corp. (TSX:SBB) is pleased to announce new assay results from holes drilled on the Goose claim block as part of the 2012 exploration program at its 100% owned Back River Gold Project in Nunavut, Canada.

Initial work on the Goose property in 2012 has focussed on infill and extension drilling at the Llama and Umwelt deposits, as well as high priority regional new discovery targets proximal to the existing deposits.

Infill drilling within the Llama pit shell has been particularly successful. Hole 12GSE182 returned 21.76 g/t Au over 11.70 m including 51.52 g/t Au over 4.50 m. This intercept begins at a down hole depth of only 15.80 m and confirms the presence of a high grade mineralized core in the Llama pit. These results, in addition to the Llama results announced on April 26, 2012, should provide strong grade early in the mine plan as envisaged in the recently completed Preliminary Economic Assessment ("PEA").

Drilling at Llama has also targeted the extension of the deposit down plunge. Hole 12GSE180 returned 8.40 g/t Au over 10.90 m including 12.33 g/t Au over 5.55 m and hole 12GSE168 at the fold crest between the East and West Limbs intersected 6.73 g/t Au over 9.25 m. These holes continue to identify a continuous zone of mineralization down plunge of the open pit resource and are in an area that has not yet been included in any resource calculation.

Positive first results from extension drilling at the G2 Zone at Umwelt have also been received. Hole 12GSE173 returned 9.50 g/t Au over 7.15 m and extends the mineralization 200 m down plunge from the previous known limits of the deposit. Deep drilling continues at Umwelt with further assays pending.

"We are very happy with the results coming in from this year's program to date," said Rob Pease, President & CEO. "In particular, the results reported from Llama demonstrate one of the opportunities for this year's drilling to optimize the mine plan in our recently announced PEA. The Llama deposit is envisioned to be one of first areas mined in the PEA due to its near surface high-grade attributes; therefore, we expect there will be a positive impact on the economics. Our property wide exploration continues to discover significant new mineralization and the high-grade continuous nature of our deposits demonstrate the unique character and strength of the future Back River project."

On May 29th, the Company announced a positive PEA on the Back River Gold Project. According to the PEA, the base case scenario for the project generates a post-tax NPV of $650 million and an IRR of 25% at a $1250 gold price. The mine plan would feed 5,000 tonnes per day of mineralized material to the mill to produce approximately 300,000 ounces of gold per year for 12.3 years. Mine sequencing envisions initial production from a Llama open pit and the Umwelt and Goose underground resources for up front capital of approximately $450 million. Thereafter, open pits at Umwelt and Goose followed by underground mining at George will come on line over the rest of the life of the mine with mine development capital being funded from cash flow. Total capital for the project has been estimated at $838 million. Total cash costs are anticipated to be $542/oz life of mine including royalties, refining and transport. Capital and operating costs were estimated using a combination of first principle calculations, experience and factored costs; experience includes actual results from comparable northern projects.

Back River Exploration

There are currently 5 drills operating at the Goose property based out of the Goose camp. One drill is working on the down plunge extension of the Llama deposit, one drill is beginning Umwelt resource conversion drilling, two drills are exploring the down dip and down plunge extension of the Umwelt G2 Zone, and one drill is conducting property wide exploration. There are three drills operating out of the George camp with one drill assigned to regional Wishbone drilling and two drills focused on new targets at George.

Llama Resource Conversion Drilling

Drilling began at the Llama deposit in early March and was initially focussed on lake-based targets situated on the East and West limbs of the deposit. Drilling targeted the core of the current open pit concept and was designed to upgrade resources from the inferred category to the indicated category. This program is now complete and drilling has moved to the south in an effort to expand the deposit down plunge.

Additional results from the resource upgrade program have been returned and include hole 12GSE182 located at the north end of the Llama deposit which intersected high grade mineralization associated with the thickened fold hinge of the iron formation. Results from the hole included 21.76 g/t Au over 11.70 m including 51.52 g/t Au over 4.50 m. This intercept begins at a down-hole depth of only 15.80 m and confirms the presence of a high grade mineralized core at Llama that should provide strong grade early in the mine plan as envisaged in the recently completed PEA study.

Other significant intercepts from the Llama in-fill program include hole 12GSE171 also at the north end of the deposit which returned 24.96 g/t Au over 6.60 m at a vertical depth of approximately 50 m.

Llama Resource Expansion Drilling

Efforts to expand the Llama deposit down plunge and to the south have also been successful. Hole 12GSE180 returned 8.40 g/t Au over 10.90 m including 12.33 g/t Au over 5.55 m in the West Limb at a vertical depth of approximately 280 m below surface and hole 12GSE168 at the fold crest between the East and West Limbs intersected 6.73 g/t Au over 9.25 m at a vertical depth of approximately 180 m. These intercepts occur below and to the south of the current resource as defined and used in the PEA and continue to identify a continuous zone of mineralization down plunge of the open pit resource.

Umwelt Resource Expansion Drilling

Other highlights from the drill program to-date include the first results from the down plunge drilling of the Umwelt G2 Zone. Hole 12GSE173 was designed to test 200 m down plunge of the known zone and to intersect the lower part of the limb that hosts the Umwelt deposit. This hole successfully intersected mineralization at the base of the lower Main Zone East limb returning 9.50 g/t Au over 7.15 m at a vertical depth of approximately 800 m below surface and some 200 m down dip of our previous intersection of the zone. The main portion of the deposit is believed to lie up dip of this intercept. A second hole targeting approximately 100 m above hole 12GSE173 is currently in progress.

Goose Property Exploration

A new discovery has been made at a target located immediately to the west of the Goose deposit termed the Goose Hook. The Goose Hook is interpreted to be an extension of the Goose deposit that has been folded sharply from a northeast - southwest orientation to a southwesterly orientation. Hole 12GSE178, following-up on encouraging results from earlier holes 12GSE133 (2.06 g/t Au over 2.70 m) and 12GSE138 (1.69 g/t Au over 25.00 m), intersected 3.65 g/t Au over 9.0 m within a broader mineralized zone grading 1.76 g/t Au over 41.90 m. A number of grains of visible gold were noted in the interval. This intercept is approximately 300 m west of the main Goose deposit and represents a significant zone of altered and mineralized oxide iron formation. Ongoing drilling should provide us with additional information necessary to better understand the geology of this new Goose Hook discovery.

Table 1: Significant assay results from this release:
Hole Id Area Section Easting Northing Depth From
(m)
To
(m)
Length
(m)
Au
(g/t)
Zone
Name
12GSE168 LL 4775L 429142 7272125 351.0 246.90 247.70 0.80 1.22 Main
West
260.25 269.50 9.25 6.73 Main
West
including 261.00 264.60 3.60 9.19 Main
West
12GSE171 LL 5100L 428762 7272282 122.0 52.10 58.70 6.60 24.96 Undefined
61.30 62.15 0.85 2.11 Undefined
63.00 64.05 1.05 2.04 Undefined
85.00 91.35 6.35 1.29 Main
East
including 89.00 91.35 2.35 2.11 Main
East
12GSE173 UM 3900U 430883 7270497 902.0 855.00 862.15 7.15 9.50 Main
East
including 857.00 859.00 2.00 26.94 Main
East
12GSE178 Hook 6420H 433598 7269478 704.0 Results Pending
366.10 408.00 41.90 1.76 Goose Hook
including 369.00 378.00 9.00 3.65 Goose Hook
including 371.00 373.00 2.00 8.01 Goose Hook
including 384.50 385.40 0.90 5.44 Goose Hook
including 392.00 394.00 2.00 2.60 Goose Hook
including 406.00 408.00 2.00 7.05 Goose Hook
Results Pending
12GSE180 LL 4700L 428745 7271810 431.0 Results Pending
389.00 399.90 10.90 8.40 Main West
including 391.45 394.00 2.55 19.75 Main West
including 396.00 399.90 3.90 9.39 Main West
405.30 406.00 0.70 1.10 Main West
12GSE182 LL 5125L 428788 7272326 76.0 15.80 27.50 11.70 21.76 Main
East
including 19.00 23.50 4.50 51.52 Main
East
including 26.50 27.50 1.00 9.65 Main
East
30.00 31.00 1.00 1.94 Main
East
36.00 37.50 1.50 1.94 Main
East
Abbreviations: LL = Llama; UM = Umwelt; Hook = Goose Hook

Quality Assurance

The Qualified Person under NI 43-101 is Peter Manojlovic PGeo, Vice President Exploration for Sabina Gold & Silver Corp., who has approved this release.

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 2012 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.

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.

Sabina's primary properties consist of the Back River Gold Project as well as the Wishbone Claims, a vastly prospective grass roots project all located in Nunavut. In late 2011 the Company has announced the completion of the sale of Hackett River and certain claims in the Wishbone greenstone belt to Xstrata Zinc Canada Division (Xstrata) for which the Company received $50 m cash and a silver royalty on Xstrata's Hackett River silver production of 22.5% of the first 190 million ounces produced and 12.5% of all silver produced thereafter.

The Company had cash of $147.4 million at March 31, 2012.

All news releases can be found on the Company's website at www.sabinagoldsilver.com or on SEDAR at www.sedar.com.

Forward Looking Statements

Statements relating to mineral resource estimates at Llama, Umwelt, George and Goose and the expected impact of these mineral resources 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, 2011.

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.

Rob Pease, President & CEO

Table 2: Complete assay results from 2012 drilling
Hole Id Area Section Easting Northing Depth From
(m)
To
(m)
Length
(m)
Au
(g/t)
Zone
Name
12GSE132B GNS 3950J 431894 7269627 239.0 138.10 139.00 0.90 5.61 GNS
147.50 148.50 1.00 6.50 GNS
166.20 168.40 2.20 2.12 GNS
12GSE133 Hook 433700H 433692 7269572 584.0 344.65 345.50 0.85 1.37 Unknown
373.10 375.80 2.70 2.06 LIF-North
379.55 384.00 4.45 1.06 LIF-North
424.00 424.50 0.50 1.66 LIF-North
429.10 429.60 0.50 1.30 LIF-North
431.05 434.90 3.85 1.62 LIF-North
439.00 439.80 0.80 17.73 LIF-North
12GSE134 GNS 3950J 431892 7269628 285.5 212.00 227.50 15.50 0.88 GNS
12GSE135 GNS 4150J 431739 7269766 305.0 NSV
12GSE136 LL 4875L 429159 7272252 284.0 262.00 262.70 0.70 1.06 Main
East
12GSE137 LL 5325L 428651 7272478 62.0 NSV
12GSE138 Hook 433700H 433690 7269581 540.7 314.70 339.70 25.00 1.69 LIF-South
including 327.70 330.70 3.00 3.16 LIF-South
including 336.70 338.00 1.30 11.97 LIF-South
386.40 390.70 4.30 1.51 LIF-North
400.70 401.70 1.00 1.34 LIF-North
12GSE139 LL 4925L 428967 7272198 143.0 81.40 100.65 19.25 5.01 Main
West
including 98.90 99.85 0.95 51.10 Main
West
119.90 122.45 2.55 6.37 Main
West
131.35 131.90 0.55 1.46 Main
West
12GSE140 LL 5325L 428611 7272455 152.0 NSV
12GSE141 LL 4975L 428947 7272245 293.0 69.80 70.80 1.00 1.92 Main
East
75.80 76.80 1.00 1.66 Main
East
81.15 117.55 36.40 15.16 Main
East
including 86.70 94.85 8.15 20.09 Main
East
and 101.00 109.20 8.20 41.37 Main
East
including 106.70 107.50 0.80 154.30 Main
East
122.30 140.30 18.00 1.98 Main
West
including 122.85 124.00 1.15 16.53 Main
West
168.45 209.50 41.05 7.15 Main
West
including 176.25 199.50 23.25 10.87 Main
West
and 206.30 209.50 3.20 3.07 Main
West
214.50 215.40 0.90 1.08 Main
West
218.05 219.05 1.00 3.02 Main
West
12GSE142 LL 5275L 428635 7272411 128.0 99.90 100.60 0.70 1.41 Main
East
12GSE143 LL 5275L 428673 7272433 137.0 27.95 28.60 0.65 1.20 Main
East
44.00 45.00 1.00 1.03 Main
East
12GSE144 LL 5025L 428959 7272308 326.0 100.10 102.00 1.90 1.86 Main
East
106.65 107.45 0.80 1.34 Main
East
283.10 285.60 2.50 2.65 Main
West
12GSE145 LL 5250L 428640 7272385 149.0 NSV
12GSE146 GM 4910G 434085 7269436 119.0 NSV
12GSE146B GM 4910G 434086 7269436 338.0 126.00 129.00 3.00 2.35 LIF-South
141.00 147.00 6.00 6.92 LIF-South
including 146.00 147.00 1.00 25.48 LIF-South
158.13 160.87 2.74 6.13 LIF-South
including 160.00 160.87 0.87 17.52 LIF-South
169.00 170.00 1.00 1.41 Gwky
233.00 245.00 12.00 4.81 LIF-North
including 235.74 238.15 2.41 15.35 LIF-North
264.00 278.00 14.00 2.07 LIF-North
12GSE147 LL 5250L 428682 7272409 107.0 55.30 56.75 1.45 5.01 Main
East
69.10 71.70 2.60 1.42 Main
East
12GSE148 LL 4875L 429025 7272174 200.0 133.15 134.15 1.00 1.58 Main
West
137.15 139.25 2.10 8.37 Main
West
145.00 169.10 24.10 4.69 Main
West
including 145.00 148.00 3.00 21.33 Main
West
and 164.15 168.15 4.00 7.60 Main
West
12GSE149 UM 4100U 430766 7270675 200.0 NSV -
Hole
Abandoned
12GSE150 LL 5225L 428670 7272373 156.5 NSV
12GSE151 LL 4975L 429002 7272276 146.0 132.70 134.45 1.75 2.17 Main
East
12GSE152 LL 5225L 428670 7272373 137.0 78.00 98.00 20.00 8.58 Main
East
including 84.90 87.90 3.00 24.38 Main
East
and 93.00 95.00 2.00 24.87 Main
East
12GSE153 LL 5025L 428795 7272214 149.0 64.10 77.00 12.90 21.58 Main
West
90.10 91.10 1.00 2.35 Main
East
98.00 111.00 13.00 2.66 Main
East
including 107.00 109.15 2.15 10.00 Main
East
12GSE154 UM 4100U 430579 7270522 482.0 348.96 349.48 0.52 1.42 Undefined
12GSE155 LL 4975L 428902 7272218 269.0 57.10 58.10 1.00 2.71 Main
West
93.20 97.70 4.50 22.54 Main
West
12GSE156 LL 5075L 428770 7272258 140.0 95.80 105.00 9.20 2.95 Main
East
12GSE157 GM 4730G 434300 7269401 77.0 NSV -
Hole
Abandoned
12GSE157B GM 4730G 434299 7269399 254.0 121.11 122.00 0.89 1.11 LIF-South
132.00 133.00 1.00 1.05 LIF-South
12GSE158 LL 5125L 428737 7272296 224.0 40.50 41.60 1.10 1.59 Main
West
55.00 56.00 1.00 14.80 Main
West
66.00 67.00 1.00 3.96 Main
West
121.00 125.00 4.00 1.97 Main
East
127.00 131.00 4.00 1.77 Main
East
12GSE159B LL 4750L 428870 7271940 248.0 NSV
12GSE160 UM 4200U 430647 7270708 80.0 NSV -
Hole
Abandoned
12GSE161 LL 5125L 428737 7272297 155.0 Results
Pending
12GSE162 LL 4700L 428784 7271833 427.0 16.45 17.00 0.55 1.73 Flying
Wedge
21.60 27.85 6.25 1.15 Flying
Wedge
40.00 40.50 0.50 1.99 Flying
Wedge
238.55 239.60 1.05 1.35 Undefined
335.70 343.70 8.00 14.67 Main
West
including 335.70 336.20 0.50 204.00 Main
West
12GSE163 UM 4200U 430474 7270564 626.0 362.70 363.90 1.20 1.18 East
BIF
566.00 576.00 10.00 0.49 Main
East
12GSE164 UM 4100U 430572 7270516 674.0 434.00 435.00 1.00 1.06 East
BIF
488.25 488.75 0.50 1.46 East
BIF
540.45 541.25 0.80 1.18 East
BIF
555.40 555.90 0.50 1.47 East
BIF
632.45 633.95 1.50 0.20 Main
East
12GSE165 GM 4730G 434325 7269428 221.0 126.16 126.93 0.77 3.60 Gwky
135.57 138.97 3.40 5.61 Gwky
Results
Pending
208.26 211.00 2.74 1.07 Gwky
12GSE166 LL 5150L 428728 7272320 212.0 82.00 85.00 3.00 8.08 Main
East
including 84.00 85.00 1.00 20.80 Main
East
12GSE167 GM 4700G 434339 7269399 176.0 141.95 149.54 7.59 2.48 Undefined
12GSE168 LL 4775L 429142 7272125 351.0 246.90 247.70 0.80 1.22 Main
West
260.25 269.50 9.25 6.73 Main
West
including 261.00 264.60 3.60 9.19 Main
West
12GSE169 LL 5200L 428633 7272322 224.0 116.00 125.75 9.75 1.19 Main
West
including 118.60 119.25 0.65 11.93 Main
West
151.45 152.75 1.30 1.63 Undefined
12GSE170 GB 4340G 434901 7269460 309.5 NSV
12GSE171 LL 5100L 428762 7272282 122.0 52.10 58.70 6.60 24.96 Undefined
61.30 62.15 0.85 2.11 Undefined
63.00 64.05 1.05 2.04 Undefined
85.00 91.35 6.35 1.29 Main East
including 89.00 91.35 2.35 2.11 Main East
12GSE172 LL 4830L 429031 7272132 23.0 NSV -
Hole
Abandoned
12GSE172B LL 4830L 429031 7272132 197.0 82.00 82.55 0.55 2.62 Undefined
133.95 134.45 0.50 10.70 Main
West
12GSE173 UM 3900U 430883 7270497 902.0 855.00 862.15 7.15 9.50 Main
East
including 857.00 859.00 2.00 26.94 Main
East
12GSE173W1 UM 3900U 430883 7270497 402.0 NSV -
Hole
Abandoned
12GSE173W2 UM 3900U 430883 7270497 547.0 Results
Pending
12GSE174 UM 3750U 430883 7270497 980.0 Results
Pending
12GSE174W1 UM 3750U 430883 7270497 455.0 NSV -
Hole
Abandoned
12GSE175 LL 4925L 429013 7272225 0.0 NSV -
Hole
Abandoned
12GSE175B LL 4925L 429011 7272224 338.0 131.00 137.20 6.20 3.75 Main
East
including 133.00 137.20 4.20 5.19 Main
East
140.20 141.70 1.50 1.66 Main
East
261.64 261.95 0.31 1.13 Main
West
12GSE176 LL 5300L 428635 7272440 122.0 NSV Main
East
12GSE177 LL 5150L 428718 7272314 23.0 20.50 23.00 2.50 16.17 Main
West
12GSE177B LL 5150L 428717 7272314 140.0 29.00 32.30 3.30 3.55 Main
West
including 29.00 29.60 0.60 11.52 Main
West
36.60 37.20 0.60 2.50 Main
West
87.70 100.40 12.70 2.72 Main
East
including 87.70 88.70 1.00 14.44 Main
East
including 90.10 93.90 3.80 3.02 Main
East
110.20 116.30 6.10 1.95 Main
East
including 113.90 115.75 1.85 3.47 Main
East
118.40 119.75 1.35 2.33 Main
East
12GSE178 Hook 6420H 433598 7269478 704.0 Results
Pending
366.10 408.00 41.90 1.76 Goose
Hook
including 369.00 378.00 9.00 3.65 Goose
Hook
including 371.00 373.00 2.00 8.01 Goose
Hook
including 384.50 385.40 0.90 5.44 Goose
Hook
including 392.00 394.00 2.00 2.60 Goose
Hook
including 406.00 408.00 2.00 7.05 Goose
Hook
Results
Pending
12GSE179 LL 5200L 428684 7272353 170.0 Results
Pending
88.95 94.20 5.25 3.27 Main
East
including 92.95 94.20 1.25 9.51 Main
East
97.65 100.70 3.05 2.87 Main
East
12GSE180 LL 4700L 428745 7271810 431.0 Results
Pending
389.00 399.90 10.90 8.40 Main
West
including 391.45 394.00 2.55 19.75 Main
West
including 396.00 399.90 3.90 9.39 Main
West
405.30 406.00 0.70 1.10 Main
West
12GSE181 LL 4975L 428647 7272058 104.0 Results
Pending
12GSE182 LL 5125L 428788 7272326 76.0 15.80 27.50 11.70 21.76 Main
East
including 19.00 23.50 4.50 51.52 Main
East
including 26.50 27.50 1.00 9.65 Main
East
30.00 31.00 1.00 1.94 Main
East
36.00 37.50 1.50 1.94 Main
East
Abbreviations: GNS = Goose Neck South; LL = Llama; GM = Goose Main; UM = Umwelt; GB = Goose Butt; Hook = Goose Hook; NSV = No Significant Values

To view accompanying Figures 1 to 4, visit the following link: http://media3.marketwire.com/docs/Figures1to4_Sabina.pdf

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