SOURCE: Sabina Silver Corporation

November 14, 2006 13:57 ET

Sabina Expands 2006 Hackett River Indicated Resource to 205 Million Oz Silver, 4.3 Billion Lbs Zinc; Initiates Preliminary Economic Assessment

THUNDER BAY, ON -- (MARKET WIRE) -- November 14, 2006 -- SABINA SILVER CORPORATION (TSX-V: SBB) (PINKSHEETS: SBBFF) (FRANKFURT: RXC) is pleased to announce delivery of an independent mineral resource estimate on its 100% owned Hackett River Project, Nunavut, prepared in compliance with National Instrument 43-101.

Systematic infill and stepout drilling by Sabina in 2006 has expanded the potentially bulk-minable mineral resource inventory at Hackett River. Indicated contained in-situ metals now include 205 million ounces silver and 4.3 billion pounds zinc, along with 305 million pounds copper, 644 million pounds lead, 433 thousand ounces gold as potential byproduct metals, all at above a 5.0 oz/t silver-equivalent grade cutoff (Table 1).

The Board of Directors of Sabina Silver Corporation has commissioned an independent NI 43-101 compliant "Preliminary Economic Assessment" based on the strength of the new resource estimate. Calculation of net smelter returns with a discounted cash flow analysis of potential future mineral production at the Hackett River Project is anticipated, calculated at newly determined metallurgical recoveries and a conservative metal price regime.

The Hackett River cumulative mineral resource distribution at successively increasing silver-equivalent cutoff grades is presented in Tables 1a and 1b.

Table 1a: 2006 NI43-101 Hackett River Cumulative Mineral Resource

----------------------------------------------------------------------
            Cutoff                               Grade
Resource     AgEq*    Tons      Silver   Zinc    Copper   Lead    Gold
Class        (opt)  (X 1000)    (opt)     (%)     (%)     (%)    (opt)
----------------------------------------------------------------------
             > 20     2,841      6.81   11.71     0.25    1.63   0.011
Indicated    > 15    10,213      6.10    8.68     0.29    1.25   0.010
             > 10    26,169      5.29    6.48     0.29    0.95   0.009
             > 5     47,073      4.37    4.67     0.32    0.68   0.009
----------------------------------------------------------------------
             > 20        61      5.59   10.28     0.48    0.81   0.007
Inferred     > 15     1,051      5.52    7.75     0.27    0.94   0.008
             > 10     5,635      5.51    5.18     0.25    0.74   0.011
             > 5     12,408      4.15    3.77     0.27    0.52   0.009
----------------------------------------------------------------------
Table 1b: 2006 NI43-101 Hackett River In-situ Contained Metals
----------------------------------------------------------------------
          Cutoff                        Contained Metals
Resource   AgEq*   Tons     Silver   Zinc     Copper   Lead      Gold
Class      (opt) (X 1000)  (Mil oz) (Bil lb) (Bil lb) (Bil lb)(Mil oz)
----------------------------------------------------------------------
           > 20    2,841     19.34   0.665    0.014    0.092     0.032
Indicated  > 15   10,213     62.35   1.772    0.059    0.255     0.101
           > 10   26,169    138.33   3.389    0.154    0.496     0.248
           > 5    47,073    205.80   4.398    0.305    0.644     0.433
----------------------------------------------------------------------
           > 20       61      0.34   0.013    0.001    0.001     0.000
Inferred   > 15    1,051      5.80   0.163    0.006    0.020     0.008
           > 10    5,635     31.05   0.584    0.028    0.084     0.063
           > 5    12,408     51.54   0.936    0.067    0.128     0.114
----------------------------------------------------------------------
* AgEq = silver equivalent; derived by normalizing the gross value of all metals to silver value. The gross metal value was calculated by applying individual metal recoveries and metal prices to each metal grade using updated metal recoveries and metal prices by Wardrop in 2006 (Metal Recoveries: Silver 72.0%, Zinc 89.6%, Copper 80.0%, Lead 70.0%, Gold 50.0%. Metal Prices (US$): Silver $7.90/oz, Zinc $0.65/lb, Copper $1.23/lb, Lead $0.35/lb, Gold $475/oz). The net smelter returns have not been considered in the calculation of metal equivalents.

The 2006 resource estimate is based on 300 drill holes with an aggregate length of 63,745 metres. Sabina's drilling in 2006 comprised 53 holes with an aggregate length of 17,293 metres. Wardrop Engineering Inc. considers the prior, historical exploration database to be robust and essentially free from error allowing these results to be employed along with Sabina's own database in the estimation of Indicated and Inferred mineral resources at Hackett River.

A system of sample standards, blanks and duplicates were inserted as part of the Company's Qa/Qc analytical procedures. Metal grades were determined using ordinary kriging into a 3-Dimensional block model constrained by wireframes interpreted from drillhole intercepts. The deposit models were constrained within the wireframe with primary block dimensions of 5 metres in each direction. Metal tonnages and grades are reported using silver-equivalent cut-off grades calculated using recent metallurgical recoveries and conservative metal price predictions. The silver-equivalent calculation may be viewed at: http://www.sabinasilver.com/documents/property-nov13-2006-SilverEquivalentFormula.pdf

Wardrop Engineering Inc. has reviewed this press release and approved its release. The detailed mineral resource report on Hackett River will be filed on SEDAR and on the Company website within 45 days of this release. The Mineral Resource estimates have been prepared in accordance with the Canadian National Instrument 43-101 based on drilling data compiled by Douglas Kim, P.Geo., Resource Development Manager, Sabina Silver Corporation and the resource estimation by Pierre Desautels, P.Geo., Senior Geologist, Wardrop Engineering Inc. both of whom are Qualified Persons as defined in Canadian National Instrument 43-101. Wardrop's team of mining professionals has also been awarded the contract to conduct the NI 43-101 compliant Preliminary Economic Assessment.

Sabina's 100% interest in the Hackett River Project is subject to a 2% Net Smelter Royalty (NSR) to Cominco Mining Partnership (CMP), and Etruscan Resources Inc. retains a 10% Net Profits Interest (NPI) capped at a penultimate total of C$2 million.

Sabina Silver Corporation is debt free, with approximately C$17 million in working capital cash and securities. In addition to advancing the Hackett River Project, the company is also focused on its Del Norte Silver-Gold project in the Stewart-Eskay Creek Mining District, British Columbia, in addition to four promising gold projects in the Red Lake Mining District, Ontario.

ON BEHALF OF THE BOARD OF DIRECTORS

Abraham Drost, P.Geo.
President/Director

The foregoing securities have not been, nor are there any current plans to register said securities under the United States Securities Act of 1933, as amended, and these securities 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 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 does have 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 Silver Corporation 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.

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Contact Information

  • For further information, please contact:

    Abraham Drost
    401-1113 Jade Court
    Thunder Bay, Ontario
    Phone: 807-766-1799
    Fax: 807-345-0284
    Email: Email Contact

    Visit our web site at www.sabinasilver.com