Sabina Gold & Silver Corp.
TSX : SBB

Sabina Gold & Silver Corp.

October 25, 2010 09:31 ET

Sabina Gold & Silver Announces Drilling to Begin at Newman-Madsen Property in Red Lake Ontario

50/50 Joint Venture With Premier Gold Mines on Prospective Gold Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 25, 2010) - Sabina Gold & Silver Corp. (TSX:SBB) is pleased to announce that the first of a two phase drilling program has begun on its 50% owned Newman-Madsen property in the prolific Red Lake gold district of Ontario, Canada.

Newman-Madsen is one of the Company's early stage exploration projects in Ontario and is held in a 50/50 joint venture with Premier Gold Mines with Sabina as the operator.

"We are eager to try our exploration 'tool box' in one of the world's greatest mining camps," said Tony Walsh, President & CEO. "We are excited about this area as it is situated in proximity to a number of high grade gold deposits, including the Madsen Mine which historically produced 2.4 million ounces of gold. This project enables us to continue our exploration activities through the winter shut down at our Nunavut projects and offers opportunities for new discoveries outside of the Canadian Arctic."

Initial Newman-Madsen work has been organized into a two phase $1.09 million drilling program with 50% of the cost borne each by Sabina and Premier.

Phase I exploration is focused on testing the Northeastern extension of Madsen Mine Trend stratigraphy at levels significantly deeper than previously explored. Historic exploration recognizes a marked similarity of the unconformity horizon to that of the Madsen Mine (>2.4 million ounces) setting, indicating that these horizons have the potential to host significant gold mineralization at depth.

A series of four holes, totalling 3200m, at a budget of $545,000 is proposed to test the Madsen Mine Trend target. In parallel with the commencement of phase I drilling, a series of short field programs consisting of mapping and diamond drill core re‐logging are planned for the Madsen Mine Trend and South Coin Lake targets, as well as some areas of elevated gold and arsenic soil geochemistry on the property.

Drilling has now commenced for phase I of the exploration program and is anticipated to be completed by the end of 2010. A phase II exploration program is proposed pending the results of phase I.

Newman-Madsen Geology

The rock units underlying Newman-Madsen property are considered to be very prospective in that all of the key features for high-grade mineralization in the Red Lake belt can be found on the property. These units are locally cut by northwest-trending structures, making them especially attractive where coupled with elevated gold and arsenic geochemical signatures. 

The property is underlain by Archean rocks of the Red Lake greenstone belts consisting of the Mesoarchean Balmer assemblage in the northern portion of the property and the Neoarchean Confederation assemblage to the south. The assemblages are separated by a regional unconformity which has been identified in close proximity to numerous high grade gold deposits in the Red Lake area, including the Madsen, Campbell and Red Lake mines. This regional unconformity crosses the south-southeastern sector of Newman-Madsen property over approximately 1.6 km where it remains largely untested at depth. The Madsen Mine situated along trend to the Southwest historically produced >2.4 million ounces from an underground mining operation. 

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.

The Company's flagship 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. 

Quality Assurance

Mr. John Wakeford, P. Geo, and Senior Vice-President, Corporate Development 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.

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 the maps associated with this press release, please click on the following link: http://media3.marketwire.com/docs/sbb1024.pdf

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