Sabina Gold & Silver Corp.
TSX : SBB

Sabina Gold & Silver Corp.

October 05, 2010 08:15 ET

Sabina Gold & Silver Announces More Significant Results at Umwelt Discovery, Back River Project, Nunavut

Hole 10GSE112 Returns 10.29 g/t Au Over 35.5m Including 14.03 g/t Au Over 13.5m

Hole 10GSE125 Returns 7.55 g/t Au Over 56.0m Including 14.96 g/t Au Over 11.0m

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 4, 2010) - Sabina Gold & Silver Corp. (TSX:SBB) is pleased to announce further significant assay results from drilling at its Umwelt discovery at the Goose property on its 100% owned Back River project in Nunavut, Canada.

"We completed a very successful exploration campaign this year, especially at our Back River Gold Project," said Tony Walsh, President & CEO. "The new gold discoveries at the Goose property have accelerated the project beyond our expectations and positive results continue to be returned. With the Goose camp closed for the winter shut down, we can now begin to evaluate and interpret our work with the objective of completing updated resource and internal pit studies on the project. We would expect to publish those results early next year. If all is positive, we anticipate commencing scoping work in the first quarter of 2011," he said "Both Llama and Umwelt remain open along strike at depth and we look forward to a more aggressive program in 2011 to advance the project."

The target areas at Back River have all been identified using an exploration tool box developed by Sabina's geological team. This tool box is based on (among other things) interpreting geological and geophysical signatures used to identify areas on the iron formation with significant alteration and mineralization where the magnetic expression has been demagnetised by high temperature geological events. Sabina continues to refine our exploration tool box to develop a disciplined strategic approach to identifying and evaluating the numerous new targets at Back River as well as the adjoining Wishbone project.

UMWELT

As announced on June 21, 2010, the new Umwelt deposit area is situated approximately 1.3 km to the south of the new Llama zone and approximately 3 km to the north of the Goose deposit and was targeted based on its similar geological and geophysical signature to both these deposits. A total of 54 holes and 15,448 metres were completed on Umwelt with approximately 40 holes still at the lab with assays pending.

The continuity of mineralization in the Umwelt area has been established over a 400 metre strike length with intercepts as deep as 250 metres. Visible gold has been noted in many but not all of the holes drilled to date, and the zone remains open both along strike and to depth. The strong continuity at shallow depth of this zone could provide opportunities for open pit extraction.

Drilling at Umwelt has identified an anti-form structure with a fold hinge that plunges to the south. Thick zones of gold mineralization are associated with the fold hinge in what is now known as the East Zone. Mineralization also occurs along a separate iron formation horizon immediately to the west known as the West Zone.

New results for mineralization in the East Zone include Hole 10GSE125 which returned 7.55 g/t Au over 56.0 metres starting at a down hole depth of 63.0 metres. The hole was collared 50 metres south of the most successful hole of the season, hole 10GSE98 reported in mid-August which returned 10.52 g/t Au over 65.55 metres.

In addition, hole 10GSE112 collared 200 metres south of hole 10GSE125 returned 10.29 g/t Au over 35.5 metres, including 14.03 g/t Au over 13.5 metres. Holes 10GSE112 and 10GSE125 are geologically comparable to hole 10GSE98 and initial interpretations are that these holes appear to have cut the folded portion of the anti-form feature.

Assay results from the East Zone indicate that it is the stronger of the two returning wider zones of more moderate grade mineralization than the West Zone. Assays returned from hole 10GSE81 drilled approximately 200 metres south of the discovery holes, effectively have increased the width of the mineralized zone by 5.5 metres. Hole 10GSE81 returned 4.99 g/t Au over 49.53 metres including 7.11 g/t Au over 14.0 metres. The West zone intersected in hole 10GSE81, although narrower in width, is well mineralized and displays good continuity and returned 25.05 g/t Au over 10 metres.

True widths are estimated to be at least 70% of the drill widths. Complete assay results will be required to confirm this interpretation.

The Umwelt area appears similar to that of the overlying property scale geology which is underlain by folded Beechey Lake turbiditic meta-sediments with oxide and silicate facies banded iron formations that are cut by felsic and gabbroic dikes.

Mineralization identified to date has been interpreted as hosted within a turbiditic sedimentary sequence of locally sulphidized silicate and oxide facies iron formations interbedded with varying amounts of lesser mineralized greywacke, siltstone and mudstone. Gold mineralization has been noted as occurring within quartz +/- carbonate veining and sulphidized iron formation lithologies most often associated with arsenopyrite +/- pyrite +/- pyrrhotite. Evaluation of geology and mineralization within the Umwelt Lake area is ongoing.

Recently received Drilling highlights include:

Umwelt Drilling Results
      Depth From To Length Au    
Hole ID Easting Northing (m) (m) (m) (m)* (g/t)   Comment
10GSE81 429946 7270913 302 154.47 204.00 49.53 4.99   East Zone
      Including 170.00 180.00 10.0 7.74    
      And 185.00 199.00 14.0 7.11    
        219.00 229.00 10.0 25.05   West Zone 
      Including 219.00 220.00 1.0 227.8    
10GSE83 429946 7270913 332 169.00 183.00 14.0 4.06   East Zone
10GSE112 430005 7270897 326 190.50 226.00 35.5 10.29   East Zone
      Including 190.50 204.00 13.50 14.03    
      And 265.00 271.00 6.0 5.36   West Zone
10GSE125 429775 7270965 233 63.00 119.00 56.0 7.55   East Zone
      Including 73.00 87.00 14.0 11.29    
      Including 108.00 119.00 11.0 14.96    
        192.00 196.00 4.0 12.86   West Zone

* Drill widths reported. True widths to be determined

LLAMA LAKE

On May 4, 2010, Sabina announced that a potentially significant new gold discovery had been made at Llama approximately 8 km to the north west of the Goose Lake deposit. Llama Lake was initially targeted due to its similar geophysical and geological signature to that found at the Goose deposit.

A total of 61 holes totalling 16,700m were completed at Llama where the continuity of mineralization has been extended 500 metres along strike to a depth of 250 metres. Approximately six holes remain at the lab with assays pending.

RESOURCE UPDATES

The Company recently retained the services of Scott Wilson / Roscoe Postle Associates (SW / RPA) to generate 43-101 compliant resource updates for the Llama and Umwelt deposits once all assays have been received. A representative of SW / RPA visited the site in early September. These updated resource estimates are expected in early 2011.

The Company is also preparing a new resource estimate for the original Goose deposit to determine its potential for an open pit. If all studies are positive, the Company anticipates moving to a scoping study early in 2011.

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 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.

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.

Quality Assurance

Mr. Doug Cater, P. Geo, and Project Manager, Back River Project 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.

Mineral resources for Goose Lake and George Lake were generated by RSG Global Consulting Pty Ltd (Coffey Mining) in September 2007, and are posted on www.sedar.com.

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 2010 are the same as those used in earlier campaigns by Sabina Gold & Silver Corp. and Dundee Precious Metals (previous operator at Back River) and have been deemed appropriate in the above noted 43-101 compliant resource reports.

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 Silver Corporation.

Tony Walsh, President & CEO

To view the maps accompanying this press release please click on the following link: http://media3.marketwire.com/docs/SBB1001.pdf

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