Sabina Gold & Silver Corp.
TSX : SBB

Sabina Gold & Silver Corp.

October 14, 2010 13:11 ET

Sabina Gold & Silver Continues to Extend Umwelt Discovery Along Strike at Back River Gold Project, Nunavut

Mineralization Identified Over a Length of 500 Metres With Intercepts as Deep as 250 Metres

Hole 10GSE123 Returns 6.13 g/t Au Over 60.2 m Including 16.86 g/t Au Over 8.2 m

Hole 10GSE98 Extended by 12.5 Meters Returning 9.39 g/t Au Over 78.05 m

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 14, 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 gold project in Nunavut, Canada.

"The mineralized zone at Umwelt continues to grow as positive drill results keep coming in," said Tony Walsh, President & CEO, "drilling to date has extended the mineralization at Umwelt over a length of approximately 500 metres, and we have still have 31 holes at the lab awaiting assays. Additional assays have also extended the mineralized intervals on holes previously announced and the strong continuity and significant size of the zone continues to be demonstrated by good grades over significant widths. Technical interpretation of this new discovery is underway with a view to completing a resource calculation on a portion of the zone towards the beginning of 2011." he said "We are very encouraged by what we have seen to date at Umwelt and are looking forward to a very aggressive drilling campaign in 2011 to advance the Goose claim block at Back River."

Sabina's work to date on the Back River project has focussed on the Goose Lake claim block, one of seven claim blocks on the property. The target areas at Goose are within an 8 km corridor and 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 that have been altered by high temperature geological events.

Such iron formation targets will be assessed on the other Back River claim blocks, including the George, Del, Boot Lake and Boulder Pond claims as well as on the adjacent Wishbone Greenstone Belt, also part of Sabina's land package. These targets represent years of prospective gold exploration on claims in close proximity to each other. Sabina continues to refine our exploration tool box to develop a disciplined strategic approach toward identifying and evaluating these numerous new targets.

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 of drilling were completed on Umwelt with approximately 31 holes still at the lab with assays pending.

The continuity of mineralization in the Umwelt area has now been established over a 500 metre length with intercepts as deep as 250 metres. 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 the hole 10GSE123 collared 50 metres north of hole 10GSE98 returning 6.13 g/t Au over 60.20 metres, including 16.86 g/t Au over 8.20 metres. Hole 10GSE101 collared 100 metres north of Hole 10GSE98 returned 8.12g/t Au over 11.00 metres including 14.05gt Au over 6.00 metres. Hole 10GSE100 drilled a further 100 metres north of 10GSE101 intersected two narrow zones with visible gold 5.00 metres apart returning 25.51 g/t Au over 1.0 metres and 53.59 g/t Au over 2.05 metres.

Additional assays have extended hole 10GSE98, the most successful hole of the season reported on August 11, 2010. The interval has been extended by approximately 12.50 metres returning 9.39 g/t Au over 78.05 metres.

Additional assays have also extended Hole 10GSE125 (drilled 50 metres south of Hole 10GSE98 and previously reported on October 4, 2010) by 8 metres returning 6.99 g/t Au over 64.0 metres.

All of these assay results are from the East Zone which continues to indicate that it is the stronger of the two zones at Umwelt.

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:

Hole ID Easting Northing DDH Depth (m) From (m) To (m) Length (m) * Grade Comment
10GSE98 429728 7270992 251 28.45 106.50** 78.05 9.39 East Zone
      including 97.50 106.50 9.00 4.58  
        122.00 123.50 1.50 3.74 East Zone
        162.50 169.70 7.20 1.53 West Zone
10GSE100 429660 7271197 257 34.00 35.00 1.00 25.51 East Zone
        39.95 42.00 2.05 53.59 East Zone
        51.85 54.40 2.55 11.04 East Zone
10GSE101 429679 7271081 311 23.15 34.15 11.00 8.12 East Zone
      including 28.15 34.15 6.00 14.05  
        165.35 169.35 4.00 1.04 West Zone
        188.00 191.00 3.00 1.21 West Zone
        192.50 194.00 1.50 5.52 West Zone
10GSE123 429678 7271014 209 5.80 66.00 60.20 6.13 East Zone
      including 5.80 14.00 8.20 16.86 East Zone
      and 32.00 33.00 1.00 78.16 East Zone
      and 38.00 44.00 6.00 9.47 East Zone
        128.00 128.81 0.81 1.51 West Zone
        147.00 148.00 1.00 1.85 West Zone
10GSE125 429775 7270965 233 10.00 11.00 1.00 2.30 East Zone
        21.00 25.00 4.00 2.46 East Zone
        46.00 53.00 7.00 1.28 East Zone
        63.00 127.00** 64.00 6.99 East Zone
      including 120.00 127.00** 7.00 3.44  
        131.00 132.00 1.00 1.59 East Zone
* Drill widths reported. True widths to be determined
** Intervals partially reported in press releases dated August 11, 2010 and October 4, 2010 respectively. Additional assays have extended the intervals.
A full assay table with further results is attached to this news release.

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 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 beginning a scoping study on Back River in early in 2011 following completion of the SW / RPA updated resource estimates.

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. 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.

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

Hole ID Easting Northing DDH Depth (m) From (m) To (m) Length (m) * Grade Comment
10GSE78 429900 7270874 263 134.00 137.00 3.00 3.25 East Zone
        186.90 189.15 2.25 2.23 East Zone
10GSE94 429774 7271095 323 90.35 104.20 13.85 1.32 East Zone
        140.95 142.00 1.05 4.27 East Zone
        167.25 169.50 2.25 2.12 East zone
        257.00 262.00 5.00 4.10 West Zone
        292.00 293.50 1.50 3.36 West Zone
10GSE98 429728 7270992 251 28.45 106.50** 78.05 9.39 East Zone
      including 97.50 106.50 9.00 4.58  
        122.00 123.50 1.50 3.74 East Zone
        162.50 169.70 7.20 1.53 West Zone
10GSE100 429660 7271197 257 34.00 35.00 1.00 25.51 East Zone
        39.95 42.00 2.05 53.59 East Zone
        51.85 54.40 2.55 11.04 East Zone
10GSE101 429679 7271081 311 23.15 34.15 11.00 8.12 East Zone
      including 28.15 34.15 6.00 14.05  
        121.00 122.00 1.00 7.85 Middle Zone
        165.35 169.35 4.00 1.04 West Zone
        188.00 191.00 3.00 1.21 West Zone
        192.50 194.00 1.50 5.52 West Zone
10GSE123 429678 7271014 209 5.80 66.00 60.20 6.13 East Zone
      including 5.80 14.00 8.20 16.86 East Zone
      and 32.00 33.00 1.00 78.16 East Zone
      and 38.00 44.00 6.00 9.47 East Zone
        128.00 128.81 0.81 1.51 West Zone
        147.00 148.00 1.00 1.85 West Zone
10GSE125 429775 7270965 233 10.00 11.00 1.00 2.30 East Zone
        21.00 25.00 4.00 2.46 East Zone
        46.00 53.00 7.00 1.28 East Zone
        63.00 127.00** 64.00 6.99 East Zone
      including 120.00 127.00 7.00 3.44  
        131.00 132.00 1.00 1.59 East Zone
* Drill widths reported. True widths to be determined
** Interval reported in press releases dated August 11, 2010 and October 4, 2010 respectively. Additional assays have extended the intervals.

To view the maps accompanying this press release please click on the following link: http://media3.marketwire.com/docs/SBBMaps14.pdf

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