Sabina Gold & Silver Corp.
TSX : SBB

Sabina Gold & Silver Corp.

December 06, 2010 16:20 ET

Sabina Gold & Silver Reports Final 2010 Umwelt Results From Back River Project, Nunavut

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 6, 2010) - Sabina Gold & Silver Corp. (TSX:SBB) -

Hole 10GSE136 returns 8.74 g/t Au over 79.9m including 45.20 g/t Au over 6.0m and 25.27 g/t Au over 4.9m and

Hole 10GSE140B returns 18.95 g/t Au over 4.35m and 26.43 g/t Au over 2.9m

Sabina Gold & Silver Corp. is pleased to announce further significant assay results from drilling completed in 2010 at its Umwelt discovery at the Goose property on its 100% owned Back River Project in Nunavut, Canada.

Sabina's work at Back River has focussed on the Goose area which is just one of the seven claim blocks on the Back River property. The target areas at Goose are within an 8 km corridor and have 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.

The 2010 drilling campaign at Goose started in March and ended in mid-September. In the spring, two significant discoveries were announced at Llama and Umwelt and drilling, originally budgeted at 20,000 metres for $10 million was quickly ramped up. By the end of the campaign 40,498 metres had been completed at a cost of $16 million at the Goose property. These are the final drill results for 2010 and complete a successful and exciting campaign on the project.

"The Goose deposit discovered in 1992 was the last discovery made on the Back River property prior to our acquisition of the claim block in June 2009. In six months of field work, our geology team has managed to make three new discoveries, two of which we believe are significant," said Tony Walsh, President & CEO. "The development of our exploration tool box has allowed us to make great strides in unlocking the geological setting of the Goose property. At Goose, at least 16 other targets have been identified. In addition, each of the other Back River claim blocks, as well as approximately 40% of our Wishbone greenstone belt also host similar iron formations units. The potential for new discoveries in the area is significant. Assessment of these areas using our tool box will begin in 2011."

At Umwelt, drilling results continue to grow the deposit and demonstrate the continuity of the mineralization found at Umwelt. The mineralized zone has now been traced for over 650 metres, remains open along strike and down plunge with intercepts as deep as 250 metres. In an effort to advance the deposit, the middle 500 metres of Umwelt have been sufficiently drilled to enable a partial resource calculation on the zone. Significant new results are from the East Zone which demonstrate the continuity of the zone and provide additional support for a 43-101 resource estimate.

The Company is currently planning its 2011 exploration campaign and expects to spend approximately $40 - $45 million at its Nunavut properties with a major focus on Back River. The 2011 plan and budget are subject to final board review and approval.

UMWELT

The Umwelt discovery was announced on June 21, 2010 and is located approximately 1.3 km south of the new Llama zone discovered in May 2010 and approximately 3 km to the north of the Goose deposit. The discovery was targeted based on its similar geological and geophysical signature to both these deposits. A total of 15,950 metres in 58 holes have been drilled at Umwelt and new assay results confirm the continuity of mineralization at Umwelt over a 650 metre strike length to vertical depths as deep as 250 metres. The strong continuity and shallowness of this zone could provide the opportunity for open pit extraction.

Hole 10GSE136 located 150 metres south of the discovery fence of holes (10GSE66, 69, 98) returned 8.74 g/t Au over 79.9 metres including 45.20 g/t Au over 6.0 metres and 25.27 g/t Au / 4.9 metres at a vertical depth of 110 metres. Similar results were encountered in hole 10GSE140B (18.95 g/t Au over 4.35 metres and 26.43 g/t Au over 2.9 metres), located 70 metres east of hole 10GSE136. Both holes targeted the East Zone in the central portion of the deposit.

Further results returned include hole 10GSE141 located 250 metres north of the discovery fence of holes which returned 2.51 g/t Au over 4.50 metres in the East Zone. This hole is the northernmost intercept of mineralization at Umwelt. Holes 10GSE142 (2.57 g/t Au over 3.00 metres) and 10GSE146 (1.25 g/t Au over 8.65 metres) located 250 and 400 metres south of the discovery holes respectively also intersected mineralization in the East Zone.

The mineralized zones are hosted within a turbiditic sedimentary sequence containing silicate and oxide facies iron formations. Gold dominantly occurs with quartz +/- carbonate veining and arsenopyrite +/- pyrite +/- pyrrhotite in the iron formation. Visible gold has been noted in many but not all holes drilled to-date. 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. The relationship between the East and West zones is uncertain but the West Zone may be a refolded limb of the East zone and will be targeted early in 2011.

Recently received Drilling highlights include:

Hole ID Easting Northing Depth (m) From (m) To (m) Length (m) Au (g/t) Comment
10GSE136 429889 7270930 239.00 115.10 195.00 79.90 8.74 East Zone
      including 115.10 120.00 4.90 25.27 East Zone
      including 142.00 150.00 8.00 13.40 East Zone
      and 189.00 195.00 6.00 45.20 East Zone
10GSE140B 429946 7270977 362.00 181.65 186.00 4.35 18.95 East Zone
        294.10 297.00 2.90 26.43 East Zone
10GSE141 429644 7271249 284.00 235.10 239.60 4.50 2.51 East Zone
10GSE142 430060.7 7270944 395.00 225.50 228.50 3.00 2.57 East Zone
10GSE146 430149 7270887 449.00 295.55 304.20 8.65 1.25 East Zone
 
* Drill widths reported. True widths to be determined.

Continued evaluation of geology and mineralization within the Umwelt Lake area is ongoing.

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, change.

This news release has been authorized by the undersigned on behalf of Sabina Gold & Silver Corp.

Tony Walsh, President & CEO

Table 2: Additional Assay Results – 2010 Umwelt Lake Drill Program

Hole ID Easting Northing Depth (m) From (m) To (m) Length (m) Au (g/t) Comment
10GSE66 429819 7271062 338.00 222.00 224.00 2.00 1.33  
10GSE69 429775 7271032 290.00 98.00 99.25 1.25 1.15  
        165.65 167.40 1.75 1.46  
        171.00 174.00 3.00 1.36  
        177.80 178.50 0.70 2.98  
        190.70 192.00 1.30 1.95  
        233.50 234.15 0.65 1.25  
10GSE71 429734.4 7271126 263.00 254.00 255.00 1.00 1.32  
10GSE73 429840.4 7270950 365.00 74.90 76.40 1.50 1.34  
        166.20 173.00 6.80 1.24  
        189.60 190.40 0.80 1.05  
10GSE76 429888.6 7270984 356.00 242.95 243.50 0.55 2.13  
        246.00 248.70 2.70 1.15  
        254.00 255.00 1.00 1.05  
10GSE78 429899.6 7270874 263.00 91.00 92.00 1.00 1.03  
        93.00 94.00 1.00 1.34  
        144.70 145.25 0.55 1.05  
10GSE81 429945.8 7270913 302.00 108.50 109.05 0.55 2.34  
        214.00 215.15 1.15 1.27  
10GSE86 429982.6 7270814 266.50 113.60 114.80 1.20 2.26  
10GSE90 430000 7270697 272.00       NSV  
10GSE94 429774 7271095 323.00 134.00 135.10 1.10 3.07  
10GSE95 429437.3 7271344 473.00       NSV  
10GSE98 429728 7270992 251.00 11.60 12.90 1.30 1.17  
        26.45 27.45 1.00 1.32  
10GSE100 429659.8 7271197 257.00 209.00 210.00 1.00 1.42  
10GSE101 429678.5 7271081 311.00 47.25 47.75 0.50 1.01  
10GSE112 430005 7270897 326.00 248.00 251.00 3.00 1.76  
10GSE125 429775.1 7270965 233.00 187.00 188.00 1.00 1.06  
        189.00 191.00 2.00 1.78  
10GSE128 429363 7271474 236.9 217.00 218.00 1.00 2.85  
10GSE134 429624 7271099 308 120.30 120.80 0.50 1.13  
        146.70 147.80 1.10 1.54  
10GSE136 429888.9 7270930 239 106.80 107.70 0.90 1.49  
        115.10 195.00 79.90 8.74  
      including 115.10 120.00 4.90 25.27  
      and 142.00 150.00 8.00 13.40  
      and 172.45 175.00 2.55 23.41  
      and 189.00 195.00 6.00 45.20  
        200.00 201.40 1.40 1.32  
10GSE139 429700.1 7271164 311 234.50 239.00 4.50 1.69  
10GSE140B 429946 7270977 362 147.60 149.95 2.35 1.22  
        165.10 166.00 0.90 1.08  
        181.65 186.00 4.35 18.95  
        294.10 297.00 2.90 26.43  
10GSE141 429644.2 7271249 284 235.10 239.60 4.50 2.51  
        241.25 242.00 0.75 16.70  
        249.10 250.50 1.40 4.99  
10GSE142 430060.7 7270944 395 113.00 114.00 1.00 1.34  
        219.25 220.20 0.95 2.16  
        225.50 228.50 3.00 2.57  
        253.00 257.05 4.05 1.93  
10GSE143 429552.2 7271172 146       NSV  
10GSE144A 429696 7270965 176 132.00 135.50 3.50 2.37  
10GSE145 429955.6 7270856 269 136.40 137.40 1.00 1.75  
        167.00 168.50 1.40 2.30  
10GSE146 430149 7270887 449 170.70 171.00 0.30 1.23  
        295.55 304.20 8.65 1.25  
10GSE147 429714.5 7271243 359 305.00 306.00 1.00 1.17  
10GSE148 429894.5 7270805 164 72.00 73.50 1.50 1.95  
10GSE149 429775.9 7271162 356 305.50 307.00 1.50 1.15  
        308.80 309.30 0.50 1.70  
        314.50 315.30 0.80 3.00  
10GSE150 430009.5 7270966 254       NSV  
10GSE151 429855.2 7270837 191 32.00 34.00 2.00 2.85  
        72.00 73.00 1.00 1.17  
        75.00 76.00 1.00 1.18  
        94.00 96.00 2.00 3.26  
        111.00 112.00 1.00 7.00  

To view the Figures accompanying this press release, please click on the following link: http://media3.marketwire.com/docs/sbb1206.pdf

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