Sabina Gold & Silver Corp.
TSX : SBB

Sabina Gold & Silver Corp.

June 28, 2011 09:58 ET

Sabina Gold & Silver Reports Umwelt Mineralization Now Extended Over a Strike Length of 1.2 km

Encouraging Targets Identified at George Claim Block-Back River Project, Nunavut

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 28, 2011) - Sabina Gold & Silver Corp. (TSX:SBB) –

  • Hole 11GSE037 at Umwelt returns 8.71 g/t Au over 25.2 m incl. 18.98 g/t Au over 5.5 m

  • Hole 11GSE042 at Umwelt returns 10.54 g/t Au over 10.3 m incl. 16.70 g/t Au over 3.4 m

Sabina Gold & Silver Corp. is pleased to announce additional assay results from holes drilled as part of the 2011 exploration program on its Umwelt and Llama deposits at the Goose property and the first results from exploration drilling on the George property at its 100% owned Back River Project in Nunavut, Canada.

The 2011 drilling campaign at Back River started on the Goose claim block in March. The focus of work is to extend and expand the new deposits at Umwelt and Llama and to identify new deposits. There are currently eight drills operating at Back River. Five rigs are in the Goose area, where two are shifting focus from resource expansion to focus on the numerous untested discovery targets within the 5 km corridor containing the Goose, Llama and Umwelt deposits. One rig continues at George and two rigs are soon to be operating on the Wishbone properties testing gold targets on those claims retained by Sabina after the Hackett River transaction.

Results continue to demonstrate that Umwelt is a strong, well mineralized system with good continuity and grade. Based on last year's drilling, the Company reported indicated resources at Umwelt of 4.6 m tonnes grading 6 g/t Au for a total of 900,000 oz and an additional inferred resource of 980K tonnes grading 6.4 g/t Au for a total of 221,000 oz over a strike length of 550 metres.

In 2011 one drill is completing 100 m step out holes tracing Umwelt to the south, with two drills following up behind with infill holes. Most significantly, Hole 11GSE042, the furthest hole to the south in which assays have been returned, intersected 10.54 g/t Au over 10.3 m including 16.70 g/t Au over 3.4 m. This hole is 550 m south of the drilling completed in 2010 and extends the overall strike length of the deposit to over 1.2 km. It is at a vertical depth of 550 m. The deposit continues to remain open along strike and to depth and plunges at a consistent 25 degrees. Other highlights include Hole 11GSE037 which returned 8.71 g/t Au over 25.2 m including 18.98 g/t Au over 5.5 m, located approximately 300 m to the south of the drilling that was completed in 2010. This intersection is at a vertical depth of 420 m.

"We continue to extend and add to the Umwelt deposit at the Goose property," said Tony Walsh, President & CEO. "The system remains open and we continue to see the structure, mineralization and visible gold as we keep drilling the deposit at depth to the south. There remains excellent potential for Umwelt to continue to grow and add ounces. Also, our Exploration Tool Box is proving successful on other areas on the property. At the George claim block, the application of the tool box has yielded very encouraging prospects for new large scale open pitable discoveries. Additionally, the sale of the Hackett River Project to Xstrata Canada Zinc has also enabled us to focus entirely on looking for new gold discoveries on our retained claims on the Wishbone greenstone belt. A drill and crew have been mobilized and work has begun on the south east portion of the belt adjacent to Back River."

To date, at Back River a total of 82 holes and 28,700 metres of core have been completed, or are in progress, with many assays still pending. A total of five rigs are currently drilling on the Goose claim block generating approximately 325 m of core per day.

The deposits and target areas at the Goose claim block are within a 5 km corridor that have been identified using an exploration system developed by Sabina's geological team. This new Exploration Tool Box is based on a set of assumptions that specifically target large buried alteration and mineralized features in folded iron formation units that have the potential to be extracted by open pit methods.

Application of the Exploration Tool Box is also in progress at the George claim block. George contains a current indicated resource of 1.84m tonnes grading 10.9 g/t Au for a total of 590,000 oz and an additional inferred resource of 2.6 m tonnes grading 10.5 g/t Au for a total of 866,000 oz of. The current deposits at George are mainly amenable to being mined by underground methods; however, with the development and application of the new tool box, numerous opportunities to find additional large shallow open pit deposits in the area have been identified.

Work has focused on one relatively underexplored area to-date and this work has resulted in a number of encouraging new discoveries. For example, at the Trigger target, silicified and sulphidized breccia zones in sediments associated with iron formations have returned a number of strong intercepts including 9.12 g/t Au over 6.00 m in hole 11GRL001. Most assays from George are still pending.

UMWELT

To date a total of 22 holes totalling 12,500 m have been drilled or are in progress on the Umwelt zone at the Goose property.

Drilling at Umwelt has effectively extended and expanded the mineralized zone both along strike and down plunge. At this time, the Umwelt zone mineralized trend has been traced over a strike length of 1.2 km and down to a vertical depth of 550 m below surface. The zone remains open both along strike and to depth.

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. Drilling at Umwelt has identified an anti-form structure with a fold hinge that plunges to the south at 25 degrees. Thick zones of gold mineralization are associated with the fold hinge in what is now known as the Main Zone. Mineralization also occurs along a separate iron formation horizon immediately to the west known as the West Zone. The relationship between the Main and West zones is uncertain but the West Zone may be a refolded limb of the Main zone.

Table 1: Umwelt recent assay results
Hole IdAreaSectionDepthFrom (m)To (m)Length (m)Au (g/t)Comment/
Mineral
Zone
11GSE026Umwelt4350554327.0328.01.009.89Undetermined
412.5424.512.009.09Main Zone East
including413.5416.53.0022.07Main Zone East
481.0482.01.001.61Main Zone West
11GSE031Umwelt4500458144.0145.01.002.93East BIF
252.9253.91.001.68Undetermined
260.0261.00.955.40Undetermined
316.3317.31.001.46Main Zone East
336.0337.31.301.25Main Zone East
350.0367.017.004.78Main Zone East
including362.0364.02.0029.26Main Zone East
384.3389.55.203.21Main Zone West
403.5404.51.003.69Main Zone West
11GSE037Umwelt4350683298.7299.20.5011.09Eastern BIF
450.3452.62.301.30Main Zone East
465.0469.04.001.45Main Zone East
472.0497.225.208.71Main Zone East
including487.5493.05.5018.98Main Zone East
and495.0496.01.0032.61Main Zone East
11GSE040Umwelt4500590399.0432.033.003.43Main Zone East
including399.0402.03.001.91Main Zone East
including416.0426.210.168.18Main Zone East
and423.0425.02.0025.52Main Zone East
11GSE042Umwelt4050719636.5646.810.3010.54Main Zone East
637.5640.93.4016.70Main Zone East
11GSE043Umwelt4350662428.0428.80.755.66Main Zone East
433.8436.42.554.56Main Zone East
457.1469.712.653.38Main Zone East
457.1458.00.9510.56Main Zone East
467.0468.81.806.87Main Zone East
491.7492.60.9517.87Main Zone West
True widths are estimated to be 70% of the drill widths.

GEORGE CLAIM BLOCK

To date, a total of 29 holes comprising 5,672 m have been completed or are in progress at George.

Sabina continues to experience a high level of exploration success, demonstrated by some encouraging results at the Company's Trigger discovery located on the George Property. The first hole of the diamond drilling program confirms a significant gold endowment at this target and validates the company's exploration strategy. Numerous gold intercepts were returned within hole 11GRL001 (Trigger) including; 9.12g/t Au over 6.00 m, 1.87g/t Au over 8.00 m, 4.37g/t Au over 1.00 m, 2.45g/t Au over 1.00 m, 2.11 g/t Au over 1.00 m and 7.99 g/t over 0.50 m within brecciated, silicified and sulphidized sediments associated with oxide iron formation.

Target areas for priority testing at George in 2011 include the Bullwinkle, Rifle, Trigger, Lookout Hill, Shadow Pond and NZ locales, all of which are identified as having geological, geochemical, and geophysical attributes analogous to the deposits at the Goose claim block. Diamond drilling of this area is 100% focused on looking for new shallow open pit discoveries. Assays are still outstanding for much of this drilling.

One drill continues to test the targets at George.

LLAMA DEPOSIT

Initial drilling at Llama focussed on minor gaps in the resource model and attempting to extend and expand the mineralized zone both along strike and down plunge.

To date, a total of 27 holes totalling approximately 8,700 m have been drilled or are in progress on the Llama deposit. Many assay results are still pending. The deposit has been challenging to expand, as it has a complicated structure marked by faulting and displacement of the host iron formation to the south.

Noteworthy results from the drill program include Hole 11GSE035, which returned 8.79 g/t Au over 5.0 m on the East Limb.

Table 2: Llama deposit – 2011 assay results
Hole IdAreaSectionFrom (m)To (m)Length (m)Au (g/t)Comment/
Mineral
Zone
11GSE035Llama4950266.00271.005.008.79Main East

GOOSE DEPOSIT

A total of 3 holes totalling 590 metres were drilled on the Goose deposit. The holes were drilled to provide information for the ongoing geological / resource modelling interpretation in support of an open pit resource estimate. No additional holes have been collared on the Goose deposit.

The open pit resource estimate is currently underway.

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 Back River Gold Project as well as the Wishbone Claims, a vastly prospective grass roots project.

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 and George were generated by RSG Global Consulting Pty Ltd (Coffey Mining) in September 2007. Mineral resources for Llama and Umwelt deposits were generated by Roscoe Postle Associates (RPA) in March 2011. These are all 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 2011 are the same as those used in earlier campaigns by Sabina Gold & Silver Corp. 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, 2010.

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
930 West 1st Street, Suite 202
North Vancouver, BC V7P 3N4
Tel 604 998-4175 Fax 604 998-1051
http://www.sabinagoldsilver.com
Table 3: 2011 Back River project – Goose Lake property Drill results as of June 24, 2011
Hole IdAreaSectionDepthFrom (m)To (m)Length (m)Au (g/t)Comment/
Mineral
Zone
11GSE026Umwelt4350554327.0328.01.009.89Undetermined
412.5424.512.009.09Main Zone East
including413.5416.53.0022.07Main Zone East
481.0482.01.001.61Main Zone West
11GSE027Llama4650488314.0344.030.000.70Main Zone West
including315.9318.02.133.72Main Zone West
and333.0334.01.002.38Main Zone West
and343.0344.01.002.26Main Zone West
464.0468.04.003.35Main Zone West
11GSE028Umwelt4250590212.9213.60.701.47East BIF
319.5321.01.503.12Undetermined
401.7402.71.003.04Main Zone East
468.5470.31.805.83Main Zone East
490.5491.51.001.34Main Zone East
499.2500.21.002.40Main Zone East
545.3546.31.001.11Main Zone West
11GSE029Llama5500194110.9112.11.252.43Undetermined
11GSE030Llama4750512340.0340.50.5010.05Main Zone East
11GSE031Umwelt4500458144.0145.01.002.93East BIF
252.9253.91.001.68Undetermined
260.0261.00.955.40Undetermined
316.3317.31.001.46Main Zone East
336.0337.31.301.25Main Zone East
350.0367.017.004.78Main Zone East
including362.0364.02.0029.26Main Zone East
384.3389.55.203.21Main Zone West
403.5404.51.003.69Main Zone West
11GSE032Llama5350248.6NSV
11GSE033Umwelt4150719244.4245.00.651.41East BIF
530.1530.90.809.88Main Zone East
541.0542.01.001.20Main Zone East
552.7564.011.301.17Main Zone East
11GSE034Llama5000362149.5150.51.001.56Midway BIF
239.2240.21.001.34Main Zone East
11GSE035Llama4950609.5266.0271.05.008.79Main Zone East
11GSE036Llama5200188NSV
11GSE037Umwelt4350683298.7299.20.5011.09Eastern BIF
450.3452.62.301.30Main Zone East
465.0469.04.001.45Main Zone East
472.0497.225.208.71Main Zone East
including487.5493.05.5018.98Main Zone East
and495.0496.01.0032.61Main Zone East
11GSE038Llama4750323NSV
11GSE039Llama4650341NSV
11GSE040Umwelt4500590399.0432.033.003.43Main Zone East
including399.0402.03.001.91Main Zone East
including416.0426.210.168.18Main Zone East
and423.0425.02.0025.52Main Zone East
11GSE041BLlama4900209.5NSV
11GSE042Umwelt4050719636.5646.810.3010.54Main Zone East
including637.5640.93.4016.70Main Zone East
11GSE043Umwelt4350662319.6320.10.501.18Eastern BIF
323.2323.80.551.35Eastern BIF
428.0428.80.755.66Main Zone East
433.8436.42.554.56Main Zone East
437.7438.81.101.90Main Zone East
457.1469.712.653.38Main Zone East
including457.1458.00.9510.56Main Zone East
including467.0468.81.806.87Main Zone East
491.7492.60.9517.87Main Zone West

To view the Figures associated with this press release, please click on the following link: http://media3.marketwire.com/docs/s627m.pdf.

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