Sabina Silver Corporation

Sabina Silver Corporation

October 16, 2008 08:30 ET

Sabina Silver Announces Hackett River Study Update

Opportunities to Enhance Project Economics Continue to be Identified

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 16, 2008) - Sabina Silver Corporation (TSX VENTURE:SBB) announced today an update on work progressing at its 100% owned Hackett River silver-zinc project in Nunavut, Canada.


Hackett River is a major silver-zinc deposit located approximately 75 kilometres from tide water in the Canadian arctic. Not only is it one of the largest undeveloped silver deposits of its type in the world, but it is located in one of the world's most appealing mining jurisdictions. Nunavut Territory, Canada, is a pro-mining jurisdiction subject to a rigorous achievable permitting process. The Territory is eager to create infrastructure and economic sustainability through the responsible development of mineral projects in the region.

Hackett River is currently in the pre-feasibility phase. As previously announced, the on-site pre-feasibility work required at Hackett for this year has been completed. The Company and its consultants are now waiting for the results of this work, along with other studies to be able to compile the data into a pre-feasibility study.

"It is essential, in today's economic environment, that the study is completed in a manner that is conservative but realistic, especially in light of anticipated increases in capital and operating costs," said Tony Walsh, President & CEO "Work continues to identify opportunities for optimizing project economics for the pre-feasibility study as well as to look for opportunities to grow Hackett River. As previously announced a recent Hackett River exploration review indicates excellent potential for the discovery of additional resources."

One of these opportunities is the potential for increased tonnage. The Hackett River Project will need to utilize a road and port. The costs of either building or using these facilities are fixed, however increased tonnage could mitigate these fixed costs and enhance project economics. The Company plans to look for increased tonnage by: completing further exploration at Hackett River; revising mine sequencing and from potential additional through put from proximal projects.

A review of the proposed mining technology is currently underway. For example, management now believes that the Boot Zone, originally an underground target, might be amenable to open pit mining. This would result in a synergistic open pit mining operation as well as deferring the capital requirements for underground development further into the life of the project. This would significantly bolster the economics of the project.

Other work continues on optimizing mill size, concentrate trucking, and metal recoveries.

Management still expects the pre-feasibility study and the updated mineable resource will be completed during the first quarter of 2009.

The Company is committed to the Hackett River project and to the relationships and partnerships it has created in Nunavut to date. Sabina supports the territory's plans for infrastructure, in particular the Bathurst Inlet Port and Road project as Hackett River operations will rely on a port and road. Nunavut remains one of the most prospective mining jurisdictions in the world.

All contemplated production at the Hackett River project is subject to positive feasibility studies, the availability of financing and permitting and regulatory approval.


As previously announced, management believes there are opportunities in this market to mitigate against the effects of Hackett River's long lead time on the Company's share price. As part of the corporate strategy, management continues to evaluate opportunities and proposals for accretive corporate transactions. The current market presents many affordable opportunities which combined with the Company's very strong balance sheet, puts Sabina in a strong position. Management is favouring assets that are non-grass roots precious metals preferably in North America, although consideration will be given to opportunities in other politically stable jurisdictions.

SABINA SILVER CORPORATION is a Canadian public mineral exploration and development company with assets at the Hackett River silver-zinc project in Nunavut, the Del Norte project in the Stewart-Eskay Creek Mining District and several projects in the Red Lake gold camp. The Company is well capitalized with $44 million in cash and marketable securities at June 30, 2008. Management believes the Company has the financial resources to complete its pre-development initiatives at Hackett River.

Forward Looking Statements

Statements relating to exploration, pre-feasibility work and future operations at the Hackett 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, 2007.

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

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