SOURCE: Sabina Silver Corporation

September 04, 2007 11:46 ET

Sabina Silver Corporation - Hackett River 2007 Drilling Update

Highlights Include 57m of 140g/T Silver, 16.7% Zinc in Main Zone West "Starter Pit" Area

THUNDER BAY, ON--(Marketwire - September 4, 2007) - Sabina Silver Corporation (TSX-V: SBB) (PINKSHEETS: SBBFF) (FRANKFURT: RXC) is pleased to announce an update from the ongoing 2007 drilling campaign at its 100% owned Hackett River Project, Nunavut, Canada. This update represents an aggregate 10,384m in 44 drill holes, or 61% of the total of 17,000m of drilling planned for the Hackett River Project in 2007.

The 2007 drilling campaign includes infill drilling to increase confidence levels of NI43-101 compliant minable mineral resources (Table 1) outlined in the Preliminary Economic Assessment (PEA) prepared by Wardrop Engineering Inc. and reported on 5 March 2007. The Wardrop PEA envisions a mine plan with average annual production of 324.7 million pounds zinc, 12.4 million ounces silver, 20.7 million pounds copper, 37.0 million pounds lead, and 17.2 thousand ounces gold, over a mine life of 13.6 years.

For Table 1. Hackett River Mineable Mineral Resource, click on the link below or paste the link into your browser:

Highlights to date from the current drill program include:

* 57.2m (187.66ft) of 16.78% zinc and 140g/tonne (4.10oz/ton) silver from surface in the Main Zone West area in infill hole SHR-07-41 in the area designated as the "starter pit" by the NI43-101 Preliminary Economic Assessment released 5 March 2007;

* 30.25m (99.25ft) of 10.1% zinc and 317g/tonne (9.25oz/ton) silver in stepout hole SHR-07-37 from a vertical depth of approximately 620m in the Boot Lake Deep deposit area.

The full suite of certified assays from the 2007 drilling results to date at Hackett River is available at:

A variety of targets defined in the March 2007 PEA are being tested in the current drill program including the Main Zone West, Main Zone East, Main Zone Keel and the Boot Lake Deep as well as the Patricia Lake Zone as a regional exploration target.

The "Main Zone Keel" was identified in the March 2007 PEA as a possible low-grade to barren sulphides-rich gap between the Main Zone West deposit and the Main Zone East deposit. The current results confirm the geologic model used by Wardrop in their resource estimate and have provided additional geotechnical information to support future mine planning.

The Boot Lake drilling has confirmed the continuity of mineralization extends to below 600 meters, and that mineralization is still open at depth in the Boot Lake area.

A system of sample standards, blanks and duplicates were inserted as part of the Company's QA/QC analytical procedures for the sample stream processed at accredited laboratories ALS Chemex (Vancouver, BC) and Accurassay Laboratories (Thunder Bay, ON). Mr. Douglas Kim, P.Geo. Project Manager for the Hackett River Project and a Qualified Person under the terms of NI43-101, has reviewed the content of this press release and approved its dissemination.

Sabina's 100% interest in the Hackett River Project is subject to a 2% Net Smelter Royalty (NSR) to Cominco Mining Partnership. Etruscan Resources Inc. retains a 10% Net Profits Interest (NPI) capped at C$2 million.

Sabina Silver Corporation is debt free, with approximately C$55 million working capital in cash and securities as at the end of July 2007. In addition to advancing the Hackett River Project, the company is also drilling at its Del Norte silver-gold project in the Stewart-Eskay Creek Mining District, British Columbia, exploring four promising gold projects in the Red Lake Mining District, Ontario and exploring the silver-zinc Rockstone project in the Thunder Bay Mining District, Ontario.

In related news, Sabina Silver Corporation wishes to confirm that it has no exposure to the "asset backed" commercial paper (ABCP) investment vehicles. Sabina's working capital is fully intact and is 90% held in short term liquid investments guaranteed by Canadian chartered banks, the other 10% is held in securities in Canadian exploration companies


President/CEO and Director

The foregoing securities have not been, nor are there any current plans to register said securities under the United States Securities Act of 1933, as amended, and these securities may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation or sale would be unlawful.

Sabina Silver Corporation does have a Moody's/Mergent Manual ("Blue Sky") exemption allowing distribution without registration in 39 states for secondary trading transactions only. Always consult a Registered Investment Advisor.

This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may," "will," "plan," "expect," "anticipate," "estimate," "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. Sabina Silver Corporation does have an ongoing obligation to disclose material information, as it becomes available.

The TSX Venture Exchange does not accept responsibility for the accuracy or the adequacy of this release.

Contact Information

  • For further information, please contact:
    Albert Brantley
    1004 Alloy Drive
    Thunder Bay, Ontario P7B 6A5

    Phone: 807-766-1799
    Fax: 807-345-0284

    Email: Email Contact

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