VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/31/11 -- Sabina Gold & Silver Corp. (TSX: SBB) is very pleased to announce new assay results from holes drilled as part of its 2011 exploration program at the Umwelt deposit on the Goose property at its 100% owned Back River Project in Nunavut, Canada.
The 2011 drilling campaign at Back River has two objectives: 1) to expand and extend the existing deposits at Umwelt and Llama, and 2) to make new discoveries using the Company's exploration tool box focussing on open pit targets on the Goose and George claim blocks, as well as the Wishbone claims that were retained after the Hackett River transaction.
There are currently five drills working on the Umwelt deposit at Goose and this drilling continues to demonstrate the high quality nature of the deposit. Umwelt has now been traced from surface to the south for a 1.15 km strike length and 1.5 km plunge length which is an increase of 600 m of strike length and 800 m of plunge length. Significant new assays have been returned for 4 holes across the southern 750 m strike length of the deposit.
Hole 11GSE099 drilled on section 4700N, located below drilling completed in 2010 and at the base of the pit generated for the initial 2011 Umwelt resource by Roscoe Postle Associates (RPA), returned 14.62 g/t Au over 13.85 m including 27.56 g/t Au over 5.0 m. This new intercept has the potential to effectively increase the size of the proposed pit and will be followed up with additional holes testing for further extensions.
Hole 11GSE074 located on section 4300N and near the centre of the resource expansion holes drilled in 2011 returned 5.47 g/t Au over 29.00 m including a higher grade section that graded 9.33 g/t Au over 12.00 m.
Holes 11GSE089 and 11GSE092 drilled on section 4150N some 200 m north of the southernmost section drilled to-date also intersected significant zones of mineralization. Hole 11GSE089 returned 7.32 g/t Au over 24.40 m including 54.54 g/t Au over 1.55 m. This mineralization is within altered and sulphidized oxide iron formation. In addition, a separate interval associated with quartz veining in a felsic dike within the antiform core greywacke returned 41.46 g/t Au over 1.00 m. Hole 11GSE092 returned a number of mineralized intervals including 7.28 g/t Au over 18.35 m which included 15.86 g/t Au over 2.25 m and 17.42 g/t Au over 3.0 m. Other intervals include 3.61 g/t Au over 10.50 m and 7.90 g/t Au over 1.75 m. A significant number of assays are still outstanding for this hole.
The Mineral Resources for Umwelt, as calculated by RPA in March 2011, consist of Indicated Resources of 4,601,311 tonnes grading 6.08 g/t Au for 899,758 ounces of gold and Inferred Resources of 1,066,868 tonnes grading 6.43 g/t Au for 220,525 ounces of gold. These resources were calculated prior to this year's drill campaign and the strike and plunge length of the deposit has essentially been doubled with this new drilling.
"Our work at Back River continues to be successful. In our 2011 campaign, we have extended and expanded our Umwelt deposit and we have made a number of new discoveries, at Goose, George and on the Wishbone claim block," said Tony Walsh, President & CEO. "Recent drilling at Umwelt continues to demonstrate the remarkable continuity and high grade nature of the deposit. We are targeting to complete sufficient drilling on these new extensions of Umwelt to bring as much of the mineralization to resource as possible."
There are currently nine drills operating at Back River and Wishbone. Seven drills are operating on the Goose property, where two drills are shifting from resource expansion to focussing on the numerous untested targets within the 5 km corridor containing the Goose, Llama and Umwelt deposits. Two rigs are operating on the Wishbone property. Many assays from both projects are still pending.
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.
Sabina's primary properties consist of the Back River Gold Project as well as the Wishbone Claims, a vastly prospective grass roots project and the Hackett River poly metallic project all in Nunavut. The Company has announced a proposed sale of Hackett River and certain claims in the Wishbone greenstone belt to Xstrata Zinc Canada Division (Xstrata). The process to close the transaction with Xstrata is well underway and is expected to close in September.
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 for the Back River Project and has approved its dissemination.
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, 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 1: Recent Umwelt Assay results.
----------------------------------------------------------------------------
Hole Id Sec- Easting Northing Depth From To Length Au Comment/
tion (m) (m) (m) (g/t) Mineral
Zone
----------------------------------------------------------------------------
11GSE074 4300 430438 7270670 545 314.10 314.70 0.60 1.87 Eastern
BIF
----------------------------------------------------------------------------
443.80 444.30 0.50 11.73 Main Zone
East
----------------------------------------------------------------------------
450.10 451.00 1.00 2.07 Main Zone
East
----------------------------------------------------------------------------
487.00 516.00 29.00 5.47 Main Zone
East
----------------------------------------------------------------------------
including 504.00 516.00 12.00 9.33 Main Zone
East
----------------------------------------------------------------------------
11GSE089 4150 430626 7270632 716 618.70 643.10 24.40 7.32 Main Zone
East
----------------------------------------------------------------------------
including 638.85 640.40 1.55 54.54 Main Zone
East
----------------------------------------------------------------------------
653.75 654.80 1.00 41.46 Greywacke
Core
----------------------------------------------------------------------------
11GSE092 4150 430569 7270584 648 514.50 525.00 10.50 3.61 Main Zone
East
----------------------------------------------------------------------------
547.75 549.50 1.75 7.90 Main Zone
East
----------------------------------------------------------------------------
589.85 608.20 18.35 7.28 Main Zone
East
----------------------------------------------------------------------------
including 591.75 594.00 2.25 15.86 Main Zone
East
----------------------------------------------------------------------------
including 602.00 605.00 3.00 17.42 Main Zone
East
----------------------------------------------------------------------------
11GSE099 4700 430112 7270915 342.2 286.00 299.90 13.85 14.62 Main Zone
East
----------------------------------------------------------------------------
including 289.00 294.00 5.00 27.56 Main Zone
East
----------------------------------------------------------------------------
Assays
Pending
----------------------------------------------------------------------------
To view accompanying Figures 1 to 5, visit the following link: http://media3.marketwire.com/docs/SBBFigure1to5.pdf
Contacts:
Sabina Gold & Silver Corp.
Peter Manojlovic
Vice President Exploration
1 888 648-4218
pmanojlovic@sabinagoldsilver.com
www.sabinagoldsilver.com
