Mr. Tony Walsh reports
SABINA GOLD & SILVER CONTINUES TO EXTEND UMWELT DISCOVERY ALONG STRIKE AT BACK RIVER GOLD PROJECT, NUNAVUT
Sabina Gold & Silver Corp. has released further significant assay results from drilling at its Umwelt discovery at the Goose property on its 100-per-cent-owned Back River gold project in Nunavut, Canada.
"The mineralized zone at Umwelt continues to grow as positive drill results keep coming in," said Tony Walsh, president and chief executive officer. "Drilling to date has extended the mineralization at Umwelt over a length of approximately 500 metres and we have still have 31 holes at the lab awaiting assays. Additional assays have also extended the mineralized intervals on holes previously announced and the strong continuity and significant size of the zone continues to be demonstrated by good grades over significant widths. Technical interpretation of this new discovery is under way with a view to completing a resource calculation on a portion of the zone toward the beginning of 2011," Mr. Walsh said. "We are very encouraged by what we have seen to date at Umwelt and are looking forward to a very aggressive drilling campaign in 2011 to advance the Goose claim block at Back River."
Sabina Gold's work to date on the Back River project has focused on the Goose Lake claim block, one of seven claim blocks on the property. The target areas at Goose are within an eight-kilometre corridor and have all been identified using an exploration tool box developed by Sabina Gold'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.
Such iron formation targets will be assessed on the other Back River claim blocks, including the George, Del, Boot Lake and Boulder Pond claims, as well as on the adjacent Wishbone greenstone belt, also part of Sabina Gold's land package. These targets represent years of prospective gold exploration on claims in close proximity to each other. Sabina Gold continues to refine its exploration tool box to develop a disciplined strategic approach toward identifying and evaluating these numerous new targets.
Umwelt
As announced in Stockwatch on June 21, 2010, the new Umwelt deposit area is situated approximately 1.3 kilometres to the south of the new Llama zone and approximately three kilometres to the north of the Goose deposit, and was targeted based on its similar geological and geophysical signature to both these deposits. A total of 54 holes and 15,448 metres of drilling were completed on Umwelt, with approximately 31 holes still at the lab with assays pending.
The continuity of mineralization in the Umwelt area has now been established over a 500-metre length with intercepts as deep as 250 metres. The strong continuity at shallow depth of this zone could provide opportunities for open-pit extraction.
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.
New results for mineralization in the East zone include the hole 10GSE123, collared 50 metres north of hole 10GSE98, returning 6.13 grams per tonne gold over 60.20 metres, including 16.86 grams per tonne gold over 8.20 metres. Hole 10GSE101, collared 100 metres north of hole 10GSE98, returned 8.12 grams per tonne gold over 11.00 metres, including 14.05 grams per tonne gold over 6.00 metres. Hole 10GSE100, drilled a further 100 metres north of 10GSE101, intersected two narrow zones with visible gold 5.00 metres apart returning 25.51 grams per tonne gold over 1.0 metre and 53.59 grams per tonne gold over 2.05 metres.
Additional assays have extended hole 10GSE98, the most successful hole of the season reported in Stockwatch on Aug. 11, 2010. The interval has been extended by approximately 12.50 metres, returning 9.39 grams per tonne gold over 78.05 metres.
Additional assays have also extended hole 10GSE125 (drilled 50 metres south of hole 10GSE98 and previously reported in Stockwatch on Oct. 4, 2010) by eight metres returning 6.99 grams per tonne gold over 64.0 metres.
All of these assay results are from the East zone which continues to indicate that it is the stronger of the two zones at Umwelt.
True widths are estimated to be at least 70 per cent of the drill widths. Complete assay results will be required to confirm this interpretation.
The Umwelt area appears similar to that of the overlying property-scale geology which is underlain by folded Beechey Lake turbiditic meta-sediments with oxide and silicate facies-banded iron formations that are cut by felsic and gabbroic dikes.
Mineralization identified to date has been interpreted as hosted within a turbiditic sedimentary sequence of locally sulphidized silicate and oxide facies iron formations interbedded with varying amounts of lesser mineralized greywacke, siltstone and mudstone. Gold mineralization has been noted as occurring within quartz plus/minus carbonate veining and sulphidized iron formation lithologies most often associated with arsenopyrite plus/minus pyrite plus/minus pyrrhotite. Evaluation of geology and mineralization within the Umwelt Lake area is continuing.
DRILLING HIGHLIGHTS
Depth From To Length
Hole ID (m) (m) (m) (m)(i) Grade Comment
10GSE98 251 28.45 106.50(ii) 78.05 9.39 East zone
Including 97.50 106.50 9.00 4.58
122.00 123.50 1.50 3.74 East zone
162.50 169.70 7.20 1.53 West zone
10GSE100 257 34.00 35.00 1.00 25.51 East zone
39.95 42.00 2.05 53.59 East zone
51.85 54.40 2.55 11.04 East zone
10GSE101 311 23.15 34.15 11.00 8.12 East zone
Including 28.15 34.15 6.00 14.05
165.35 169.35 4.00 1.04 West zone
188.00 191.00 3.00 1.21 West zone
192.50 194.00 1.50 5.52 West zone
10GSE123 209 5.80 66.00 60.20 6.13 East zone
Including 5.80 14.00 8.20 16.86 East zone
And 32.00 33.00 1.00 78.16 East zone
And 38.00 44.00 6.00 9.47 East zone
128.00 128.81 0.81 1.51 West zone
147.00 148.00 1.00 1.85 West zone
10GSE125 233 10.00 11.00 1.00 2.30 East zone
21.00 25.00 4.00 2.46 East zone
46.00 53.00 7.00 1.28 East zone
63.00 127.00(ii) 64.00 6.99 East zone
Including 120.00 127.00(ii) 7.00 3.44
131.00 132.00 1.00 1.59 East zone
(i) Drill widths are reported. True widths are to
be determined.
(ii) Intervals partially reported in news releases in
Stockwatch dated Aug. 11, 2010, and Oct. 4, 2010, respectively.
Additional assays have extended the intervals.
A full assay table with further results is attached to this
news release.
Llama Lake
On May 4, 2010, Sabina Gold announced in Stockwatch that a potentially significant new gold discovery had been made at Llama approximately eight kilometres to the northwest of the Goose Lake deposit. Llama Lake was initially targeted due to its similar geophysical and geological signature to that found at the Goose deposit.
A total of 61 holes totalling 16,700 metres were completed at Llama where the continuity of mineralization has been extended 500 metres along strike to a depth of 250 metres. Approximately six holes remain with assays pending.
Resource updates
The company recently retained the services of Scott Wilson/Roscoe Postle Associates (SW/RPA) to generate an NI 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 beginning a scoping study on Back River in early in 2011 following completion of the SW/RPA updated resource estimates.
Quality assurance
John Wakeford, PGeo, and senior vice-president, corporate development, of Sabina Gold is a qualified person under the terms of NI 43-101 and has reviewed the technical content of this news release and approved its dissemination.
Mineral resources for Goose Lake and George Lake were generated by RSG Global Consulting Pty. Ltd. in September, 2007, and are posted on SEDAR.
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 and Dundee Precious Metals (previous operator at Back River) and have been deemed appropriate in the above noted NI 43-101-compliant resource reports.
DRILLING RESULTS
Depth From To Length
Hole ID (m) (m) (m) (m)(i) Grade Comment
10GSE78 263 134.00 137.00 3.00 3.25 East zone
186.90 189.15 2.25 2.23 East zone
10GSE94 323 90.35 104.20 13.85 1.32 East zone
140.95 142.00 1.05 4.27 East zone
167.25 169.50 2.25 2.12 East zone
257.00 262.00 5.00 4.10 West zone
292.00 293.50 1.50 3.36 West zone
10GSE98 251 28.45 106.50(ii) 78.05 9.39 East zone
Including 97.50 106.50 9.00 4.58
122.00 123.50 1.50 3.74 East zone
162.50 169.70 7.20 1.53 West zone
10GSE100 257 34.00 35.00 1.00 25.51 East zone
39.95 42.00 2.05 53.59 East zone
51.85 54.40 2.55 11.04 East zone
10GSE101 311 23.15 34.15 11.00 8.12 East zone
Including 28.15 34.15 6.00 14.05
121.00 122.00 1.00 7.85 Middle
zone
165.35 169.35 4.00 1.04 West zone
188.00 191.00 3.00 1.21 West zone
192.50 194.00 1.50 5.52 West zone
10GSE123 209 5.80 66.00 60.20 6.13 East zone
Including 5.80 14.00 8.20 16.86 East zone
And 32.00 33.00 1.00 78.16 East zone
And 38.00 44.00 6.00 9.47 East zone
128.00 128.81 0.81 1.51 West zone
147.00 148.00 1.00 1.85 West zone
10GSE125 233 10.00 11.00 1.00 2.30 East zone
21.00 25.00 4.00 2.46 East zone
46.00 53.00 7.00 1.28 East zone
63.00 127.00(ii) 64.00 6.99 East zone
Including 120.00 127.00 7.00 3.44
131.00 132.00 1.00 1.59 East zone
(i) Drill widths are reported. True widths are to be
determined.
(ii) Intervals reported in news releases in Stockwatch dated
Aug. 11, 2010, and Oct. 4, 2010, respectively.
Additional assays have extended the intervals.
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