Mr. Tony Walsh reports
SABINA GOLD & SILVER REPORTS FINAL 2010 UMWELT RESULTS FROM BACK RIVER PROJECT, NUNAVUT
Sabina Gold & Silver Corp. has provided further significant assay results from drilling completed in 2010 at its Umwelt discovery at the Goose property on its 100-per-cent-owned Back River project in Nunavut, Canada.
Sabina's work at Back River has focused on the Goose area which is just one of the seven claim blocks on the Back River property. The target areas at Goose are within an eight-kilometre corridor and have been identified using an exploration tool box developed by Sabina'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.
The 2010 drilling campaign at Goose started in March and ended in mid-September. In the spring, two significant discoveries were announced at Llama and Umwelt and drilling, originally budgeted at 20,000 metres for $10-million, was quickly ramped up. By the end of the campaign 40,498 metres had been completed at a cost of $16-million at the Goose property. These are the final drill results for 2010 and complete a successful and exciting campaign on the project.
"The Goose deposit discovered in 1992 was the last discovery made on the Back River property prior to our acquisition of the claim block in June, 2009. In six months of fieldwork, our geology team has managed to make three new discoveries, two of which we believe are significant," said Tony Walsh, president and chief executive officer. "The development of our exploration tool box has allowed us to make great strides in unlocking the geological setting of the Goose property. At Goose, at least 16 other targets have been identified. In addition, each of the other Back River claim blocks, as well as approximately 40 per cent of our Wishbone greenstone belt also host similar iron formations units. The potential for new discoveries in the area is significant. Assessment of these areas using our tool box will begin in 2011."
At Umwelt, drilling results continue to grow the deposit and demonstrate the continuity of the mineralization found at Umwelt. The mineralized zone has now been traced for over 650 metres, remains open along strike and down plunge with intercepts as deep as 250 metres. In an effort to advance the deposit, the middle 500 metres of Umwelt have been sufficiently drilled to enable a partial resource calculation on the zone. Significant new results are from the East zone which demonstrate the continuity of the zone and provide additional support for an NI 43-101 resource estimate.
The company is currently planning its 2011 exploration campaign and expects to spend approximately $40-million to $45-million at its Nunavut properties with a major focus on Back River. The 2011 plan and budget are subject to final board review and approval.
Umwelt
The Umwelt discovery was announced in Stockwatch on June 21, 2010, and is located approximately 1.3 km south of the new Llama zone discovered in May, 2010, and approximately three km to the north of the Goose deposit. The discovery was targeted based on its similar geological and geophysical signature to both these deposits. A total of 15,950 metres in 58 holes have been drilled at Umwelt and new assay results confirm the continuity of mineralization at Umwelt over a 650-metre strike length to vertical depths as deep as 250 metres. The strong continuity and shallowness of this zone could provide the opportunity for open pit extraction.
Hole 10GSE136 located 150 metres south of the discovery fence of holes (10GSE66, 69, 98) returned 8.74 grams per tonne (g/t) Au over 79.9 metres including 45.20 g/t Au over 6.0 metres and 25.27 g/t Au over 4.9 metres at a vertical depth of 110 metres. Similar results were encountered in hole 10GSE140B (18.95 g/t Au over 4.35 metres and 26.43 g/t Au over 2.9 metres), located 70 metres east of hole 10GSE136. Both holes targeted the East zone in the central portion of the deposit.
Further results returned include hole 10GSE141 located 250 metres north of the discovery fence of holes which returned 2.51 g/t Au over 4.50 metres in the East zone. This hole is the northernmost intercept of mineralization at Umwelt. Holes 10GSE142 (2.57 g/t Au over 3.00 metres) and 10GSE146 (1.25 g/t Au over 8.65 metres) located 250 and 400 metres south of the discovery holes respectively also intersected mineralization in the East zone.
The mineralized zones are hosted within a turbiditic sedimentary sequence containing silicate and oxide facies iron formations. Gold dominantly occurs with quartz and/or carbonate veining and arsenopyrite and/or pyrite and/or pyrrhotite in the iron formation. Visible gold has been noted in many but not all holes drilled to date. 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. The relationship between the East and West zones is uncertain but the West zone may be a refolded limb of the East zone and will be targeted early in 2011.
Recently received drilling highlights those in the table.
Depth From To Length Au
Hole ID (m) (m) (m) (m) (g/t)
10GSE136 239.00 115.10 195.00 79.90 8.74
including 115.10 120.00 4.90 25.27
including 142.00 150.00 8.00 13.40
and 189.00 195.00 6.00 45.20
10GSE140B 362.00 181.65 186.00 4.35 18.95
294.10 297.00 2.90 26.43
10GSE141 284.00 235.10 239.60 4.50 2.51
10GSE142 395.00 225.50 228.50 3.00 2.57
10GSE146 449.00 295.55 304.20 8.65 1.25
Drill widths reported. True widths to be determined.
Continued evaluation of geology and mineralization within the Umwelt Lake area is continuing.
Resource updates
The company recently retained the services of Scott Wilson/Roscoe Postle Associates (SW/RPA) to generate 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 moving to a scoping study early in 2011.
Quality assurance
Doug Cater, PGeo, and project manager, Back River project of Sabina Gold & Silver, is a qualified person under the terms of NI 43-101 and has reviewed the technical content of this press release and approved its dissemination.
Mineral resources for Goose Lake and George Lake were generated by RSG Global Consulting Pty. Ltd. (Coffey Mining) 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 & Silver and Dundee Precious Metals (previous operator at Back River), and have been deemed appropriate in the above noted 43-101-compliant resource reports.
ADDITIONAL ASSAY RESULTS -- 2010 UMWELT LAKE
DRILL PROGRAM
Depth From To Length Au
Hole ID (m) (m) (m) (m) (g/t)
10GSE66 338.00 222.00 224.00 2.00 1.33
10GSE69 290.00 98.00 99.25 1.25 1.15
165.65 167.40 1.75 1.46
171.00 174.00 3.00 1.36
177.80 178.50 0.70 2.98
190.70 192.00 1.30 1.95
233.50 234.15 0.65 1.25
10GSE71 263.00 254.00 255.00 1.00 1.32
10GSE73 365.00 74.90 76.40 1.50 1.34
166.20 173.00 6.80 1.24
189.60 190.40 0.80 1.05
10GSE76 356.00 242.95 243.50 0.55 2.13
246.00 248.70 2.70 1.15
254.00 255.00 1.00 1.05
10GSE78 263.00 91.00 92.00 1.00 1.03
93.00 94.00 1.00 1.34
144.70 145.25 0.55 1.05
10GSE81 302.00 108.50 109.05 0.55 2.34
214.00 215.15 1.15 1.27
10GSE86 266.50 113.60 114.80 1.20 2.26
10GSE90 272.00 NSV
10GSE94 323.00 134.00 135.10 1.10 3.07
10GSE95 473.00 NSV
10GSE98 251.00 11.60 12.90 1.30 1.17
26.45 27.45 1.00 1.32
10GSE100 257.00 209.00 210.00 1.00 1.42
10GSE101 311.00 47.25 47.75 0.50 1.01
10GSE112 326.00 248.00 251.00 3.00 1.76
10GSE125 233.00 187.00 188.00 1.00 1.06
189.00 191.00 2.00 1.78
10GSE128 236.9 217.00 218.00 1.00 2.85
10GSE134 308 120.30 120.80 0.50 1.13
146.70 147.80 1.10 1.54
10GSE136 239 106.80 107.70 0.90 1.49
115.10 195.00 79.90 8.74
including 115.10 120.00 4.90 25.27
and 142.00 150.00 8.00 13.40
and 172.45 175.00 2.55 23.41
and 189.00 195.00 6.00 45.20
200.00 201.40 1.40 1.32
10GSE139 311 234.50 239.00 4.50 1.69
10GSE140B 362 147.60 149.95 2.35 1.22
165.10 166.00 0.90 1.08
181.65 186.00 4.35 18.95
294.10 297.00 2.90 26.43
10GSE141 284 235.10 239.60 4.50 2.51
241.25 242.00 0.75 16.70
249.10 250.50 1.40 4.99
10GSE142 395 113.00 114.00 1.00 1.34
219.25 220.20 0.95 2.16
225.50 228.50 3.00 2.57
253.00 257.05 4.05 1.93
10GSE143 146 NSV
10GSE144A 176 132.00 135.50 3.50 2.37
10GSE145 269 136.40 137.40 1.00 1.75
167.00 168.50 1.40 2.30
10GSE146 449 170.70 171.00 0.30 1.23
295.55 304.20 8.65 1.25
10GSE147 359 305.00 306.00 1.00 1.17
10GSE148 164 72.00 73.50 1.50 1.95
10GSE149 356 305.50 307.00 1.50 1.15
308.80 309.30 0.50 1.70
314.50 315.30 0.80 3.00
10GSE150 254 NSV
10GSE151 191 32.00 34.00 2.00 2.85
72.00 73.00 1.00 1.17
75.00 76.00 1.00 1.18
94.00 96.00 2.00 3.26
111.00 112.00 1.00 7.00
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