Sabina Gold & Silver Reports Initial Results From Spring Drill Program
VANCOUVER, British Columbia, June 19, 2019 (GLOBE NEWSWIRE) -- Sabina Gold & Silver Corp (SBB:T – SGSVF:OTCQX), (“Sabina” or the “Company”) is pleased to announce initial results from this year's Spring exploration diamond drilling program at its 100% owned Back River Gold Project in Nunavut, Canada.
The 2019 Spring exploration drill program of approximately 6,400 meters in 8 drill holes at three target areas was recently completed at the Goose property. Drilling targets included the new discovery area at Nuvuyak/Hook, high-grade optimization opportunities up plunge from the Vault zone at the Umwelt underground and continued scoping at the Llama Extension zone.
Drill hole 19GSE569 located approximately 180 meters up plunge from the Umwelt Vault zone, returned 14.97 g/t Au over 21.75m including 28.94 g/t Au over 5.20m. The purpose of this hole was to build on previous high-grade results (including Vault) by continuing to demonstrate continuity within a high-grade corridor in the Umwelt underground. Additional opportunity remains up and down plunge for further optimization. A high-grade corridor at Umwelt underground could provide opportunities to positively impact mine economics. See Figure 1 for a set of images illustrating the high-grade corridor, and Table 2 for a list of recent drilling values.
Bruce McLeod, President and CEO states, “The presence of a significant high-grade core within the Umwelt underground could provide opportunities for early advancement of underground resource extraction that could have positive impacts on the economics of the project. This scenario would require further definition drilling and studies however, these results continue to improve our confidence in this robust underground zone. We believe our exploration programs over the last three years at Back River have been important to the project. At the Goose project, our work has continued to add value by providing better confidence in our geological models and understanding of our deposits as well as identifying areas of opportunity to enhance future mine plans. Additionally, our regional work has continued to demonstrate how important Back River is as a district which we believe will be a multi-generational mining camp.”
|Table 1.0 – Table of Significant Drill Intersections from Drill Hole 19GSE569|
|**True widths of the intercepts reported are unknown at this time.|
Umwelt Deposit - Vault Zone
The Umwelt Deposit currently hosts 9,050,000 tonnes of 6.99 g/t Au for 2,034,000 ounces of Measured and Indicated resources, as well as 1,909,000 tonnes of 11.01 g/t Au for 676,000 ounces of Inferred resources. Portions of these resources are included in the current feasibility study for both open pit and underground development. The objective of Umwelt underground/Vault drilling program is to target a particularly robust core of the Umwelt Deposit where exceptional grades and thicknesses of mineralized iron formation occur. Holes drilled within the Vault zone to date are recognized as some of the highest-grade/thickness drill intercepts ever drilled at Back River.
During the spring drilling program hole 19GSE569 targeted an area up-plunge from the high-grade Vault zone identified as having strong synergies for a similar higher grade and width resource setting. The initial hole targeting this area successfully returned an intercept of 14.97 g/t Au over 21.75m providing an additional nucleus for high grade expansion and continuity within the trend.
|Table 2.0 – Table of Recent High-Grade Drilling Intersections at Vault and Up-Plunge|
|Selected High Grade Near Vault
|18GSE532||8.38 g/t over 11.45m||96||Up plunge|
|17GSE523B||9.00 g/t over 28.7m||258||Vault|
|17GSE511B||16.86 g/t over 13.5m||228||Vault|
|17GSE517||5.99 g/t over 33.25m||199||Vault|
|17GSE522B||8.65 g/t over 31.9m||276||Vault|
Additional Drilling Results
Remaining results from the Spring drilling program will be released once received and compiled. Current turn around time from the assay laboratory is upward of 6 weeks.
The Qualified Person as defined by NI 43-101 as pertains to the Back River Project, is James Maxwell P.Geo, Exploration Manager, for the Company. All drill core samples selected within the exploration program are subject to a company standard of internal quality control and quality assurance programs which include the insertion of certified reference materials, blank materials and duplicates analysis. All samples are sent to SGS Canada Inc. located in Burnaby, British Columbia where they are processed for gold analysis by 50 gram fire assay with finish by a combination of atomic absorption and gravimetric methods. Additionally, analysis by screen metallic processes is performed on select samples.
Sabina Gold & Silver Corp
Sabina Gold & Silver Corp. is well-financed and is an emerging precious metals company with district scale, advanced, high grade gold assets in one of the world’s newest, politically stable mining jurisdictions: Nunavut, Canada.
Sabina released a Feasibility Study on its 100% owned Back River Gold Project which presents a project that has been designed on a fit-for purpose basis, with the potential to produce ~200,000 ounces a year for ~11 years with a rapid payback of 2.9 years (see “Technical Report for the Initial Project Feasibility Study on the Back River Gold Property, Nunavut, Canada” dated October 28, 2015).
The Project received its final Project Certificate on December 19, 2017. The Project received its Type A Water License on November 14, 2018 and is now in receipt of all major authorizations for construction and operations.
In addition to Back River, Sabina also owns a significant silver royalty on Glencore’s Hackett River Project. The silver royalty on Hackett River’s silver production is comprised of 22.5% of the first 190 million ounces produced and 12.5% of all silver produced thereafter.
Sabina had approximately $43 million in the treasury after Q1, 2019.
For further information please contact:
Nicole Hoeller, Vice-President, Communications: 1 888 648-4218
Forward Looking Statements
This news release contains “forward-looking information” within the meaning of applicable securities laws (the “forward-looking statements”), including our belief as to the extent, results and timing of exploration programs and various studies including the FS, and exploration results, reserves estimates, potential production from and viability of the Company’s properties, production and operating costs and permitting submission, timing and receipt of necessary permits and project approvals for future operations and access to project funding. These forward-looking statements are made as of the date of this news release. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. While we have based these forward-looking statements on our expectations about future events as at the date that such statements were prepared, the statements are not a guarantee that such future events will occur and are subject to risks, uncertainties, assumptions and other factors which could cause events or outcomes to differ materially from those expressed or implied by such forward-looking statements. Such factors and assumptions include, among others, the effects of general economic conditions, commodity prices, changing foreign exchange rates and actions by government and regulatory authorities and misjudgments in the course of preparing forward-looking statements. In addition, there are known and unknown risk factors which could cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Known risk factors include risks associated with exploration and project development; the need for additional financing; the calculation of mineral resources and reserves; operational risks associated with mining and mineral processing; fluctuations in metal prices; title matters; government regulation; obtaining and renewing necessary licenses and permits; environmental liability and insurance; reliance on key personnel; the potential for conflicts of interest among certain of our officers or directors; the absence of dividends; currency fluctuations; labour disputes; competition; dilution; the volatility of the our common share price and volume; future sales of shares by existing shareholders; and other risks and uncertainties, including those relating to the Back River Project and general risks associated with the mineral exploration and development industry described in our Annual Information Form, financial statements and MD&A for the fiscal period ended December 31, 2016 filed with the Canadian Securities Administrators and available at www.sedar.com. Although we have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. We are under no obligation to update or alter any forward-looking statements except as required under applicable securities laws. This news release has been authorized by the undersigned on behalf of Sabina Gold & Silver Corp.
Bruce McLeod, President & CEO
1800-555 Burrard Street, Two Bentall Centre
Vancouver, BC V7X 1M7
Tel 604 998-4175 Fax 604 998-1051