SABINA GOLD & SILVER REPORTS CONTINUED RESOURCE
EXPANSION AT THE UMWELT DEPOSIT, BACK RIVER GOLD PROJECT,
NUNAVUT
New High Grade Umwelt G2 Zone being Defined
Hole 11GSE121 at Umwelt returns 14.24 g/t Au over 28.25 m including 29.96 g/t
Au over 8.35 m
Hole 11GSE092 at Umwelt returns 6.18 g/t Au over 23.20 m
New assay results expand the mineralized zone width in
previously released Hole 11GSE096 at Umwelt returning 5.19 g/t Au over 60.2m
Vancouver, BC – Sabina Gold & Silver Corp (SBB.T) is pleased to announce additional assay
results from holes drilled as part of the 2011 exploration program on its targets at the Goose
claim block at its 100% owned Back River Project in Nunavut, Canada.
The 2011 drilling campaign at Back River has been focussing on expanding the existing deposits
at Umwelt and Llama, and looking for new discoveries by applying the Company’s exploration
tool box to open pit targets on the Goose and George claim blocks, as well as the Wishbone gold
claims.
The Umwelt deposit, discovered in 2010, contains an indicated resource of 4.6 m tonnes grading
6.0 g/t Au for a total of 900,000 ounces of Au and an inferred resource of 1.1 m tonnes grading
6.4 g/t Au for a total of 221,000 ounces of Au. Drilling in 2011 has extended this resource
approximately 900 m along strike to the south. The Umwelt deposit has now been defined over a
1.15 km strike length and for 1.5 km down plunge and remains open.
Recent drilling at depth of the southern extension of Umwelt continues to encounter high grade
thick mineralization in a zone called the Umwelt G2 Zone (G2 stands for, Good grade and Good
Thickness). This zone is at a depth of approximately 600 m and is open dip and down plunge to
the south. The strong grade and thickness of the zone is typified by recently completed hole
11GSE121 which returned 14.24 g/t Au over 28.25 m. The G2 Zone is the direct extension of
the wide mineralized zone that makes up the proposed open pit at Umwelt and appears to have a
stronger gold tenor.
“Our work continues to demonstrate the high quality of the Back River Property. In our 2011
campaign, we have extended and expanded our Umwelt and Llama deposits and we have made
eight new discoveries on our Back River and Wishbone claims with many assays still pending.”
said Tony Walsh, President & CEO “We are very encouraged by the success we are having in
identifying good grades and good widths in our deposit areas. On the discovery front we are very
encouraged by recent developments. While not all discoveries we make will be of the nature and
size we are looking for, our success rate in finding gold mineralization based on the limited
number of targets tested this year is excellent. This demonstrates the prospective nature of the
land package we have at Back River and Wishbone and we are confident that we will continue to
make new discoveries.”
To date, at Back River a total of 175 holes and 61,800 metres of core have been completed, or
are in progress, with many assays still pending. Drilling will continue with two drills at Umwelt
until approximately October 1, 2011.
UMWELT
To date a total of 63 holes totalling 33,350 m have been drilled or are in progress on the Umwelt
zone at the Goose property. Results continue to demonstrate that Umwelt is a strong, well
mineralized system with excellent continuity and grade.
New results have been returned for three holes completed in what is now called the Umwelt G2
Zone. Hole 11GSE121 on section 4050N returned 14.24 g/t Au over 28.25 m including 29.96 g/t
Au over 8.35 m at a depth of 600 m. Hole 11GSE092 on section 4150N returned 6.18 g/t Au
over 23.20 m including 7.28 g/t Au over 18.35 m. A number of additional lower grade zones
were also intersected in this hole. Hole 11GSE102BW on section 4000N returned 7.62 g/t Au
over 10.00 m including 29.45 g/t Au over 2.00 m. Bounding assays for all of these intercepts
have yet to be returned. New assay results have increased the width of the mineralized zone in
previously released Hole 11GSE096 collared on section 4400N. Hole 11GSE returned 5.19 g/t
Au over 60.2m. Recently returned assay results from Umwelt are summarized in Table 1.
The mineralized zones are hosted within a turbiditic sedimentary sequence containing silicate
and oxide facies iron formations. Gold dominantly occurs with quartz +/- carbonate veining and
arsenopyrite +/- pyrite +/- pyrrhotite in the iron formation. 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 Main Zone.
Mineralization also occurs along a separate iron formation horizon immediately to the west
known as the West Zone.
RESOURCE UPDATE
On September 20, 2011, the Company announced an updated resource for the Goose deposit.
Goose, Llama and Umwelt sit within a 5km long corridor and are envisioned as three major open
pits supporting one central milling facility at the Goose claim block. The George deposit,
located approximately 50 km to the north on the George claim block, is envisioned as an
underground satellite deposit that would be mined and transported to the mill at Goose via winter
road. The Company has recently engaged SRK Engineering Ltd. to commence work on a
Preliminary Economic Assessment of a gold mining operation at Back River. The study will
comprise the new open pit Goose resource, the soon to be updated Umwelt and Llama resources
(incorporating 2011 drilling) as well as the existing George resource. The study is anticipated to
be completed early in 2012, after which, if positive, a Preliminary Project Description will be
filed with the Nunavut Water Board to initiate the permitting process for the project.
Back River Mineral Resources ‐ September 9, 2011
Classification Location Tonnes
Grade
Au (g/t) Ounces Au
Open Pit
Indicated Goose* 7,697,000 4.45 1,101,000
Llama** 1,860,000 9.41 562,000
Umwelt** 4,601,000 6.08 900,000
Total Indicated 14,158,000 5.63 2,563,000
Inferred Goose* 436,000 3.53 50,000
Llama** 981,000 5.71 180,000
Umwelt** 1,067,000 6.43 221,000
Total Inferred 2,483,000 5.64 451,000
Underground
Indicated George*** 1,838,000 10.00 590,000
Total Indicated 1,838,000 10.00 590,000
Inferred Goose* 570,000 5.81 106,000
George*** 2,563,000 10.50 866,000
Total Inferred 3,133,000 9.65 972,000
Notes*
1. CIM definition standards were followed for Mineral Resources.
2. The Qualified Person for the Goose, Llama and Umwelt Mineral Resource estimate is Patti Nakai-Lajoie, P.Geo., RPA
3. Open pit Mineral Resources are estimated at a pit discard cut-off grade of 0.70 g/t Au and 90% recovery. Pit
optimizations were used to constrain the resources.