Umwelt Vault drill hole 17GSE523B returns 9.00
g/t Au over 28.70 m
Sabina Gold & Silver Corp (SBB.T), (“Sabina” or the “Company”)
is pleased to announce additional results from the summer
exploration diamond drilling program at its 100% owned Back River
Gold Project in Nunavut Canada.
Photos accompanying this announcement are available
at http://www.globenewswire.com/NewsRoom/AttachmentNg/60608ecc-c77f-4aca-90f8-32ac7647426e
http://www.globenewswire.com/NewsRoom/AttachmentNg/960699f4-0206-41e0-b33f-c5a641e3625b
http://www.globenewswire.com/NewsRoom/AttachmentNg/c30159c4-f0c2-4700-9f84-b141ac8da0ee
http://www.globenewswire.com/NewsRoom/AttachmentNg/bd4ac045-05df-4437-a643-4870deb944a0
The Umwelt Vault target drilling has continued
to successfully demonstrate the exceptional widths of high grade
mineralization that are present within the zone. Drill hole
17GSE523B intersected 9.00g/t Au over 28.70m, testing a portion of
the Vault approximately 150m up plunge from previously reported
drill hole 17GSE517 which returned 5.99g/t Au over 33.25m (news
release Oct 19, 2017). This drill hole was successful in providing
further evidence of continuity of the high grade Vault zone with a
demonstrated overall strike length of over 325m. See Figure 2,
Umwelt cross-section.
At the Llama deposit, drilling results indicate
the mineralized structure continues down plunge from the existing
drill holes and the deposit remains open at depth. Drill hole
17GSE524, returned 6.46g/t Au over 6.35m and 8.35 g/t Au over
2.75m, successfully extending the mineralized structure 525m down
plunge of the current mineral resource and 55m beyond the last
reported drill hole 17GSE516B, which returned 9.48g/t Au over
38.55m (see September 5, 2017 news release). See Figure 4, Llama
cross-section
“Results from drilling continue to demonstrate
the excellent potential for growth and project optionality at the
existing deposits at the Goose property,” said Bruce McLeod,
President and CEO. “This year’s results at the Vault zone and Llama
extension demonstrate continued validation of targeting concepts
and puts us in a strong position to continue to aggressively add
value to the near and long term economics of the project. We look
forward to applying our knowledge and experience going forward to
create other opportunities for deposit extensions and potential new
discoveries in the Back River belt. We believe that this will
be a multi-generational mining district”.
Table 1.0 – Table of Significant Drill
Intersections
Hole Id |
Area |
Azimuth |
Dip |
Easting |
Northing |
Depth |
From (m) |
To (m) |
Length (m) |
Au (g/t) |
Lithology |
17GSE523B |
UM |
222 |
-70 |
430671 |
7270575 |
740 |
Assays Pending |
|
|
|
|
|
|
|
636.65 |
637.65 |
1.00 |
10.99 |
Oxide Iron Formation |
|
|
|
|
|
|
|
653.05 |
681.75 |
28.70 |
9.00 |
Oxide Iron Formation |
inc |
|
|
|
|
|
|
657.40 |
658.00 |
0.60 |
77.23 |
Oxide Iron Formation |
and |
|
|
|
|
|
|
671.10 |
677.00 |
5.90 |
20.16 |
Oxide Iron Formation |
|
|
|
|
|
|
|
686.35 |
688.10 |
1.75 |
5.73 |
Oxide Iron Formation |
17GSE524 |
LL |
217 |
-72 |
429770 |
7271350 |
752 |
Assays Pending |
|
|
|
|
|
|
|
663.55 |
669.90 |
6.35 |
6.46 |
Oxide Iron Formation |
|
|
|
|
|
|
|
678.05 |
680.80 |
2.75 |
8.35 |
Oxide Iron Formation |
*True widths of the intervals are unknown at
this time.
Vault Zone – Umwelt
Drill hole 17GSE523B adds confidence in the continuity of the
high grade Vault zone by intersecting the thickened lower iron
formation along a mineralizing structural corridor. This strong
intercept sits within moderately to strongly altered, folded
banded-iron formation characteristic of the gold mineralization at
the Umwelt deposit. Mineralization consists of up to 15% variably
textured pyrrhotite with ~5% euhedral arsenopyrite. Visible gold
occurs along sulphide grains, sulphide-bearing quartz veins and
within altered iron formation.
Llama Extension
At the Llama Extension, drilling continues to intersect a
tightly folded syncline within the Back River lower iron formation
stratigraphy. This unit is identified as hosting the majority
of the current resources at the Back River Project and is widely
distributed across the Goose Property. Mineralization
consists of significant arsenopyrite, pyrrhotite and visible gold
that is associated with significant quartz veining and strong
amphibole and chlorite alteration.
This intercept is located relatively parallel to the area
vertically below the Umwelt deposit and remains a high exploration
priority for further extension.
Qualified Persons
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 a
well-financed, 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). At a US$1,150 gold price and a 0.80
(US$:C$) exchange rate, the Study delivers a potential after tax
internal rate of return of approximately 24.2% with an initial
CAPEX of $415 million.
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.
The Company had approximately C$36.6 million in
cash and equivalents on June 30, 2017, not including the $6 million
flow-through financing completed in September 2017.
For further information please contact:
All news releases and further information can be
found on the Company’s website at www.sabinagoldsilver.com or on
SEDAR at www.sedar.com. All technical reports have been filed on
www.sedar.com
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 licences 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
http://www.sabinagoldsilver.com
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