Jan 21, 2009 12:37 ET
Sabina Silver Announces Exploration Program for 2009
Program to Explore Excellent Potential for the Discovery of Additional Resources at Hackett River
Drilling on Red Lake/Skinner gold property to start February 5th
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 21, 2009) - Sabina Silver Corporation (TSX VENTURE:SBB) announced today its exploration plans for its 100% owned Hackett River silver-zinc project in Nunavut, Canada as well as an exploration program for its Skinner gold property in the Red Lake District of Ontario.
HACKETT RIVER
Hackett River is one of the largest undeveloped silver-zinc deposits of its type in the world with indicated resources totalling 47.1 million tonnes grading 4.67% zinc, 149.9 gm/t silver, 0.32% copper, 0.68% lead and 0.32 gm/t gold and an additional inferred open resource totalling 12.4 million tonnes grading 3.77% zinc, 142.4 gm/t silver, 0.27% copper, 0.52% lead and 0.31 gm/t gold.
Hackett River has reached the critical mass needed to push the project towards development. Following the announcement of a positive Preliminary Economic Assessment announced in March 2007 which identified that approximately 85% of the indicated resource tonnage and 71% of the inferred resource were mineable by open pit and underground methods, the Company has initiated a pre-feasibility study on the project.
Updated resource calculations and pre-feasibility work, although progressing, are still delayed. While the studies progress, management is seeking for opportunities to enhance the existing projects in these volatile times and also create opportunities for leverage in the share price while we wait for completion of our studies. Management believes this can be accomplished by focussing on the excellent exploration and development potential at Hackett River, by preserving a strong balance sheet and by seeking to acquire accretive precious metals projects. To this end, management is focussed on looking at non-grass roots gold assets in North America (preferably Canada).
"We believe the key to developing a large base/precious metals project in the Arctic that can provide robust returns despite volatile metal markets is to maximize tonnage and to increase the component of higher value mineralization that goes through the mill, for example copper, silver or gold," said Tony Walsh, President & CEO. "Maximizing through-put through the mill allows significant offsetting against the large fixed costs required, especially with a large project like Hackett that requires a road and port. Lowering the incremental costs provides opportunity to enhance project economics. The time to find that tonnage is prior to completion of the pre-feasibility study," he said "Significant new opportunities at Hackett River have presented themselves over the last few months. Management's recent review of Hackett River Project has resulted in some very positive impressions about the potential for increased resources. In particular, we are intrigued by the high copper values being encountered near surface in the Jo Zone. The work program for 2009 will focus on some of these targets."
2009 EXPLORATION PROGRAM - HACKETT RIVER
Following Sabina's acquisition of Hackett River in 2003 most of the work completed has focused on resource delineation and engineering studies on the known deposits with only a small portion of the efforts directed toward the exploration potential of the property.
As previously reported, in September 2008 a review was conducted by an independent consulting geologist with significant applied (VMS) experience on existing data and recommendations were made regarding the exploration potential of Hackett River. Based on these recommendations, the following opportunities have been identified:
- Each significant phase of exploration at Hackett River has resulted in the discovery of significant new or additional resources and a corresponding high rate of resource increase. This sustained rapid growth tends to reflect a highly prolific geological setting found in world class VMS deposits.
- There are a number of near surface showings and targets that present opportunities to increase the resource base at Hackett River. Management believes this can be done by looking for extensions of the existing deposits and seeking new discoveries. In order to optimize these opportunities improved geological modeling would be required.
- Previous exploration and resource drilling has encountered a number of intercepts of higher value mineralization consisting of generally copper mineralization with high grade silver and occasionally gold. Improved geological modeling would provide an opportunity to expand this higher value mineralization.
To pursue this opportunity a 6,700 m drill program is planned to test eleven target areas. Eight of the target areas, as shown on the aeromagnetic map below, will test for significant extensions to known mineralized deposits occurring along the main horizon with the remaining three targets evaluating parallel horizons to test for stacked mineralization. Target selection will be focused on previously untested geophysical anomalies in favourable geological settings generally along the prospective mineral horizon.
To view the maps accompanying this press release please click on the following link: http://media3.marketwire.com/docs/SBB0121.pdf.
A two phase, 4,300 m spring and 2,400 m summer, drilling program is planned. The spring drilling phase is scheduled to start in April and continue through May. The summer drill program is planned for August.
Detailed ground electromagnetic and magnetic geophysical surveys are also planned for the spring season in order to refine drill targets.
Geological work is planned for June and July. Certain historic drill holes will be re-logged and whole rock samples collected for geochemical characterization. Infill 1:1000 scale geological mapping is planned for the deposit areas.
The 2009 field season is scheduled to be completed by mid September and cost approximately $4.5 million.
2009 SKINNER GOLD PROGRAM - ONTARIO
A nine hole 2,200 m diamond drill program is scheduled to start in early February and be completed by mid March for a cost of $350,000. The primary target is a steeply northward dipping, east-west trending sheared contact of an ultramafic horizon. This favourable geological setting in the Red Lake district and elsewhere in the Archean hosts some of the largest gold deposits found.
Drilling west of the Dunkin showings (in 2008) resulted in the discovery of the Blind Zone. This zone returned 0.62 g/t Au over 11.90 m (including 4.97 g/t Au over 0.75 m) in a talc altered, quartz-carbonate veined shear zone containing arsenopyrite, pyrite and pyrrhotite. The Blind Zone is located at a sheared contact between gabbro and ultramafics. The Dunkin showings are quartz veins hosted by gabbro. Four holes are planned to test for extensions to the Blind Zone and test beneath the Dunkin showings. Three of the these holes are planned to be drilled from the surface of Narrow Lake and are therefore dependent on ice conditions.
Three of the nine drill holes are planned to test the sheared ultramafic horizon 1 to 2 km west of the Blind Zone. These proposed holes are either located up-ice of gold-in-till anomalies or located to test inferred flexures in the shear zone.
One final drill hole is planned to test beneath a cluster of 5 anomalous gold-in-soil samples containing values of up to 900 ppb located approximately 1 kilometre south of the Dunkin showing.
Quality Assurance
Mr. Harvey Klatt, P.Geo. VP Exploration and Qualified Person under the terms of NI43-101 has reviewed the technical content of this press release and approved its dissemination.
The Preliminary Economic Assessment is based on a NI 43-101 compliant mineral resource estimate completed by Wardrop Engineering in November 2006.
SABINA SILVER CORPORATION is a Canadian public mineral exploration and development company with assets at the Hackett River silver-zinc project in Nunavut, the Del Norte project in the Stewart-Eskay Creek Mining District and several projects in the Red Lake gold camp. The Company is well capitalized with $38 million in cash and marketable securities at September 30, 2008. Management believes the Company has the financial resources to complete its pre-development initiatives at Hackett River.
Forward Looking Statements
Statements relating to exploration, pre-feasibility work and future operations at the Hackett River Project and the expected results of this work are forward-looking statements within the meaning of securities legislation of certain Provinces in Canada. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Information inferred from the interpretation of drilling results may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in metal prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from Sabina's operations and other risks and uncertainties, including those described in Sabina's Annual Report for the year ended December 31, 2007.
Forward-looking statements are based on the beliefs, estimates and opinions of Sabina's management on the date the statements are made. Sabina undertakes no obligation to update these forward-looking statements should management's beliefs, estimates or opinions, or other factors, should change.
This news release has been authorized by the undersigned on behalf of Sabina Silver Corporation
Tony Walsh, President & CEO
For more information, please contact
Sabina Silver Corporation
Nicole Hoeller
Director, IR
1-888-668-4216 or (604) 998-4175
(604) 998-1051 (FAX)
Email: nhoeller@sabinasilver.com
Website: www.sabinasilver.com
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