Sabina Gold & Silver Corp (SBB.T/SGSVF.OTCQX), (“Sabina” or the
“Company”) is pleased to announce initial results from the
company’s spring drilling program completed at the Hook Target,
which has been identified as a key link along a mineralized trend
hosting the Goose Main and Nuvuyak gold deposits, on its 100%-owned
Back River Gold Project (“Back River” or the “Project”) in Nunavut,
Canada.
For the first half of this year, exploration was
focused on the southern mineralized trend that hosts Goose Main and
Nuvuyak. The Hook target, which was thought to be the link between
these deposits received the bulk of the meterage of this spring’s
program. Drill testing within the trend is highlighted
by hole 21GSE600 which returned 5.42 g/t Au over 28.05 m, including
12.68 g/t Au over 5.30 m, returning the highest gram-meter
intercept within the target trend to date. The intercept through
the fold nose of the antiform sits within a 50.50 m length of
anomalous gold mineralization (see Table 1), representing a key
link in unlocking the trend by identifying a robust area for
potential resource growth through further exploration. Three
additional drill holes were also completed within the trend during
the 2021 spring program which continued to further advance the
geological controls and refine targets highlighted by broad
mineralizing intercepts including 10.05 g/t over 8.50 m in drill
hole 21GSE598B, 1.72 g/t over 10.30 m in drill hole 21GSE599 and
1.67 g/t over 15.55m in drill hole 21GSE590 (additional drill hole
results supporting this release are available in Table 1).
“The ability to demonstrate significant resource
growth potential such a short distance from our proposed mining
infrastructure is a tremendous success and further testament to the
Goose Property gold endowment. Our Hook target is located within
the shadows of the Goose Main open pit and provides opportunities
for exceptional alignment as we advance both exploration and
development synergies for the entire southern Goose Main – Hook –
Nuvuyak gold trend.” said Bruce McLeod, President & CEO.
Drill advancement at the Hook target area has
become an important focus for exploration to establish future
resource growth and mining synergies. An approximate 1,500 m of F1
antiform stratigraphy is identified to be relatively continuous
from the daylighting of the Goose Main deposit to the furthest down
plunge mineralization intercepts at Nuvuyak. A total of 450 m of
exploration plunge length is interpreted to be open between these
two deposits (see Figure 1) establishing a very prospective area
for exploration and additional resource opportunity. The Goose Main
deposit currently hosts an open pit and underground Proven reserve
of 548,000 oz at an average grade of 4.60g/t and an additional open
pit and underground Probable reserve of 301,000 oz at an average of
4.96 g/t. The Nuvuyak deposit currently hosts an initial NI 43-101
compliant Inferred resource of 583,000 oz at an average grade of
7.50 g/t and remains open in all directions.
Drill holes in this release targeted an area
surrounding key features at the Hook Target that are demarked by a
quartz feldspar porphyry dyke hosted in an interpreted early
structural setting within the Lower Iron Formation (LIF). The
southern envelope of the demarking structure is interpreted as an
important intersection lineation where in contact with the LIF
stratigraphy, as it appears to be spatially associated with a key
gold structure. Drill hole 21GSE600 is located approximately 120 m
down plunge along the unfolded D2 trend of the Goose Main deposit
and 330 m up plunge from the Nuvuyak deposit. Mineralization within
the drill hole is noted as fine – to medium- grained pyrrhotite
occurring as replacement bands of the stratigraphy and fracture
infills. Lesser arsenopyrite occurs locally associated with fine
chlorite and silica veins/alteration. Visible gold was frequent
within the main interval occurring as fine specks throughout the
drill core intercept.
The spring drilling program at the Goose
property is now complete with all drill holes totaling 4480 m which
included the focused testing of five drill holes at the Hook Target
(including one abandoned due to excessive deviation), twelve drill
holes testing earlier staged target areas, and an additional six
drill holes supporting geotechnical investigations.
Operating under Sabina’s COVID-19 Protocol
Operational Framework, site personnel have now safely completed
programs over a full year period with success in accomplishments in
exploration and development activities. Our site staff and contract
teams have contributed significantly in our ability to maintain the
health and safety of our workforce, their families, and the local
regional communities.
Hole ID |
Area |
Azimuth/ Dip |
EastingUTM |
Northing UTM |
Hole Depth (m) |
From(m) |
To(m) |
Length(m) |
Au (g/t) |
Lithology |
21GSE590 |
HK |
16/-66 |
433459 |
7269398 |
549 |
404.15 |
419.70 |
15.55 |
1.67 |
Iron Formation |
inc |
|
|
|
|
|
415.40 |
416.55 |
1.15 |
5.11 |
Iron Formation |
|
|
|
|
|
|
444.35 |
445.55 |
1.20 |
1.75 |
Iron Formation |
|
|
|
|
|
|
484.75 |
488.75 |
4.00 |
2.67 |
Iron Formation |
inc |
|
|
|
|
|
484.75 |
485.55 |
0.80 |
8.49 |
Iron Formation |
21GSE598 |
HK |
16/67 |
433437 |
7269429 |
128 |
Abandoned - NSV |
21GSE598B |
HK |
15/65 |
433438 |
7269429 |
491 |
34.05 |
35.00 |
0.95 |
5.66 |
Greywacke |
|
|
|
|
|
|
353.00 |
361.00 |
8.00 |
1.19 |
Iron Formation |
|
|
|
|
|
|
367.90 |
376.40 |
8.50 |
10.05 |
Iron Formation |
inc |
|
|
|
|
|
368.50 |
369.50 |
1.00 |
78.20 |
Iron Formation |
|
|
|
|
|
|
389.00 |
395.60 |
6.60 |
2.14 |
Iron Formation |
|
|
|
|
|
|
390.75 |
391.40 |
0.65 |
9.10 |
Iron Formation |
21GSE599 |
HK |
15/-66 |
433530 |
7269480 |
542 |
398.30 |
408.60 |
10.30 |
1.72 |
Iron Formation |
inc |
|
|
|
|
|
398.30 |
399.30 |
1.00 |
2.44 |
Iron Formation |
and |
|
|
|
|
|
403.50 |
405.50 |
2.00 |
3.81 |
Iron Formation |
and |
|
|
|
|
|
406.90 |
408.60 |
1.70 |
2.50 |
Iron Formation |
21GSE600 |
HK |
17/-65 |
433495 |
7269516 |
494 |
347.80 |
351.30 |
3.50 |
3.06 |
Iron Formation |
inc |
|
|
|
|
|
347.80 |
349.10 |
1.30 |
5.06 |
Iron Formation |
|
|
|
|
|
|
357.75 |
363.40 |
5.65 |
3.36 |
Iron Formation |
inc |
|
|
|
|
|
362.00 |
362.55 |
0.55 |
15.55 |
Iron Formation |
|
|
|
|
|
|
370.25 |
398.30 |
28.05 |
5.42 |
Iron Formation |
inc |
|
|
|
|
|
378.50 |
379.60 |
1.10 |
27.20 |
Iron Formation |
and |
|
|
|
|
|
389.00 |
394.30 |
5.30 |
12.68 |
Iron Formation |
|
|
|
|
|
|
Assays Pending |
^True
widths of the intercepts reported are unknown at this time. |
Table 1: Significant Intervals for Diamond Drill
Holes at the Hook Target.
Qualified Persons
Mr. James Maxwell, P. Geo., and Director of
Exploration for Sabina, is a Qualified Person pursuant to National
Instrument 43-101 and has reviewed and approved of the technical
content of this press release as it relates to the Back River
Project.
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 Nunavut, Canada.
Sabina recently filed an Updated Feasibility
Study (the “UFS”) on its 100% owned Back River
Gold Project which presents a project that will produce ~223,000
ounces of gold a year (first five years average of 287,000 ounces a
year with peak production of 312,000 ounces in year three) for ~15
years with a rapid payback of 2.3 years, with a post-tax IRR of
~28% and NPV5% of C$1.1B. See “National Instrument (NI) 43-101
Technical Report – 2021 Updated Feasibility Study for the Goose
Project at the Back River Gold District, Nunavut, Canada” dated
March 3, 2021.
The Project received its final major
authorization on June 25, 2020 and is now in receipt of all major
permits and 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.
For further information please contact:
Nicole Hoeller, Vice-President, Communications: |
|
1 888 648-4218 |
|
|
nhoeller@sabinagoldsilver.com |
Forward Looking InformationThis
news release contains “forward-looking information” within the
meaning of applicable securities laws (the “forward-looking
statements”), including, but not limited to, statements
related to the expected use of proceeds of the Offering and the
projections and assumptions of the results of the UFS. 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 uncertainty of
production, development plans and costs estimates for the Back
River Gold Project; discrepancies between actual and estimated
mineral reserves and mineral resources, between actual and
estimated development and operating costs; the interpretation of
drill, metallurgical testing and other exploration results; the
ability of the Company to retain its key management employees and
skilled and experienced personnel; exploration, development and
mining risks and the inherently dangerous nature of the mining
industry, and the risk of inadequate insurance or inability to
obtain insurance to cover these risks and other risks and
uncertainties; property and mineral title risks including defective
title to mineral claims or property; 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, 2020 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.
Bruce McLeod, President & CEOSuite 1800 – Two
Bentall Centre555 Burrard StreetVancouver, BC V7X 1M7Tel 604
998-4175 Fax 604
998-1051http://www.sabinagoldsilver.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/5ec21fe3-395a-4b11-97c2-f0af7f22d248
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