Sabina Gold & Silver Intercepts Llama Mineralization 300 Meters Down Plunge Of Current Resource
Deposit Remains Open
Llama hole 17GSE513 returns 6.52 g/t Au over 8.3 meters
VANCOUVER – Sabina Gold & Silver Corp. (“Sabina”) or (the “Company”) (SBB – TSX)
is pleased to announce the final results from the spring exploration diamond drilling program at its 100% owned Back River Gold Project in Nunavut, Canada.
Approximately 2,700m of drilling in five drill holes were completed during this first phase of exploration. Two of these drill holes were completed at the Llama extension target with encouraging results. Drill hole 17GSE513 stepped-out approximately 300 m down plunge of the existing resource structure at Llama and was successful in intersecting over 48 m of altered and mineralized iron formation that includes 6.52 g/t Au over 8.3 meters from 618.90 m to 627.20 m. The Llama mineralized zone has now been intersected to approximately 550 m vertical depth and remains open.
Bruce McLeod, President and CEO stated “we are very excited about the results from the Llama Extension drilling as they continue to demonstrate the considerable quality and the upside potential for growth of our existing deposits. At the Umwelt Vault zone, announced in May, we believe we have the potential to grow a high grade portion of the deposit with grades that are 2 to 3 times our resource average. At Llama we have demonstrated that the mineralized structure continues well below the current resource limits. Both Llama and Umwelt are analogous to other iron formation deposits around the world, including Goldcorp’s Musselwhite complex where mining continues along structures that are well in excess of 1,000 m and are still open. We are excited to have achieved our objectives at both Llama and Umwelt for our spring campaign. I look forward to our second phase of drilling on these targets scheduled for this summer and the continued demonstration of the significant upside resource growth potential at the Back River District.”
Llama Extension Target
The Llama Deposit hosts 3,557,000 tonnes of 6.50 g/t Au for 743,000 ounces of Measured and Indicated resources, as well as 295,000 tonnes of 6.77 g/t Au for 64,000 ounces of Inferred resources. An open pit development for a portion of this resource is included in the current feasibility study, however; there is significant upside for inclusion of an underground development in future studies.
Drill holes 17GSE512 and 17GSE513 were designed for testing the down plunge extension of the Llama mineralized structure approximately 300 meters down plunge from the current resource limits at a vertical depth of approximately 550 m. The first drill hole 17GSE512 was designed as a positioning hole on the structure and was successful in intersecting both the east and west limbs of the Llama syncline and a significant portion of upper iron formation stratigraphy. Significant assays returned from this drilling included 6.30 g/t Au over 2.65m in west limb lower iron formation. The second hole 17GSE513, designed as a 60 m undercut on the same cross section successfully targeted a significant portion of lower iron formation stratigraphy (host to a majority of the Back River resources). Over 100 m of lower iron formation was intersected in this drill hole, with numerous mineralized sections containing pyrrhotite, arsenopyrite and visible gold. Assays returning gold values that include 6.52 g/t Au over 8.30 m from 618.90 m to 627.20 m are shown in Table 1 below. Present within the large iron formation were two felsic dykes, lithologies which are typically associated with gold mineralization in the Goose area deposits. In addition, a previously unknown near surface, low grade zone of iron formation with alteration, mineralization and quartz veins in clastic sediments was intersected from 69 m to 109.85 m.
Further drilling on the Llama extension zone is being assessed for a summer program commencing in August.
Table 1.0 - Table of Significant Drill Intersections from Spring 2017 Drilling
|17GSE511||UM||215||-75||430749||7270541||176||Abandoned - NSV|
|17GSE511B||UM||214||-73||430748||7270541||806||728.00||729.00||1.00||3.01||Oxide Iron Formation|
|734.00||747.50||13.50||16.86||Oxide Iron Formation|
|Inc.||736.75||744.70||7.95||27.11||Oxide Iron Formation|
|751.60||752.80||1.20||2.07||Oxide Iron Formation|
|17GSE512||LL||231||-67||429644||7271516||638||457.30||458.30||1.00||1.25||Oxide Iron Formation|
|556.40||557.00||0.60||6.90||Oxide Iron Formation|
|584.60||587.10||2.50||1.40||Oxide Iron Formation|
|599.00||608.00||9.00||2.96||Oxide Iron Formation|
|Inc.||603.55||606.20||2.65||6.30||Oxide Iron Formation|
|17GSE513||LL||230||-69||429666||7271537||719||98.75||101.00||2.25||1.84||Silicate Iron Formation|
|104.25||105.05||0.80||1.56||Silicate Iron Formation|
|107.00||107.75||0.75||1.34||Silicate Iron Formation|
|577.55||584.25||6.70||1.11||Oxide Iron Formation|
|589.50||590.55||1.05||2.06||Oxide Iron Formation|
|606.30||612.50||6.20||2.05||Oxide Iron Formation|
|615.20||617.25||2.05||1.35||Oxide Iron Formation|
|618.90||627.20||8.30||6.52||Oxide Iron Formation|
|633.80||635.25||1.45||5.27||Quartz Porphyry Dyke|
|640.60||645.20||4.60||1.45||Oxide Iron Formation|
|649.60||651.55||1.95||1.20||Oxide Iron Formation|
|17GSE514||LL||231||-56||429739||7271499||8||Abandoned - NSV|
Note: LL = Llama, UM = Umwelt and CON = GNS\Convergence. NSV = No Significant Values
*** True Widths have not been determined, with the exception of hole 17GSE511B where true widths are estimated at >90% of drill interval***
In additional drilling, one drill-hole 17GSE515 to a depth of 227 m targeted the eastern end of the GNS\Convergence trend and intersected a short interval of iron formation with weak mineralization and alteration with no significant gold values. Drilling to a depth of 161 m, in one hole 17GSE514B was completed 80 m to the southeast of Llama Extension hole 17GSE513 with the purpose of further exploring a mineralized zone intersected near the top of the hole. No appreciable gold values were encountered in this drill hole. A geophysical survey was completed near the zone, and was extended to cover this target in the Spring. Surface mapping is planned for this summer.
Umwelt Vault Zone
As previously announced on May 23, 2017, drilling was completed at the Umwelt Vault Zone targeting a particularly high grade zone that could offer opportunities to positively impact project economics. Drill hole 17GSE511B returned an intersection of 16.86 g/t Au over 13.5 meters. Additional assays from this hole are presented in Table 1 above. Further follow up drilling at this target will be conducted during phase two of the program later this summer.
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, world class undeveloped assets in one of the world’s newest, politically stable mining jurisdictions: Nunavut, Canada.
In September, 2015, 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. At a US$1,150 gold price and a 0.80 exchange rate, the Study delivers a potential after tax internal rate of return of approximately 24.2% with an initial CAPEX of $415 million.
The Project is advancing through the environmental assessment process with final public hearings with the Nunavut Impact Review Board completed during May 31 – June 3, 2017 in Cambridge Bay.
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 cash and equivalents of C$43m at March 31, 2017.
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 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
375-555 Burrard Street, Two Bentall Centre
Vancouver, BC V7X 1M7
Tel 604 998-4175 Fax 604 998-1051
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