Sabina Provides Update on Nunavut Projects
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/27/12 -- Sabina
Gold & Silver Corp. (TSX:SBB) is pleased to provide the following
report on 2012 activities at Back River along with an update on
Xstrata Zinc Canada's ("Xstrata Zinc") Hackett River Project.
Back River Gold Project
In February 2012, the Company launched its biggest campaign at Back
River to date.
The objectives at Back River for 2012 were to continue to expand the
known resources at depth and along strike, to complete infill
drilling on the known deposits and to continue to look for new
discoveries on the Goose, George and other claim blocks. Significant
engineering and environmental work also comprised part of the work
completed this year all with the goal of supporting the upcoming Back
River pre-feasibility study ("PFS") and permitting phase.
The Nunavut work program for 2012 was comprised of a significant
drill program, facilitated from both camps at Goose and George. Also,
two new deep diamond drills were mobilized to Goose to test the
deeper G2 Zone at Umwelt for a total of eight drill holes in the
region in 2012.
Significant capital projects were undertaken at both camps including
construction of an all weather airstrip. Although construction of the
airstrip is not yet complete, even in its current stage of
construction it will enable a more efficient mobilization of fuel and
supplies to site in 2013.
Some of the highlights at Back River in 2012 include:
-- Completed a positive preliminary economic assessment ("PEA").
-- Completed 69,661 m of drilling including 23,801m of infill, 24,698 of
extension, 14,795 of new target drilling and 6,367 of geotech drilling.
-- Extended both Umwelt and Llama deposits 400 m to the south of previous
-- Identified several new opportunities to discover large open-pitable
-- Entered the permitting process by filing a project description with
relevant Nunavut authorizing agencies.
-- Engaged engineering team and commenced PFS.
-- Completed significant environmental baseline data collection to support
the permitting phase and PFS.
-- Constructed additional buildings and infrastructure at both George and
Goose camps to support larger field programs and
workforces in 2012 and
Currently work is focused on assessing all drill data from 2012 to
enable a new Back River resource calculation as well as completing a
high level strategic review of the PEA and relating trade off studies
to support the upcoming PFS.
Plans for 2013 include:
-- Updated resource calculation for Back River end of Q1, 2013.
-- A field program to support the PFS and ongoing exploration efforts;
-- Completion of a PFS in Q3, 2013.
-- Filing of a Draft Environmental Impact Statement by year end 2013.
-- All the while applying fiscal responsibility to preserve the strength of
the Company's balance sheet.
"We will have our work cut out for ourselves in 2013," said Rob
Pease, President & CEO. "We are fortunate to have an asset like Back
River that has a critical mass of good grade ounces to move towards
development. We expect the project will evolve as optimizations are
included in the PFS that were not contemplated in the PEA. Also, we
think it is important to continue to grow Back River by adding ounces
and finding new deposits and will include an exploration component to
our work program for 2013."
A more detailed 2013 fieldwork plan and budget is expected to be
announced early in the new year.
Xstrata Zinc's Hackett River Project
The high-grade zinc-silver Hackett River Project is located
approximately 50km from Sabina's flagship Back River gold project and
is envisaged as a 10-20,000 tonne per day open-pit and underground
operation with an expected mine life of over 15 years. Sabina holds a
significant silver production royalty on Hackett River comprising
22.5% of the first 190 million ounces of silver produced and 12.5% of
all the silver produced thereafter. Sabina is pleased to provide the
following update on the project.
Xstrata Zinc's 2012 Hackett River Accomplishments:
-- Completed 51,000 m of drilling.
-- Conducted environmental and Socio-Economic baseline studies - mostly
-- Engineering and pre-feasibility study commenced in September 2012 -
Engaged Hatch Canada Ltd.
-- Conducted preliminary assessment of tailings, waste rock, airstrip and
new exploration camp locations.
"We are continuing with our exploration activities at the Hackett
River site and view the property as one of our leading potential
projects in Canada," said Neil Wardle, Chief Operating Officer,
Xstrata Zinc Canada.
Rob Pease, President & CEO of Sabina, added: "We are pleased to see
such significant progress at Hackett River which will help create
value for Sabina shareholders through continued de-risking of our
silver royalty. We look forward to working in close cooperation with
Xstrata Zinc and local stakeholders as we endeavour to create
long-lasting employment and economic development opportunities
together through our efforts at Back River and Hackett River."
SABINA GOLD & SILVER CORP.
Sabina Gold & Silver Corp. is an emerging precious metals developer
with district scale, world class assets in one of the world's newest,
most politically stable mining jurisdictions: Nunavut, Canada.
Sabina's primary assets, all located in Nunavut, consist of: the Back
River Gold Project, currently in the pre-feasibility and permitting
phase; the Wishbone Claims, a vastly prospective grass roots project;
and the Hackett River Silver Royalty, a silver production royalty on
Xstrata Zinc's Hackett River project comprising 22.5% of the first
190 million ounces produced and 12.5% of all the silver produced
thereafter. The Company had cash of $129.1 million at September 30,
2012 and plans to end the year with approximately $118 million in the
All news releases and further information regarding drill results for
the 2012 campaign can be found on the Company's website at
www.sabinagoldsilver.com or on SEDAR at www.sedar.com.
Forward Looking Statements
Statements relating to mineral resource estimates and drilling
results at Llama, Umwelt, George and Goose and the expected impact of
these mineral resources 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 wor
k 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
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, change.
This news release has been authorized by the undersigned on behalf of
Sabina Gold & Silver Corp.
Rob Pease, President & CEO
930 West 1st Street, Suite 202
North Vancouver, BC V7P 3N4
Sabina Gold & Silver Corp.
1 888 648-4218
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