Sabina Gold & Silver Corp (SBB.T/SGSVF.OTCQX), (“Sabina”
or the “Company”) is pleased to announce further high grade assay
results from drilling of the upper portions of the high-grade
corridor at the Umwelt Underground resource (the “V2 Zone”) on its
100%-owned Back River Gold Project (“Back River” or the “Project”)
in Nunavut, Canada.
Internal studies conducted earlier this year
suggest that mining higher-grade underground material at the
beginning of the mine life could have a significant positive impact
on project economics by increasing gold production in the early
years. Drilling was designed to delineate and detail the nature of
the high-grade structure at Umwelt, which has never been discretely
targeted. During the 2020 field program, nine holes were drilled,
proving the hypothesis that additional high-grade corridors exist
between the Vault Zone at depth and the bottom of the proposed open
pit at Umwelt.
This year’s drilling focused on a zone directly
under the proposed Umwelt open pit (V2 Zone) at a depth that ranges
from 135m to 285m below surface, over a plunge extent of
approximately 300 m. All seven drill holes targeting this zone
returned exceptional widths of gold mineralization, up to 2-3 times
the average grade of the Umwelt underground reserve. The V2 Zone is
very similar to the Vault Zone, further supporting the concept of
additional high-grade underground corridors within the Umwelt
deposit. These results will be incorporated into an updated
Feasibility Study expected to be released in the 1st Quarter of
2021.
To further explore the high-grade corridor at
Umwelt, the Company is moving forward with an underground
exploration ramp that can facilitate further exploration drilling
as well as provide for bulk sampling. The exploration ramp could
provide early access to continue exploring the V2 Zone with
approximately 1500m of ramp development. The initial surface work
and mobilization of equipment required to support the exploration
ramp is underway, with collaring of the decline expected in early
2021.
These assay results are the final three holes
from the V2 Zone and include: hole 20GSE581 which returned 16.59
g/t over 20.55 m hole 20GSE582 which returned 14.78 g/t over 22.75
m and hole 20GSE584 which returned 14.78 g/t over 24.80 m (Figure
1). One additional drill hole 20GSE576 targeted mineralization
located 200 m below the V2 zone with results as described in table
3.0.
Highlights from previous drilling at V2 as
reported includes 15.15 g/t over 19.40 m in hole 20GSE571 (see news
release August 20, 2020) and 19.89 g/t over 32.20 m in drill hole
20GSE575C (see news release September 3, 2020). See figure 1 and
summary table 2.
“The consistent widths and high grades returned
to date from our V2 Zone highlight and confirm upside to the Umwelt
underground resource,” said Bruce McLeod, President & CEO.
“this could enable an optimization to our mine sequencing,
enhancing the economics of an already robust project as well as
provide the opportunity to increase the production profile in the
early years of the mine life. The Company intends to incorporate
these results into an updated Feasibility Study to be completed in
Q1, 2021. Currently Sabina has commenced civil works to prepare for
collaring of the exploration ramp next spring for the purpose of
accelerating additional underground drilling to further define
opportunities at the Umwelt underground.”
Table 1.0 – Selected Significant Intercepts from
2020 Umwelt Drilling Including New Results from Drill Holes
20GSE581, 20GSE582 and 20GSE584
Hole ID |
Area |
Azimuth & Dip |
EastingUTM |
Northing UTM |
Hole Depth (m) |
From(m) |
To(m) |
Length(m) |
Au (g/t) |
Au (g/t) Capped |
Lithology |
20GSE581 |
UM |
230/-48 |
429969 |
7270911 |
212 |
173.30 |
176.65 |
3.35 |
26.89 |
n/a |
Iron Formation |
incl. |
|
|
|
|
|
173.30 |
174.30 |
1.00 |
48.30 |
n/a |
Quartz Vein |
|
|
|
|
|
|
180.20 |
200.75 |
20.55 |
20.02 |
16.59 |
Iron Formation |
incl. |
|
|
|
|
|
181.15 |
182.35 |
1.20 |
29.70 |
n/a |
Iron Formation |
and |
|
|
|
|
|
187.50 |
188.55 |
1.05 |
44.80 |
n/a |
Iron Formation |
and |
|
|
|
|
|
190.80 |
198.00 |
7.20 |
38.56 |
28.77 |
Iron Formation |
incl. |
|
|
|
|
|
192.40 |
193.15 |
0.75 |
174.00 |
80.00 |
Iron Formation |
20GSE582 |
UM |
229/-56 |
430182 |
7270849 |
356 |
Assays Pending |
|
|
|
|
|
|
312.25 |
335.00 |
22.75 |
23.52 |
14.78 |
Iron Formation |
incl. |
|
|
|
|
|
327.45 |
335.00 |
7.55 |
67.45 |
41.13 |
Iron Formation |
incl. |
|
|
|
|
|
330.55 |
334.10 |
3.55 |
130.53 |
74.56 |
Iron Formation |
20GSE584 |
UM |
229/-57 |
430214 |
7270803 |
380 |
Assays Pending |
|
|
|
|
|
|
319.45 |
344.25 |
24.80 |
14.78 |
n/a |
Iron Formation & Felsic Dyke |
incl. |
|
|
|
|
|
320.50 |
321.65 |
1.15 |
20.40 |
n/a |
Iron Formation |
and |
|
|
|
|
|
327.90 |
328.85 |
0.95 |
24.10 |
n/a |
Iron Formation |
and |
|
|
|
|
|
334.10 |
344.25 |
10.15 |
25.38 |
n/a |
Iron Formation |
incl. |
|
|
|
|
|
336.85 |
341.65 |
4.80 |
38.92 |
n/a |
Iron Formation |
|
|
|
|
|
|
Assays Pending |
^ True
widths of the intercepts reported are estimated between 75% and
85%. |
* Assay capping
for Umwelt Deposit at 80 g/t Au. |
** See table at
end of press release for included zones. |
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/4788ae9a-1869-4203-a327-4713ea339819
Table 2.0 – Summary of 2020 Main Significant
Intercepts Through the V2 Zone
Hole ID |
From(m) |
To(m) |
Length(m) |
Au (g/t) |
Au (g/t) Capped |
Lithology |
Gram x Metre |
Gram x Metre (capped) |
True Width Estimates (m) |
20GSE571 |
228.60 |
248.00 |
19.40 |
16.28 |
15.15 |
Iron Formation |
316 |
294 |
14.55-16.49 |
20GSE572 |
345.50 |
372.95 |
27.45 |
5.01 |
n/a |
Iron Formation |
138 |
n/a |
20.59-23.33 |
20GSE573 |
254.00 |
278.75 |
24.75 |
7.50 |
n/a |
Iron Formation |
186 |
n/a |
18.56-21.04 |
20GSE575C |
279.70 |
311.90 |
32.20 |
20.18 |
19.89 |
Iron Formation |
650 |
640 |
24.15-27.37 |
20GSE581 |
180.20 |
200.75 |
20.55 |
20.02 |
16.59 |
Iron Formation |
411 |
341 |
15.41-17.47 |
20GSE582 |
312.25 |
335.00 |
22.75 |
23.52 |
14.78 |
Iron Formation |
535 |
336 |
17.06-19.34 |
20GSE584 |
319.45 |
344.25 |
24.80 |
14.78 |
n/a |
Iron Formation & Felsic Dyke |
366 |
n/a |
18.60-21.08 |
^ True
widths of the intercepts reported are estimated between 75% and
85%. |
|
* Assay capping
for Umwelt Deposit at 80 g/t Au. |
|
Umwelt Underground and High-Grade Corridor
Drilling
Sabina’s focus on structural studies over the
last three years has yielded strong exploration opportunities
across the Goose Property and driven positive resource optimization
and growth at Umwelt. As part of this focused approach, drilling in
2020 was committed to better define the continuity of
higher-than-average-grade potential within the Umwelt underground
over approximately 815 m of plunge length that extends north from
the Vault zone towards the boundaries of the Umwelt Open Pit
(Figure 1).
Mineralization intersected by drill holes
20GSE581, 20GSE582 and 20GSE584 continues to demonstrate the
exceptional tenor of mineralization associated with the Umwelt gold
structures and is an excellent example of many of the best features
characterizing Back River gold zones. Iron formation consists of
moderate to strong chlorite, actinolite and silica alteration with
pervasive quartz veining hosting common sulphides including
pyrrhotite and arsenopyrite occurring heavily throughout the zone.
These three drill holes are excellent examples of the robust
mineralization style that includes heavy sulphidation of the host
rock with exceptional grade occurring proximal to the lower contact
of the iron formation units. Rheologic contrast of the stratigraphy
and high-iron content of the host horizon are interpreted as
favourable features in establishing high quality deposits at Back
River. Visible gold was observed in all holes targeting the Umwelt
underground V2 Zone reported to date.
Drilling has now completed with two phases at
Umwelt through nine holes supporting the objective.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/f8fb6af3-3388-411f-a27e-e3d1b7503beb
Update on Additional Exploration Targeting and
Geophysics Programs
Upon receipt of the final Versatile Time Domain
Electromagnetic (“VTEM”) data collected at the Goose property and
other regional areas as part of this year’s field program, Sabina
will undertake additional forward modelling and rigorous data
review in preparation for additional exploration drilling in 2021.
With the help of experts, this new dataset will be studied at known
deposits to properly characterize physical properties of
mineralization and key structures. This characterization will then
play an important role in target prioritization and evaluation of
regional areas.
Exploration drilling has also been completed at
several high-priority targets however results are pending at this
time.
Table 3.0 –Significant Intercepts from Select
Drill Holes Since Sept 3rd Press Release
Hole ID |
Area |
Azimuth & Dip |
EastingUTM |
Northing UTM |
Hole Depth (m) |
From(m) |
To(m) |
Length(m) |
Au (g/t) |
Au (g/t) Capped |
Lithology |
20GSE576 |
UM |
218/-70 |
430325 |
7270690 |
479 |
409.30 |
410.00 |
0.70 |
2.73 |
n/a |
Iron Formation |
|
|
|
|
|
|
422.10 |
423.00 |
0.90 |
58.00 |
n/a |
Iron Formation |
|
|
|
|
|
|
427.15 |
428.00 |
0.85 |
1.70 |
n/a |
Felsic Dyke |
|
|
|
|
|
|
430.00 |
446.90 |
16.90 |
2.21 |
n/a |
Iron Formation |
incl. |
|
|
|
|
|
432.40 |
434.00 |
1.60 |
6.12 |
n/a |
Iron Formation |
and |
|
|
|
|
|
440.55 |
441.60 |
1.05 |
6.57 |
n/a |
Iron Formation |
20GSE581 |
UM |
230/-48 |
429969 |
7270911 |
212 |
173.30 |
176.65 |
3.35 |
26.89 |
n/a |
Iron Formation |
incl. |
|
|
|
|
|
173.30 |
174.30 |
1.00 |
48.30 |
n/a |
Quartz Vein |
|
|
|
|
|
|
180.20 |
200.75 |
20.55 |
20.02 |
16.59 |
Iron Formation |
incl. |
|
|
|
|
|
181.15 |
182.35 |
1.20 |
29.70 |
n/a |
Iron Formation |
and |
|
|
|
|
|
187.50 |
188.55 |
1.05 |
44.80 |
n/a |
Iron Formation |
and |
|
|
|
|
|
190.80 |
198.00 |
7.20 |
38.56 |
28.77 |
Iron Formation |
incl. |
|
|
|
|
|
192.40 |
193.15 |
0.75 |
174.00 |
80.00 |
Iron Formation |
20GSE582 |
UM |
229/-56 |
430182 |
7270849 |
356 |
Assays Pending |
|
|
|
|
|
|
312.25 |
335.00 |
22.75 |
23.52 |
14.78 |
Iron Formation |
incl. |
|
|
|
|
|
327.45 |
335.00 |
7.55 |
67.45 |
41.13 |
Iron Formation |
incl. |
|
|
|
|
|
330.55 |
334.10 |
3.55 |
130.53 |
74.56 |
Iron Formation |
|
|
|
|
|
|
339.40 |
341.50 |
2.10 |
5.91 |
n/a |
Greywacke |
|
|
|
|
|
|
347.10 |
347.80 |
0.70 |
1.78 |
n/a |
Greywacke |
20GSE584 |
UM |
229/-57 |
430214 |
7270803 |
380 |
Assays Pending |
|
|
|
|
|
|
319.45 |
344.25 |
24.80 |
14.78 |
n/a |
Iron Formation & Felsic Dyke |
incl. |
|
|
|
|
|
320.50 |
321.65 |
1.15 |
20.40 |
n/a |
Iron Formation |
and |
|
|
|
|
|
327.90 |
328.85 |
0.95 |
24.10 |
n/a |
Iron Formation |
and |
|
|
|
|
|
334.10 |
344.25 |
10.15 |
25.38 |
n/a |
Iron Formation |
incl. |
|
|
|
|
|
336.85 |
341.65 |
4.80 |
38.92 |
n/a |
Iron Formation |
|
|
|
|
|
|
Assays Pending |
^ True
widths of the intercepts reported are estimated between 75% and
85%. |
* Assay capping
for Umwelt Deposit at 80 g/t Au. |
Qualified Persons
The Qualified Person as defined by NI 43-101 as
pertains to the Back River Project, is James Maxwell, Director of
Exploration, 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 ALS
Global laboratories located in Vancouver, 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. ALS Global quality systems conform to
requirements of ISO/IEC Standard 17025 guidelines and meets assay
requirements outlined for NI 43-101.
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 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).
The Project received its final Project
Certificate on December 19, 2017. The Project received its Type A
Water License on November 14, 2018 and its listing to enable
deposition of tailings on Schedule 2 of the Metals and Diamond
Mining Effluent Regulations on June 25, 2020. The Company is now in
receipt of all major 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 our belief as to the extent, results and
timing of and various studies relating to engineering studies,
infrastructure improvement activities, exploration results and
permitting and licensing outcomes. 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
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, 2019 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 & CEOSuite 1800 – Two
Bentall Centre555 Burrard StreetVancouver, BC V7X 1M7Tel 604
998-4175 Fax 604
998-1051http://www.sabinagoldsilver.com
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