Includes 5.81 g/t Au over 34.60m from drill hole 18GSE558W2 and 5.89 g/t Au over 12.70m including 14.83 g/t Au over 4.10m and 7.45 g/t Au over 4.20m from drill hole 18GSE558W1
VANCOUVER, British Columbia, Nov. 19, 2018 (GLOBE NEWSWIRE) — Sabina Gold & Silver Corp (SBB.T), (“Sabina” or the “Company”) is pleased to announce continued strong gold intersections from the Nuvuyak discovery at its 100% owned Back River gold project (“Back River” or the “Project”) in Nunavut Canada.
Drilling results continue to demonstrate that Nuvuyak has the potential to be a significant new discovery at Back River within the foot print of the currently planned mine infrastructure. The Nuvuyak discovery with drill hole, 18GSE545 which returned 11.58 g/t over 39.50m (see press release August 20, 2018) and 18GSE558 which returned 16.39 g/t over 13.20 meters, (see press release October 22, 2018) is now informed by sectional drilling results from two wedge cuts, 18GSE558W1, and W2 and an overcut with drill hole 18GSE556C.
Results confirm the strength of the gold system and importantly, clearly define an anticlinal and structurally thickened oxide iron formation sequence that is of the type preferential for development of large tonnage deposits at Back River. See figure 2 below.
Table 1. Highlighted results from drill holes 18GSE558W1 and 18GSE558W2
| Hole Id | Area | Azi/Dip | Easting UTM |
Northing UTM |
Depth | From (m) |
To (m) |
Length (m) |
Au (g/t) |
Lithology |
| 18GSE558W1 | NUV | 223/-74 | 433539 | 7269637 | 848.00 | 731.80 | 744.50 | 12.70 | 5.89 | Iron Formation |
| incl. | 740.40 | 744.50 | 4.10 | 14.83 | Iron Formation | |||||
| 748.45 | 752.65 | 4.20 | 7.45 | Iron Formation | ||||||
| incl. | 748.45 | 749.40 | 0.95 | 26.44 | Iron Formation | |||||
| 18GSE558W2 | NUV | 223/-74 | 433539 | 7269637 | 791.00 | 703.65 | 738.25 | 34.60 | 5.81 | Iron Formation |
| incl. | 705.55 | 707.35 | 1.80 | 40.98 | Iron Formation | |||||
| and | 718.30 | 719.05 | 0.75 | 10.18 | Iron Formation | |||||
| and | 726.20 | 728.85 | 2.65 | 11.39 | Iron Formation | |||||
| and | 734.60 | 735.40 | 0.80 | 17.12 | Iron Formation |
Bruce McLeod, President and CEO stated “The Nuvuyak discovery continues to hold all the geologic attributes that we see in our large tonnage deposits at Back River. The potential for upside at Nuvuyak is significant in that it is open in all directions within a gold structure or corridor that we believe is multi kilometers in strike. We are excited about this evolving exploration success story and I look forward to the future advancement of this discovery as we continue to evaluate results and advance the geologic model. Our recent exploration success at Umwelt Vault, Llama Extension and now Nuvuyak clearly demonstrate that Back River is emerging as a world class gold district.”
Technical Information
Drill holes 18GSE558W1 (Wedge1) and 18GSE558W2 (Wedge2) are wedge holes, which started at between 305m and 356m deep in the parent hole 18GSE558 (Parent). Much like its parent, Wedge1 intersected the interpreted limbs of the antiform, and achieved a 25m down plunge separation from the Parent. Drill intercepts include 5.89 g/t Au over 12.70m including 14.83 g/t Au over 4.10m and 7.45 g/t over 4.20m in the East Limb, and 41.56 g/t Au over 1.30m in the West Limb. Wedge2 achieved a much higher separation of 55m which allowed for a cut through the nose of the Lower Iron Formation, and intercepts of 5.81 g/t Au over 34.60m including 40.98 g/t Au over 1.80m and 11.39 g/t Au over 2.65m. Intersections for both Wedge 1 and 2 are approximately 65m southeast of the Discovery intercept in 18GSE545 and thus are up-plunge of it.
18GSE556C lifted higher than intended and drilled above the intended target, crossing intermittent iron formation and argillite along the top of the Lower Iron Formation antiformal structure, an intersection approximately 100m above and 35m down plunge of Discovery hole 18GSE545. Gold intercepts in this overcut include 4.14g/t Au over 2.10m and 4.39 g/t Au over 4.30m.
Additional drill hole results from a down plunge portion of the Nuvuyak structure are pending assays and will be released along with results from addition project target areas before year end.
Table 2. Significant Nuvuyak results from drill holes 18GSE558W1, 18GSE558W2 & 18GSE556C
| Hole Id | Area | Azi/Dip | Easting UTM |
Northing UTM |
Depth | From (m) |
To (m) |
Length (m) |
Au (g/t) |
Lithology |
| 18GSE545** | NUV | 57/-65 | 432909 | 7269346 | 974.30 | 942.00 | 951.00 | 9.00 | 1.77 | Iron Formation |
| 18GSE556C | NUV | 226/-70 | 433522 | 7269702 | 851.00 | 242.50 | 246.60 | 4.10 | 2.25 | Iron Formation |
| 714.50 | 716.60 | 2.10 | 4.14 | Iron Formation | ||||||
| 724.50 | 728.80 | 4.30 | 4.39 | Iron Formation | ||||||
| 735.80 | 736.90 | 1.10 | 2.54 | Iron Formation | ||||||
| 746.40 | 749.00 | 2.60 | 1.06 | Iron Formation | ||||||
| 18GSE558W1 | NUV | 223/-74 | 433539 | 7269637 | 848.00 | Results Pending | ||||
| 688.05 | 689.00 | 0.95 | 3.56 | Iron Formation | ||||||
| Table 2. Continued | ||||||||||
| Hole Id | Area | Azi/Dip | Easting UTM |
Northing UTM |
Depth | From (m) |
To (m) |
Length (m) |
Au (g/t) |
Lithology |
| 727.05 | 728.15 | 1.10 | 1.72 | Iron Formation | ||||||
| 731.80 | 744.50 | 12.70 | 5.89 | Iron Formation | ||||||
| incl. | 740.40 | 744.50 | 4.10 | 14.83 | Iron Formation | |||||
| 748.45 | 752.65 | 4.20 | 7.45 | Iron Formation | ||||||
| incl. | 748.45 | 749.40 | 0.95 | 26.44 | Iron Formation | |||||
| 792.90 | 794.20 | 1.30 | 41.56 | Iron Formation | ||||||
| 18GSE558W2 | NUV | 223/-74 | 433539 | 7269637 | 791.00 | Results Pending | ||||
| 681.20 | 682.90 | 1.70 | 1.72 | Iron Formation | ||||||
| 688.90 | 689.75 | 0.85 | 2.25 | Iron Formation | ||||||
| 692.60 | 700.50 | 7.90 | 1.71 | Iron Formation | ||||||
| 703.65 | 738.25 | 34.60 | 5.81 | Iron Formation | ||||||
| incl. | 705.55 | 707.35 | 1.80 | 40.98 | Iron Formation | |||||
| and | 718.30 | 719.05 | 0.75 | 10.18 | Iron Formation | |||||
| and | 726.20 | 728.85 | 2.65 | 11.39 | Iron Formation | |||||
| and | 734.60 | 735.40 | 0.80 | 17.12 | Iron Formation | |||||
| 743.00 | 745.00 | 2.00 | 1.23 | Iron Formation | ||||||
| Results Pending | ||||||||||
*Intersection widths are drilled thicknesses and true widths are unknown
**Additional results from previously released drill hole 18GSE545
Nuvuyak Discovery
The Nuvuyak gold zone discovery is located approximately 850 meters along strike to the west of the Goose Main deposit (Proven open pit Reserve of 3,266,000 tonnes grading 5.01 g/t totalling 526,000 ounces and an additional Probable open pit Reserve of 1,185,000 tonnes grading 4.98 g/t totalling 190,000 ounces) and approximately 1,000 meters down plunge. The mineralization is hosted within a polyphase folded sequence of the Back River lower iron formation stratigraphy and coincident gold structures that are interpreted as being a significant component of the major mineralizing horizon(s) at the Goose Property. Drilling during 2018 provided further evidence that the felsic dyke at Nuvuyak and Hook is a continuation of the felsic dyke which intrudes parallel to the axial plane of the fold at Goose Main. Felsic dykes at Back River are interpreted to be spatially coincident with major mineralizing structures. In addition, the geometry of the antiform at Nuvuyak is very similar to that of Goose Main, with the folds being nearly isoclinal with a significant thickening in the fold nose. Mineralization consists of arsenopyrite, pyrrhotite and abundant visible gold over broad intercepts that are associated with quartz veining and moderate to strong amphibole and chlorite alteration.
Early interpretations of the Nuvuyak zone and its similarities to the high-grade Umwelt Vault zone recognize the potential for a large-scale mineral trend extending from Goose Main to Umwelt Vault that may transect large portions of the central Goose property, much of which is largely underexplored.
Qualified Persons
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. SGS 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 with approximately C$39.4million in cash and equivalents 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 “Study”). At a US$1,150 gold price and a 0.80 (US$:C$) 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 received its final Project Certificate on December 19, 2018 and its Type A Water License in November 2017. The Project now has all key 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
[email protected]
Forward Looking Information
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 exploration results and 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, 2017 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
Suite 1800 – Two Bentall Centre
555 Burrard Street
Vancouver, BC V7X 1M7
Tel 604 998-4175 Fax 604 998-1051
http://www.sabinagoldsilver.com
Photos accompanying this announcement are available at:
http://www.globenewswire.com/NewsRoom/AttachmentNg/d4288b2a-9213-4158-91e4-4a2f535bbdea
http://www.globenewswire.com/NewsRoom/AttachmentNg/6968e35b-e6b9-4003-bef3-ab6d31115475
