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
drilling.
-- Identified several new opportunities to discover large open-pitable
deposits.
-- 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
beyond.
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
completed
-- 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 treasury.
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 work
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 31, 2011.
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
Contacts: Sabina Gold & Silver Corp. Nicole Hoeller
Vice-President, IR 1 888 648-4218nhoeller@sabinagoldsilver.com
www.sabinagoldsilver.com
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