Sabina Silver Announces Final 2008 Jo Zone Results
Jo Zone Hole SHR-08-40 reporting 284.3 g/t Ag, 5.4% Zn, 2.6% Cu, over 30.00 m including 756.8 g/t Ag and 13.88% Cu over 4.55 m
Hackett River Exploration Review Indicates Excellent Potential for the Discovery of Additional Resources
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/06/08 -- SabinaSilver Corp. (TSX VENTURE: SBB) is pleased to announce additionalfavourable results from the 2008 drilling at the recently defined JoZone at the Hackett River Project in Nunavut Canada. Also, following arecent trip to site by an independent consulting geologist withsignificant applied Volcanic Massive Sulphide (VMS) experience,opportunities for further exploration at Hackett River have beenidentified.
Hackett River is one of the largest undeveloped silver - zincdeposits of its type in the world with indicated open pit andunderground mineable resources totalling 40.1 million tonnes grading4.72% zinc, 147.9 gm/t silver, 0.34% copper, 0.58% lead and 0.33 gm/tgold and an additional inferred open pit and underground mineableresource totalling 8.8 million tonnes grading 3.89% zinc, 153.1 gm/tsilver, 0.28% copper, 0.55% lead and 0.31 gm/t gold. These resources donot include Jo Zone mineralization. Hackett River's size has reachedthe critical mass needed to move the project towards development. TheProject is now undergoing a pre-feasibility study as a result of apositive Preliminary Economic Assessment (PEA) by Wardrop Engineeringannounced in 2007.
Following Sabina's acquisition of Hackett River in 2004 most of thework completed has focused on resource delineation and engineeringstudies on the known deposits with only a small portion of the effortsdirected toward the exploration potential of the property, with theexception of the work on the Jo Zone. In September 2008 a site visitwas conducted with an independent consulting geologist with significantapplied (VMS) experience. The purpose of the visit was to reviewexisting data and comment on the exploration potential of the property,with emphasis on expanding existing deposits and to evaluate thepotential for new discoveries. Emphasis was placed on the near surfacepotential as it would have the highest potential impact on projecteconomics by enabling a higher development throughput.
"Significant new opportunities at Hackett River have presentedthemselves over the last few weeks," said Tony Walsh, President &CEO. "The recent visit to site to evaluate opportunities to grow theHackett River Project has resulted in some very positive impressionsabout the potential for increased resources. In particular, we areintrigued by the high copper values being encountered near surface inthe Jo Zone. Hole SHR08-40 noted above, returned 2.6% copper and 284.3gm/t silver over 30.0 meters at a vertical depth of only 20 metersincluding 4.55 meters of 756.8 g/t Ag and 13.88% Cu. We are currentlyplanning a work program to follow up on this development."
JO ZONE RESULTS
The Jo Zone is located only 250 meters southeast of the Main Zoneand both zones are approximately 3 kilometres from the proposed HackettRiver mill site as defined in the PEA.
Last year's drilling at the Jo Zone demonstrated a potentialsatellite deposit that should add to the overall ore tonnage at HackettRiver. The Jo Zone mineralization has returned higher grade nearsurface intercepts with good continuity. Of particular interest is thedefinition of a higher grade copper rich zone which plunges toward theMain Zone mineralization. In 2008, the objective at the Jo Zone was todrill the deposit sufficiently so that its continuity can be determinedand its resources included in future feasibility studies for theproject.
2008 drilling and sampling has been completed. In 2008, 43 drillholes were completed at Hackett River, for a total of 5,325 m. Of these26 were drilled for geotechnical purposes. The results of ten 2008drill holes at the Jo Zone were reported in previous news releases. Thefollowing table comprises highlights of the remaining six Jo Zoneholes. Assay summaries for the six new holes are appended to this newsrelease.
Drilling continues to indicate an overall robust grade and thecontinuity of mineralization in the Jo Zone. This type of continuity inshallow depths offers potential open pit extraction, which couldbolster the economics of the project. The Jo Zone is still open todepth and along strike to the southeast.
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Highlights Jo Zone Drilling
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Hackett River Project - Sabina Silver Corporation
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Jo Zone
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From To Interval Zn Ag Cu Pb Au
Hole ID (m) (m) (m) (%) (g/T) (%) (%) (g/T)
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SHR-08-39 25.40 30.80 5.40 18.37 235.3 0.13 1.47 0.04
incl. 26.90 29.30 2.40 40.29 483.8 0.20 3.23 0.06
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SHR-08-40 13.35 43.35 30.00 5.40 284.3 2.58 0.61 0.24
incl. 13.35 30.60 17.25 6.96 235.1 0.22 0.91 0.18
and 34.55 43.35 8.80 4.18 501.6 8.32 0.26 0.45
and 38.80 43.35 4.55 3.93 756.8 13.88 0.04 0.68
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SHR-08-41 31.95 39.65 7.70 18.51 413.1 0.06 1.61 0.12
incl. 33.85 38.35 4.50 31.48 486.8 0.06 2.49 0.07
and 34.40 37.55 3.15 37.12 548.4 0.05 2.81 0.07
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SHR-08-42 27.05 39.60 12.55 4.78 379.5 0.27 1.47 0.37
and 49.15 65.00 15.85 6.74 122.6 1.26 0.20 0.17
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Geological interpretation is ongoing and drill core widths reported above are estimated to be 78 to 98% of true widths.
EXPLORATION REVIEW GENERATES NEW OPPORTUNTIES
It has been noted that each significant phase of historicalexploration done on the Hackett River Project has resulted in thediscovery of significant new or additional resources indicating thepotential for future additions to the resource base as well as thepotential for new deposits in the Hackett River system.
Technical impressions resulting from the recent site visit haveidentified a number of showings and a significant number of untestedgeophysical targets that reside in highly productive stratigraphy. Allof the currently defined deposits occur within a 5km by 4km block andthey are spatially associated with the top of the volcanic cycle.
Impressions of the Jo Zone resulting from the recent site visitindicate opportunities to look for new resources. The primarymineralization at the Jo Zone consists of two sub-zones which areclearly zoned along the prospect's horizontal width with strong coppermineralization occurring along its western flank and moderate to strongzinc mineralization in the central portion of the zone. The nearsurface presence of significant copper mineralization could have animmediate impact on the resource and the future economics of theproject development. In addition, the zone appears to plunge to thewest where there is a reasonable possibility that it could join at somepoint with the eastern limb of the Main zone deposit. Further work iswarranted to explore these opportunities at the Jo Zone.
Sabina continues to review its data to improve it's understanding ofthe internal facies changes, synvolcanic structural controls, metalzoning, alteration variables and other potential horizons that mayoccur in the stratigraphic footwall. There is evidence that thesefeatures exist within the productive block and it is imperative thatfurther work be done to better understand these relationships.
Gold mineralization has been encountered on the western end of theproperty where structural complexity is highest. Further compilationand targeting is required to evaluate this mineralization to determineits impact on the project.
Compilation and analysis is underway to determine a follow-up exploration program.
SABINA SILVER CORPORATION is a Canadian public mineral explorationand development company with assets at the Hackett River silver-zincproject in Nunavut, the Del Norte project in the Stewart-Eskay CreekMining District and several projects in the Red Lake gold camp. TheCompany is well capitalized with $44 million in cash and marketablesecurities at June 30, 2008 with no debt. For further information onthe Company, please see the corporate website at www.sabinasilver.com.
Quality Assurance
A system of sample standards, blanks and duplicates were inserted aspart of the Company's QA/QC analytical stream processed at ALS Chemex's(Vancouver, BC) accredited laboratory. Mr. Harvey Klatt, M.Sc., P.Geo.and a Qualified Person in accordance with NI 43-101 has reviewed thedrilling results referred to above and attached and has approved theirdissemination.
Forward Looking Statements
Statements relating to exploration and pre-feasibility work at theHackett River Project and Jo Zone and the expected results of this workare forward-looking statements within the meaning of securitieslegislation of certain Provinces in Canada. Forward looking statementsare statements that are not historical facts and are generally, but notalways, identified by the words "expects", "plans", "anticipates","believes", "intends", "estimates", 'projects", "potential" and similarexpressions, or that events or conditions "will", "would", "may","could" or "should" occur. Information inferred from the interpretationof drilling results may also be deemed to be forward lookingstatements, as it constitutes a prediction of what might be found to bepresent when and if a project is actually developed. Theseforward-looking statements are subject to a variety of risks anduncertainties which could cause actual events or results to differmaterially from those reflected in the forward-looking statements,including, without limitation: risks related to fluctuations in metalprices; uncertainties related to raising sufficient financing to fundthe planned work in a timely manner and on acceptable terms; changes inplanned work resulting from weather, logistical, technical or otherfactors; the possibility that results of work will not fulfillexpectations and realize the perceived potential of the Company'sproperties; risk of accidents, equipment breakdowns and labour disputesor other unanticipated difficulties or interruptions; the possibilityof cost overruns or unanticipated expenses in the work program; therisk of environmental contamination or damage resulting from Sabina'soperations and other risks and uncertainties, including those describedin Sabina's Annual Report for the year ended December 31, 2007.
Forward-looking statements are based on the beliefs, estimates andopinions of Sabina's management on the date the statements are made.Sabina undertakes no obligation to update these forward-lookingstatements should management's beliefs, estimates or opinions, or otherfactors, should change.
This news release has been authorized by the undersigned on behalf of Sabina Silver Corporation.
Tony Walsh, President & CEO
To view accompanying maps and table, please click on the following link: https://media3.marketwire.com/docs/SBBMapsandTable.pdf