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Sabina Silver Corporation: Sabina Silver Announces Significant New Gold Discovery Near the Goose Lake Gold Deposit

^{Published on 2009-10-07 08:37:36 - Market Wire}
 

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 7, 2009) - Sabina Silver Corporation (TSX VENTURE:SBB) announced today initial results of a new discovery from the 2009 summer drilling campaign on its 100% owned Back River project in Nunavut, Canada.

BACK RIVER

The Back River Project includes the Goose Lake gold deposit, which currently hosts 1.57 million tonnes grading 11.9 g/t Au for a contained indicated resource of 603,000 ounces of gold and an additional 1.83 million tonnes grading 9.2 g/t Au for a contained inferred resource of 295,000 inferred ounces of gold. Significant exploration opportunities to find more, good grade, open-pitable gold ounces were identified and a target set to identify the potential to add 500,000 ounces on the Goose property.

As the Back River acquisition was not completed until June, 2009, only a limited program could be carried out on the project this summer. The summer campaign focused on drilling around Goose Lake and some of this work has resulted in the discovery of the new Echo Zone.

"We are very excited about this new zone," said Tony Walsh, President & CEO of Sabina Silver Corp. "Besides validating our exploration strategy, this is a large step forward in our initiative to identify additional ounces of gold in a new zone that is good grade, close to surface and proximal to the existing resource at Goose Lake."

Echo Zone

Drilling commenced at Goose Lake in July 2009 testing a number of priority targets that had geophysical and geological similarities with the Goose deposit.

The newly identified Echo Zone sits approximately 2000 meters from the existing Goose Lake deposit in a broad zone of thick folded iron formation units that have been strongly altered to the extent that the magnetic signature of the iron formation has been washed out. The large 2 by 3 km target area has had no prior drilling.

It was immediately apparent that the Echo Zone displayed the same geological, structural and mineralization style as the Goose Lake deposit. A total of six holes have been collared in the zone of which assays for three of the holes are currently available. The remaining three holes encountered similar mineralization and veining and assays are pending.

The results of the first three holes include hole 09GSE08 which returned 8.57 g/t Au over 6.05 meters. Hole 09GSE09, drilled approximately 75 meters below hole 09GSE08, returned 5.22 g/t Au over 8.60 meters including 8.29 g/t Au over 4.95 meters. Hole 09GSE26, 50 meters to the east and slightly deeper than hole 09GSE09, returned 8.17 g/t Au over 15.15 meters including 9.00 g/t Au over 13.20 meters. The zone remains open in all directions with all holes targeting mineralization no deeper than 150 meters from surface, offering open pit opportunities.

The results of this work are currently being compiled and are expected to form the core of an aggressive 2010 drill program to expand this mineralized zone and test for similar targets on the Goose project.

The Back River Project is comprised of the George and Goose Lake gold deposits and contain measured & indicated gold resources of 3.4 million tonnes grading 10.9 g/t Au for 1.19 million ounces and inferred resources of 3.6 million tonnes grading 10.2 g/t Au for 1.16 million ounces of gold. The deposits are proximal to Sabina's world class Hackett River Project, with George Lake being approximately 40 km to the south east.

Regional Exploration Targets

Additional drilling was also completed on a number of other targets at Hackett River, Back River and Wishbone with encouraging results having been obtained in the East Cleaver, JO and May (Wishbone) areas. Results from this drilling will be compiled and reported once assay results have been received.

Quality Assurance

Mr. John Wakeford, P. Geo, and Sr. VP, Corporate Development of Sabina Silver Corporation is a Qualified Person under the terms of NI43-101 and has reviewed the technical content of this press release and approved its dissemination.

Mineral resources for Goose Lake and George Lake were generated by RSG Global Consulting Pty Ltd (Coffey Mining) in September 2007, and are posted on [ www.sedar.com ].

The mineral resource estimate for Hackett River was prepared by Mr. Albert Chong, P.Geo., Senior Geologist of AMEC Americas Limited, and can be found on SEDAR at [ www.sedar.com ]. Mr. Chong is a qualified person as defined by National Instrument 43-101. CIM Definition Standards (2005) have been used in defining the mineral resource categories.

Diamond drill core was sent to ALS-Chemex laboratories in Thunder Bay, Ontario or North Vancouver, British Columbia for preparation and analysis using fire assay. Quality control is monitored on a continual basis and utilizes a system of standards, blanks and duplicates to ensure analytical accuracy. The protocols and procedures used in 2009 are the same as those used in earlier campaigns by Sabina Silver Corp. and Dundee Precious Metals (previous operator at Back River) and have been deemed appropriate in the above noted 43-101 compliant resource reports.

SABINA SILVER CORPORATION is a Canadian public mineral exploration and development company with assets at the Hackett River silver-zinc project in Nunavut and several projects in the Red Lake gold camp. The Company is well capitalized with approximately $45 million in cash and marketable securities at June 30, 2009. The strategy to grow the company focuses on two mandates: 1) to continue to focus on enormous exploration and development potential of the Hackett River silver-zinc and Back River gold projects; and 2) maintain a strong balance sheet to acquire accretive precious metals assets.

Forward Looking Statements

Statements relating to exploration, pre-feasibility work and future operations at the Back River Project and the expected results of this work 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, 2008.

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, should change.

This news release has been authorized by the undersigned on behalf of Sabina Silver Corporation.

Tony Walsh, President & CEO

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ECHO GOLD ZONE DRILL RESULTS, OCTOBER 06, 2009
SIGNIFICANT DRILL RESULTS, OCTOBER 06, 2009
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Hole ID Zone From (m) To (m) Length (m) Au (gpt)
 (core length)

09GSE04 Echo? No significant assays

09GSE08 Echo 88.85 94.90 6.05 8.57

09GSE09 Echo 205.55 214.15 8.60 5.22
 includes 208.45 213.40 4.95 8.29

09GSE12 Echo? 172.60 174.10 1.50 1.28
 174.10 174.75 0.65 0.93
 174.75 175.50 0.75 0.71
 225.00 226.00 1.00 0.89
 226.00 227.50 1.50 1.09
09GSE14 Echo? No Significant assays (gabbro dike)

09GSE17 Echo 258.85 261.00 2.15 2.21
 includes 258.85 259.50 0.65 4.01

09GSE26 Echo 197.30 212.45 15.15 8.17
 includes 197.30 210.50 13.20 9.00
 includes 208.75 210.50 1.75 47.83

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