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Sabina Silver Corporation: Sabina Silver Announces Discovery of a Significant New VMS Deposit Located 15 Kilometres East of Hac

^{Published on 2009-10-13 08:56:46 - Market Wire}
 

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 13, 2009) - Sabina Silver Corporation (TSX VENTURE:SBB) announced today favourable results from the 2009 summer drilling campaign on its 100% owned Wishbone project in Nunavut, Canada.

WISHBONE PROJECT

The Wishbone project, comprised of a series of 95 mining claims, covers a volcanogenic massive sulphide ("VMS") district-scale land package over the highly prospective extension of the Hackett River Greenstone belt. The belt includes Sabina's 100% owned Hackett River project and extends 150 km to the south. It has received minimal historical exploration work; however the southern portion of the property (which includes the Yava and Musk VMS deposits owned by other parties) was covered by a 12,350 line km VTEM survey flown in 2008. This survey identified a multitude of precious metal, VMS and diamond anomalies.

Given the size of the property, Sabina's strategy is to work outward from the significant Hackett deposits, extending from the known to the unknown. Drilling this year focused on targets at the northern end of the greenstone belt closest to the Hackett River deposit. The newly discovered May Zone, a new VMS target, is the result of some of this work.

The May Zone is a shallow open pit target that offers an opportunity for an additional mining source for the proposed Hackett River mill. The deposit occurs directly along one of the proposed port roads being considered in scoping studies. It is open to the south and there are a number of other similar targets in the immediate area.

"Not only does the May Zone discovery have the potential to enhance the economics of the proposed Hackett River Project, it validates the acquisition of the Wishbone claims this past June," said Tony Walsh, President & CEO. "We believe this belt will provide short and long term potential for new VMS and gold discoveries. The May Zone discovery builds on the success we've had with the recent new Echo Zone gold discovery at Back River and illustrates the significant potential of Sabina's large land holdings in the area."

MAY ZONE DISCOVERY

The May Zone discovery is the result of Sabina's first drilling effort on the Wishbone project that covers a large portion of the 150 km by 30 km Hackett River Greenstone belt. It was targeted based on a combination of its geological similarity to the nearby Hackett River deposits, favourable alteration, a narrow high grade zinc intersection in a nearby historical drill hole and anomalies defined in recent airborne surveys.

The May Zone is located approximately 15 km to the east of the Hackett River deposits and occurs within similar volcanic stratigraphy. The zone has been traced down to a depth of 100 m over a length of 600 m defining a structure that dips shallowly to the south at approximately 15 degrees where it remains open. The airborne geophysics indicated that this zone may extend further to the south. The alteration zone associated with the May Zone has been traced over a 3 km by 1 km area to the southwest.

Results have been returned for the first 7 of the 14 holes drilled on this target and new near surface intercepts include:

Hole SWB-09-06

10.60 m grading 73 g/t Ag, 10.86% Zn, 0.28% Cu, 1.15% Pb, 0.19 g/t Au

Hole SWB-09-04

8.10 m grading 45 g/t Ag, 15.08% Zn, 0.32% Cu, 0.59% Pb, 0.10 g/t Au

Hole SWB-09-05

7.10 m grading 83 g/t Ag, 14.82% Zn, 0.36% Cu, 1.53% Pb, 0.13 g/t Au

Mineralization consists of massive, semi massive and stringer sphalerite, chalcopyrite, galena and pyrite within cordierite - anthophyllite altered felsic volcanic rocks. Similar style mineralization was encountered in most of the remaining 7 holes.

The area is underlain by shallowly southerly dipping strongly chlorite altered felsic volcanic rocks that have been metamorphosed to a broad area of cordierite and anthophyllite. This type of favourable alteration is often used to guide exploration for VMS targets. In 1971, Cominco drilled one hole into the northernmost end of the defined zone targeting a surface gossan, returning a narrow high grade interval of 11.3% Zn over 1.7 m that was never followed-up. The airborne survey (VTEM survey method) flown in 2008 detected a coincident conductor and magnetic anomaly associated with this mineralization over a 1,000 m by 300 m area. Similar strong VTEM anomalies occur immediately to the south and southwest and may be extensions of the conductive trend or separate anomalies.

The additional May holes will be released when the assays are received by Sabina. Results of this work will be compiled over the winter to determine drilling plans for 2010.

HACKETT RIVER

Hackett River is one of the largest undeveloped silver - zinc volcanic massive sulphide ("VMS") deposits of its type in the world with indicated resources totalling 43 million tonnes grading 144 g/t silver, 4.65% zinc, 0.42% copper, 0.64% lead and 0.30 g/t gold and an additional inferred open resource totalling 14.6 million tonnes grading 136 g/t silver, 4.46% zinc, 0.31% copper, 0.57% lead and 0.31 g/t gold.

Quality Assurance

Mr. Peter Manojlovic P.Geo., Chief Geologist, Sabina Silver Corporation a Qualified Person under the terms of NI43-101 has reviewed the technical content of this press release and approved its dissemination.

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 Yellowknife for preparation and North Vancouver, British Columbia for analysis. 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 Corporation and have been deemed appropriate in the above noted 43-101 compliant resource report.

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 Hackett River Project and the Wishbone 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

Table 1. Significant assays from May Zone drilling

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MAY ZONE
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Hole Easting Northing Azimuth Dip Length Sub From To
Number (m) (m) (deg.) (deg.) (m) Unit (m) (m)
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SWB-09-01 635106 7309237 330 -75 218 1 35.25 38.52
 incl. 36.45 37.60

SWB-09-02 635106 7309237 330 -50 95 1 39.65 44.45
 incl. 41.15 44.00

SWB-09-03 635102 7309349 330 -75 62 1 24.35 25.15

SWB-09-04 635098 7309152 330 -50 131 1 54.05 62.15
 incl. 54.05 58.45
 and 60.25 61.30

SWB-09-05 635098 7309152 330 -75 94 1 52.20 59.40
 incl. 53.05 55.90

SWB-09-06 635102 7309052 330 -75 143 1 67.00 77.60
 incl. 70.00 71.30
 and 73.00 75.10

SWB-09-07 635102 7309052 330 -75 116 1 59.40 83.50
 incl. 59.40 62.15
 and 69.10 69.80
 and 71.78 76.70
 and 79.10 79.60
 and 81.80 83.50
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Hole Interval Ag Zn Cu Pb Au
Number (m) (g/t) (%) (%) (%) (g/t)
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SWB-09-01 3.27 79.64 12.42 0.36 1.33 0.09
 1.15 115.00 15.20 0.45 1.65 0.12

SWB-09-02 4.80 106.79 8.69 0.98 0.76 0.06
 2.85 146.02 11.11 1.32 1.08 0.08

SWB-09-03 0.80 49.00 0.05 2.35 0.00 0.11

SWB-09-04 8.10 44.94 15.08 0.32 0.59 0.10
 4.40 61.99 18.66 0.38 1.07 0.11
 1.05 25.00 29.80 0.34 0.02 0.27

SWB-09-05 7.10 83.24 14.82 0.36 1.53 0.13
 2.85 92.84 24.00 0.26 2.34 0.08

SWB-09-06 10.60 73.15 10.86 0.28 1.15 0.19
 1.30 127.00 17.35 0.59 2.73 0.31
 2.10 143.90 24.01 0.35 2.85 0.51

SWB-09-07 24.10 29.29 4.30 0.22 0.32 0.03
 2.75 53.45 10.04 0.23 0.65 0.10
 0.70 77.00 13.45 0.07 2.18 0.05
 4.92 48.95 9.08 0.30 0.49 0.06
 0.50 103.00 8.29 1.25 0.77 0.03
 1.70 97.35 10.03 1.28 0.53 0.07
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