Printer Friendly

Higher Grade Tonnage More Than Doubles In 2005 Mineral Resource Update At Hackett River.

THUNDER BAY, Ontario -- SABINA SILVER CORPORATION (TSX VENTURE:SBB) is pleased to announce that Wardrop Engineering Inc. has delivered an independent mineral resource estimate on Sabina's 100% owned Hackett River Project, Nunavut in compliance with National Instrument 43-101. Aggressive exploration by Sabina in 2005 has more than doubled the Indicated mineral resource above the 15 oz/ton silver equivalent cutoff from the previous 2004 mineral resource estimate (August 15, 2005).

In response to the new resource figures, Abraham Drost P.Geo., President of Sabina Silver Corporation states: "drill definition of a larger, higher grade core to the Indicated mineral resource gives the Company a strong basis to continue aggressive exploration and begin to apply economic parameters to the Hackett River Project".

The Indicated mineral resource grade distribution at successively increasing silver equivalent cutoff grades is presented in Table 1.
Table 1 2005 Cumulative Indicated Resource - Hackett River
---------------------------------------------------------------------
Cutoff Tons Ag Eq Zn Eq Ag Zinc Cu Lead Au
Ag Eq oz/ton % oz/ton % % % g/T
oz/ton
---------------------------------------------------------------------
greater
 than
 20 11,046,617 26.57 12.17 5.67 7.69 0.41 1.19 0.52
---------------------------------------------------------------------
greater
 than
 15 20,251,800 22.41 10.26 4.75 6.35 0.40 1.00 0.49
---------------------------------------------------------------------
greater
 than
 10 31,300,755 18.88 8.64 3.92 5.30 0.37 0.84 0.45
---------------------------------------------------------------------
greater
 than
 5 39,347,008 16.65 7.62 3.40 4.63 0.36 0.73 0.41
---------------------------------------------------------------------



The Inferred mineral resource grade distribution at successively increasing silver equivalent cutoff grades is presented in Table 2.
Table 2 2005 Cumulative Inferred Resource - Hackett River
---------------------------------------------------------------------
Cutoff Tons Ag Eq Zn Eq Ag Zinc Cu Lead Au
Ag Eq oz/ton % oz/ton % % % g/T
oz/ton
---------------------------------------------------------------------
greater
 than
 20 1,111,028 23.33 10.68 5.90 6.75 0.18 0.99 0.39
---------------------------------------------------------------------
greater
 than
 15 2,875,910 19.85 9.08 4.79 5.65 0.23 0.88 0.36
---------------------------------------------------------------------
greater
 than
 10 5,703,876 16.07 7.36 3.81 4.42 0.27 0.70 0.34
---------------------------------------------------------------------
greater
 than
 5 8,766,884 13.22 6.05 2.96 3.49 0.34 0.54 0.30
---------------------------------------------------------------------



The 2005 drill program focused on optimizing the geological and structural model for the deposits and grade characteristics of the Boot Lake, East Cleaver and Main "A" Zone deposit areas. Metallurgical work on beneficiation and optimizing recoveries of the Hackett River commodity mix is planned in 2006.

Two other resource areas on the property, the Jo and the Finger zones, also have small silver and zinc dominant mineral resources which do not qualify under NI 43-101. The company plans additional aggressive exploration to expand existing resource blocks and hitherto untested resource areas in 2006.

The 2005 resource estimate is based on a historical diamond drill database of 248 diamond drillholes with an aggregate length of 46,435 meters. Sabina's drilling in 2004 and 2005 comprised 105 holes with an aggregate length of 24,536 meters. Wardrop Engineering Inc. considers the prior, historical exploration database to be robust and essentially free from error allowing these results to be employed along with Sabina's 2004 and 2005 drilling in the estimation of Indicated and Inferred mineral resources at Hackett River.

A system of standards, blanks and duplicates were inserted as part of the Company's QA/QC analytical procedures. Metal grades have been determined using ordinary kriging into a 3-Dimensional block model constrained by wireframes interpreted from drillhole intercepts. The deposit models were constrained within the wireframe with primary block dimensions of 10m along the strike and 10m in the vertical direction. Metal tonnages and grades are reported using a Silver (Ag)-Equivalent cut-off calculated using historical metallurgical recoveries and current metal price predictions.

Wardrop Engineering Inc. has reviewed this press release and approved its release. The detailed mineral resource report on Hackett River will be filed on SEDAR and on the Company website within 30 days of this release. The Mineral Resource estimates have been prepared in accordance with the Canadian National Instrument 43-101 based on information compiled by Harvey Klatt, P.Geo. Project Manager, Sabina Silver Corporation and Gregory Mosher, P.Geo. Senior Geologist, Wardrop Engineering Inc. both of whom are Qualified Persons as defined in Canadian National Instrument 43-101.

Sabina's 100% interest in the Hackett River Project is subject to a 2% Net Smelter Royalty (NSR) to Cominco Mining Partnership (CMP). Etruscan Resources Inc. retains a 10% Net Profits Interest (NPI) capped at C$2 million.

Sabina Silver Corporation is debt free, with over C$18 million in working capital. In addition to advancing the Hackett River Project, the company is also focused on its Del Norte Silver-Gold project in the Stewart-Eskay Creek Mining District, British Columbia, in addition to four promising gold projects in the Red Lake Mining District, Ontario

Silver Equivalency Model Metal Recovery Factors (Wardrop, 2005)

Metal Recovery (%)

Zinc 81.8

Silver 66.7

Copper 69.6

Lead 70.0

Gold 50.0

Silver Equivalency Model Metal Prices (Wardrop, 2005)

Metal Price (US$)

Zinc 0.53 lb; Copper 1.23 lb; Lead 0.38 lb

Gold $434 oz; Silver $6.56 oz troy

ON BEHALF OF THE BOARD OF DIRECTORS

Abraham Drost, P.Geo., President/Director

The foregoing securities have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation or sale would be unlawful.

This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. Sabina Silver Corporation does have an ongoing obligation to disclose material information, as it becomes available.

Shares Issued: 36,524,244

The TSX Venture Exchange does not accept responsibility for the ac curacy or the adequacy of this release.

Sabina Silver Corporation (TSX VENTURE:SBB)
COPYRIGHT 2005 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Geographic Code:1CANA
Date:Dec 7, 2005
Words:1162
Previous Article:Cumulus Media Inc. Increases Stock Repurchase Program.
Next Article:New Study Shows BDSI's Emezine(R) Demonstrates More Efficient Absorption Versus Swallowed Form of Prochlorperazine.


Related Articles
Jinshan Gold Mines: Chang Shan Hao 217 Gold Project Independent Preliminary Assessment and Technical Report Filed.
Noront Resources Ltd.: Burnt Hill Tungsten Project New Brunswick, Canada.
Silver Standard Reports Significant Increase in Silver Resources at Berenguela Project, Peru.
Sabina Silver Corporation-New Focus on Silver Sector.
Candente Adds 325 Million Potential Tonnes of Copper Mineralization at Canariaco Norte, Peru.
Sabina Silver Corporation: 2005 Hackett River Drilling-Assays From 41 New Holes Includes 172 Feet of 9.09 Oz/Ton Silver and 7.22% Zinc.
Intrepid Minerals Merges With NuStar Mining Corporation.
Ivanhoe Mines Ltd.: New Mineral Resource Estimate Adds 281 Million Tonnes of High-Grade Inferred Resources to the Hugo North Copper-Gold Deposit in...
Goldcorp Achieves Record Reserve/Resource Levels.
Ivernia Announces Magellan Measured and Indicated Resources Update Following 2005 Infill Drilling Program; 2006 Exploration Program.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters