Sabina Silver Corporation: Sabina's Hackett River project - initial results from 2006 resource drilling at boot lake includes 56.65m of 12.22% zinc and 303.9 g/T silver
London, Ontario CANADA, Jun 21, 2006 (M2 PRESSWIRE via COMTEX News Network) --
Sabina Silver Corporation (SBB - TSX Venture), is pleased to present initial assay results from 2006 drilling at Hackett River. Over 5000m have been drilled to date in 23 holes since early May with 2 drills. A third drill is being added shortly. Highlights include a weighted average composite intersection from infill hole SHR-06-08 over a continuous core interval of 56.65m grading 12.22% zinc and 303.9 g/T silver. This interval contains two sub-intervals grading 17.45m of 22.49% zinc and 581.6 g/T silver with 1.85m of 34.65% zinc and 1.14 kg/T silver.
Initial drill results confirm the robust nature of the Hackett River mineralization. Sabina is on track to meet its 2006 goal of an updated 43-101 compliant mineral resource estimate and independent scoping level discounted cash flow economic analysis of the Hackett River project as an open pit extraction operation. Approximately half the total 17,000m to be drilled this year will be devoted to infill work upgrading the inferred mineral resource at Hackett River to the higher confidence level indicated mineral resource. The balance will be stepout work, as all deposits remain open for expansion. Optimized metallurgy and baseline environmental work is also underway.
Sabina has an undivided 100% interest in it's polymetallic Hackett River Project, which contains a NI 43-101-compliant Indicated Mineral Resource based on 2005 drilling (Table 1). The magnitude of the contained silver resource alone at Hackett River ranks Sabina Silver Corporation among the top 12 silver-focused companies operating in the Western Hemisphere. A substantial zinc endowment will also factor prominently in the 2006 scoping level discounted cash flow analysis.
Table 1 2005 NI 43-101 Cumulative Indicated Mineral Resource - Hackett River deposits ------------------------------------------------------------------------ -------- Cutoff Ag Ag Eq* Zn Eq* Ag Zinc % Cu % Lead % Au g/T Eq oz/ton Tons oz/ton % oz/ton ------------------------------------------------------------------------ -------- >20 11,046,617 26.57 12.17 5.67 7.69 0.41 1.19 0.52 >15 20,251,800 22.41 10.26 4.75 6.35 0.40 1.00 0.49 >10 31,300,755 18.88 8.64 3.92 5.30 0.37 0.84 0.45 >5 39,347,008 16.65 7.62 3.40 4.63 0.36 0.73 0.41 ------------------------------------------------------------------------ --------
Ag Eq = silver equivalent; Zn Eq = zinc equivalent; derived after normalizing 43-101 indicated contained silver, zinc, lead, copper and gold to silver and zinc respectively using historical metallurgical recoveries and conservative metal prices.* *Present Metal Recoveries (Cominco, 1981) Zinc 81.8% Silver 66.7% Copper 69.6% Lead 70.0% Gold 50.0% Metal Price (US$) (Wardrop, 2005) Zinc $0.53 lb Copper $1.23 lb Lead $0.38 lb Gold $434 oz Silver $6.56 oz troy
Initial 2006 drill core assay highlights from Hackett River are presented as follows (Table 2). The Company is waiting on assays for 20 additional holes pending at this time as drilling continues.
Table 2: Initial 2006 Assays - Boot Lake Zone ------------------------------------------------------------------------ -------- HOLE ID ZONE From (m) To (m) Int (m) Int (ft) Cu (%) Pb (%) ------------------------------------------------------------------------ -------- SHR-06-01 Boot 375.30 387.15 11.85 38.8 0.16 1.23 SHR-06-03 Boot SHR-06-04 Boot 356.25 362.40 6.15 20.1 0.11 0.11 SHR-05-34 (extension) Boot 307.90 311.70 3.80 12.4 0.05 0.78 SHR-06-08 Boot 224.6 281.25 56.65 185.8 0.22 2.04 incl Boot 250.40 267.85 17.45 57.2 0.15 3.87 incl Boot 266.00 267.85 1.85 6.1 0.01 10.36 ------------------------------------------------------------------------ --------
------------------------------------------------------------------------ -------- HOLE ID Zn (%) Ag (g/T) Ag (oz/t) Au (g/T) True Width Comments ------------------------------------------------------------------------ -------- SHR-06-01 7.46 192.4 5.60 0.03 .91 Stepout SHR-06-03 Abandoned SHR-06-04 0.62 64.5 1.88 0.02 .91 Stepout SHR-05-34 (extension) 6.94 110.8 3.23 0.08 .92 Stepout SHR-06-08 12.22 303.9 8.86 0.23 .92 Infill incl 22.49 581.6 16.96 0.44 .92 Infill incl 34.65 1,141 33.27 1.47 .92 Infill
Sabina spent a total of $12 Million in 2004 and 2005 to gain a 100% interest in the Hackett River Project subject to a 2% NSR royalty held by Cominco Mining Partnership (CMP), an affiliate of Teck Cominco Limited. CMP relinquished all back-in rights to the Hackett River Project in November 2005.
The Hackett River drill program is being carried out under the supervision of Harvey Klatt, P.Geo. Project Manager and a Qualified Person under National Instrument 43-101. Mr. Klatt supervised drill hole planning, implementation and quality control programs and has approved the technical content of this news release. Core was one-half split, with half sent to accredited Global Discovery Labs, Vancouver for sample preparation and analysis.
Sabina Silver Corporation is debt free and has a strong treasury with over C$14 Million in cash. Sabina also holds 5.3% of the issued share capital (4 million shares) of Wolfden Resources Inc. In addition to the Hackett River Project, the Company will mobilize shortly to the Del Norte Silver-Gold Project in the Stewart-Eskay Creek Mining District, British Columbia. Del Norte produced high-grade silver (110 oz/t) and gold (2.02 oz/t) drill core assays in 2005. The Company also retains and is presently conducting fieldwork on four pure gold projects in the Red Lake Mining District, Ontario.
ON BEHALF OF THE BOARD OF DIRECTORS Abraham Drost P.Geo., President
For further information, please contact: Abraham Drost, President Suite 401-1113 Jade Court Thunder Bay, Ontario Phone: 807- 766-1799 Fax: 807-345-0284
Email info@sabinasilver.com
Visit our web site at www.sabinasilver.com
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