Drilling Underway Sabina's Redaurum Property
5/28/03
SABINA RESOURCES LIMITED is pleased to announce that it has been provided notification by PLACER DOME (CLA) LIMITED, a subsidiary of Placer Dome Inc. (TSX:PDG), that drilling has started on the Redaurum Property, located in the Red Lake Mining District, Ontario.
Placer Dome has the right to acquire an initial 50% interest in Sabina's 80% owned Redaurum Property (the remaining 20% interest is owned by Claude Resources Inc. (TSX:CRJ)) by paying to Sabina $100,000 cash and spending $2,000,000 in exploration over a four year period including $25,000 on signing and performing a minimum of $250,000 in exploration in the first year. Upon Placer earning its initial interest in the Property, Sabina shall transfer a 5% interest in return for Claude having waived its first right of refusal in favour of Placer Dome. Within 60 days of Notice
of Formation of the Joint Venture, Sabina may elect to have Placer Dome fund all further expenditures on the Redaurum Property up to production in return for an additional 5% interest leaving Sabina a 20% carried interest
The Redaurum Property is located within one of the major Red Lake deformation corridors and in close proximity to the past producing Madsen Gold Mine (2.6 million ounces produced). Claude and Placer Dome recently announced the discovery of a gold bearing zone immediately south of the Redaurum Property, described as a broad corridor of quartz carbonate tourmaline veining with visible gold.
The current phase of drilling will include 4 holes (approx. 2000 m, NQ) drilled close to the boundary with the Madsen Property (Anomaly #1 Area). A second stage of drilling will be commenced later this summer after compilation of the historical and current data, and surface mapping work is completed.
Previous drilling on the Redaurum Property tested the property near surface, intersecting values including 1.12 oz/ton Au across 5 feet, 0.17 oz/ton Au across 25 feet and 2.20 oz/ton Au across 2 feet in Zone 14A; 0.56 oz/ton across 7.2 feet in the No.3 Zone; and, 0.37 oz/ton Au across 5 feet in the Camp Zone. The majority of the property has not been tested by drilling nor has any deep drilling been carried out on the property. Significantly, the Redaurum Property is underlain by several ultramafic rock units and extensive quartz carbonate veining, important features of the producing Campbell (Placer Dome) and Red Lake (Goldcorp) gold mines.
ON BEHALF OF THE BOARD OF DIRECTORS
William Cummins
President
The statements made in this Press Release may contain forward looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
CONTACT: TEL: 807-346-1668 Ewan Downie, Chairman
FAX: 807-473-1977 |
