THE DEVELOPMENT THRESHOLD -
SABINA’S OPEN PIT ZINC-SILVER HACKETT RIVER PROJECT MOVING TO PRODUCTION SCOPING STUDY
SABINA SILVER CORPORATION (SBB:TSX-V) is a Canadian public mineral exploration and development company with assets at the Hackett River silver-zinc project in the Canadian Arctic, the Del Norte project in the Stewart-Eskay Creek Mining District, and several projects in the Red Lake gold camp.
Sabina Silver Corporation is well financed with over C$15 million in cash and over C$14 million in shares (4MM; 5.3%) of Wolfden Resources Inc. (WLF:TSX). Sabina will expend over C$12 Million in exploration during the 2006 season, it’s busiest ever, building on recent exploration success.
Hackett River
Sabina’s principal development asset is a 100% interest in the zinc and silver-rich, polymetallic Hackett River Project, Nunavut that contains a recently delivered NI 43-101 compliant Indicated Resource based on the latest 2005 drilling at Hackett River, presented at a series of increasingly more stringent cutoff grades:
Cutoff Ag Eq oz/ton Tons Ag Eq oz/ton Zn Eq % Ag oz/ton Zinc % Cu % Lead % Au g/T
>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
With metal prices buoyant, particularly silver and zinc, the company is highly encouraged by the Indicated tonnage and grade characteristics and economic potential of the Hackett River resource. It contains an Indicated contained mineral resource in excess of 130 million oz silver, 1.80 million tons zinc (>3.6 billion pounds), 280 million lbs copper, 500 million lbs lead and 470,000 oz gold, making it one of the largest undeveloped potentially open-pittable deposits of its type in the world (NB. NI 43-101 Indicated resource metal values only with no costs applied). This does not include the over 8 million tons of Inferred mineral resource providing strong impetus for growth.
The magnitude of the silver resource at Hackett River ranks Sabina Silver Corporation among the top 12 silver-focused companies operating in the Western Hemisphere. Sabina’s silver resource endowment (oz) per $US dollar of fully diluted market capitalization is presently over four times the silver sector average giving the Company great leverage in the silver sector. The comparison is even more dramatic when all metals, especially the relatively rich zinc grades are factored in amongst all peers in the sector.
Sabina’s current objective is to advance the Hackett River Project to a discounted cash flow production scoping assessment by the end of Q4-2006. With all NI 43-101 compliant resource areas appearing to be open for expansion, the potential for addition of precious metal and base metal resources on the Hackett River Project is considered high. With 2 drills presently turning and a 3rd coming on line in June, the news flow from Hackett culminating in the scoping analysis by Christmas should be a strong value driver for the company this year.
Yellowknife has been transformed into a world class mining supply and service centre as a result of the construction of the nearby Ekati, Diavik and Jericho diamond mines. With this new infrastructure in place providing a platform for further mineral development in Nunavut and an apparent sea change taking place in precious and base metal demand going forward, the future for the Hackett River project in this well endowed commodity-rich area of the Canadian Shield is bright.
Del Norte
Sabina also recently acquired an option to earn up to 65% of the Del Norte Silver-Gold Property in the Stewart-Eskay Creek mining district (announced October 3-05). The Eskay Creek-style geological environment shows high grade gold and silver mineralization in a quartz vein breccia in close association with a volcanic-sediment (mudstone) contact. Drill results to date at the Del Norte Project include bonanza precious metal grades of 110oz/ton silver and 2.08oz/ton gold over 2.8ft within a 51 foot mineralized interval grading 0.363 oz/ton gold equivalent (November 21, 2005 press release). Sabina is also preparing for a dynamic field season at Del Norte in 2006 towards development of a mineral resource around these stellar results.
Red Lake
Sabina also retains an interest in four promising gold projects in the Red Lake mining district. A fifth property, the Follansbee was the site of a gold discovery by Sabina, announced February 14, 2005. Sabina’s interest in the Follansbee was sold to its joint venture partner, Wolfden Resources Inc. in November, 2005 for $2 million in cash and 4 million Wolfden shares and rights to a 1% NSR on the Follansbee portion of the Bonanza deposit. The deal was a win-win for Sabina and Wolfden shareholders and maintained Sabina’s close ties to its historical roots in Red Lake and in what will hopefully become Red Lake’s next producing gold mine.
Sabina Silver Corporation is positioned for growth. The Company’s objective is the addition of shareholder value through prudent financial management and acquisition with active exploration of the various projects and development to production. All relevant corporate information may be found on the website including financials, press releases etc.
Thank you for your interest in Sabina.
Abraham Drost, President
June 1, 2006 |
