To: Goose94 who wrote (18608 ) 6/9/2016 8:41:48 AM From: Andrew~ Read Replies (2) | Respond to SBB-T Sabina Gold & Silver Discovers New Gold Zone and Advanced High Priority Targets at the Back River Gold Project, CanadaVANCOUVER, BRITISH COLUMBIA--(Marketwired - June 9, 2016) - Sabina Gold & Silver Corp (TSX:SBB), ("Sabina" or the "Company") is pleased to announce the results from the recently completed spring exploration diamond drilling program at its 100% owned Back River Gold Project. The focus of the program was to test shallow targets located close to proposed infrastructure at the Goose Property. A new discovery was made at the Convergence where visible gold (VG) has been identified within a mineralized interval of 3.70m. Encouraging results also continued at the Kogoyok target (Sabina 2015 news releases October 13), where gold mineralization has been intersected in drilling with VG identified in multiple rock units over a broad area supporting the expansion and definition of a large-scale gold structure. Additionally drilling at the Hivogani target has continued to expand the host area and further characterized the new mineralization styles. Bruce McLeod, President and CEO, states, "The results from this round of exploration drilling are encouraging in that we continue to find new zones of mineralization in and around our existing deposits. While still early days, the results at the Kogoyok and Convergence zones show many of the characteristics that are commonly associated with the other substantial gold zones at Back River. Using the analogue of our Umwelt discovery in 2010 we know that these large scale gold bearing structures when associated with the right geologic traps have the potential to host significant economic gold zones. We also continue to show the potential for gold mineralization to be hosted outside the iron formation host rock at Hivogani. We are excited about the potential of these areas and I look forward to further exploration as we continue to refine our vectoring of mineralization towards new deposit discovery." At Convergence, a Horizontal Loop Electromagnetic ("HLEM") geophysical survey grid covering approximately 12 kilometres identified a total of 8 new anomalies that are coincident with Back River iron formation stratigraphy. Drill testing of one of the anomalies in hole 16GSE500 returned a new discovery with an intercept of 3.84g/t over 3.70m including VG noted within multiple samples. Follow up drilling of an additional three (3) holes in this zone continued to return significant gold assays analagous to Back River style mineralization (see significant gold results - table 1). The Company is encouraged by the newly discovered gold zone with an additional five (5) anomalies remaining for exploration follow up. The Kogoyok prospect was discovered and partially characterized through 2015 field work. High-grade mineralization discoveries from outcrop grab samples (up to 33.86g/t Au grab sample; see Sabina news release October 13, 2015) occur near the convergence of an untested segment of iron formation stratigraphy with gold-bearing felsic intrusions. The Kogoyok target zone is over 600m in length, with partially coincident HLEM and Induced Polarization ("IP") anomalies and positive till sample results. Exploration drilling at the Kogoyok target consisted of 10 holes totaling 1474 meters, wherein numerous mineralized intercepts were encountered over a broad area at vertical intersection depths from 20-130m (see significant gold results - table1). A large zone of gold mineralization was identified within the Kogoyok target, up to 10m in width over 250m strike length, coincident with visible gold identified within several units of the stratigraphy. Results from Kogoyok included 16GSE492 (2.62g/t over 2.30m, with visible gold) and 16GSE494 (2.37g/t over 1.90m, with visible gold). Interpretation and integration of the geology and gold assays for refined modelling and review with similar Back River deposit footprints are next steps with the goal of ultimately vectoring toward new deposit discovery. Additional significant results for the program are listed in table 1. At the Hivogani zone, two drillholes spaced 500m apart and totaling 397 meters were completed within a broadly defined 2km target area characterized by anomalous gold values from rock and till sampling and moderate to strong IP chargeability trends. Results of the recent drilling confirmed the correlation of broad areas of gold mineralization with IP chargeability anomalies, areas of increased quartz veining, alteration, and disseminated sulphide mineralization, as first described at Hivogani in 2015. Drillhole 16GSE509 intersected 1.0m of 2.68g/t Au in a zone of increased veining and alteration. Sabina is encouraged by the new deposit model of clastic sediment-hosted gold within Back River stratigraphy and continues to actively explore the concept on a broad scale. Qualified Persons The Qualified Person as defined by NI 43-101 as pertains to the Back River Project, is James Maxwell P.Geo, Exploration Manager - Back River, for the Company. All drill core samples selected within the exploration program are subject to a company standard of internal quality control and quality assurance programs which include the insertion of certified reference materials, blank materials and duplicates analysis. All samples are sent to SGS Canada Inc. located in Burnaby, British Columbia where they are processed for gold analysis by 50 gram fire assay with finish by a combination of atomic absorption and gravimetric methods. Additionally analysis by screen metallic processes is performed on select samples. Sabina Gold & Silver Corp Sabina Gold & Silver Corp. is a well-financed, emerging precious metals company with district scale, world class undeveloped assets in one of the world's newest, politically stable mining jurisdictions: Nunavut, Canada. Sabina recently released a Feasibility Study on its 100% owned Back River Gold Project which presents a project that has been designed on a fit-for purpose basis, with the potential to produce ~200,000 ounces a year for ~11 years with a rapid payback of 2.9 years. At a US$1,150 gold price and a 0.80 exchange rate, the Study delivers a potential after tax internal rate of return of approximately 24.2% with an initial CAPEX of $415 million. In addition to Back River, Sabina also owns a significant silver royalty on Glencore's Hackett River Project. The silver royalty on Hackett River's silver production is comprised of 22.5% of the first 190 million ounces produced and 12.5% of all silver produced thereafter. The Company has approximately $45 million in its treasury and is currently amending the budget and plans for 2016.
