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Same here Darko. My G shares showed up this morning but no PRB yet.
San Gold Drills Multiple New Gold Zones
WINNIPEG, MANITOBA--(Marketwired - Sept. 17, 2013) - San Gold Corporation (TSX:SGR)(OTCQX:SGRCF) today announced the discovery of multiple new zones of gold mineralization along its Shoreline Basalt host unit within close proximity to existing infrastructure at its Rice Lake Mining Complex in Manitoba, Canada.
The Company's ongoing structural analysis of the region immediately surrounding its mining complex has yielded numerous new targets within lesser known structures. The analysis used all available data to better define the controls on gold mineralization to refine the Company's exploration model. Initial drilling on the resulting targets returned very encouraging grades and widths in each of four new zones tested, as demonstrated in the table below, most notably by drill holes JH-13-060 which returned 7.0 g/t Au over 10.1 metres within the 6163 zone, and AB-13-001 which returned 12.4 g/t Au over 4.3 metres in the newly discovered Scout zone.
"The analysis undertaken this year by our exploration geologists has provided significant and valuable insight into the controlling structures that govern gold mineralization both regionally and within immediate reach of our mine infrastructure," said Ian Berzins, San Gold's President, CEO and Chief Operating Officer.
Table 1: New Zone Drill Results
Hole #
Zone
From
To
Width†
Grade
Depth
(m)
(m)
(m)
(gpt)
(m)
JH-13-060
6163
722.3
732.4
10.1
7.0
574
including
726.9
732.4
5.5
11.7
including
731.5
731.8
0.3
94.6
AB-13-001
Scout
375.5
377.7
2.2
13.6
291
and
617.5
621.8
4.3
12.4
461
AB-13-015
Scout
210.6
211.7
1.0
82.6
170
TP-13-005
L13 Extension
578.2
582.5
4.3
5.9
TP-13-007
L13 Extension
565.8
570.6
4.8
4.5
including
569.8
570.0
0.2
47.1
and
583.1
583.5
0.5
7.1
and
599.3
606.3
4.0
4.4
UR-12-003
334
239.4
242.5
3.1
5.2
175
UR-12-006
334
239.9
242.7
2.8
11.6
175
† NOTE: Widths provided here represent actual core length and are not adjusted for estimated true widths.
The higher gold grades intersected at the 6163 zone occur near the intersection of a northeast trending shear zone and the Shoreline Basalt Unit, and is interpreted to be the western extension of the 007 deposit having the potential to add to the existing resource base in the near term. Notably, the 6163 zone is located between the Hinge zone to the west and the 007 zone to the east, and is only 100 metres from Hinge zone development, easily accessible via the existing decline.
The remaining three zones all occur in the hanging wall or immediately north of nearby mine infrastructure. The 334 zone is northwest trending and dips moderately to the northeast between the Cartwright and Scout zones. The upper portion of the zone had been accessed by limited development from 3 Level at the Rice Lake Mine, following up on surface trenching completed in the 1920s. Similarly, the Scout zone occurs along a northwest structure in the hanging wall volcanic rock package and is located only 250 metres to the west of the L13 decline.
The L13 extension occurs along a northeastern shear that is host to L13 zones currently being mined from the Hinge zone ramp system. This extension was discovered by drilling that was designed to test the lateral extent of the L13 shear zone for additional gold mineralization, and thereby has the potential to add to the current resource base in the near term and to be developed using the adjacent mining infrastructure.
The Company now understands that the local gold-bearing veins are preferentially developed in competent lithological units such as the San Antonio Mine (SAM) Unit and Shoreline Basalt Unit, specifically where those units are cut by east-northeast-trending shear zones and associated conjugate northwest trending shears. The analysis also revealed that significant mineralization is present at locations along these same shear zones where folding or dilation occurs within the surrounding volcanic host rock or proximal to any favorable lithogical unit. This finding demonstrates the potential for additional gold mineralization within the Company's mineral lease, which is composed mainly of intermediate volcanic host rock and is cross-cut by multiple shear zones, and also across large portions of the Company's surrounding 400 sq km land package.
The Company is currently nearing completion of its flow-through drilling commitments, which were entered into in early 2012. Underground drilling will follow up on mineralization identified through this program where deposition is close enough to existing infrastructure to suggest a high potential to add incremental feed to the Company's Rice Lake mill.
Figure 1 at the end of this release provides a graphic illustration showing a plan view of the magnetic survey with interpreted regional shear zones, associated gold zones, and favourable target locations.
This figure can also be found on the Company's web site (www.sangold.ca) and on SEDAR (www.sedar.com).
The drilling program was carried out by San Gold mine geologists under the supervision of Michael Michaud, P.Geo., the Qualified Person for San Gold under National Instrument 43-101 who has reviewed and approved this news release. Drill core samples are assayed at TSL Laboratories in Saskatoon, SK. The Company's quality control and assurance program includes the insertion of standards, the retention of pulps and rejects, and spot checks utilizing third-party independent labs.
Can someone please explain the after hours trading rules in a nut shell.
My understanding was that any after hours trading had to be at, or above the days close.
Thanks in advance.
ST
Our offspring SGX Resources (SXR.V) seems to be doing rather well lateley. Anyone have any idea why?
VANCOUVER, BRITISH COLUMBIA, Aug 11, 2011 (MARKETWIRE via COMTEX News Network) --
GREAT PANTHER SILVER LIMITED (TSX: GPR)(NYSE Amex: GPL) (the "Company") announces the financial results for the Company's quarter ended June 30, 2011. This is the first financial year where the Company has prepared its consolidated interim unaudited financial statements using International Financial Reporting Standards ("IFRS"). The full version of the financial statements and management's discussion and analysis can be viewed on the Company's web site at www.greatpanther.com or on SEDAR at www.sedar.com.
"Following the strong financial performance we delivered in the first quarter, it is unfortunate that the delays in shipments of concentrate from our Guanajuato operation have impacted our revenue in the second quarter. However, we believe that the agreements we now have in place to secure future sales will remedy the situation and that the backlog of concentrate will be sold over the balance of the year at potentially higher metal prices," said Robert Archer, President & CEO. "We have a strong balance sheet, our operations are more profitable than ever, and we are moving ahead with all of our expansion plans as previously outlined."
Change Change
from from
Second Second Year to Year to
Quarter Quarter Date Date
Highlights 2011 2010 2011 2010
----------------------------------------------------------------------------
Revenue $ 8.6 DOWN 8% $ 24.1 UP 39%
million million
Earnings from mining operations(1) $ 4 UP 15% $ 12.6 UP 111%
million million
Net income $ 2.5 DOWN 43% $ 9.5 UP 78%
million million
Earnings per share - basic $ 0.02 DOWN 50% $ 0.08 UP 60%
Earnings per share - diluted $ 0.02 DOWN 50% $ 0.07 UP 40%
Silver ounces produced (excluding 386,210 DOWN 6% 796,850 UP 4%
equivalent ounces of gold,
zinc and lead)
Silver equivalent produced(2) 562,944 DOWN 2% 1,170,169 UP 6%
Silver payable ounces 193,914 DOWN 48% 542,353 DOWN 22%
Total cash cost per silver ounce(3) $ 11.84 UP 54% $ 10.69 UP 47%
Average revenue per silver ounce sold $ 36.21 UP 99% $ 37.02 UP 104%
2011 SECOND QUARTER HIGHLIGHTS
-- Closed equity offering for gross proceeds of $24.2 million on April 12,
2011.
-- Cash and cash equivalents of $37.7 million at June 30, 2011.
-- 8% decrease in revenue to $8.6 million for the quarter ended June 30,
2011 from $9.3 million for the same period in 2010.
-- 39% increase in revenue to $24.0 million for the six months ended June
30, 2011 from $17.0 million for the same period in 2010.
-- 15% increase in gross profit (earnings from mining operations) to $4.0
million for the three months ended June 30, 2011 from $3.4 million for
the same period in 2010.
-- 43% decrease in net income to $2.5 million for the quarter ended June
30, 2011 from $4.4 million for the same period in 2010, due to a one-
time deferred income tax recovery of $3.1 million in 2010.
-- 25% increase in Adjusted EBITDA(3) to $3.1 million for the three months
ended June 30, 2011 from $2.5 million for the three months ended June
30, 2010.
-- 2% decrease in overall metal production to 562,944 silver equivalent
ounces ("Ag eq oz") for the quarter ended June 30, 2011 from 574,740 for
the same period in 2010.
-- 6% decrease in silver production from 410,583 for the quarter ended June
30, 2010 to 386,210 Ag oz for the quarter ended June 30, 2011.
-- 31% increase in gold production to 1,931 Au oz for the three months
ended June 30, 2011 compared to 1,474 Au oz for the same period in 2010.
-- 3% increase in overall metal production at Topia for a quarterly record
of 212,108 Ag Eq oz as compared to the same period in 2010.
-- 18% increase in silver production at Topia for a quarterly record of
143,774 Ag oz as compared to the same period in 2010.
-- 30% increase in plant throughput at both operations to 56,643 from
43,555 tonnes for the three months ended June 31, 2011 and 2010,
respectively. Exploration drilling continues from surface at San Ignacio
and from underground at Rayas and Guanajuatito in Guanajuato.
-- 54% increase in cash cost per silver ounce, net of by-products, for the
second quarter of 2011 to US$11.84 from US$7.70 for the second quarter
of 2010. Cash costs are higher due to the impact of higher metal prices
and lower ore grades while site unit costs per tonne of ore processed
remain unchanged.
-- Joined the Russell Global Index and the Market Vectors Junior Gold
Miners Index raising the Company profile with investment managers and
institutional investors.
-- On July 12, 2011, purchased the new Santa Rosa silver-gold project
totalling 1,514 hectares, approximately 10 to 15 kilometres northeast of
Guanajuato, Mexico for US$1.5 million, increasing land holdings in
Guanajuato by 136%.
(1) Silver equivalent ounces in 2011 were established using prices of
US$1,200 per oz of gold, US$20 per oz of silver, US$0.90 per lb of
lead, and US$0.90 per lb of zinc.
(2) "Cash cost per ounce" is a non-IFRS measure and is used by the Company
to manage and evaluate operating performance at each of the Company's
mines and is widely reported in the silver mining industry as a
benchmark for performance, but does not have a standardized meaning.
(3) "Adjusted EBITDA" is a non-IFRS measure in which standard EBITDA
(earnings before interest expense, taxes, and depreciation and
amortization) is adjusted for stock-based compensation expense and
non-recurring items. Refer to the "Non-IFRS Measures" section of
management's discussion and analysis for the three and six months ended
June 30, 2011 for a reconciliation of standardized and adjusted EBITDA
to the financial statements.
2011 OUTLOOK
As we reach the mid-point of our three-year growth strategy (2010 - 2012), production from both operations continues to grow, plant capacities have been increased to meet the anticipated demand, mineral resources are being updated and increased, and exploration drilling is being increased.
The new NI 43-101 Mineral Resource estimates for San Ignacio and Guanajuatito are being prepared for release later this year while the resources for other areas of Guanajuato will be updated as new drilling data is interpreted. The anticipated development of the San Ignacio Property combined with the improved mineral resources at Guanajuato and Topia support ongoing growth and increased throughput. Operating efficiencies will allow for further increases such that production upside will remain at both mines. The recent drop in ore grades at both operations is being addressed as the cost per ounce at both mines is sensitive to grade. The 2012 mine plans will be confirmed once the drill results for the current programs have been interpreted, and mineral resources are updated.
In response to delays in shipments of concentrate from our Guanajuato mine stemming from technical reasons with our metal trader's smelter, we have been working directly with the trader and other concentrate purchasers in order to sell the balance. Consequently, we have reached a new agreement, with another mine operator in Mexico, whereby they will start processing Guanajuato concentrates on a monthly basis. We expect that this new arrangement, together with the existing contract, will allow us to sell the concentrate inventory on hand at Guanajuato through the balance of 2011.
Teleconference to Review Second Quarter 2011 Financial Results
The Company will hold a conference call to discuss the financial results tomorrow, August 12, at 7:00 AM Pacific Time, 10:00 AM Eastern Time. Hosting the call will be Mr. Robert Archer, President and Chief Executive Officer and Mr. Martin Carsky, Executive Vice President and Chief Financial Officer.
We welcome interested shareholders, analysts, investors and media to join us in the live conference call by dialing just prior to the starting time.
Dial in number (Toll Free): 1-877-407-9205
Dial in number (International): +1-201-689-8054
No passcode is required
Replay number (Toll Free): 1-877-660-6853
Replay number (International): +1-201-612-7415
Replay Passcodes (both are required for playback):
Account #: 286
Conference ID #: 377042
A replay of the teleconference call will be available until August 26, 2011 by dialing the numbers above. In addition, the call will be archived in the Company's website.
ABOUT GREAT PANTHER
Great Panther Silver Limited is a profitable, primary silver mining and exploration company listed on the Toronto Stock Exchange, trading under the symbol GPR and on the NYSE Amex, trading under the symbol GPL. The Company's current activities are focused on the mining of precious and base metals from its two wholly-owned operating mines in Mexico. In addition, the Company is also pursuing acquisition opportunities throughout Latin America to add additional mines to its portfolio of properties. Great Panther's mission is to become a leading primary silver producer by acquiring, developing and profitably mining precious metals.
All shareholders have the ability to receive a hard copy of the Company's complete audited financial statements free of charge upon request. Should you wish to receive Great Panther Silver's Financial Statements or the Annual Report on Form 20-F in hard copy, please contact us at the Company toll free at 1-888-355-1766 or 604-608-1766, or e-mail info@greatpanther.com.
ON BEHALF OF THE BOARD
Robert A. Archer, President & CEO
Kaare G. Foy, Executive Chairman
This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include but are not limited to the Company's plans for production at its Guanajuato and Topia Mines in Mexico, exploring its other properties in Mexico, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and cost estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of silver, gold and base metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Annual Report on Form 20-F for the year ended December 31, 2010 and reports on Form 6-K filed with the Securities and Exchange Commission and available at www.sec.gov and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
The Company's financial statements are now reported under IFRS and the 2010 comparative results have been restated to IFRS in the current period financial statements. Refer to Note 2 in the June 30, 2011 consolidated interim unaudited financial statements for a detailed description of our accounting policies under IFRS and Note 14 for disclosures and reconciliation of the impact of IFRS on previously reported results.
GREAT PANTHER SILVER LIMITED
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(Expressed in Thousands of Canadian Dollars, except shares data)
June 30, 2011 and December 31, 2010 (Unaudited)
---------------------------------------------------------------------------
June 30, December 31,
2011 2010
---------------------------------------------------------------------------
(Note 14)
Assets
Current assets:
Cash and cash equivalents $ 36,760 $ 13,967
Restricted cash 106 151
Investments 97 200
Trade and other receivables 11,390 9,635
Income taxes recoverable 260 239
Inventories 6,443 2,615
Prepaid expenses, deposits and advances 2,091 1,240
--------------------------------------------------------------------------
57,147 28,047
Non-current assets:
Mineral properties, plant and equipment 34,347 27,277
Intangible assets 444 127
--------------------------------------------------------------------------
34,791 27,404
---------------------------------------------------------------------------
$ 91,938 $ 55,451
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities:
Trade and other payables, including
derivatives $ 4,811 $ 4,758
Capital lease obligations 261 369
Promissory notes - 373
Convertible loan notes - 3,716
Current tax liability 128 19
--------------------------------------------------------------------------
5,200 9,235
Non-current liabilities:
Capital lease obligations 12 128
Promissory notes - 77
Reclamation and remediation provision 1,905 1,955
--------------------------------------------------------------------------
1,917 2,160
Shareholders' equity:
Share capital 116,303 83,470
Reserves 6,029 7,607
Deficit (37,511) (47,021)
--------------------------------------------------------------------------
84,821 44,056
Nature of operations
Commitments and contingencies
Subsequent events
---------------------------------------------------------------------------
$ 91,938 $ 55,451
---------------------------------------------------------------------------
---------------------------------------------------------------------------
GREAT PANTHER SILVER LIMITED
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME
(Expressed in Thousands of Canadian Dollars, except shares data)
For the three and six months ended June 30, 2011 and 2010 (Unaudited)
---------------------------------------------------------------------------
Three months ended Six months ended
June 30, June 30,
2011 2010 2011 2010
---------------------------------------------------------------------------
Revenue $ 8,560 $ 9,317 $ 24,020 $ 17,232
Cost of sales:
Cost of sales 4,193 5,029 10,024 9,434
Amortization and
depletion of mineral
properties, plant and
equipment 416 863 1,432 1,857
--------------------------------------------------------------------------
4,609 5,892 11,456 11,291
---------------------------------------------------------------------------
Gross profit 3,951 3,425 12,564 5,941
General and administrative
expenses 1,575 1,282 3,371 2,619
Income (expenses):
Interest income 107 22 161 43
Finance costs (24) (273) (291) (522)
Foreign exchange gain
(loss) 176 (571) 645 403
Other income (expense) 9 (1) 24 (1)
--------------------------------------------------------------------------
268 (823) 539 (77)
---------------------------------------------------------------------------
Income before income taxes 2,644 1,320 9,732 3,245
Income tax recovery
(expense):
Current income tax
recovery (expense) (143) (75) (222) (98)
Deferred income tax
recovery - 3,123 - 2,198
--------------------------------------------------------------------------
(143) 3,048 (222) 2,100
---------------------------------------------------------------------------
Income for the period 2,501 4,368 9,510 5,345
Other comprehensive income
(loss), net of tax:
Cumulative translation
adjustment (798) 352 (498) (3,653)
Net change in fair value
of available-for-sale
financial assets (28) (109) (106) (107)
--------------------------------------------------------------------------
(826) 243 (604) (3,760)
---------------------------------------------------------------------------
Comprehensive income for
the period $ 1,675 $ 4,611 $ 8,906 $ 1,585
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Earnings per share
Basic $ 0.02 $ 0.04 $ 0.08 $ 0.05
Diluted $ 0.02 $ 0.04 $ 0.07 $ 0.05
Weighted average number of
common shares
Basic 130,940,892 113,587,389 126,539,533 113,332,904
Diluted 136,311,428 115,635,935 132,788,357 115,590,435
---------------------------------------------------------------------------
---------------------------------------------------------------------------
GREAT PANTHER SILVER LIMITED
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(Expressed in Thousands of Canadian Dollars, except share data)
For the three and six months ended June 30, 2011 and 2010 (Unaudited)
---------------------------------------------------------------------------
Three months ended Six months ended
June 30, June 30,
2011 2010 2011 2010
---------------------------------------------------------------------------
Cash flows provided by
(used in) operating
activities:
Income for the period $ 2,501 $ 4,368 $ 9,510 $ 5,345
Items not involving cash:
Amortization and depletion
of mineral properties,
plant and equipment 448 877 1,490 1,882
Foreign exchange (gain)
losses 103 84 95 112
Deferred tax liability - (3,123) - (2,197)
Accretion on reclamation
and remediation provision 13 13 23 23
Share-based payments - 16 - 16
Interest accretion on
convertible loan notes - 229 239 444
Loss (gain) on disposal of
capital assets - 1 - 1
Shares received for
mineral property and
capital expenditures - (23) - (23)
--------------------------------------------------------------------------
3,065 2,442 11,357 5,603
Changes in non-cash
operating working capital:
Trade and other
receivables 2,768 2,770 (1,755) (1,549)
Income taxes recoverable (3) 148 (21) 123
Inventories (3,096) 51 (3,871) (811)
Prepaid expenses, deposits
and advances 123 (136) (875) (265)
Trade and other payables,
including derivatives (748) 211 (31) 530
Current tax liability 60 52 109 57
---------------------------------------------------------------------------
Net cash provided by
operating activities 2,169 5,538 4,913 3,688
Cash flows used in
investing activities:
Intangible assets (298) (21) (343) (22)
Mineral properties and
capital expenditures (4,740) (3,538) (8,994) (6,243)
Restricted cash (9) - 45 -
--------------------------------------------------------------------------
Net cash used in investing
activities (5,047) (3,559) (9,292) (6,265)
Cash flows from financing
activities:
Repayment of capital lease
obligations (74) (261) (210) (447)
Repayment of promissory
notes (355) (102) (448) (122)
Repayment of convertible
loan notes - (81) (61) (162)
Proceeds from exercise of
options 522 145 1,914 526
Proceeds from exercise of
warrants 1,971 - 3,552 473
Issuance of shares for
cash, net of issue costs 22,500 - 22,500 (32)
--------------------------------------------------------------------------
Net cash provided by (used
in) financing activities 24,564 (299) 27,247 236
---------------------------------------------------------------------------
Effect of exchange rate
changes on cash and cash
equivalents (92) (47) (75) (88)
Increase (decrease) in cash
and cash equivalents 21,594 1,633 22,793 (2,429)
Cash and cash equivalents,
beginning of period 15,166 9,250 13,967 13,312
---------------------------------------------------------------------------
Cash and cash equivalent,
end of period $36,760 $10,883 $36,760 $10,883
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Contacts:
B&D Capital
604 685 6465
604 899 4303 (FAX)
info@greatpanther.com
www.greatpanther.com
SOURCE: Great Panther Silver Limited
Sabina Gold & Silver Reports Continued Positive Results at Back River Gold Project, Nunavut
New Discovery at Lookout Hill Target on George Claim Block
Recent Drilling Extends Both Umwelt and Llama, Umwelt Now Extends
Over 1.4 km
Hole 11GRL022 at George (Lookout Hill Target) Returns 5.14 g/t Au
Over 16.0 m incl. 11.31 g/t Au Over 6.95 m
Hole 11GSE052 at Umwelt Returns 12.58 g/t Au Over 26.0 m incl. 27.16
g/t Au Over 9.0 m
VANCOUVER, BRITISH COLUMBIA, Jul 18, 2011 (MARKETWIRE via COMTEX News Network) --
Sabina Gold & Silver Corp (TSX:SBB) is pleased to announce additional assay results from holes drilled as part of the 2011 exploration program on its Umwelt and Llama deposits at the Goose property and new results from exploration drilling on the George property at its 100% owned Back River Project in Nunavut, Canada.
The 2011 drilling campaign at Back River has two objectives: 1) to expand and extend the existing deposits at Umwelt and Llama, and 2) to make new discoveries using the Company's exploration tool box focussing on open pit targets on the Goose and George claim blocks, as well as the Wishbone claims retained after the Hackett River transaction.
"We are approximately half way through our drilling campaign for 2011 and we are very encouraged with our results. Drilling continues to increase the size of the Umwelt deposit and despite the complexity at Llama, we have also demonstrated that it is still open to the south," said Tony Walsh, President & CEO. "We are particularly encouraged by the success rate our "tool box" is having at the George claim block. While not all discoveries we make will be of the nature and size we are looking for, we can see that the method of applying our assumptions to make gold discoveries is working. We are very excited to start working on the many new discovery targets at Goose."
Two new discoveries have been made on the George property in 2011. The first was at Trigger (announced June 2011) and more recently at Lookout Hill. Drilling at the Lookout Hill target has returned a number of strong intercepts in Hole 11GRL022 returning 5.14 g/t Au over 16.00 including 11.31 g/t Au over 6.95 m.
The Lookout Hill discovery consists of a significant intersection of moderately folded oxide iron formation with strong quartz veining in a sheared controlled mineralized (dominantly pyrite with minor arsenopyrite) zone with visible gold. The zone is interpreted to be similar to the Llama deposit.
Drilling continues at the Lookout Hill target while further drilling options at the Trigger target are being assessed as the target is best drilled in winter conditions.
Drilling of new targets has also begun on the Goose property with assay results from the first hole of the program returning 4.10 g/t Au over 5 m within a broader zone of 2.12 g/t Au over 13.45 m in the Camp Zone. This zone is situated approximately 400 m northeast of the Goose deposit. Drilling continues on this target to evaluate its potential to become another deposit on the Goose block.
These new discoveries continue to validate the Company's strategy of applying the exploration "tool box" to finding new, potentially large scale, open pit deposits.
At Umwelt, two drills continue to infill drill the 2011 extensions of the zone. Highlights include hole 11GSE052, a resource expansion hole, approximately 500 m to the north of hole SE049, which returned 12.58 g/t Au over 26.0 m including 27.16 g/t Au over 9.0 m. This is the best hole drilled to date in the 2011 campaign. The intersection is at a vertical depth of 375 m and further demonstrates the strong continuity and grade at Umwelt.
Step-out Hole 11GSE049, the southernmost hole in which assays have been returned, has extended the Umwelt mineralized structure by a further 100 metres to 1.4 km in total. This hole returned a broad zone lower grade zone grading 2.04 g/t Au over 18.0 m including 4.17 g/t Au over 4.0 m. Hole 11GSE049 is the first hole completed on this section with the mineralization in this hole being similar to the holes drilled on the periphery of the core Umwelt deposit to the north. Further drilling will be required to define the overall grade on this section as well as continue to follow the structure south.
2011 drilling at Llama has been challenging as it is a complicated structure marked by faulting and displacement of the host iron formation as the system moves to the south. In order to maximize resources during the season, drills were redeployed from Llama to carry out other priority work on the Goose block. Since that time, assays for Hole 11GSE046 were received returning 3.57 g/t Au over 43.7 m on the East Limb, effectively extending the Llama strike length approximately 50 m south of the known zone. This hole is significant as it confirms the system is open to the south. Step-out holes are in progress to trace the mineralization further to the south.
There are currently eight drills operating at Back River. Six rigs are in the Goose area, where two are shifting from resource expansion to focussing on the numerous untested targets within the 5 km corridor containing the Goose, Llama and Umwelt deposits. One rig continues at George and one rig is operating on the Wishbone property.
To date, at Back River a total of 94 holes and 33,000 metres of core have been completed, or are in progress, with many assays still pending.
GEORGE CLAIM BLOCK
To date, a total of 32 holes comprising 6,700 m have been completed or are in progress at George.
Application of the Exploration Tool Box is also in progress at the George claim block, where the Company is looking to find new large shallow open pit deposits in the area that would enhance economics of the existing underground resource at George.
Sabina continues to experience a high level of exploration success, demonstrated by some encouraging results at the Company's Lookout Hill discovery.
The Lookout Hill target is interpreted to be similar to the Llama gold deposit. Both locations are interpreted as synformal structures with common features including a highly disrupted magnetic signature, an interpreted fault structure located centrally within the fold, a large break, an isolated magnetic feature along the eastern limb, a subtle resistivity response, as well as anomalous and significant Au samples in the area.
Table 1: George - Lookout Hill assay results
----------------------------------------------------------------------------
Area Depth From To (m) Length Au Comment/Mineral
Hole Id (m) (m) (m) (g/t) Zone
----------------------------------------------------------------------------
Lookout
11GRL022 Hill 250.0 188.0 204.0 16.0 5.14 New Discovery
----------------------------------------------------------------------------
Including 192.5 199.45 6.95 11.31
----------------------------------------------------------------------------
and 197.0 198.0 1.0 31.38
----------------------------------------------------------------------------
Target areas for priority testing at George in 2011 include the Bullwinkle, Rifle, Trigger, Lookout Hill, Shadow Pond and NZ locales, all of which are identified as having geological, geochemical, and geophysical attributes analogous to the deposits at the Goose claim block.
George contains a current indicated resource of 1,840,000 tonnes grading 10.9 g/t Au for a total of 590,000 oz and an additional inferred resource of 2,600,000 m tonnes grading 10.5 g/t Au for a total of 866,000 oz of Au and drilling of this area is 100% focused on looking for new shallow open pit discoveries.
Planned drilling has been extended at George to test the extension of this new discovery at Lookout Hill.
UMWELT
Based on last year's drilling, the Company reported indicated resources at Umwelt of 4,601,000 tonnes grading 6.0 g/t Au for a total of 900,000 oz Au and an additional inferred resource of 1,067,000 tonnes grading 6.4 g/t Au for a total of 221,000 oz Au over a strike length of 550 metres.
To date a total of 27 holes totalling 15,200 m have been drilled or are in progress on the Umwelt zone at the Goose property. Results continue to demonstrate that Umwelt is a strong, well mineralized system with excellent continuity and grade.
Currently at Umwelt, one drill is completing 100 m step out holes tracing the deposit to the south, with two drills following behind with infill holes to advance the new mineralization to resource level. Most significantly, Hole 11GSE049, the furthest hole to the south in which assays have been returned, intersected 2.04 g/t Au over 18.0 m including 4.17 g/t Au over 4.0 m. This hole is situated 650 m south of the drilling completed in 2010 and extends the overall strike length of the deposit to over 1.4 km. It is at a vertical depth of 575 m. The deposit continues to remain open along strike and to depth and plunges at a consistent 25 degrees. Other highlights include Hole 11GSE052, an infill hole approximately 500 m to the north of Hole SE049 which returned 12.58 g/t Au over 26.0 m including 27.16 g/t Au over 9.0 m.
The mineralized zones are hosted within a turbiditic sedimentary sequence containing silicate and oxide facies iron formations. Gold dominantly occurs with quartz +/- carbonate veining and arsenopyrite +/- pyrite +/- pyrrhotite in the iron formation. Drilling at Umwelt has identified an anti-form structure with a fold hinge that plunges to the south. Thick zones of gold mineralization are associated with the fold hinge in what is now known as the Main Zone. Mineralization also occurs along a separate iron formation horizon immediately to the west known as the West Zone. The relationship between the Main and West zones is uncertain but the West Zone may be a refolded limb of the Main zone.
Table 2: Umwelt recent assay results.
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Hole Id Area Section Depth From To (m) Length Au Comment/Mineral
(m) (m) (m) (g/t) Zone
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11GSE023 Umwelt 4450N 545 340.00 376.00 36.00 2.37 Main Zone East
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Including 347.75 353.20 5.45 4.89 Main Zone East
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And 350.50 351.20 0.70 17.73 Main Zone East
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And 358.00 359.00 1.00 19.53 Main Zone East
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And 371.00 376.00 5.00 4.40 Main Zone East
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11GSE047 Umwelt 4350N 572 402.15 402.6 0.45 2.57 East BIF
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424 425.35 1.35 1.13 East BIF
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493.1 494.25 1.15 2.52 Main Zone East
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500 505.9 5.90 3.36 Main Zone East
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Including 500 501.6 1.60 8.41 Main Zone East
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511.75 512.3 0.55 1.29 Main Zone East
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516.35 520.65 4.30 1.23 Main Zone East
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11GSE049 Umwelt 3950N 728 695. 713 18.0 2.04 Main Zone East
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695 703.1 8.1 2.78 Main Zone East
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695 699 4.0 4.17 Main Zone East
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11GSE052 Umwelt 4450N 551 382 408 26.00 12.58 Main Zone East
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Including 393 402 9.00 27.16 Main Zone East
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True widths are estimated to be 70% of the drill widths.
LLAMA DEPOSIT
Based on last year's drilling the Company reported indicated resources at Llama of 1,860,000 tonnes grading 9.4 g/t Au for a total of 562,000 oz Au and an additional inferred resource of 980,000 tonnes grading 5.7 g/t Au for a total of 180,000 oz Au over a strike length of 520 metres.
Initial drilling at Llama focussed on minor gaps in the resource model and attempting to extend and expand the mineralized zone both along strike and down plunge.
To date, a total of 27 holes totalling approximately 8,700 m have been drilled or are in progress on the Llama deposit. The deposit has been challenging to expand, as it has a complicated structure marked by faulting and displacement of the host iron formation to the south.
As drilling had not been as productive as anticipated at Llama, drills were redeployed to the Umwelt and new discovery targets. However, the results from Hole 11GSE046, which returned 3.57 g/t Au over 43.7 m on the East Limb confirms that the Llama system is still open to the south along strike at more moderate grade but thicker intervals. A substantial amount of silicification, sulphidation and visible gold was noted in this hole. Two step out holes are planned by Sabina to follow-up on this assay intercept along strike.
Table 3: Llama deposit - 2011 assay results.
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Hole Id Area Section From (m) To (m) Length (m) Au (g/t) Comment/Mineral
Zone
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11GSE046 Llama 4700 278.3 322 43.70 3.57 Main Zone West
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281.5 282.5 1.00 9.07 Main Zone West
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286.95 288 1.05 23.18 Main Zone West
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290 292 2.00 11.65 Main Zone West
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300 302 2.00 6.80 Main Zone West
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318 322 4.00 7.44 Main Zone West
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GOOSE RESOURCE UPDATE
The Company has retained Roscoe Postle Associates to prepare a new resource estimate for the original Goose deposit to determine its potential for an open pit. This study is still underway.
If all studies are positive, the Company anticipates moving to a scoping study in Q3 2011.
SABINA GOLD & SILVER CORP
Sabina Gold & Silver Corp. is an emerging precious metals company with district scale, world class undeveloped assets in one of the world's newest, most politically stable mining jurisdictions: Nunavut, Canada.
The properties consist of the Back River Gold Project as well as the Wishbone Claims, a vastly prospective grass roots project.
Quality Assurance
Mr. Doug Cater, P. Geo, and Project Manager, Back River Project of Sabina Gold & Silver Corp is a Qualified Person under the terms of NI43-101 and has reviewed the technical content of this press release and approved its dissemination.
Mineral resources for Goose and George were generated by RSG Global Consulting Pty Ltd (Coffey Mining) in September 2007. Mineral resources for Llama and Umwelt deposits were generated by Roscoe Postle Associates (RPA) in March 2011. These are all posted on www.sedar.com.
Diamond drill core was sent to TSL Laboratories in Saskatoon, Sask. Quality control is monitored on a continual basis and utilizes a system of standards, blanks and duplicates to ensure analytical accuracy. The protocols and procedures used in 2011 are the same as those used in earlier campaigns by Sabina Gold & Silver Corp. and have been deemed appropriate in the above noted 43-101 compliant resource reports.
Forward Looking Statements
Statements relating to exploration, pre-feasibility work and future operations at the Back River Project and the expected results of this work are forward-looking statements within the meaning of securities legislation of certain Provinces in Canada. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," 'projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Information inferred from the interpretation of drilling results may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in metal prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from Sabina's operations and other risks and uncertainties, including those described in Sabina's Annual Report for the year ended December 31, 2010.
Forward-looking statements are based on the beliefs, estimates and opinions of Sabina's management on the date the statements are made. Sabina undertakes no obligation to update these forward-looking statements should management's beliefs, estimates or opinions, or other factors, should change.
This news release has been authorized by the undersigned on behalf of Sabina Gold & Silver Corp.
Tony Walsh, President & CEO
930 West 1st Street, Suite 202
North Vancouver, BC V7P 3N4
Tel 604 998-4175 Fax 604 998-1051
http://www.sabinagoldsilver.com
To view the image "Figure 1: Umwelt Drill hole collar plan with collars highlighted for reported holes," please visit the following link: http://media3.marketwire.com/docs/umwelt1.jpg
To view the image "Figure 2: Umwelt geological section 3950N - view looking north - Hole 11GSE049," please visit the following link: http://media3.marketwire.com/docs/umwelt2.jpg
To view the image "Figure 3: Umwelt geological section 4450N - view looking north - Hole 11GSE052," please visit the following link: http://media3.marketwire.com/docs/umwelt3.jpg
To view the image, "Figure 4: Llama Drillhole collar plan - with collars highlighted for reported holes," please visit the following link: http://media3.marketwire.com/docs/llama1.jpg
To view the image "Figure 5: Llama geological section 4700N- section on Hole 046," please visit the following link: http://media3.marketwire.com/docs/llama2.jpg
To view the image "Figure 6: George Claim Block drilling targets," please visit the following link: http://media3.marketwire.com/docs/george1.jpg
Contacts: Sabina Gold & Silver Corp. Nicole Hoeller Director, IR 1 888 648-4218 nhoeller@sabinagoldsilver.com www.sabinagoldsilver.com
SOURCE: Sabina Gold & Silver Corp.