Sabina Gold & Silver summarizes exploration results and potential for resource growth at Goose property

Sabina Gold & Silver Corp has made considerable progress in demonstrating the potential for continued resource growth at its 100% owned Back River Gold Project in Nunavut Canada since the last National Instrument 43-101 (“NI 43-101”) compliant Back River Resource Estimate delivered in 2014. 

Sabina’s Back River Project encompasses a highly prospective 80km gold district with a property wide NI 43-101 Resource Estimate (2014) of 5.3 million ounces of gold grading 5.87 g/t in the Measured and Indicated categories and an additional 1.9 million ounces of gold grading 7.43 g/t in the Inferred category. This resource includes a reserve of 2.5 million ounces of gold grading 6.30 g/t in the Proven and Probable categories (see tables below).

The Company is currently focused on advancing initial production at Back River on the 8km Goose Property while also continuing to explore for opportunities that may enhance the already robust Project economics. The economics of the 2015 Feasibility Study (FS) were based on an US$1,150 gold price with an 0.80 exchange rate (CAD:USD) and resulted in a post tax NPV of C$480 million and an internal rate of return (IRR) of 24.2%. Using the same parameters and exchange rate as the 2015 FS, the Project delivers a post tax NPV of C$923 million and an IRR of 37.6% at a US$1500 gold price.

Exploration work at the Goose Property since the 2014 Resource Estimate has focused on new discovery and resource extension and optimization at the Goose Main, Umwelt, and Llama Deposits, the new Nuvuyak discovery and to a lessor extent the Echo Deposit (see Figure 1.0 below). This work was undertaken with the objectives of further improving the economics and life span of future mine operations.

Progress highlights at the Goose Property include;

• The significant extension of the Llama underground gold structure. Mineralization from the bottom of the Llama open pit reserve now extends for greater than 1200m down plunge. Recent successes include the extension from the existing Llama underground resource adding an additional plunge length of approximately 580m as well as the discovery of higher grade mineralization over numerous drill holes within this plunge extension. The mineralizing structure at Llama underground remains open to depth.

• The new discovery of a significant zone of gold mineralization, the Nuvuyak Zone, located approximately 1000m west of the Goose Main deposit. The Nuvuyak gold zone has now been tested by 14 drill holes which confirm a strongly mineralized, folded iron formation package over a plunge extent of 370m, open both up and down plunge. The Nuvuyak gold zone is analogous in size and mineral robustness to the other Goose Project deposits and is the most important discovery since the Umwelt discovery in 2010. 

• The definition and expansion of a thickened, high grade corridor of mineralization within the Umwelt underground, initially at the Vault Zone and more recently in the up plunge direction. Recent drilling and modeling shows that the high grade zone or corridor extends through Vault, up and down plunge with excellent potential for significant optimization through additional drilling. See Figure 2.0 below.

• Discovery of over 25% more plunge length of mineralized iron formation at the Goose Property. Between Llama Extension and Nuvuyak, Sabina has identified an additional combined 950m of gold mineralized iron formation along plunge.