Sabina Gold & Silver Intercepts Llama Mineralization 300 Meters Down Plunge of Current Resource
13 June 2017
- Deposit Remains Open
- Llama hole 17GSE513 returns 6.52 g/t Au over 8.3 meters
VANCOUVER – Sabina Gold & Silver Corp. (“Sabina”) or (the “Company”) (SBB – TSX) is pleased to announce the final results from the spring exploration diamond drilling program at its 100% owned Back River Gold Project in Nunavut, Canada.
Approximately 2,700m of drilling in five drill holes were completed during this first phase of exploration. Two of these drill holes were completed at the Llama extension target with encouraging results. Drill hole 17GSE513 stepped-out approximately 300 m down plunge of the existing resource structure at Llama and was successful in intersecting over 48 m of altered and mineralized iron formation that includes 6.52 g/t Au over 8.3 meters from 618.90 m to 627.20 m. The Llama mineralized zone has now been intersected to approximately 550 m vertical depth and remains open.
Bruce McLeod, President and CEO stated “we are very excited about the results from the Llama Extension drilling as they continue to demonstrate the considerable quality and the upside potential for growth of our existing deposits. At the Umwelt Vault zone, announced in May, we believe we have the potential to grow a high grade portion of the deposit with grades that are 2 to 3 times our resource average. At Llama we have demonstrated that the mineralized structure continues well below the current resource limits. Both Llama and Umwelt are analogous to other iron formation deposits around the world, including Goldcorp’s Musselwhite complex where mining continues along structures that are well in excess of 1,000 m and are still open. We are excited to have achieved our objectives at both Llama and Umwelt for our spring campaign. I look forward to our second phase of drilling on these targets scheduled for this summer and the continued demonstration of the significant upside resource growth potential at the Back River District.”
Llama Extension Target
The Llama Deposit hosts 3,557,000 tonnes of 6.50 g/t Au for 743,000 ounces of Measured and Indicated resources, as well as 295,000 tonnes of 6.77 g/t Au for 64,000 ounces of Inferred resources. An open pit development for a portion of this resource is included in the current feasibility study, however; there is significant upside for inclusion of an underground development in future studies.
Drill holes 17GSE512 and 17GSE513 were designed for testing the down plunge extension of the Llama mineralized structure approximately 300 meters down plunge from the current resource limits at a vertical depth of approximately 550 m. The first drill hole 17GSE512 was designed as a positioning hole on the structure and was successful in intersecting both the east and west limbs of the Llama syncline and a significant portion of upper iron formation stratigraphy. Significant assays returned from this drilling included 6.30 g/t Au over 2.65m in west limb lower iron formation. The second hole 17GSE513, designed as a 60 m undercut on the same cross section successfully targeted a significant portion of lower iron formation stratigraphy (host to a majority of the Back River resources). Over 100 m of lower iron formation was intersected in this drill hole, with numerous mineralized sections containing pyrrhotite, arsenopyrite and visible gold. Assays returning gold values that include 6.52 g/t Au over 8.30 m from 618.90 m to 627.20 m are shown in Table 1 below. Present within the large iron formation were two felsic dykes, lithologies which are typically associated with gold mineralization in the Goose area deposits. In addition, a previously unknown near surface, low grade zone of iron formation with alteration, mineralization and quartz veins in clastic sediments was intersected from 69 m to 109.85 m.
Further drilling on the Llama extension zone is being assessed for a summer program commencing in August
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