20 August 2020
Sabina Gold & Silver Corp is pleased to announce initial results from the summer drilling program at the Umwelt deposit on its 100%-owned Back River Gold Project in Nunavut, Canada.
Assays have been received for the first three of six drill holes completed at Umwelt following up on the strong results of higher grade drilling at the Vault Zone completed during 2017 to 2019 (see SBB NR 19-10 on June 18, 2019 for highlights from past Vault drilling). The purpose of this year’s drilling is to test whether the higher than average grades encountered in the Vault Zone extend up plunge to the bottom of the planned open pit at Umwelt. If demonstrated, this could present an opportunity to revisit mine sequencing with a view to mining higher grade underground material earlier in the mine life. This could have a dynamic impact on project economics, production profile and payback period.
2020 drilling results in holes 20GSE571 to 20GSE573 strongly support the hypothesis of a second Vault type zone just below the bottom of the proposed open pit at Umwelt. Mineralized drill core from this current drilling is often striking, with coarse visible gold recognized in association with areas of elevated quartz veining, sulphide abundance and strong alteration. For example, a total of 30+ visible gold occurrences over 18 m were documented in drill hole 20GSE571 returning 15.15 g/t Au over 19.40 m.
“During the past three years we have demonstrated and considerably advanced the potential for higher grade zones within the current Umwelt underground reserve,” said Bruce McLeod, President & CEO. “We are very encouraged by the strong start of this year’s program at Umwelt which has been focused on demonstrating a higher-grade corridor up plunge from the Vault Zone towards the bottom of the Umwelt open pit reserve. The current underground reserve at Umwelt consists of three Cells, with the Vault Zone being partially included in Cell C at about 800 meters underground and still open down plunge. These first three holes targeted drilling at Cell A and the top of Cell B and demonstrate the potential for an additional Vault type zone closer to the boundaries of the open pit. This is important as it offers opportunities for higher grade material to be released earlier in the mine life and to significantly impact project economics. More drilling needs to be completed to better delineate these high-grades which are not currently incorporated in our reserve/resource estimate. Our plans for 2020-21 include construction of an access ramp to provide a drill platform for further exploration drilling of these high priority targets.”