Sabina Silver Commences 2008 Program at Hackett River: Work Continues on Resource Update and Pre-Feasibility Study:
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VANCOUVER, BC, Apr 10 (MARKET WIRE) --
Sabina Silver Corporation (TSX-V: SBB) (PINKSHEETS: SBBFF) announced today
that the 2008 work campaign has started at the Hackett River Project in Nunavut,
Canada. Work also continues on compiling the Hackett River resource update
and pre-feasibility work continues in full swing.
2008 Objectives
"Our camp is now open and we are busy working on our 2008 campaign at
Hackett River," said Albert Brantley, President and CEO. "The main focus
ofthe program will be to continue drilling to infill the existing resource for
increased confidence and to obtain pre-feasibility geotechnical information
required
for civil and mine engineering planning support, as well as continuing
base-line studies for inclusion in our Draft Environmental Impact Statement.
However, we also plan to focus on the exploration potential at Hackett River
and have incorporated significant efforts to follow up on the successes of 2007
and
to determine future exploration targets."
The objectives of the work program at Hackett River for 2008 are:
a. Exploration drilling to continue to test the newly defined high grade
Jo Zone
b. Continued infill /definition drilling on the three major deposits
c. Geotechnical drilling and field investigations for inclusion in the
pre-feasibility and feasibility studies
d. Continued base line work for incorporation into a Draft Environmental
Statement
e. Sampling and mapping work around the core property
The overall budget at Hackett River for 2008 is approximately $18.9 m
whichincludes, among other activities, $8.3 million for drilling,
Pre-Feasibility work
of approximately $ 2 million and environmental baseline work of approximately $4
million.
Exploration
During 2007, preliminary drilling was completed at the Jo Zone, located
approximately 4 km from the proposed Hackett River milling site, and 250 m
from the Main Zone pit. Drilling completed during 2007 has suggested the
potential for a fourth mineral deposit for the Project. Selected high-grade
sub-intervals listed below indicate exceptionally high grade silver and zinc
values encountered in the drilling. All intercepts were within 116 meters of
surface.
-***-
----------------------------------------------------------------------
Hole # Interval(m) Zn(%) Ag(g/t) Cu(%) Pb(%) Au(g/t)
----------------------------------------------------------------------
SHR-07-56 3.25 24.40 389 0.44 1.57 0.10
----------------------------------------------------------------------
SHR-07-67 3.85 20.72 272 0.45 1.46 0.14
----------------------------------------------------------------------
SHR-07-58 3.70 40.28 553 0.06 3.18 0.13
----------------------------------------------------------------------
SHR-07-60 3.60 32.13 907 0.04 4.96 0.23
----------------------------------------------------------------------
-****-
The deepest hole, SHR-07-60, returned 12.25 m grading 0.08% Cu,
1.71%pb,9.77% Zn 537 g/t Ag and 0.30 g/t Au starting from 115.70 m down the
hole.
Locally values exceed 40% Zn and 1 kg/t Ag.
Approximately 3,000m of drilling in 2008 will focus on testing the extent of
mineralization at the Jo Zone. The objective of the 2008 campaign is to
sufficiently drill the Jo Zone so that it can be included in the Hackett River
resource estimate in the final feasibility study.
"We are very excited about the potential of the Jo Zone to become a fourth
deposit at Hackett River," said Harvey Klatt, Vice-President, Exploration. "With
the
significant grades encountered close to surface, the Jo Zone could potentially
become another open pit providing opportunity to positively impact the
economics of mining start-up at Hackett River."
Results on the Jo Zone drilling will be reported through the year as they
become available.
Mapping and prospecting around the core portion of the property (from Anne
Lake to the west, to Joe Lake in the east, and possibly the Watson and May
prospects, see Figure 1) will also be undertaken in 2008. Approximately 1,500 m
of
drilling has been allocated to test these targets. Work will include
structural mapping and geological mapping to update the property geology map,
and
work around any areas which will be impacted by proposed tailings, waste rock
dumps, and other infrastructure, including roads. Sampling will include grab
samples and soil sampling. In addition, a geophysical program will also be
undertaken over several of these target areas.
Drilling Program
The primary focus for the 2008 drilling will be to further
delineate/definethe existing deposits at Hackett River and to test peripheral
exploration targets.
Approximately 5,500m of infill/definition drilling has been allocated for this
purpose. Also, 1,300m of drilling for the installation of two thermistor holes
is
planned as well as approximately 750m for drilling on geotechnical holes.
Environmental Baseline Studies
Comprehensive environmental baseline studies will continue in 2008 for the
Hackett River Project. Components included in the planned 2008 work include
hydrology, meteorology, permafrost, water quality, sediment quality, aquatic
biology, fisheries, wildlife, ecosystem mapping, vegetation, soils, and
archaeology. Field studies will begin in late April, and will continue until
October of 2008. Results from the 2008 fieldwork will be used to update a
series of baseline reports, which will be used to support the preparation of a
draft Environmental Impact Statement. Public consultation, traditional
knowledge, land use, and socio-economic studies will also be on-going in
2008. The Project has entered the environmental assessment process with the
Nunavut Impact Review Board (NIRB) and activities in 2008 will also include
on-goingcorrespondence with regulators for environmental permitting and support
to
see the Project through the NIRB process. It is also anticipated that
negotiations with the Kitikmeot Inuit Association on an Impact and
BenefitsAgreement covering the Hackett River area and the Project development
will
commence during this year.
Figure 1 Hackett River Regional Geologic Map
To view the Hackett River Regional Geologic Map, please click on the link
provided: http://www.usetdas.com/maps/sabina/sabinasilverhackettriver.pdf
Map hosted by Filing Services Canada Inc. website.
Resource Estimate Revision
The existing resource at Hackett River is made up of three deposits, the
East
Cleaver Zone, The Main Zone and The Boot Lake Zone.
The mineral resource for the Hackett River Project based on the
PreliminaryEconomic Assessment (announced on March 5, 2007) is as indicated in
the
following table.
To view the Hackett River Mineral Resources table, please click on the
linkprovided: hosted by Filing Services Canada Inc. website.
Work is currently in progress to compile results from the 2007 drilling into
a
revised resource. It was expected that this resource revision would be
completed by the first quarter of 2008, however, due to personnel constraints,
this
estimate is now expected to be announced in the second quarter 2008.
Prefeasibility Update
As the result of a positive Preliminary Economic Assessment (PEA), announced
in
March 2007 and completed by Wardrop Engineering Inc. in accordance with
National Instrument 43-101 guidelines, the Hackett River project is now
undergoing a Prefeasibility Assessment. The PEA envisions Hackett River as
being
capable of achieving average annual production of 324.7 million pounds of
zinc, 12.4 million ounces of silver, 20.7 million pounds of copper, 37.0 million
pounds of lead and 17.2 thousand ounces of gold over a mine life of 13.6
years.
According to the PEA, a discounted cash flow analysis of the Hackett River
Project achieves a pre-tax net present value of C$345 million at an 8%
discount rate with a pre-tax internal rate of return of 20.6% and a
paybackperiod of approximately 3 years. For further information on the
Preliminary
Economic Assessment, please see the News release dated March 5, 2007 at
www.sabinasilver.com.
The Hackett River Project Prefeasibility Study is in full swing and is
expected to be announced during the fourth quarter of 2008.
Qualified Persons
Mr. Harvey Klatt, P.Geo., VP Exploration and Qualified Person under the
terms
of NI43-101, has reviewed the technical content of this press release and
approved its dissemination.
The Preliminary Economic Assessment is based on a NI 43-101 compliant
mineral
resource estimate completed by Wardrop Engineering in November 2006.
The resource estimation and results of the Jo Zone were reviewed by
DouglasKim, P.Geo, Executive Project Manager for Sabina and a Qualified Person
under NI
43-101.
SABINA SILVER CORPORATION is a Canadian public mineral exploration and
development company with assets at the Hackett River silver-zinc project
inthe Canadian Arctic, the Del Norte project in the Stewart-Eskay Creek Mining
District and several projects in the Red Lake gold camp.
Sabina Silver Corporation is well financed with approximately C$47 in
working capital as at March 31, 2008. Shares on issue at the same date
were
66,669,634.
For further information please contact:
Albert Brantley, President & CEO: 807-766-1799
Nicole Hoeller, Director, IR: 807-766-1799
nhoeller@sabinasilver.com
Forward-looking Statements
Statements relating to permitting, feasibility and exploration work at the
Hackett 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 and information concerning mineral
resource estimates 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 gold
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; uncertainties involved in the
estimation of metal reserves and resources; the possibility that required
permits may not be obtained on a timely manner or at all; the possibility
that capital and operating costs may be higher than currently estimated and may
preclude commercial development or render operations uneconomic; the possibility
that the estimated recovery rates may not be achieved; 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, 2006.
Forward-looking statements are based on the beliefs, estimates and
opinionsof 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.
SBB NR-08-05
This news release has been authorized by the undersigned on behalf of Sabina
Silver Corporation.
Distributed by Filing Services Canada and retransmitted by Marketwire
Albert Brantley, President and CEO
1004 Alloy Drive
Thunder Bay, ON
P7B 6A5
Tel: (807) 766-1799
Fax: (807) 343-0232
http://www.sabinasilver.com
Sabina Silver Corporation
Tel: (807) 766-1799
Fax: (807) 343-0232
Email: Email Contact
Web Site: www.sabinasilver.com
Copyright 2008, Market Wire, All rights reserved.
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