Sabina receives final assay results of Hackett drilling
2005-11-02 05:12 MT - News Release
Mr. Abraham Drost reports
SABINA SILVER CORPORATION: 2005 HACKETT RIVER DRILLING-ASSAYS FROM 41 NEW HOLES INCLUDES 172 FEET OF 9.09 OUNCE/TON SILVER AND 7.22% ZINC
Sabina Silver Corp. is presenting final assay results of 2005 drilling at Hackett River. A total of 30,690 feet (9,357 metres) in 44 infill and stepout holes were drilled in 2005. Highlights include: 172 feet (52.4 metres) of 9.09 ounces per ton silver and 7.22 per cent zinc at East Cleaver, 152 feet (46.6 metres) of 6.79 ounces per ton silver and 6.32 per cent zinc at Boot Lake, and 72 feet (29.52 metres) of 9.12 ounces per ton silver and 5.91 per cent zinc at the Main zone, East Limb deposit. Previously unreleased results from 41 holes confirm the robust nature of the Hackett River mineralization and most importantly, suggest that all three known deposits, East Cleaver, Boot Lake and Main zone, remain open for expansion. Wardrop Engineering Inc. is presently preparing a revised geological model and updated NI 43-101 compliant resource estimate incorporating the 2005 drill results.
Sabina has a 100-per-cent interest in the polymetallic Hackett River project that contains a pre-existing NI 43-101 compliant indicated resource based on 2004 drilling of in excess of 154 million ounces of silver, 1.8 million tons zinc, 137,000 tons copper, 256,000 tons lead and 448,000 ounces gold. The magnitude of the silver resource alone at Hackett River ranks Sabina Silver among the top 12 silver-focused companies operating in the Western Hemisphere. As a result of Hackett River, Sabina's silver resource endowment (ounce) per U.S. dollar of fully diluted market capitalization is presently over five times the silver sector average.
Sabina spent a total of $12-million in 2004 and 2005 to earn a 100-per-cent interest in the Hackett River project subject to earn-back rights or a 2-per-cent net smelter return royalty held by Cominco Mining Partnership (CMP), an affiliate of Teck Cominco Limited. CMP is presently in its final 90-day alternate earn-back right to acquire an interest in the Hackett River project. CMP may earn back 60 per cent only after paying Sabina $1-million cash with its election notice, financing all expenditures to the completion of a feasibility study and paying to Sabina an additional sum of $1-million cash upon completion of the feasibility study. Should CMP terminate its right to earn back an interest in the Hackett River project, it shall retain a 2-per-cent NSR in the project.
The Hackett River drill program was carried out under the supervision of Harvey Klatt, PGeo, project manager and a qualified person under National Instrument 43-101. Mr. Klatt supervised drill hole planning, implementation and quality control programs and has approved the technical content of this news release. Core was one-half split, with half sent to accredited Global Discovery Labs, Vancouver, for preparation and analysis.
We seek Safe Harbor.
K.D.
