Sabina Resources Limited - Resource Estimate at Hackett River Shows in Excess of 140 Million Ounces Silver and 1.7 Million Tonnes Zinc
Toronto, Canada (ots/PRNewswire)
- Shares Issued: 36,524,244
Sabina Resources Limited (TSX-V: SBB) is pleased to announce that Wardrop Engineering Inc., has delivered an independent mineral resource estimate on Sabina's 100% owned Hackett River Project, Nunavut in compliance with National Instrument 43-101. Sustained exploration at Hackett River has grown the mineral resource dramatically over historical resource estimates. Sabina has a very strong basis to move ahead with additional technical and exploration work towards a goal of development of a mineable resource at Hackett River.
Wardrop has provided a preliminary estimate based on drilling results from the 2004 exploration season. All figures reported precede a 2005 Mineral Resource Update by Wardrop which is due upon receipt of all assays from the 2005 drill program recently completed at Hackett River. The 2005 program focused on expansion of the Boot Lake, East Cleaver and Main "A" Zone deposit areas. Metallurgical work on beneficiation and optimizing recoveries of the Hackett River commodity mix is also underway under Wardrop's supervision at SGS Lakefield Research Limited.
At a zinc-equivalent cutoff grade of 3%, the Boot Lake, East Cleaver and Main Zones contain a global resource of 51.6 million tonnes, consisting of an Indicated resource of 37 million tonnes with an average of 4.66% zinc, 3.79 ounces per ton silver, 0.63% lead, 0.34% copper and 0.011 ounces per ton gold. The Inferred Resource totals 14.6 million tonnes with an average grade of 3.62% zinc, 3.61 ounces per ton silver, 0.51% lead, 0.28% copper and 0.007 ounces per ton gold.
The Wardrop analysis demonstrates a substantial Indicated metal content at Hackett River of greater than 140 million ounces of silver and greater than 1.7 million tonnes of contained zinc. Taking into account substantial lead, copper and gold credits, the Indicated Mineral Resource at Hackett River exceeds 2.4 million tonnes Zn-Equivalent metal upon application of a historical metal recovery(x) and expected commodity price regime(xx).
TORONTO, Canada, August 16 /PRNewswire/ --
Grade characteristics for both the Indicated and Inferred Mineral Resource at Hackett River at progressively increasing Zn-equivalent cutoffs are presented in the following tables:
Table 1 Hackett River Cumulative Indicated Resources by Zone
Indicated Resources
ZnEq % Tonnes Au Ag ZnEq
Zone Cutoff x 1000 Zn % Pb % Cu % oz/t oz/t %
Boot Lake greater
than 15% 0 0.00 0.00 0.00 0.000 0.00 0.00
greater
than 12% 60 10.64 2.15 0.35 0.003 6.54 12.73
greater
than 10% 262 9.33 1.63 0.40 0.005 6.04 11.21
greater
than 8% 746 8.01 1.36 0.39 0.007 5.87 9.70
greater
than 7% 1391 7.14 1.28 0.32 0.009 5.89 8.65
greater
than 6% 2580 6.34 1.16 0.26 0.009 5.75 7.66
greater
than 5% 3951 5.72 1.04 0.23 0.009 5.35 6.89
greater
than 3% 8102 4.42 0.77 0.21 0.008 4.40 5.37
East Cleaver greater
than 15% 26 15.12 2.66 0.21 0.026 10.81 17.32
greater
than 12% 105 12.11 1.87 0.36 0.021 8.28 14.08
greater
than 10% 386 9.90 1.52 0.35 0.019 7.37 11.62
greater
than 8% 1106 8.21 1.15 0.41 0.017 6.11 9.81
greater
than 7% 1770 7.43 1.05 0.39 0.016 5.81 8.93
greater
than 6% 2895 6.63 0.96 0.34 0.015 5.35 7.97
greater
than 5% 4440 5.88 0.87 0.31 0.015 5.07 7.10
greater
than 3% 9424 4.40 0.71 0.25 0.012 4.31 5.39
Main Zone greater
than 15% 581 16.01 1.59 0.25 0.015 6.38 17.57
greater
than 12% 1398 13.70 1.36 0.24 0.014 6.25 15.10
greater
than 10% 2404 12.07 1.26 0.23 0.015 6.02 13.40
greater
than 8% 4153 10.24 1.07 0.27 0.014 5.35 11.51
greater
than 7% 5301 9.40 0.98 0.28 0.014 4.96 10.64
greater
than 6% 6978 8.43 0.89 0.30 0.013 4.54 9.64
greater
than 5% 9537 7.30 0.78 0.34 0.013 4.18 8.52
greater
than 3% 19496 4.89 0.54 0.44 0.011 3.28 6.14
Total greater
than 15% 607 15.97 1.63 0.25 0.016 6.57 17.56
greater
than 12% 1563 13.47 1.43 0.25 0.014 6.39 14.94
greater
than 10% 3052 11.56 1.33 0.26 0.014 6.20 12.98
greater
than 8% 6006 9.59 1.12 0.31 0.014 5.55 10.98
greater
than 7% 8462 8.62 1.05 0.31 0.013 5.29 9.95
greater
than 6% 12453 7.58 0.96 0.30 0.013 4.98 8.84
greater
than 5% 17928 6.60 0.86 0.31 0.012 4.66 7.81
greater
than 3% 37023 4.66 0.63 0.34 0.011 3.79 5.78 Table 2 Hackett River Cumulative Inferred Resources by Zone
Inferred Resources
ZnEq % Tonnes Au Ag ZnEq
Zone Cutoff x 1000 Zn % Pb % Cu % oz/t oz/t %
Boot Lake greater
than 15% 0 0.00 0.00 0.00 0.000 0.00 0.00
greater
than 12% 0 0.00 0.00 0.00 0.000 0.00 0.00
greater
than 10% 11 8.90 1.39 0.48 0.008 6.21 10.80
greater
than 8% 401 7.13 0.67 0.76 0.016 6.71 9.13
greater
than 7% 694 6.72 0.77 0.56 0.014 6.03 8.39
greater
than 6% 1192 6.10 0.78 0.45 0.013 5.83 7.55
greater
than 5% 2257 5.34 0.76 0.35 0.012 5.58 6.59
greater
than 3% 7288 3.85 0.52 0.25 0.008 3.89 4.73
East Cleaver greater
than 15% 0 0.00 0.00 0.00 0.00 0.00 0.00
greater
than 12% 0 0.00 0.00 0.00 0.00 0.00 0.00
greater
than 10% 0 0.00 0.00 0.00 0.00 0.00 0.00
greater
than 8% 19 7.74 1.35 0.17 0.006 5.63 8.97
greater
than 7% 60 6.90 0.98 0.14 0.005 4.58 7.84
greater
than 6% 386 5.98 0.92 0.08 0.004 4.41 6.75
greater
than 5% 663 5.46 0.86 0.07 0.004 4.27 6.19
greater
than 3% 3190 3.56 0.60 0.07 0.005 3.51 4.12
Main Zone greater
than 15% 0 0.00 0.00 0.00 0.00 0.00 0.00
greater
than 12% 0 0.00 0.00 0.00 0.00 0.00 0.00
greater
than 10% 19 10.30 0.92 0.22 0.009 3.34 11.35
greater
than 8% 141 7.55 0.71 0.48 0.012 4.24 9.01
greater
than 7% 232 6.90 0.73 0.46 0.012 4.17 8.32
greater
than 6% 583 6.15 0.62 0.32 0.011 3.43 7.21
greater
than 5% 1046 5.26 0.58 0.38 0.011 3.74 6.42
greater
than 3% 4147 3.25 0.42 0.48 0.009 3.18 4.51
Total greater
than 15% 0 0.00 0.00 0.00 0.00 0.00 0.00
greater
than 12% 0 0.00 0.00 0.00 0.00 0.00 0.00
greater
than 10% 30 9.78 1.10 0.32 0.009 4.42 11.14
greater
than 8% 561 7.25 0.70 0.67 0.015 6.05 9.10
greater
than 7% 986 6.78 0.77 0.51 0.013 5.51 8.34
greater
than 6% 2162 6.09 0.76 0.35 0.011 4.93 7.32
greater
than 5% 3967 5.34 0.73 0.31 0.011 4.88 6.48
greater
than 3% 14624 3.62 0.51 0.28 0.007 3.61 4.53The resource estimate is based on a historical diamond drill database of 204 diamond drillholes with an aggregate length of 37,078 meters. It includes Sabina's 2004 program comprising 61 holes with an aggregate length of 15,179 meters, but does not include Sabina's 2005 drilling total of 9357m in 44 holes. Wardrop Engineering considers the historical exploration database to be robust and essentially free from error allowing these results to be employed along with Sabina's 2004 drilling in the estimation of Indicated and Inferred mineral resources at Hackett River.
A system of standards, blanks and duplicates were inserted as part of the Company's QA/QC analytical procedures. Metal grades have been determined using ordinary kriging into a 3-Dimensional block model constrained by wireframes interpreted from drillhole intercepts. The deposit models were constrained within the wireframe with primary block dimensions of 10m along the strike and 10m in the vertical direction. Metal tonnages and grades are reported using a Zn-Equivalent cut-off calculated using historical metallurgical recoveries and current metal price predictions.
Wardrop Engineering Inc. has reviewed this press release and approved its release. The detailed mineral resource report on Hackett River will be filed on SEDAR and on the Company website within 30 days of this release. The Mineral Resource estimates have been prepared in accordance with the Canadian National Instrument 43-101 based on information compiled by Harvey Klatt, P.Geo. Project Manager, Sabina Resources Limited and Gregory Mosher, P.Geo. Senior Geologist, Wardrop Engineering Inc. both of whom are Qualified Persons as defined in Canadian National Instrument 43-101.
Sabina has spent $12 Million to date to earn a 100% interest in the Hackett River Project subject to Earn-Back rights or a 2% NSR royalty held by Cominco Mining Partnership (CMP), an affiliate of Teck Cominco Limited. Upon receiving notice, CMP will have 90 days to exercise its Alternate Earn-Back right to acquire a 60% interest in the Hackett River Project. Terms include paying Sabina CAD$1 Million cash with its election notice, funding all expenditures to the completion of a bankable feasibility study and paying to Sabina an additional sum of CAD$1 Million cash upon completion of the feasibility study. Should CMP terminate its right to earn back an interest in the Hackett River Project, it shall retain a 2% NSR in the project.
Sabina expects to formally notify Teck Cominco Limited of the successful completion of 2005 expenditures at Hackett River on receipt of final assay results from the 2005 program.
Sabina Resources Limited is debt free, has a strong treasury and in addition to advancing the Hackett River Project, is also focused on near term gold production possibilities at its Follansbee Project in the Red Lake Mining District, Ontario.
(x) Zinc Equivalency Model Metal Recovery Factors (Wardrop, 2005)
Metal Recovery (%)
Zinc 81.8
Silver 66.7
Copper 69.6
Lead 70.0
Gold 50.0
(xx) Zinc Equivalency Model Metal Prices (Wardrop, 2005)
Metal Price (US$)
Zinc 0.53 lb
Copper 1.23 lb
Lead 0.38 lb
Gold $434 oz
Silver $6.56 oz troyON BEHALF OF THE BOARD OF DIRECTORS
TORONTO, Canada, August 16 /PRNewswire/ --
Abraham Drost, President
The statements made in this Press Release may contain forward looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
The TSX Venture Exchange does not accept responsibility for the accuracy or the adequacy
Contact:
Abraham Drost, President, 309 Court Street South, Thunder Bay,
Ontario, Tel: +1-(807)-766-1799, Fax: +1-(807)-345-0284, Email:
info@sabinaresources.ca; Visit our web site at
www.sabinaresources.ca