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Sabina Reports Results from Drilling Program at Echo Deposit in Nunavut, Canada

Sabina Gold & Silver Corp. reported today the results of its recently completed infill definition and expansion drilling program at the Echo deposit, at the Company's 100% owned Back River Gold Project, Nunavut, Canada.

The Echo deposit is one of four that make up the mineral resources at the Goose Property and is centrally located in the area of planned mine infrastructure for the Project. The Project is currently in feasibility stage with a published Measured Mineral Resource of 10.4 million tonnes grading 5.2 g/t for a contained 1,761,000 ounces Au, an Indicated Mineral Resource of 17.9 million tonnes grading 6.1 g/t for a contained 3,536,000 ounces Au and an Inferred Mineral Resource of 8.2 million tonnes grading 7.3 g/t for a contained 1,927,000 ounces Au (both at Goose and George). (Echo mineral resources consist of indicated resources of 607,053 tonnes grading 6.80 g/t for a contained 132,690 ounces Au and inferred resources of 550,907 tonnes grading 7.20 g/t for a contained 127,545 ounces Au).

Twenty five diamond drill holes for a total of 8831.5 m were completed at Echo in 2014 to test the feasibility of including an open pit/underground operation in the early mine plan.

The 2014 Echo drilling program:

  • increased the drill hole density of the main deposit to approximately 50m centers to enable conversion of resources;
  • drill tested for extensions to mineralization at depths of up to 350m vertical;
  • tested for significant lateral extensions of the known mineral horizon; and
  • collected data for metallurgical and geotechnical studies that will aid in the assessment of development potential.

The results of the drilling indicate that the deposit is open at depth, below current drilling and also along strike to the northeast and west.

At depth and extensional to the main mineral zone, higher grade potential is demonstrated by drill holes 14GSE474B which returned 4.0m of 5.22g/t Au from 334.00m to 338.0m depth and drill hole 14GSE475 which returned 5.0m of 12.02g/t Au from 331.4m to 336.4m depth, including 0.60m of 50.31g/t Au from 331.40m to 332.0m.

Additionally, the infill drilling completed will enable an updated resource to be estimated at Echo later this year and included in the Feasibility Study ("FS") due to be completed in the first half of 2015. This new resource estimate will enable us to determine the opportunities the Echo zone could provide to the early mine life as contemplated.

"We are pleased with the results of this year's Echo drill program. We have succeeded in confirming and expanding the continuity of the gold mineralization while increasing our confidence in the resource in the lower and main portions of the mineral zone," said Rob Pease, President & CEO. "In addition, we are excited that step out holes and lower elevation resource drill holes demonstrate that the deposit has potential to grow. Although the Echo deposit only represents a small portion of our current total Back River resource, we are encouraged by the continued ability to show exploration upside with dedicated drilling in and around our Goose deposit areas."

The geology of the Echo deposit is characterized by a steeply dipping, silicate iron formation horizon which is contained in a thick succession of clastic sediments. The mineralized package, as delineated by drilling to date, forms a panel with approximate average thicknesses 3-5m, with a strike length approximately 300m (unfolded) and extending to at least 300m vertical depth (the depth of drilling to date). The mineral horizon is bisected by later stage faulting and is intruded by a series of late gabbro dykes. Gold mineralization shows favourable continuity within the main zone, but is subject to variability of grade.

Lateral expansion potential to the NE of the main Echo mineral zone is demonstrated by step-out drill hole 14GSE484, positioned approximately 150m to the NE of deposit drilling, which returned 18.69g/t Au over 6.20m (using 80g/t cutoff grade for higher grade assays). To the west of the Echo deposit, drill hole 14GSE487 was positioned to test for continuations of the mineralized horizon approximately 300m outside of the main Echo resource. Values returned from this drill hole include 4.53g/t over 5.00m from 155.00-160.00m within massive quartz veining coincident with the lower iron formation, which forms the predominant favourable host for mineralization at Back River. Echo is thus open along strike to the northeast and to the west, and to depth.



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