Sabina drills 11.93 g/t gold over 41.45 metres at Back River, Nunavut

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Sabina Gold & Silver Corp. [SBB-TSX; SGSVF-OTCQX; RXC-FSE] reported initial results from the recently completed Umwelt drilling program on its 100%-owned Back River gold project in Nunavut, Canada.

This eight-hole drilling program at Umwelt targeted select areas near the interface of the planned open pit and upper portions of the underground where potential exists for optimization of the mine plan.

Assays for the first two drill holes include 13.68 g/t gold over 31.9 metres, including 30.98 g/t gold over 9.9 metres, in drill hole 22GSE605; and 11.93 g/t gold over 41.45 metres, including 32 g/t gold over 8 metres in drill hole 22GSE606. Results from drill hole 22GSE605 demonstrate the excellent potential for additional mineralization outside of the current mine plan, and drill hole 22GSE606 highlights the continued opportunity for optimization of the current resource model. See table in original company press release.

These new assays continue to support the continuity of higher-grade portions of mineralization modelled in the resource and further defined by previous drilling completed at the V2 zone that returned significant intercepts, such as 19.89 g/t gold over 32.2 metres in hole 20GSE575C, including 51.5 g/t gold over 8.2 metres; 20.02 g/t gold over 20.55 metres in hole 20GSE581; and 23.52 g/t gold over 22.75 metres in hole 20GSE582.

Six of the drill holes (results pending) tested mineralization within the resource envelope over a plunge extent of 200 metres, with vertical distance from surface ranging between 115 and 200 metres. Two additional drill holes were completed; one tested the anticline structure to the west of the high-grade corridor and outside of current planned underground mining areas, while a second was completed as a geomechanical test within the open pit. Planned drilling for the Hook zone, announced as part of this drilling program, was deferred.

“We continue to demonstrate and better define these structures that are two to three times the average grade of the current Umwelt underground reserve,” said Bruce McLeod, president and CEO. “This current drilling follows on the strong results of drilling completed in 2020 at the Umwelt V2 zone, continuing to support the value of advancing the exploration ramp for better access to evaluate, grow and optimize this higher-grade material, which, if accessed earlier in the mine life, could improve already-robust project economics.”

Sabina’s focus on the Umwelt deposit with drilling, core review, detailed modelling and structural interpretation over the past six years has yielded strong exploration and optimization opportunities, both at the deposit and across the Goose property. Geological learnings have driven positive resource growth and optimization at the Umwelt, Llama and Goose Main deposits and generated exploration opportunities, resulting in the discovery of the Nuvuyak resource and evolution of the Hook zone toward future growth as a possible new resource.

Results from drilling in 2022 will better inform portions of the higher-grade gold continuity and assist with design adjustments and potential optimizations of the pit wall and crown pillar design. Six drill holes targeted the intersection of the quartz-feldspar porphyry with the lower iron formation within the short limb of the antiform/synform system – a plunging structure with significant width, of particularly high-grade gold mineralization. Understanding and supporting mineralization continuity down plunge through this zone is important for forward planning and expansion, since the deposit is open along limbs and at depth.

Sabina filed an updated feasibility study on its first mine in the district, the Goose mine, which presents a project that will produce approximately 223,000 ounces of gold per year (first five years averaging 287,000 oz/year, with peak production of 312,000 ounces in year 3) for approximately 15 years, with: a rapid payback of 2.3 years; a post-tax internal rate of return of approximately 28%; and a net present value at a 5% discount of $1.1-billion at a gold price of US$1,600/oz. The project has received all major permits and authorizations for construction and operations.

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