Providing coverage of Alaska and northern Canada's oil and gas industry
November 2012

Vol. 17, No. 46 Week of November 11, 2012

Mining Explorers 2012: Sabina Gold & Silver Corp.


President and CEO: Robert Pease

Vice President, Corporate Development: Jason Hynes

Vice-President, Exploration: Angus Campbell

In 2012 Sabina Gold & Silver Corp. carried out extensive exploration programs on its Back River Gold Project and Wishbone Property in Nunavut focused on continuing to add ounces to resources and advance the Back River project to the development stage. At Back River, the company mainly targeted infill, geotechnical and extension drilling of existing deposits in support of the upcoming Back River Pre-Feasibility Study anticipated in 2013. At Wishbone, Sabina planned to assess the resource potential of the newly discovered Lucky 7 trend with additional drilling. Sabina reported multiple high-grade intersections from up to 76,000 meters of extension, resource conversion and geotechnical drilling at Back River, along with the discovery of a new shallow zone of gold mineralization, the Wing Zone, between the proposed Umwelt and Llama open pits. The Wing Zone was discovered by drill holes targeting the extension of the Llama deposit at depth. Hole 12GSE226 intersected 12.68 grams per metric ton gold over 15.45 meters in the western part of the zone starting at a down-hole depth of 52.00 meters. The hole then went on to intersect the eastern limb of the fold returning several significant intercepts including 5.86 g/t gold over 1.05 meters, 3.91 g/t gold over 3.00 meters, 4.19 g/t gold over 2.95 meters and 17.63 g/t gold over 0.60 meters between 213.10 and 245.80 meters depth. The hole finally intersected its target at depth, returning 7.14 g/t gold over 4.05 meters in the deep extension of the Llama Main West zone. Below the zone, a sample from a sediment-hosted dyke yielded 7.08 g/t gold over 0.80 meters. Much of Sabina’s work in 2012 has focused on extending the Umwelt deposit at depth. Planned conversion holes both in the G2 Zone and some 200 meters below the proposed Umwelt pit continue to demonstrate the continuity of the deposit. At Wishbone, Sabina planned to drill 15 holes on the Lucky 7 target where hole SWB-11-07 intersected 6.45 g/t gold over 4.50 meters and 71.3 g/t gold over 1.50 meters. As a result of the discovery, Sabina staked 73 new claims in 2011 to the east and south of the existing property. With exploration expected to wind down in early October, the company said drilling results would be reported through the fall. At June 30, Sabina had spent C$26.2 million and drilled of 33,737 meters at Back River; C$4.3 million and 5,639 meters at Wishbone as well as smaller sums on exploration programs at its Ontario and Manitoba properties.

Cash and short-term deposits: C$152.9 million (at June 30, 2012)

Working capital: N/A

Market capitalization: C$528.81 million (Oct. 9, 2012)

930 West 1st St.

Suite 202, North

Vancouver, BC Canada V7P 3N4

Tel: (604) 998-4175 • Fax: (604) 998-1051

Mining News North - Phone: 1-907 522-9469 - Fax: 1-907 522-9583 --- ---

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