Jo shows more zinc and silver for Sabina (September 08, 2008)

VANCOUVER–While a frustrating delay continues to hang over its Hackett River prefeasibility study, Sabina Silver (SBB-V, SBBFF-O) has released more decent drill results from the Jo zone.

The Jo zone, part of Sabina’s Hackett River property, about 100 km southwest of the head of Bathurst Inlet, Nunavut, sits outside the areas being considered in the prefeasibility study. But Sabina has been drilling the zone with an eye to adding resources to its plans.

Highlights from the 2008 campaign include 5 metres grading 8.54% zinc, 4.62% copper, 0.48% lead, 340.3 grams silver per tonne and 0.53 gram gold in hole 5, starting 84 metres below surface.

The Jo zone could add to a potential mining operation the company proposed in a 2007 preliminary economic assessment. In it, Sabina outlined the development of two open pits, one at the Main zone and another at East Cleaver, as well as an underground mine at Boot Lake.

All told, the three areas contain an indicated resource of 47.1 million tonnes grading 4.67% zinc, 0.32% copper, 0.68% lead, 149.89 grams silver and 0.32 gram gold.

Sabina had intended to bring the project to the prefeasibility stage sometime around the end of the year.

But in a statement, Sabina president Anthony Walsh said that might not happen.

“The delays we are encountering, as well as the extra work required on the project, could push the prefeasibility study out further than the year-end target provided previously,” he said.

Sabina chief financial officer Duncan Caldwell says that means the company will cut back on its budget this year to keep its accounts flush with cash. Sabina had meant to design its budget based on results from the prefeasibility study, he says.

On news of the recent drill results, Sabina’s share price gained 1 to close at 92.