It is another candidate for accumulation this Summer: Silver Wheaton SLW is holding a stake as strategic investment in this Junior. With silver prices under pressure Junior has made a decision to grow resources using the recent market conditions: translation - we will buy what we can at this distressed valuations and will develop further when the prices will be up and all potential targets will be too expensive. We like this approach. We still remember how Silver Standard SSRI was accumulating Silver properties when the silver price was below 7 USD/oz and company stock below 5 USD. With Silver breaking 15 USD/oz excitement will be back into these kind of Juniors."Sabina Silver Enters Into Agreement to Purchase Back River Assets From Dundee Precious Metals to Create Premier Northern Canada Advanced Exploration Company
Claims cover over 3,000 sq km on a Greenstone Belt that hosts Hackett River Project in Nunavut.
Claims cover over 3,000 sq km on a Greenstone Belt that hosts Hackett River Project in Nunavut.
M & I Resource of 3.4 million tonnes at 10.9 g/t for 1.19 million ounces gold Inferred Resource of 3.6 million tonnes at 10.2 g/t for 1.16 million ounces gold"
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Mar 30, 2009 -- Sabina Silver Corporation (CDNX:SBB.V - News) announced today that it has entered into a Definitive Asset Purchase Agreement (the "Agreement") to purchase the Back River and Wishbone properties in Nunavut, Canada (collectively known as the Back River Assets) from Dundee Precious Metals Inc. ("DPM").
As previously disclosed Sabina's strategy is to seek accretive acquisitions within established criteria while continuing to advance its Hackett River Project. The Company has been actively assessing large or district scale Canadian precious metals targets which have substantial already defined 43-101 mineral resource.
The Back River Assets consist of two main components, the original Back River property hosting the George and Goose Lake iron formation hosted gold deposits and a recent new project area, the Wishbone Project. This property covers a large portion of the Hackett River Greenstone Belt ("HRGB") and hosts Sabina's Hackett River Project as well as other smaller base and precious metal deposits. The combined properties total approximately 3,000 square km and cover a largely unexplored highly prospective greenstone belt.
"We are very excited about this transaction," said Tony Walsh, President & CEO. "All of the projects are in the same area and share logistical opportunities and potential development synergies. For example, the George Lake deposit is approximately 40 km from Hackett River. The Sabina management team has proven experience in successfully managing and permitting large arctic projects, including the development of Miramar Mining's Hope Bay Greenstone Belt. We have previously operated the George and Goose Lake projects and believe they have excellent potential to add to their resources. Also, Nunavut is a pro-mining jurisdiction, supportive of exploration and mining development. These Canadian properties will also provide the option for the Company to access, if required, funding through the sale of flow through qualified shares. We believe that this transaction adds immediate value to the Company and will continue to do so for years to come."
"We have always recognized the value of the Back River assets however, with our focus clearly on advancing our Bulgarian assets, this transaction provides us with an opportunity to continue to participate in Back River's growth and development without diverting resources from our core business," said Jonathan Goodman, President & CEO. "Back River is an excellent exploration property that will complement the adjacent Sabina properties allowing DPM to become a significant shareholder in a much larger exploration venture run by one of the best exploration groups in Canada."
As previously disclosed Sabina's strategy is to seek accretive acquisitions within established criteria while continuing to advance its Hackett River Project. The Company has been actively assessing large or district scale Canadian precious metals targets which have substantial already defined 43-101 mineral resource.
The Back River Assets consist of two main components, the original Back River property hosting the George and Goose Lake iron formation hosted gold deposits and a recent new project area, the Wishbone Project. This property covers a large portion of the Hackett River Greenstone Belt ("HRGB") and hosts Sabina's Hackett River Project as well as other smaller base and precious metal deposits. The combined properties total approximately 3,000 square km and cover a largely unexplored highly prospective greenstone belt.
"We are very excited about this transaction," said Tony Walsh, President & CEO. "All of the projects are in the same area and share logistical opportunities and potential development synergies. For example, the George Lake deposit is approximately 40 km from Hackett River. The Sabina management team has proven experience in successfully managing and permitting large arctic projects, including the development of Miramar Mining's Hope Bay Greenstone Belt. We have previously operated the George and Goose Lake projects and believe they have excellent potential to add to their resources. Also, Nunavut is a pro-mining jurisdiction, supportive of exploration and mining development. These Canadian properties will also provide the option for the Company to access, if required, funding through the sale of flow through qualified shares. We believe that this transaction adds immediate value to the Company and will continue to do so for years to come."
"We have always recognized the value of the Back River assets however, with our focus clearly on advancing our Bulgarian assets, this transaction provides us with an opportunity to continue to participate in Back River's growth and development without diverting resources from our core business," said Jonathan Goodman, President & CEO. "Back River is an excellent exploration property that will complement the adjacent Sabina properties allowing DPM to become a significant shareholder in a much larger exploration venture run by one of the best exploration groups in Canada."
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