Sabina seeks more gold in Nunavut’s Kitikmeot region

Sabina Gold and Silver Corp. wants to develop two gold-rich properties in the Kitikmeot region. The closest communities include Bathurst Inlet, located about 100 kilometres north of the sites, Bay Chimo, about 190 km northeast, Kugluktuk, about 360 km northwest, and Cambridge Bay, about 380 km northeast.

Sabina Gold and Silver Corp. had encouraging news to report July 18 on its search for gold on its properties in Nunavut’s Kitikmeot region.

The company reported that results from holes drilled as part of its 2011 exploration program at the Goose property and new results from exploration drilling at its Back River project look good.

“We are approximately half way through our drilling campaign for 2011 and we are very encouraged with our results,” said Tony Walsh, Sabina’s president and chief executive officer, in a company news release

The 2011 drilling campaign at Back River has two objectives, it said: to expand and extend the existing deposits, and to make new discoveries.

There are currently eight drills operating at Back River.

“Our goal is to become a mid-tier gold company producing between 300k and 400k ounces of gold per year from Back River, a project scope we believe we can expedite,” Walsh said last month when the company announced it plans to sell its silver-rich Hackett River property and other claims to Xstrata Canada Corp..

With Xstrata taking over at Hackett River, Sabina shareholders as well as the stakeholders in Nunavut are likely to see the Back River gold mine move ahead more quickly.

Xstrata’s ownership also means that Hackett River will be developed and become a producing silver mine earlier.