080121-08MN006-Sabina Hackett River Project Proposal ... - NIRB

2. Project Description2.1 Project Location and Resources2.1.1 LocationThe Hackett River Project is an advanced exploration metal project located in the West Kitikmeotregion of Nunavut. The Project is approximately 75 km south of the southern portion of BathurstInlet (Figure 2.1-1). The Project would be connected to the proposed BIPR road by a 23 km spurroad, and the northern portion of the BIPR road along with the port site on Bathurst Inlet wouldbe used to transport concentrate from the mine to overseas markets, as well as backhaulingconsumables and supplies to the Project Site.Figure 2.1-2 shows the boundaries of the mineral claims owned by Sabina in the Hackett RiverProject area. The approximate centre of the Property is at 65º 55’ North Latitude, 108º 30’ WestLongitude.The three minable resources, Main Zone (under Camp Lake), Boot Lake (just east of Boot Lake),and East Cleaver (east of Cleaver Lake), all lie within mining lease 2789. Figure 2.1-3 shows thelocations of the three resource bodies to be developed, along with the location of the existingexploration camp.2.1.2 Resources and ReservesSabina announced in March 2007 a preliminary economic assessment of the Hackett RiverProject which indicated a mine plan with average annual production of 324.7 million poundszinc, 12.4 million ounces silver, 20.7 million pounds copper, 37.0 million pounds lead, and 17.2thousand ounces of gold over a mine life of 13.6 years. Table 2.1-1 outlines the current mineablemineral resources. The 2007 drilling campaign included infill drilling to increase the confidencein the reported resources.Table 2.1-1Hackett River Mineable Mineral ResourcesGradeContained MetalsSourcesResourceClassTons(x1000)Silver(g/T)Zinc(%)Copper(%)Lead(%)Gold(g/T)Silver(Mil oz)Zinc(Bil lb)Copper(Bil lb)Lead(Bil lb)Gold(Mil oz)Open Pit Indicated 25,615 126.4 4.07 0.38 0.58 0.33 104.10 2.298 0.215 0.328 0.269Inferred 3,375 99.7 2.57 0.37 0.37 0.25 10.82 0.192 0.028 0.027 0.027Under- Indicated 14,517 185.73 5.87 0.26 0.89 0.25 86.69 1.877 0.084 0.285 0.114groundInferred 5,421 186.27 4.71 0.23 0.67 0.34 32.46 0.563 0.028 0.080 0.057Notes: CIM Definition Standards on Mineral Resources and Mineral Reserves were used to estimate the Hackett River NI 43-101compliant mineable mineral resource based on a Preliminary Economic Assessment.Cutoffs are C$19.94/tonne NSR for open pit,C$59.94/tonne NSR for Boot Lake underground,C$44.94/tonne NSR for Main Zoneand East Cleaver underground, respectively.Dilution and mining losses were considered in mineable mineral resource calculations.See Cautionary Note disclaimer regarding inclusion of Inferred resources (March 5,2007 release)January 2008 Hackett River Project – Project Proposal Sabina Silver CorporationReport Version B.1 2–1 Rescan Environmental Services Ltd. (Proj. #833-2)