Sabina Gold shares touch 3-year high on new gold discovery

June 22 (Reuters) - Shares of Sabina Gold and Silver Corp SBB.TO hit a nearly 3-year high on Tuesday, a day after it reported new gold discovery at Back River project in Nunavut province, prompting at least one brokerage to raise its price target on the stock.

On Monday, the Canadian miner announced discovery of gold at Umwelt Lake, located near its Llama Lake property, its third discovery in the last five months.

"The discovery at Llama Lake is shaping up to be a major find for Sabina, and while still very early, we consider it to have the potential to host between 1.5 million to 2.5 million ounces of gold within its current dimensions," Dundee Capital Markets analyst Paul Burchell wrote in a note dated June 21.

The analyst, who has a "buy" rating on the stock, raised his price target for the company to C$3.20 from C$2.70.

Shares of the company were up about 4 percent, or 9 Canadian cents, at C$2.48 in Tuesday morning trade on the Toronto Stock Exchange. They hit a high of C$2.57 earlier in the session. (Reporting by Ashutosh Joshi in Bangalore; Editing by Roshni Menon)