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/usr/share/doc/libvirt-bin/examples/libvirtd.sasl is in libvirt-bin 1.2.2-0ubuntu13.

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# If you want to use the non-TLS socket, then you *must* include
# the GSSAPI or DIGEST-MD5 mechanisms, because they are the only
# ones that can offer session encryption as well as authentication.
#
# If you're only using TLS, then you can turn on any mechanisms
# you like for authentication, because TLS provides the encryption
#
# Default to a simple username+password mechanism
mech_list: digest-md5

# Before you can use GSSAPI, you need a service principle on the
# KDC server for libvirt, and that to be exported to the keytab
# file listed below
#mech_list: gssapi
#
# You can also list many mechanisms at once, then the user can choose
# by adding  '?auth=sasl.gssapi' to their libvirt URI, eg
#   qemu+tcp://hostname/system?auth=sasl.gssapi
#mech_list: digest-md5 gssapi

# Some older builds of MIT kerberos on Linux ignore this option &
# instead need KRB5_KTNAME env var.
# For modern Linux, and other OS, this should be sufficient
#
# There is no default value here, uncomment if you need this
#keytab: /etc/libvirt/krb5.tab

# If using digest-md5 for username/passwds, then this is the file
# containing the passwds. Use 'saslpasswd2 -a libvirt [username]'
# to add entries, and 'sasldblistusers2 -f [sasldb_path]' to browse it
sasldb_path: /etc/libvirt/passwd.db