Sabina Gold & Silver Announces 2018 Budget of $83million to Focus on Exploration and to Commence Pre-development Infrastructure Improvements to Advance Back River Towards Production
February 13, 2018
Vancouver, BC – Sabina Gold & Silver Corp (SBB.T), (“Sabina” or the “Company”) is pleased to announce budget plans and activities for 2018.
The 2018 planned budget enables the Company to continue on its two-pronged approach in advancing towards production and continuing high-value exploration. All project development programs are focussed on de-risking, de-stressing and expediting the time line towards first gold production. The activities for project development and exploration will be funded out of the Company’s existing treasury of approximately $94.5million (Jan 19, 2018).
The 2018 budget delivers:
- Completion of the permitting process and receipt of both Type A and B water licenses;
- Completion of detailed engineering required for 2019 and development of the project execution plan;
- Commencement of pre-development infrastructure activities, earthworks, construction of the marine laydown area (“MLA”) and procurement of key infrastructure and equipment including permanent camps for both the MLA and Goose sites;
- Completion of a targeted exploration program; and
- Advancement of the project debt finance process.
“2018 will be a significant year for the Company as our work programs continue to advance Back River towards production as well as continue to focus on high value exploration targets at the Goose property” said Bruce McLeod, President & CEO. “In addition, we have developed discretionary activities that are based on certain milestones achieved during the process. These expenditures will be assessed with a view to maintaining first gold in 2021 and are contingent on advancement of project funding initiatives.”
Although the Project has experienced 13 months of permitting delays, additional discretionary project development activities could enable the Company to meet its first gold date of Q1, 2021. These activities are contingent on additional funding and would include site earthworks and construction preparation at the proposed mine site.
Without completion of discretionary activities, first gold could be pushed out to Q4, 2021, a 9 month delay.
During 2018, Sabina will conduct a significant exploration diamond drilling program along with field mapping, rock sampling, till sampling, geophysics and diamond drilling at Back River. This work is designed to expand and optimize existing resources and advance and delineate exploration targets towards the discovery of new mineralization that has the potential to favorably impact project economics.
Camp will open in mid-February 2018 with drilling beginning in March. Drilling of an initial 6,000 meters will be completed in the spring program, with up to an additional 19,000 meters targeted for the summer months subject to advancement of funding initiatives. This year’s drilling will focus on following up on the significant 2017 results at Vault and Llama along with testing a number of targets that include the Goose Main Trend, Echo, Kogoyok, the lower DIF horizon and Boulder Project targets.
Sabina Gold & Silver Corp.
Sabina Gold & Silver Corp. is well-financed with approximately C$94.5million in cash and equivalents, and is an emerging precious metals company with district scale, advanced, high grade gold assets in one of the world’s newest, politically stable mining jurisdictions: Nunavut, Canada.
Sabina released a Feasibility Study on its 100% owned Back River Gold Project which presents a project that has been designed on a fit-for purpose basis, with the potential to produce ~200,000 ounces a year for ~11 years with a rapid payback of 2.9 years (see “Technical Report for the Initial Project Feasibility Study on the Back River Gold Property, Nunavut, Canada” dated October 28, 2015) (the “Study”). At a US$1,150 gold price and a 0.80 (US$:C$) exchange rate, the Study delivers a potential after tax internal rate of return of approximately 24.2% with an initial CAPEX of $415 million.
The Project received its final Project Certificate on December 19, 2017. The Project is now in the final regulatory and licensing phase.
In addition to Back River, Sabina also owns a significant silver royalty on Glencore’s Hackett River Project. The silver royalty on Hackett River’s silver production is comprised of 22.5% of the first 190 million ounces produced and 12.5% of all silver produced thereafter.
For further information please contact:
Nicole Hoeller, Vice-President, Communications: 1 888 648-4218 email@example.com