Sabina Plans Back River Project Re-Opening
Vancouver, BC – Sabina Gold & Silver Corp. (SBB-T) (“Sabina” or the “Company”) announces that plans are now in place for a phased re-opening of the Back River project (“Back River” or the “Project”) in Nunavut, Canada.
With a fully subscribed offering scheduled to close on June 3, 2020, the commencement of the deferred exploration drill program along with other project pre-development activities are planned to begin in July.
In addition, Zhaojin International Mining Co., Ltd. has elected to exercise its participation right under its Shareholder Agreement with the Company to maintain its 9.9% holdings in Sabina’s Common Shares.
Contemporaneously with the closing of the financing, an additional 151,083 flow-through common shares of the Company at $2.40 per share have been subscribed for and will also close on June 3, 2020.
“We are pleased to have developed plans to enable us to safely return to the Goose site to commence exploration and pre-development activities ,” said Bruce McLeod, President & CEO “Although we will be working at a reduced camp capacity due to recently established COVID-19 safety protocols, we can once again begin de-risking the project as we advance towards becoming a gold producer. We anticipate camp re-opening in early July and are looking forward to getting back to work.Over the last two years, while markets have not been conducive to obtaining full project financing on acceptable terms, we were able to fund and complete some initiatives critical to the success of the Project.These proceeds will enable us to continue to do this and to advance the Project to a state of readiness for a production decision when the time is right.”
Summer Drilling and Planned Exploration Decline at Umwelt
Since de-mobilizing personnel from Goose Camp in March due to the COVID-19 pandemic, the Company has been working in consultation with external parties to develop camp protocols to ensure the safety of our workforce and the surrounding communities. Sabina will continue to engage with relevant parties including the Government of Nunavut, Government of Northwest Territories, Kitikmeot Inuit Association, and Kitikmeot communities as additional information on the pandemic becomes available. Protocols will be modified based on new information to ensure our safety measures remain appropriate. The Company expects that its planned drilling campaign will recommence in July.
Approximately 6500 meters will test for the definition and expansion of a thickened, high grade corridor of mineralization within the Umwelt underground, initially at the Vault Zone and in the up-plunge direction towards the bottom of the proposed pit. Recent drilling and modeling show that the high-grade corridor extends through Vault, up and down plunge, with potential for significant optimization through additional drilling.
Additionally, flow through proceeds raised from this Offerning will be used to commence civil works for establishment of an exploration decline which will allow us to fully evaluate and further explore the high-grade Umwelt deposit. If this drilling is successful it could potentially provide for the earlier release of high-grade ores to the mine plan and positively impact the production profile and project economics.
Further, internal studies have been completed to evaluate the potential to add resources to the Project from new discoveries at Umwelt, Llama and Nuvuyak as well as include already defined resources at Goose main and Echo that are not currently included in the mine plan.These internal studies could serve as the basis to plan infill drilling programs going forward.
Project Development Activities
Commencing this Summer, the Company plans to undertake other pre-development works including extension of an airstrip to allow heavy lift aircraft, roads and pre-development of pads and lay down areas at the Goose site.The Company also plans to complete detail engineering which when complete will be the basis for an updated capital cost estimate for the project.
Budgets and work plans for the remainder of 2020 and 2021 are currently underway and will be announced once completed.
The Securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Sabina Gold & Silver
Sabina Gold & Silver Corp. is well-financed 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 Project received its final Project Certificate on December 19, 2017.The Project received its Type A Water License on November 14, 2018 and is now in receipt of all major authorizations for construction and operations.
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.
With the proceeds of this financing, the Company has approximately $70 million in cash, cash equivalents and short-term investments.
For further information please contact:
Nicole Hoeller, Vice-President, Communications:1 888 648-4218
Bruce McLeod, President & CEO
Suite 1800 – Two Bentall Centre
555 Burrard Street
Vancouver, BC V7X 1M7
Tel 604 998-4175 Fax 604 998-1051