Sabina Gold & Silver Announces 2014 Back River Work Program and
Annual Budget
- Focus on advancement of Back River while conserving cash
Approximately $24 million total spend in 2014 with expected
yearend balance of $34 million
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 7, 2014) -
Sabina Gold & Silver Corp. (TSX:SBB) (the "Company") is pleased
to outline the objectives of its 2014 project development and
exploration program for its 100% owned Back River project in
Nunavut, Canada, as well as its budget for 2014.
The 2014 Back River work program has been estimated to total
approximately $19 million and will include a modest drilling
program following up on successes in 2013; environmental and
permitting activities, development studies and property holding
costs. Including corporate general and administrative and other
project related costs, the annual budget for 2014 is expected to be
approximately $24 million.
In 2013, the Company completed approximately 82,000 metres of
drilling at Back River, primarily focused on upgrading and
extending the resources for inclusion in the upcoming feasibility
Study ("FS"). The results of this drilling were included in an
updated Back River Mineral Resource estimate announced early in
March.
Additionally, since the completion of the pre-feasibility
October, 2013, studies have been ongoing to assess opportunities
for project optimization prior to launching the FS. These studies
include metallurgical testing, mining methods, sequencing and costs
as well as logistics alternatives. These studies are expected to be
completed during the month of April. The studies, updated mineral
resource estimate and 2014 drilling will also be included in the
Back River FS.
"We have a very good foundation of information with which to
launch our FS," said Rob Pease, President & CEO. "Our objective
was to accomplish most of the work to support the FS in 2013 and
early 2014 and we believe we are well positioned to advance the
project through the FS and final permitting phases. One of the
opportunities identified last year was a new high grade resource at
the Echo zone which we believe could have a positive impact on
early mine life economics. We have decided to launch a focused
drill campaign at the Echo deposit to upgrade and possibly increase
the resources for inclusion in the FS. While we are there and the
camp is mobilized, we will take the opportunity to test some
interesting targets around the Echo and Goose Main zones. We
believe these could all be value add targets in the early mine life
of the project. We are excited about the next phase of advancement
for the project and look forward to launching our FS."
The priority for the Company in the next 18 months is to advance
Back River through feasibility and environmental assessment,
de-risking the project while minimizing cash consumption. During
the year, the market can look forward to updates on the project,
drilling results from the Echo Zone and permitting progress.
The Company expects to end 2014 with a cash balance of
approximately $34 million. In 2015, it is anticipated that another
$11 million will be required to fully engineer and permit the
project (including corporate General and Administration costs, but
assuming no exploration). The Company is well positioned to retain
a significant treasury through to the end of 2015. During 2014,
project financing options to construct Back River will be explored
so that the Company is in position to move forward once the project
has been de-risked.
2014 Back River Work
Program
Goose Camp is now open with a view to having three drills up and
running on the project by April 20th, 2014.
2014 Objectives:
- To mobilize a drilling program to convert and possibly increase
resources at the Echo deposit;
- To drill test two or three high potential exploration targets
for new resource additions to the Goose property;
- To complete ongoing optimization studies on the project that
began in 2013, i.e. metallurgical testing, mine sequencing and
capital and mining cost studies;
- To incorporate results of Echo drilling and optimizations
studies into the FS to be launched later this year and completed in
the first half of 2015;
- To continue necessary environmental and baseline work for the
Final Environmental Impact Statement;
- To continue with community engagement for the project;
Echo Zone
The Echo Zone, located approximately 1.5km southwest of the
Goose Main deposit and strategically located near planned mine
infrastructure was initially discovered at Back River when Sabina
purchased the property in 2009. With the subsequent discovery of
the Llama and Umwelt deposits the Echo zone was not fully advanced
as an exploration target.
Based on its proximity to other Goose deposits and it's high
grade nature, (e.g. holes 13GSE435 returning 13.13g/t Au over
12.55m and 13GSE395 returning 7.73g/t Au over 12.20m), in 2013,
re-interpretation of prior drilling results led to a renewed
exploration and resource definition program that was successful in
defining a mineral resource at Echo. The zone is open to depth and
laterally to the north. The 2014, 6000 meter drill program is
designed to upgrade a portion of the inferred resources at Echo to
the indicated category as well as explore deposit extensions.
Exploration Targets
In addition to the Echo drilling, an exploration drilling
program of approximately 2500 meters is planned to test two to
three high priority targets located in and around the existing
Goose deposits. Positive attributes of the targets have been
defined using the results from ongoing geologic modeling in
combination with geophysical data sets and the results of previous
drilling programs.
Feasibility Study
Based on the results of the PFS last fall, the Company decided
to embark on a FS for Back River. Originally, the Company had
anticipated launching the FS late in 2013 and completing the FS by
the third quarter of 2014. However, as the Company has determined
the FS would be best served by including the updated resource
estimates, metallurgical testing, and results of other ongoing
optimization studies as well as Echo drilling, the FS will likely
be launched early in the second half of 2014 with an expected
completion date in the first half of 2015. The environmental
assessment and permitting process is ongoing and is being closely
coordinated with the engineering FS schedule.
These schedule changes will result in approximately a six to
twelve month delay in the proposed project start up currently
outlined in the PFS.
Back River Technical Report
On March 4, 2014, the Company announced an updated Mineral
Resource Estimate on the Back River Project. The corresponding
43-101 technical report entitled "Mineral Resource Update for the
Back River Gold Property, Nunavut, Canada" was filed on
www.sedar.com on March 27, 2014 and can also be found on the
Company's website at www.sabinagoldsilver.com.
Qualified Person
The Qualified Person as defined by NI 43-101 as pertains to the
Back River Project, is Angus Campbell, P.Geo, Vice-President,
Exploration, for the Company.
True widths for the intercepts reported in this news release
have not yet been determined.
Diamond drill core was sent to TSL Laboratories in Saskatoon,
Sask. Quality control is monitored on a continual basis and
utilizes a system of standards, blanks and duplicates to ensure
analytical accuracy. The protocols and procedures used in 2013 are
the same as those used in earlier campaigns by Sabina Gold &
Silver Corp. and have been deemed appropriate in the Company's
43-101 compliant resource reports.
SABINA GOLD & SILVER CORP.
Sabina Gold & Silver Corp. is an emerging gold developer
with district scale, world class assets in one of the world's
newest, most politically stable mining jurisdictions: Nunavut,
Canada.
Sabina's primary assets, all located in Nunavut, consist of: the
Back River Gold Project, currently in the feasibility and
permitting phase; the Wishbone Claims, a vastly prospective grass
roots project; and the Hackett River Silver Royalty, a silver
production royalty on Glencore Canada's Hackett River project
comprising 22.5% of the first 190 million ounces produced and 12.5%
of all the silver produced thereafter. The Company is well funded
and ended 2013 with $58 million in cash.
All news releases and further information can be found on the
Company's website at www.sabinagoldsilver.com or on SEDAR at
www.sedar.com.
Forward-Looking Information
This news release contains "forward-looking information" within
the meaning of applicable securities laws (the "forward-looking
statements"), including our belief as to the extent, results and
timing of exploration programs and various studies including the
FS, and exploration results, the results of the PFS, the potential
tonnage, grades and content of deposits, timing, establishment and
extent of resources and reserves estimates, potential production
from and viability of the Company's properties, production and
operating costs and permitting submission, timing and receipt of
necessary permits and project approvals for future operations and
access to project funding. These forward-looking statements are
made as of the date of this news release. Readers are cautioned not
to place undue reliance on forward-looking statements, as there can
be no assurance that the future circumstances, outcomes or results
anticipated in or implied by such forward-looking statements will
occur or that plans, intentions or expectations upon which the
forward-looking statements are based will occur. While we have
based these forward-looking statements on our expectations about
future events as at the date that such statements were prepared,
the statements are not a guarantee that such future events will
occur and are subject to risks, uncertainties, assumptions and
other factors which could cause events or outcomes to differ
materially from those expressed or implied by such forward-looking
statements. Such factors and assumptions include, among others, the
effects of general economic conditions, commodity prices, changing
foreign exchange rates and actions by government and regulatory
authorities and misjudgments in the course of preparing
forward-looking statements. In addition, there are known and
unknown risk factors which could cause our actual results,
performance or achievements to differ materially from any future
results, performance or achievements expressed or implied by the
forward-looking statements. Known risk factors include risks
associated with exploration and project development; the need for
additional financing; the calculation of mineral resources and
reserves; operational risks associated with mining and mineral
processing; fluctuations in metal prices; title matters; government
regulation; obtaining and renewing necessary licences and permits;
environmental liability and insurance; reliance on key personnel;
the potential for conflicts of interest among certain of our
officers or directors; the absence of dividends; currency
fluctuations; labour disputes; competition; dilution; the
volatility of the our common share price and volume; future sales
of shares by existing shareholders; and other risks and
uncertainties, including those relating to the Back River Project
and general risks associated with the mineral exploration and
development industry described in our Annual Information Form,
financial statements and MD&A for the fiscal period ended
December 31, 2013 filed with the Canadian Securities Administrators
and available at www.sedar.com. Although we have attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements. We are under no obligation to update or
alter any forward-looking statements except as required under
applicable securities laws. This news release has been authorized
by the undersigned on behalf of Sabina Gold & Silver Corp.
Sabina Gold & Silver Corp.Nicole HoellerVP, Communications1
888 648-4218nhoeller@sabinagoldsilver.comSabina Gold & Silver
Corp.Rob PeasePresident & CEO604 998-4175604
998-1051www.sabinagoldsilver.com
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