Sabina Gold & Silver Announces Q1 2014 Financial Results
May 14 2014 - 5:00PM
Marketwired
Sabina Gold & Silver Announces Q1 2014 Financial Results
$51 million at March 31, 2014 in cash and equivalents
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 14, 2014) -
Sabina Gold & Silver Corp. (the "Company") (TSX:SBB) reported
today the financial results for the quarter ended March 31,
2014.
2014 got off to a good start in the first quarter. Highlights of
the period include:
- The Company had cash, cash equivalents and short-term
investments of $51.4 million at March 31, 2014.
- On January 23, 2014, the Company submitted a draft
environmental impact statement and associated water license
applications for the Back River Gold project to the Nunavut Impact
Review Board ("NIRB") and the Nunavut Water Board respectively and
received notice from NIRB that the document conforms to the
environmental assessment guidelines and that the technical review
process has begun.
- On March 4, 2014, the Company announced an update to its Back
River mineral resource estimate incorporating the results of the
2013 exploration drill program. Highlights of the new mineral
resource estimate include a significant increase in gold ounces in
measured resource category; and, a significant increase in total
contained gold ounces. See news release dated March 4, 2014 on
www.sabinagoldsilver.com or on www.SEDAR.com.
- Subsequent to the quarter on April 7, 2014, the Company
announced the 2014 Back River work program. A budget of
approximately $19 million is planned and will include 9,000 meters
of drilling largely at the Echo deposit; environmental and
permitting activities, development studies and property holding
costs. Three drill rigs are currently operating at Goose camp
drilling at the Echo deposit.
- Subsequent to the quarter on April 22, 2014, the Company
announced results from ongoing metallurgical testing on Back River.
The tests confirmed a substantial increase in overall recoveries
from 88.0% (which was assumed in the Prefeasibility Study) to an
indicated 93.9%. The improved recoveries in combination with the
increased mineral resource estimate are planned to be incorporated
into a Feasibility Study ("FS") which is expected to be completed
in the first half of 2015.
"Q1 has been a busy quarter for us," said Rob Pease, President
& CEO, "with several major milestones being completed during or
shortly after the quarter, the Company is looking forward to
continued success in 2014. With an updated resource estimate,
increased metallurgical recoveries and an established path though
the permitting process, we are now ready to launch into a full
feasibility study on Back River, continuing to de-risk the project
while preserving our treasury. We also look forward to reporting on
drill results from the prospective Echo deposit through the summer.
The work on the Project done to date continues to demonstrate the
potential for Back River to become a meaningful gold producer."
Financial
Results
For the quarter ended March 31, 2014, the Company reported a net
loss of $1.6 million compared to a net loss of $3.7 million for the
same period in 2013. The decrease of $2.1 million was primarily due
to lower operating expenses and deferred income tax expense,
partially offset by reduced net finance income.
Operating expenses in Q1, 2014 were $2.1 million compared to
$3.9 million in the same quarter in 2013, lower by $1.7 million due
to lower stock-based compensation expense. Share based compensation
decreased primarily due to a decrease in the option value. For the
quarter ended March 31, 2014, the Company had granted and vested
2.9 million options with a weighted average fair value of $0.46 per
option compared with 3.0 million options at $1.25 per option in the
same period of 2013.
Net finance income was $0.2 million in Q1 2014, compared to $0.8
million in Q1 2013. The decrease was the result of lower interest
income and amortization of flow-through premium. Interest income
decreased to $0.2 million in Q1 2014 from $0.5 million in Q1 2013
due to reduced average cash and short term investment balances.
Amortization of flow-through premium was nil in Q1 2014 compared to
$0.3 million in Q1 2013. The Company has not completed any flow
through financings in 2014.
The primary costs incurred by the Company are associated with
exploration and evaluation of its mineral properties and are
deferred until the properties are placed into production, sold or
abandoned. In Q1, 2014, total deferred expenditures were $3.9
million compared to $14.2 million in 2013. The decrease of $10.3
million was primarily the result of no drilling activity at Back
River in Q1, 2014 and decreased environmental and economic
assessment expenditures compared to 2013. During the 2013, the
Company completed a large field campaign including a total of
82,000 meters of drilling to support the expected FS in 2014; as a
result, drilling and site support costs were lower in Q1 2014 by
$7.6 million versus Q1 2013.
For the full March 31, 2014 interim financial statements and
Management's Discussion and Analysis, please see the Company
website at www.sabinagoldsilver.com.
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 pre-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's Zinc'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 ended 2013 with
approximately $58 million in cash and anticipates ending 2014 with
approximately $36 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.
All technical reports have been filed on www.sedar.com
Forward Looking Statements
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.
Rob
Pease, President & CEO |
930 West
1st Street, Suite 202 |
North
Vancouver, BC V7P 3N4 |
Tel 604
998-4175 Fax 604 998-1051 |
http://www.sabinagoldsilver.com |
Sabina Gold & Silver Corp.Nicole HoellerVice-President,
Communications1 888 648-4218nhoeller@sabinagoldsilver.com
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