Sabina Gold & Silver Reaches Major Milestone to Advance Back River Gold Project with Positive Decision from Minister of Indig...
December 06 2017 - 8:02AM
Sabina Gold & Silver Corp. (TSX:SBB.T), (“Sabina” or the
“Company”) is pleased to announce that it has received a positive
decision from the Minister of Indigenous and Northern Affairs
Canada (the “Minister” or “INAC”) that the Back River Project (the
“Project” or “Back River”) may move forward to the regulatory and
licensing phase which would include completion of all necessary
permits to commence mine construction.
In July 2017, the Nunavut Impact Review Board
(“NIRB”) completed its review of the environmental assessment of
the Project and recommended to the Minister that the Project should
be given approval to obtain the required permits and licenses for
mine construction and operation. In a letter dated December
5, 2017, the Minister on behalf of the five responsible federal
Ministers, accepted NIRB's recommendation. The NIRB will now work
towards issuing a Project Certificate for Back River, which will
attach the terms and conditions for mine development, construction,
operation and eventual closure.
"This letter is a significant milestone event
for the Back River Project and for Sabina as it is the most
important decision in the permitting process,” said Bruce McLeod,
President & CEO. “After a multi-year environmental
assessment, we are extremely pleased that Back River now has the
green light to move ahead to the final phase. The issuance of
a Project Certificate for Back River enables us to start preparing
in earnest towards our goal of becoming a mid-tier gold producer in
one of the world’s best mining jurisdictions, and now enables us to
formalize our budget and work plans for 2018. In addition,
the recent execution of a binding term sheet with the Kitikmeot
Inuit Association has strengthened our relationship with our
stakeholders and we look forward to creating a long-lasting legacy
of environmental stewardship and sustainable economic development
for the people of the Kitikmeot Region and Nunavut.”
The Honourable Carolyn Bennett, Minister of INAC
stated that “Sabina can now proceed to the regulatory phase of
project development. The mining industry plays a key role in the
development of Canada's North: helping with the transition to a
wage economy, strengthening the capacity of northern people to
participate in the mining sector, and contributing to community and
infrastructure development. The growing prosperity of northern
Canada is reliant upon vibrant and sustainable resource development
and Sabina is now poised to play a significant contributing role in
the Kitikmeot. The other responsible Ministers and I look forward
to working closely with Sabina while ensuring that environmental
protections are implemented and that the socioeconomic benefits of
the project are fully realized.”
Next Steps
The file is now with the NIRB who will be
holding a workshop in the coming weeks to review terms and
conditions for the Project Certificate, following which a Project
Certificate would be issued in approximately 30-45 days.
In the interim, Sabina has submitted Type A and
Type B water license applications to the Nunavut Water Board. The
Type B water license will enable Sabina to commence initial
activities to further de-risk the project, and is expected in Q1,
2018. The Type A water license will enable full construction
and operation and is expected by Q4, 2018. We anticipate
review of these applications to commence in the coming weeks.
Sabina Gold & Silver Corp.
Sabina Gold & Silver Corp. is a
well-financed, emerging precious metals company with district
scale, world class undeveloped assets in one of the world’s newest,
politically stable mining jurisdictions: Nunavut, Canada.
In September 2015, 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. At a US$1,150 gold price and a 0.80
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 has advanced through the
environmental assessment process with a positive decision from the
federal government received December 5, 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 the
silver produced thereafter.
The Company had cash and equivalents of C$38.5m
at September 30, 2017.
For further information please contact:
Nicole Hoeller, Vice-President,
Communications: 1 888
648-4218
nhoeller@sabinagoldsilver.com
Forward Looking InformationThis
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 of
permitting and environmental assessment outcomes, 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 licenses 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 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,
2016 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 is authorized by the
undersigned on behalf of Sabina Gold & Silver Corp.
Bruce McLeod, President & CEOSuite 1800 – Two
Bentall Centre555 Burrard StreetVancouver, BC V7X 1M9Tel 604
998-4175 Fax 604
998-1051http://www.sabinagoldsilver.com
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