VANCOUVER, British Columbia, Dec.
06, 2017 (GLOBE NEWSWIRE) -- 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 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 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 &
CEO
Suite 1800 - Two Bentall Centre
555 Burrard Street
Vancouver, BC V7X 1M9
Tel 604 998-4175 Fax 604 998-1051
http://www.sabinagoldsilver.com