Sabina Gold & Silver Announces 2018 Budget of $83million to Focus on Exploration and to Commence Pre-development Infrastruct...
February 13 2018 - 8:00AM
Sabina Gold & Silver Corp (TSX:SBB.T), (“Sabina” or the
“Company”) is pleased to announce budget plans and activities for
2018.
The 2018 planned budget enables the Company to
continue on its two-pronged approach in advancing towards
production and continuing high-value exploration. All project
development programs are focussed on de-risking, de-stressing and
expediting the time line towards first gold production.
The activities for project development and exploration will be
funded out of the Company’s existing treasury of approximately
$94.5million (Jan 19, 2018).
The 2018 budget delivers:
- Completion of the permitting process and receipt of both Type A
and B water licenses;
- Completion of detailed engineering required for 2019 and
development of the project execution plan;
- Commencement of pre-development infrastructure activities,
earthworks, construction of the marine laydown area (“MLA”) and
procurement of key infrastructure and equipment including permanent
camps for both the MLA and Goose sites;
- Completion of a targeted exploration program; and
- Advancement of the project debt finance process.
“2018 will be a significant year for the Company
as our work programs continue to advance Back River towards
production as well as continue to focus on high value exploration
targets at the Goose property,” said Bruce McLeod, President &
CEO. “In addition, we have developed discretionary activities that
are based on certain milestones achieved during the process.
These expenditures will be assessed with a view to maintaining
first gold in 2021 and are contingent on advancement of project
funding initiatives.”
Although the Project has experienced 13 months
of permitting delays, additional discretionary project development
activities could enable the Company to meet its first gold date of
Q1, 2021. These activities are contingent on additional
funding and would include site earthworks and construction
preparation at the proposed mine site.
Without completion of discretionary activities,
first gold could be pushed out to Q4, 2021, a 9 month delay.
Exploration Drilling
During 2018, Sabina will conduct a significant
exploration diamond drilling program along with field mapping, rock
sampling, till sampling, geophysics and diamond drilling at Back
River. This work is designed to expand and optimize existing
resources and advance and delineate exploration targets towards the
discovery of new mineralization that has the potential to favorably
impact project economics.
Camp will open in mid-February 2018 with
drilling beginning in March. Drilling of an initial 6,000
meters will be completed in the spring program, with up to an
additional 19,000 meters targeted for the summer months subject to
advancement of funding initiatives. This year’s
drilling will focus on following up on the significant 2017 results
at Vault and Llama along with testing a number of targets that
include the Goose Main Trend, Echo, Kogoyok, the lower DIF horizon
and Boulder Project targets.
Sabina Gold & Silver Corp.
Sabina Gold & Silver Corp. is well-financed
with approximately C$94.5million in cash and equivalents, 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 “Study”). At a US$1,150 gold
price and a 0.80 (US$:C$) 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 received its final Project
Certificate on December 19, 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 silver produced thereafter.
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 and
timing of and various studies relating to engineering studies,
infrastructure improvement activities, exploration results and
permitting and licensing outcomes. 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 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, 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 has been authorized
by the undersigned on behalf of Sabina Gold & Silver Corp.
Bruce McLeod, President & CEOSuite 1800 – Two
Bentall Centre555 Burrard StreetVancouver, BC V7X 1M7Tel 604
998-4175 Fax 604
998-1051http://www.sabinagoldsilver.com
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