Sabina Gold & Silver Announces Interim Financial Results for the Quarter Ended March 31, 2020
May 14 2020 - 8:00AM
Sabina Gold & Silver Corp. (“Sabina”) or (the “Company”) (SBB –
TSX/ SGSVF - OTCQX) reports the interim financial results for the
quarter ended March 31, 2020.
“Sabina was able to advance the Back River
Project on several fronts, despite slowdowns caused by COVID-19,
pandemic,” said Bruce McLeod, the Company’s President
& CEO. “The Company had mobilized Goose camp for the
beginning of a drill campaign to test the potential of a high-grade
corridor extending up plunge from the Vault zone to the bottom of
the proposed pit at Umwelt. We were looking forward to
testing this hypothesis but, out of concern for the safety of our
team and our Inuit stakeholders, we elected to defer this program
until later in the year. I am pleased to report that camp was
demobilized efficiently with everyone returning to their home
communities safely. At the same time, a work from home
protocol was established which has been implemented smoothly.
The team continues to advance desktop initiatives for Project
optimization, and we look forward to getting back into camp to
complete this year’s work program when it is safe to do so.”
Q1 2020 Highlights:
- The Company had cash and cash
equivalents and short-term investments of $21.1 million at March
31, 2020.
- Early in the quarter Project
development activities were temporarily decelerated due to
uncertainty created by the COVID-19 pandemic. The Company continued
to refine project execution plans and advance the preparation for
additional exploration of the Umwelt deposit via surface and
underground drilling testing an opportunity for resequencing and
early release of higher grade ores from the Umwelt zone.
- Other Project development
activities were focused around the negotiation of an engineering,
procurement, construction (“EPC”) contract, with SCGT (joint
venture between Sedgman, and CGT Industrial – (Clark Builders,
Gisborn and Tarpon)) which envisaged a fixed price for the delivery
of the processing plant and associated components. Sabina was
presented with a proposal with two components: a fixed, lump sum
price for engineering and procurement of all equipment and
materials; and a target price for construction and commissioning
with a fixed fee. Ultimately the Company has elected to
continue negotiating with CGT Industrial who have indicated that
they would convert their target bid for construction to a fixed
price lump sum bid if detailed engineering is finalized prior to
final price confirmation.
- During the quarter, the Company
mobilized for its 6,500 meter drill plan to target expansion and
definition of the high grade corridor at the Umwelt underground
with a focus on the up-plunge portion that extends from the current
limits of the Vault zone towards the lower limits of the Umwelt
open pit. As a result of the COVID-19 pandemic, Sabina
elected to defer the planned drilling at Goose until later in 2020
and safely shut down the site.
- For the three months ended March
31, 2020, the Company reported a net loss of $0.8 million or $0.00
per share.
For the full March 31, 2020 interim financial
statements and Management’s Discussion and Analysis, please see the
Company website at www.sabinagoldsilver.com or on SEDAR.
SABINA GOLD & SILVER
CORP
Sabina Gold & Silver Corp. is well-financed
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 Project received its final Project
Certificate on December 19, 2017. The Project received
its Type A Water License on November 14, 2018 and is now in receipt
of all major authorizations for construction and operations.
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.
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
For further information please contact:Nicole
Hoeller, Vice-President, Communications: 1 888
648-4218
nhoeller@sabinagoldsilver.com
Bruce McLeod, President & CEO1800-555 Burrard
Street, Two Bentall CentreVancouver, BC V7X 1M9 Tel 604
998-4175 Fax 604
998-1051 http://www.sabinagoldsilver.com
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