12 November 2019
Sabina Gold & Silver Corp. reports the interim financial results for the quarter ended September 30, 2019.
“During the quarter, Sabina advanced pre-development activities for the Back River Project by completing construction of two bulk fuel tanks totaling 10.5 million litres of capacity, at our Port facility” said Bruce McLeod, President & CEO. “Year to date, we have made great progress in de-risking the Project by demonstrating the viability of our entire logistics and supply chain with the construction and operation of the Winter Ice Road from our recently built Port facility to the Goose site. We have now demonstrated the viability of transporting equipment and supplies from their source locations directly to the Goose site. This is critical as it has provided valuable first run experience prior to construction and operations. We also continue to advance the engineering, procurement, and construction (“EPC”) contract for the process plant, crushing plant and truck shop. While the Company’s intention had been to complete the negotiation of an EPC contract by this time, a complete re-work on the balance of the capital cost estimate to update it to a current cost estimate is also required and is ongoing. We have revisited the Project Execution Plan and made some scope changes which we believe will result in less capital risk with a more robust operating plan. These updated costs are being generated from first principles and will incorporate the change of delivery method from EPCM in the feasibility to EPC for the process plant and owner managed for the balance of the Project. The cost estimate update is expected to be announced in the fourth quarter of this year.”
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