Sabina Gold & Silver provides update on advancement of its Back River Gold project

24 August 2020

Sabina Gold & Silver Corp is pleased to provide an update on activities and undertakings for the Company’s 100%-owned 80km Back River Gold District (“Back River” or the “Goose Project”) in Nunavut, Canada. 
The Goose Project, the initial focus for production at Back River, has evolved significantly on its path to production since the feasibility study (“FS”) was completed in 2015. Through this work, there have been significant project advancements in engineering, project development, exploration, and permitting which have improved, optimized, and further de-risked the Goose Project towards a production decision. 
Key Milestones Include: 

  • The Goose Project is now fully permitted for construction and operations. 
  • Completion of a Framework Agreement with the Kitikmeot Inuit Association including a 20-year renewable mining lease agreement. 
  • Demonstration of project logistics and supply chain from the south to site, including: construction of the Port facility, receipt of sealifts delivering materials, inaugural construction and operation of a 172km winter ice road for delivery of all materials from the Port facility to Goose. 
  • Preliminary earthworks and quarrying at the Goose site. 
  • Completion of basic engineering and advancement of detailed engineering, procurement, contracting strategy and project execution plans for the process plant, balance of plant and other major structures. 
  • Additional metallurgical testing to further de-risk and aid in design of proposed plant flow sheet. Major processing equipment selected, and additional detoxification work completed including project water quality test work 
  • Discovery of a large new mineral zone at Nuvuyak, identification and successful drill targeting of a higher-grade corridor of mineralization within the Umwelt underground resource and extension of the Llama gold structure by over 500m down plunge from the current resource limits. 
  • Continued community engagement and maintenance of social license and release of Sabina’s first Environmental and Social Governance Report. 
  • Positive ruling from Canada Revenue Agency that the exploration underground ramp at Umwelt can be funded with flow-through shares (enables raising equity with less dilution). 
  • Continued advancement of a Project Debt structure within a framework of due diligence process including positive independent engineer review. 
  • Since the FS, the gold price has continued to increase, both in USD and Canadian Dollar terms (from ~C$1,438/oz in our FS to ~C$2,560/oz current spot) providing opportunities to significantly impact project economics. 
  • Opening in 2020 of the Goose camp and commencement of all planned activities with full support of the territory and community stakeholders within a detailed Covid-19 operational framework. 

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