9 March 2022
March 9, 2022
VANCOUVER –Sabina Gold & Silver Corp. (“Sabina”) or (the “Company”) (SBB – TSX/ SGSVF - OTCQX) announces optimization to the plan for its Goose Mine at the Company’s 100% owned Back River District in Nunavut, Canada.
The Updated Feasibility Study (“UFS”) announced in February 2021 contemplated a mill producing 3,000 tonnes per day (“tpd”) for the first two years, increasing to 4,000 tpd in year two with a sustaining capital cost for the expansion of ~C$17m.
As part of the UFS, an initial 4,000 tpd mill was considered. However, at the time of the UFS work the settled tailings density was based on the previous pre-leach thickener test work. This work resulted in a lower Echo open pit tailings capacity and a decision to delay the mill expansion timeline.
Since the UFS, completion of detailed geotechnical test work on the tailings samples and the inclusion of a high-capacity tailings thickener, the tailings storage capacity of the Echo open pit has increased sufficiently to enable the decision to construct the mill at a 4,000 tpd capacity at the outset. This, in addition to optimized equipment selection and detailed engineering has reduced the cost of the expansion from C$17m to C$10m when compared to the UFS.
The current mine plan includes the complete mining of the Echo open pit and seven quarters of mining from the Umwelt open pit during the construction phase of the project. As per the UFS, this provides 2.2 million tonnes (“Mt”) of stockpiled ore containing 373,000 ounces of gold, including 936,000 high grade tonnes at 8.4 g/t gold prior to commissioning of the mill. In addition, the current mine plan includes an additional 3.5 Mt mined in the first 3 years of operations, enabling 4,000 tpd of mill capacity without the need to increase the mining rate or modify the existing mine plan.
The Back River permitting was completed based on a maximum 6,000 tpd mill capacity and thus no additional permitting or authorizations are required for this modification.
“We are pleased that additional test work has resulted in this conclusion,” said Bruce McLeod, President & CEO “it is the option that makes sense from an operational and cost perspective and has the potential to improve payback by delivering increased gold production in the earlier stages of the mine life. We look forward to providing additional project updates through the year.”