8 November 2022
“Summer saw another successful quarter for the Company,” said Bruce McLeod, the Company’s President & CEO. “Underground development continues to advance with approximately 1,200 meters complete with the first lateral access to the Umwelt zone and preparations for the first ventilation raise commencing. Plant, camp and laydown civil works are complete with pre-stripping at the Echo pit well underway with the first ore now encountered. Additionally, civil works continued at the Port Facility which enabled the delivery of materials and fuel for our 2022 sealift. Our human resources team continued its major recruiting and hiring campaign with many key positions filled in Q3. Additionally, we opened the George camp for the first time in a decade and completed a field program in preparation for exploration drilling in spring of 2023. Preparations are now underway for construction of the Winter Ice Road, which when complete will enable the transport of critical construction supplies and equipment to Goose early in the spring of 2023.”
•The Company ended the quarter with cash and cash equivalents and short-term investments of $80.6 million.
•After a formal construction decision in early September, on September 28, 2022, the Company received the first of four payments of US$31.25 million of the US$125 million gold stream arrangement with Wheaton Precious Metals Corp.
•During the quarter, the Company advanced various initiatives for construction of the Goose Mine, including the 2022 sealift of critical supplies and equipment to the Port Facility and a bulk fuel delivery of 9.2 million litres of diesel, internal quality checks related to the various engineering design packages, and activities related to the finalization of performance guarantees with FLSmidth on key equipment for the Goose Mine processing flowsheet.
•The Company completed a summer exploration field program at George, which involved the re-logging of select historic drill core sections and targeted field evaluations to build a revised structural map that will provide critical controls on gold mineralization.A drill program is being planned for the Spring of 2023.
•For the three and nine months ended September 30, 2022, the Company reported net income of $19.0 million or $0.03 per share and net income of $27.4 million or $0.06 per share, respectively. The reported net income is driven primarily by the unrealized gains on the change in fair value of the construction financing obligations, with after-tax amounts of $21.5 million and $37.1 million for the three and nine months ended September 30, 2022, respectively.
For the full September 30, 2022 interim financial statements and Management’s Discussion and Analysis, please see the Company website at www.sabinagoldsilver.com or on SEDAR.