VANCOUVER - Sabina Gold & Silver Corp. announces that, it has filed its National Instrument 43-101 Technical Report entitled "43-101 Feasibility Study Technical Report for the Back River Gold Property, Nunavut" dated June 22, 2015 on SEDAR at http://www.sedar.com. The report has also been posted on the Company's website at www.sabinagoldsilver.com.
On May 20, 2015, the Company announced the positive results of a Feasibility Study ("FS') on the Back River gold project in Nunavut, Canada.
The FS uses a gold price of US$1200/oz Au and an exchange rate of 0.87 (US$:C$).
Highlights include a scenario that could:
- Generate a post-tax internal rate of return ("IRR") of 21.7% and net present value ("NPV") (at a 5% discount rate) of $539 million;
- Generate Life Of Mine ("LOM") post-tax net cash flow of $914 million on gross revenues of $4.5 billion with a post-tax payback period of 2.2 years (from start of operations);
- Process at a rate of 6,000 tonnes per day could produce an average of ~346,000 oz Au per year (post commencement of commercial production);
- Generate average production of 413,000 oz Au in years 1 through 4;
- Provide an initial capital estimate of $695 million and sustaining capital estimate of $529 million (including closure);
- Generate a total LOM cash cost estimate of US$535/oz Au (including third party royalties, refining and transport). LOM all-in sustaining cash cost estimate of US$648/oz Au LOM (including sustaining capital);
- See LOM average metallurgical recoveries of 93%.
"The FS demonstrates the opportunity for Back River to become a significant gold producer using conservative assumptions, generating robust economics in one of the better mining jurisdictions in the world," said Bruce McLeod, President & CEO "The high grade nature of the deposits provide scaleable opportunities that could enable us to develop the project in a manner that works in the current challenging capital markets environment and we are continuing to assess these options. Meanwhile, we are also de-risking Back River by moving the project forward through the environmental assessment process and aim to have our final environmental impact statement filed by the fourth quarter this year. The Back River FS was undertaken by a team with extensive Arctic experience and we believe the study to be a realistic representation of how to build and operate a mine in Nunavut."
For the full press release, visit www.sabinagoldsilver.com.
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