Sabina Gold & Silver Reports Updated Mineral Resource Estimate
for the Back River Gold Project, Nunavut
Increase in overall contained Au ounces in the Measured,
Indicated and Inferred Resource categories
Significant Increase in Measured Au ounces from 304,000 ounces
at 4.4 g/t Au and 2,168 kt to 1,714,000 ounces at 5.2 g/t Au and
10,210 kt for open pit
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Mar 4, 2014) -
Sabina Gold & Silver Corp. (TSX:SBB) is pleased to announce an
updated Mineral Resource estimate for its 100% owned Back River
Gold Project in Nunavut, Canada ("Back River or the "Project").
The updated Mineral Resource Estimate for Back River was
undertaken by AMC Mining Consultants (Canada) Ltd. ("AMC"). This
new estimate consists of a Measured Mineral Resource of 10.4
million tonnes grading 5.2 g/t for a contained 1,761,000 ounces Au,
an Indicated Mineral Resource of 17.9 million tonnes grading 6.1
g/t for a contained 3,536,000 ounces Au and an Inferred Mineral
Resource of 8.2 million tonnes grading 7.3 g/t for a contained
1,927,000 ounces Au. Results from drilling in 2013 and geologic
modelling on all deposits has increased the Mineral Resource
estimate at Back River.
"In 2013, we completed a very significant drill program of
approximately 83,000 metres at Back River, none of which was
included in the Back River pre-feasibility study ("PFS") released
last fall," said Rob Pease, President & CEO, "The resulting
increase in overall Mineral Resources and substantial increase in
confidence in the continuity and grade of the deposits continues to
demonstrate the high quality nature of the Back River Gold Project.
We believe this increased Mineral Resource Estimate will increase
the potential for a larger Mineral Reserve on the project.
Additionally, we continue to make progress on optimization studies
which could present opportunities for improved gold recovery and
mining methods, the results of which will ultimately be used to
support a Feasibility Study ("FS").
We believe we have a premier project, in a premier geopolitical
jurisdiction, with a well-funded treasury. Sabina ended 2013 with
approximately $58 million in the treasury, which will enable us to
advance through permitting and engineering studies with a surplus
of cash on hand. We are very excited about the next phase of growth
for our Company as we work to become a gold producer."
Highlights of the new Mineral Resource estimate include:
- Increase in Measured Au ounces from 304,000 ounces at 4.4 g/t
Au and 2,168 kt to 1,714,000 ounces at 5.2 g/t Au and 10,210 kt for
open pit and 47,000 ounces at 6.1 g/t Au and 236 kt for
underground
- Increase in total contained Au ounces of 735,000 in the
Measured and Indicated Resource categories and 48,000 in the
Inferred Resource category
- Significant open pit Measured plus Indicated Mineral Resource
of 3,415,000 ounces at 5.0 g/t Au and 21,066 kt
- Underground Measured plus Indicated Mineral Resource of
1,881,000 ounces at 8.0 g/t Au and 7,288 kt
A NI 43-101 Technical Report on the updated Mineral Resource
estimate for Back River is underway and will be filed within 45
days of this release in accordance with applicable securities laws.
The new Mineral Reserve and economics for the Project are yet to be
estimated and will be incorporated into a FS.
Table 1 - Back River
Mineral Resource Estimate February 28, 2014
Classification |
Location |
Tonnes (kt) |
Au (g/t) |
Ounces (koz) |
Open Pit Measured |
Goose
Main |
4,627 |
4.3 |
638 |
|
Llama |
1,886 |
5.9 |
355 |
|
Umwelt |
3,697 |
6.1 |
722 |
Total Open Pit Measured |
|
10,210 |
5.2 |
1,714 |
|
|
|
|
|
Open Pit Indicated |
Goose
Main |
2,896 |
4.2 |
391 |
|
Echo |
230 |
6.9 |
51 |
|
Llama |
864 |
5.9 |
165 |
|
Umwelt |
1,974 |
5.4 |
341 |
|
George |
4,891 |
4.8 |
753 |
Total Open Pit Indicated |
|
10,856 |
4.9 |
1,701 |
|
|
|
|
|
Total Open Pit Measured & Indicated |
|
21,066 |
5.0 |
3,415 |
|
|
|
|
|
Underground Measured |
Goose
Main |
107 |
6.2 |
21 |
|
Llama |
128 |
6.1 |
25 |
|
Umwelt |
1 |
9.2 |
0.3 |
Total Underground Measured |
|
236 |
6.1 |
47 |
|
|
|
|
|
Underground Indicated |
Goose
Main |
863 |
7.4 |
206 |
|
Echo |
377 |
6.8 |
82 |
|
Llama |
750 |
8.8 |
211 |
|
Umwelt |
3,377 |
8.9 |
969 |
|
George |
1,686 |
6.8 |
367 |
Total Underground Indicated |
|
7,051 |
8.1 |
1,835 |
|
|
|
|
|
Total Underground Measured & Indicated |
|
7,288 |
8.0 |
1,881 |
|
|
|
|
|
Total Measured & Indicated OP + UG |
|
28,354 |
5.8 |
5,297 |
|
|
|
|
|
Open Pit Inferred |
Goose
Main |
217 |
3.2 |
22 |
|
Echo |
49 |
5.4 |
9 |
|
Llama |
14 |
5.9 |
3 |
|
Umwelt |
120 |
2.3 |
9 |
|
George |
985 |
5.5 |
175 |
Total Open Pit Inferred |
|
1385 |
4.9 |
217 |
|
|
|
|
|
Underground Inferred |
Goose
Main |
432 |
6.8 |
95 |
|
Echo |
502 |
7.4 |
119 |
|
Llama |
294 |
6.7 |
63 |
|
Umwelt |
1,784 |
11.6 |
665 |
|
George |
3,782 |
6.3 |
769 |
Total Underground Inferred |
|
6,794 |
7.8 |
1,710 |
|
|
|
|
|
Total Inferred OP + UG |
|
8,179 |
7.3 |
1,927 |
- CIM definition standards were used for the Mineral
Resources.
- The Qualified Persons are Dinara Nussipakynova, P Geo. and
Andrew Fowler MAusIMM CP (Geo) both of AMC Mining Consultants
(Canada) Ltd.
- Open pit Mineral Resources are constrained by an optimized pit
shell at a gold price of $1500 oz Au.
- The cut-off grade applied to the open pit resources are 1.0 g/t
Au. The underground cut-off grade for Goose Main, Echo, and Llama
deposits is 3.5 g/t Au; and for Umwelt is 4.5 g/t Au. The
underground cut-off grade for the George resources is 4.0 g/t
Au.
- Metallurgical recovery varies with gold grade, averaging
between 88 and 89%.
- The George underground Mineral Resources (LCP - North, LCP -
South, Locale 1, Locale 2, GH & Slave) were estimated within
mineral domains expanded to a minimum width of 2 m.
- Drilling results to December 31, 2013 were used.
- The increase in Measured Resources at Goose Main is attributed
to re-verifying and resolving previous conflicts of historical
surveys and geological data. This has resulted in increased
confidence in interpreted geologic continuity and subsequently an
increase in resource confidence.
- Numbers may not add due to rounding.
- Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
Table 2 - Summary of
difference between 2013 and 2014 Mineral Resource
Estimates
|
|
Classification |
Year |
Tonnes (Kt) |
Au (g/t) |
Metal (Koz Au) |
% Increase/ decrease ounces |
Measured |
2013 |
2,168 |
4.4 |
304 |
479 |
2014 |
10,446 |
5.2 |
1,761 |
Indicated |
2013 |
21,481 |
6.2 |
4,258 |
-17 |
2014 |
17,907 |
6.1 |
3,536 |
M & I |
2013 |
23,649 |
6.0 |
4,562 |
16 |
2014 |
28,354 |
5.8 |
5,297 |
Inferred |
2013 |
7,289 |
8.0 |
1,879 |
3 |
2014 |
8,179 |
7.3 |
1,927 |
Infill drilling in 2013 allowed Measured Resources to be
classified at Llama and Umwelt for the first time. Gold price and
cut-off grade assumptions remained the same as those used for the
PFS for the updated Mineral Resource estimates, with the exception
of Llama and Goose Main underground. For these two areas the
cut-off grade was changed from 4.0 g/t to 3.5 g/t and for Umwelt
underground the cut-off grade was changed from 5.0 g/t to 4.5 g/t.
The cut-off grade changes reflected the final cost estimates
generated in the PFS. The increase in Measured Resources at Goose
Main is attributed to re-verifying and resolving previous conflicts
of historical surveys and geological data. This has resulted in
increased confidence in interpreted geologic continuity and
subsequently an increase in resource confidence.
Background and Work
Plans 2014
The Back River gold project is located in the West Kitikmeot
Region of Nunavut, a new territory of Canada very supportive of
responsible mineral resource development and exploration. The
project has access to tide water and is situated approximately 75
km from Bathurst Inlet.
The Project is made up of a series of seven claim blocks of
which only two have been the primary focus of exploration and
resource development to date: Goose and George.
In October 2013 Sabina published a PFS for the Project prepared
under the leadership of Tetra Tech by leading industry consultants.
The Back River PFS is based on a conventional open pit mine
supplemented by underground operations that feed a 5,000 tonne per
day whole ore leach process plant. Operations are designed to
produce an average of 287,000 ounces Au per year over the life of
mine. The Project would be built over a 24-month period at an
initial capital cost of $605 million with an estimated payback of
3.3 years from the start of operations.
In 2014, Sabina intends to continue to advance the Back River
Project towards completion of a FS with:
- A potential resource expansion drilling program in and around
the new resource at Echo. As Echo is on the Goose property, work to
bring this resource into the mine plan could have a positive impact
on project economics as satellite mining at George can be pushed
further into the mine life.
- Ongoing optimization studies to support the FS, including
metallurgical testing, mining method and schedule optimizations and
additional trade-off studies. These activities are anticipated to
be completed by the end of the first quarter.
- Continuation of the environmental assessment and permitting
process including the collection of additional environmental
baseline data.
The Company expects to initiate a full FS later this year once
all optimization studies are complete and analyzed. It is
anticipated that results of these various studies will be reported
throughout the year. The budget and work program for 2014 will be
announced towards the end of the first quarter.
SABINA GOLD & SILVER CORP.
Sabina Gold & Silver Corp. is an emerging gold developer
with district scale, world class assets in one of the world's
newest, most politically stable mining jurisdictions: Nunavut,
Canada.
Sabina's primary assets, all located in Nunavut, consist of: the
Back River Gold Project, currently in the pre-feasibility and
permitting phase; the Wishbone Claims, a vastly prospective grass
roots project; and the Hackett River Silver Royalty, a silver
production royalty on Xstrata Zinc's Hackett River project
comprising 22.5% of the first 190 million ounces produced and 12.5%
of all the silver produced thereafter. The Company ended 2013 with
approximately $58 million in cash. All news releases and further
information can be found on the Company's website at
www.sabinagoldsilver.com or on SEDAR at www.sedar.com.
Quality Assurance
The Mineral Resources for the Back River deposits were estimated
by AMC Mining Consultants (Canada) Ltd. The Qualified Persons are
Dinara Nussipakynova, P Geo. and Andrew Fowler MAusIMM CP (Geo)
both of AMC Mining Consultants (Canada) Ltd., are independent of
Sabina and they have approved the contents of this press release
that pertain to their estimation work and results.
Mr. Angus Campbell, P. Geo. and Vice-President, Exploration for
Sabina Gold & Silver Corp. is a Qualified Person under the
terms of NI 43-101 and has reviewed the technical content of this
press release for the Back River Project and has approved its
dissemination.
Forward-Looking Statements
This news release contains "forward-looking information" within
the meaning of applicable securities laws (the "forward-looking
statements"), including our belief as to the extent, results and
timing of exploration programs and various studies including the
FS, and exploration results, the results of the PFS, the potential
tonnage, grades and content of deposits, timing, establishment and
extent of resources and reserves estimates, potential production
from and viability of the Company's properties, production and
operating costs and permitting submission, timing and receipt of
necessary permits and project approvals for future operations and
access to project funding. These forward-looking statements are
made as of the date of this news release. Readers are cautioned not
to place undue reliance on forward-looking statements, as there can
be no assurance that the future circumstances, outcomes or results
anticipated in or implied by such forward-looking statements will
occur or that plans, intentions or expectations upon which the
forward-looking statements are based will occur. While we have
based these forward-looking statements on our expectations about
future events as at the date that such statements were prepared,
the statements are not a guarantee that such future events will
occur and are subject to risks, uncertainties, assumptions and
other factors which could cause events or outcomes to differ
materially from those expressed or implied by such forward-looking
statements. Such factors and assumptions include, among others, the
effects of general economic conditions, commodity prices, changing
foreign exchange rates and actions by government and regulatory
authorities and misjudgments in the course of preparing
forward-looking statements. In addition, there are known and
unknown risk factors which could cause our actual results,
performance or achievements to differ materially from any future
results, performance or achievements expressed or implied by the
forward-looking statements. Known risk factors include risks
associated with exploration and project development; the need for
additional financing; the calculation of mineral resources and
reserves; operational risks associated with mining and mineral
processing; fluctuations in metal prices; title matters; government
regulation; obtaining and renewing necessary licences and permits;
environmental liability and insurance; reliance on key personnel;
the potential for conflicts of interest among certain of our
officers or directors; the absence of dividends; currency
fluctuations; labour disputes; competition; dilution; the
volatility of the our common share price and volume; future sales
of shares by existing shareholders; and other risks and
uncertainties, including those relating to the Back River Project
and general risks associated with the mineral exploration and
development industry described in our Annual Information Form,
financial statements and MD&A for the fiscal period ended
December 31, 2012 filed with the Canadian Securities Administrators
and available at www.sedar.com. Although we have attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements. We are under no obligation to update or
alter any forward-looking statements except as required under
applicable securities laws. This news release has been authorized
by the undersigned on behalf of Sabina Gold & Silver Corp.
Rob Pease,
President & CEO
To view the maps accompanying this press release, click on the
following link: http://media3.marketwire.com/docs/931053m.pdf
Sabina Gold & Silver Corp.Nicole HoellerVP, Communications1
888 648-4218nhoeller@sabinagoldsilver.comSabina Gold & Silver
Corp.Rob PeasePresident & CEO604 998-4175604
998-1051www.sabinagoldsilver.com
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