Sabina Gold & Silver Announces 2013 Year End Financial Results

March 26, 2014

$58.3 million at December 31, 2013 in cash and equivalents
NI 43-101 Technical Report filed on updated Back River Resource

VANCOUVER – Sabina Gold & Silver Corp. (the “Company”) (SBB – TSX) reported today the financial results for the year ended December 31, 2013.

2013 was a year of continued growth and change for Sabina. Highlights of the year include:

The Company had cash and cash equivalents and short-term investments of $58.3 million at December 31, 2013.
During the year, the Company had a total of up to eight drill rigs operating on its Back River project and completed over 82,000 metres of drilling. The program was focused on a combination of infill, extension, geo-technical and geo-mechanical drilling and investigation of highly prospective greenfield targets.
At the same time, the Company expanded its camp infrastructure at Back River by installing additional bulk fuel storage and constructing an all-weather airstrip. The field program in 2013 was one of the largest and most productive completed to-date and was successfully completed with a high standard of safety and environmental compliance. There was more than 350,000 manhours deployed at site with no lost-time or significant environmental incidents.
In June, 2013, the Company further added to its treasury by completing flow-through equity financing to raise gross proceeds of approximately $20 million.
In October, 2013 the Company announced the results of the Preliminary Feasibility Study (“PFS”) on the Back River Project which contemplated a project with average annual production of ~300,000 ounces of gold over a 8+ year mine life; initial capital of $605 million and total LOM cash costs of $685/oz including royalties, shipping and refining. Based on the results of the PFS, the Company determined to move the project forward to a Feasibility Study.
Subsequent to the year end, early in 2014 the Company filed its Draft Environmental Impact Statement (“DEIS”) with the Nunavut Impact Review Board (“NIRB”) and was advised that the Back River DEIS conforms to the environmental assessment guideline requirements and that the technical review process has begun.

Also subsequent to year-end, the Company announced an updated mineral resource estimate on the Back River project, incorporating the results of the significant 2013 drill program. 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.

“The exploration program in 2013 was the largest and most complex we have ever executed at Back River with results falling very much in line with our objectives,” said Rob Pease, President & CEO, “A major focus was to upgrade confidence in our resources with the objective of ultimately increasing reserves and results have delivered a significant increase in measured resources, with a large component coming from our open pit resources at Umwelt and Llama. Additionally, since completion of the PFS in October 2013, we have also been working on optimization studies for the project, including metallurgical testing, mining methods and scheduling among others. These studies are progressing well and we look forward to announcing their results in the coming months.”

Read more: http://www.sabinagoldsilver.com/s/news.asp?ReportID=644525

NT3