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September 7, 2022
Pre-Construction Activities Completed. All Major Equipment and Materials Procured.
VANCOUVER –Sabina Gold & Silver Corp. (“Sabina”) or (the “Company”) (SBB – TSX/ SGSVF – OTCQX) provides an update on advancements of the Goose Mine development at the Company’s 100% owned Back River Gold District in Nunavut, Canada. The Goose Mine is the Company’s first mine on the 80 km long Back River Gold District, a multi-generational mining district already with a high-grade world class gold endowment.
Over the past few years, Sabina has been steadily advancing logistics, civil works, engineering and procurement. All pre-development activities are now completed and we are ready for full construction to commence in 2023. All major equipment and materials required for construction have been either procured, marshalled at our east and west transportation hubs, have been delivered or are in transit to the Port Facility in Bathurst Inlet, Nunavut. In addition, the underground ramp has been progressed to our first ore access sublevel and will be sufficiently completed to enable underground drilling of the V2 zone in the 4th quarter of this year. With financing in hand and these significant activities completed, the Board of Directors of the Company has made a formal construction decision for the Goose Mine.
“This is a milestone decision for the Company,” said Bruce McLeod, President & CEO “We are excited to formally commit to becoming a significant Canadian gold producer. In the meantime, we have been steadily advancing the project to be in a position to commence full construction in early 2023 with first production expected in Q1, 2025. Our recruitment efforts continue to be successful with considerable additions to the roster (from 30 personnel in March to 142 to-date and still adding), including many key positions.”
“Additionally, we are fortunate that our strategy of pre-planning and accelerating procurement efforts has reduced our exposure to inflationary impacts and supply chain issues, and we are sufficiently funded for construction. This is an exciting time for the Company as we move to develop what we believe will be the first mine on this prolific gold district.” He said.
After the Company arranged over ~C$800 million of project financing package earlier this year, significant procurement, engineering and civil work has been completed at both the Goose site and the Port facility.
Of the C$610 million CAPEX estimated, approximately C$218 million was identified as direct equipment and materials purchases. Sabina has procured, or has committed agreements to procure, just over 75% of these identified purchases. Reconciliation on purchases have seen an average overall inflationary escalation of 14% since March of 2021, with a 20% escalation on the purchases made in 2022. The Company continues to monitor, with a strategy of pre-planning and accelerating procurement efforts to reduce exposure to inflationary impacts. Efforts now focus on securing the remaining 25% of materials required.
Advancement Highlights and Schedule
All major items for construction have been procured.
There is approximately C$62 million of remaining items to be procured. Financing is in hand for these items which include:
Civil Works & Logistics
Considerable pre-development activities have already been completed at the Goose and Port sites.
Port Facility and 2022 Sealift
At the Port Facility an additional 25,000m2 of laydown area for equipment and supply storage has been completed.
To reduce the length of the Winter Ice Road (“WIR”) route and improve alignment, an additional 1.9 km of permanent road was constructed to better align and improve traffic flow through the port site.
Port Facility Work Completed in 2022
Additionally, 1.7 km of fuel transfer conduit and road was constructed and installed to safely and efficiently facilitate this year’s fuel delivery.
Completed Fuel Transfer Conduit at Port Facility
The first vessel from the east arrived at the Port Facility on August 24 with approximately $67.5 million of equipment and supplies to be offloaded. The vessel has been successfully off-loaded and has departed our port.
First Vessel received, off-loaded and departed September 6th., 2022
The first barge with equipment & supplies from the west is expected to depart Tuktoyaktuk on September 7, 2022 with scheduled arrival at the Port Facility on September 12th. The second sailing from the west is expected to depart on September 9th. The fuel delivery vessel arrived at the Port Facility on September 5th and is scheduled to be off-loaded.
Goose Site Civil Works
At Goose, approximately 45% of overall project and ~98% of plant site civil works have been completed or are underway including:
Aerial View of Process and Accommodation Pad & Road Network
Arial View Of Plant and Accommodation Pad
10M Liter Fuel Tank and Berm and plant/accommodation pad construction 2022
Additionally, Echo Pit pioneering work is underway with initial stripping completed and approximately 40,000m3 of material broken. The Echo pit haul road and non-contact water diversion is also under construction.
Pre-Stripping at Echo Pit
Development of the underground portal has progressed with approximately 992m completed. With first underground exploration drilling expected to commence in the 4th quarter
Umwelt Underground Portal September 2022
Human Resources and Recruitment
Upon completion of the project financing package earlier this year, the Company established a Human Resources team with a focus on recruiting and enhancing exiting policies and protocols to enable successful development into a producer. The HR team has been very successful in adding key personnel to the Company roster increasing from 30 full-time employees in March of this year to 142 full-time employees to-date.
Alternative Energy Initiative
Sabina has submitted a regulatory package to the Nunavut Planning Commission and the Nunavut Impact Review Board focused on the advancement of the Back River Alternate Energy Center. This proposal could allow Sabina to install up to 13 wind turbines, each with a power capacity of up to 4.5 megawatts, a solar panel array with a power capacity of approximately 5 megawatts and a battery storage system with a capacity of approximately 50 megawatt-hours. If approved and constructed the Back River Alternate Energy Center will significantly reduce Project greenhouse gases emissions, reduce traffic on the Winter Ice Road, and reduce the number of ships required. Sabina anticipates further direction on process from the Nunavut Impact Review Board in the coming months.
SABINA GOLD & SILVER CORP
Sabina Gold & Silver Corp. is an emerging gold mining company that owns 100% of the district scale, advanced, high grade Back River Gold District in Nunavut, Canada.
Sabina filed an Updated Feasibility Study (the “UFS”) on its first mine on the district, the Goose Mine, which presents a project that will produce ~223,000 ounces of gold a year (first five years average of 287,000 ounces a year with peak production of 312,000 ounces in year three) for ~15 years with a rapid payback of 2.3 years, with a post-tax IRR of ~28% and NPV5% of C$1.1B at a gold price of $1,600 USD. See “National Instrument (NI) 43-101 Technical Report – 2021 Updated Feasibility Study for the Goose Project at the Back River Gold District, Nunavut, Canada” dated March 3, 2021.
The Project has received all major permits and authorizations for construction and operations.
The Company has arranged a comprehensive project financing package comprised of:
The Company is also very committed to its Inuit stakeholders, with Inuit employment and opportunities a focus. The Company has signed a 20-year renewable land use agreement with the Kitikmeot Inuit Association and has committed to various sustainability initiatives under the agreement.
The Company continues to advance exploration and project optimization, including advancing the planned plant expansion to 4,000 tpd from Year two to initial startup.
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. All technical reports have been filed on www.sedar.com
For further information please contact:
Nicole Hoeller, Vice-President, Communications: 1 888 648-4218
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