“I have been in the industry for 30 years and I have never seen a project with as much indigenous support as Sabina’s back river project.” ~ Sabina CEO Bruce McLeod
Sabina Gold & Silver (SBB.TO) is a straightforward and compelling story. Sabina’s Back River Project in Nunavut, Canada is a large and robust resource in an excellent mining jurisdiction. Back River offers impressive economics which few other resources globally can match:
Back River is envisioned to largely be an open-pit mining operation with the open pit portion grading an impressive 6+ grams per tonne.
There is no doubt that Back River is a world class project, however, the company hit a big speed bump in June when NIRB (Nunavut Impact Review Board) recommended to the Minister of Nunavut that the Back River Project not be allowed to move forward.
According to CEO Bruce McLeod this recommendation set Sabina back 12 months even if NIRB changed its recommendation tomorrow. Sabina is currently awaiting the Minister’s decision regarding NIRB’s recommendation. McLeod expects this decision to come before year end but admitted that he expects it “sooner rather than later.”
McLeod also added that “Any clarity on the timeline for $SBB and I expect a revaluation (upward) in our shares.”
From my vantage point $SBB shares appear to be pricing in about 50/50 odds on what the Minister’s decision will be and/or a longer timeline to mine construction (3 years or more). A positive decision from the Minister and a shorter path through permitting appear to be the catalysts on the horizon to send SBB’s share price back up to fill the June gap and potentially to rise above C$2/share.
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