Sabina Gold & Silver Receives Positive Recommendation from the Nunavut Impact Review Board for Continued Development of Back River Gold Project, Canada
VANCOUVER, BRITISH COLUMBIA–(Marketwired – July 18, 2017) – Sabina Gold & Silver Corp (TSX:SBB), (“Sabina” or the “Company”) is pleased to announce that it has received a copy of the Second Final Hearing Report (the “Report”) from the Nunavut Impact Review Board (the “NIRB”). In the report, the NIRB has recommended to the Minister of Indigenous and Northern Affairs Canada (“INAC”) that development of the Company’s 100%-owned Back River Gold Project (“Back River” or the “Project”) in Nunavut, Canada, should proceed to the licensing phase.
This positive recommendation by NIRB concludes a five year comprehensive NIRB review and public hearing processes involving Inuit, the Kitikmeot Inuit Association (“KIA”), Federal and Territorial governments, and community and other Northern representatives. This recommendation follows a direction of the Minister to the NIRB in January 2017 to reconsider the project after an initial negative recommendation from the NIRB in July 2016. In February this year, a Final Environmental Impact Statement Addendum was submitted to the NIRB focusing on the areas that were identified as outstanding concerns in the First Final Hearing Report. The review of this addendum by all parties culminated in a second final technical and public hearing that took place in Cambridge Bay during May 27th to June 3, 2017.
“After a multi-year environmental assessment, we are extremely pleased with the NIRB giving Back River the green light to move ahead to the licensing phase,” stated Bruce McLeod, President and CEO. “NIRB’s recommendation is a 400 page document that also includes recommended terms and conditions for the project which we are currently reviewing. We are moving ever closer to our goal of becoming a mid-tier gold producer in one of the world’s best mining jurisdictions. We would like to thank the community participants from the Kitikmeot region, the KIA, and the numerous regulatory agencies for their ongoing contribution to the review and their support to advance the Project. In particular, we would like to thank the NIRB for a very well run, rigorous yet collaborative process that enabled valuable discussion and idea sharing between all parties. Back River is aiming to be one of the next gold mines in Nunavut providing much desired jobs, training, infrastructure and opportunities to the Inuit of the Kitikmeot Region.”
The positive NIRB recommendation and associated Report is now before the Minister of INAC in accordance with Article 12 of the Nunavut Agreement. The Minister’s responsibility now is to accept or reject the NIRB’s recommendation. Should the Minister accept the NIRB’s recommendation, a Project Certificate could be issued in Q4, 2017.
With the positive recommendation in hand, Sabina will commence the submission of applications for the various authorizations required for full-scale construction and operation. Sabina intends to submit Type A and Type B Water License Applications to the Nunavut Water Board within the next 60 days.
Sabina Gold & Silver Corp
Sabina Gold & Silver Corp. is a well-financed, emerging precious metals company with district scale, world class undeveloped assets in one of the world’s newest, politically stable mining jurisdictions: Nunavut, Canada.
In September, 2015, Sabina released a Feasibility Study on its 100% owned Back River Gold Project which presents a project that has been designed on a fit-for purpose basis, with the potential to produce ~200,000 ounces a year for ~11 years with a rapid payback of 2.9 years. At a US$1,150 gold price and a 0.80 exchange rate, the Study delivers a potential after tax internal rate of return of approximately 24.2% with an initial CAPEX of $415 million.
The Project is advancing through the environmental assessment process with final public hearings with the Nunavut Impact Review Board completed during May 31 – June 3, 2017 in Cambridge Bay.
In addition to Back River, Sabina also owns a significant silver royalty on Glencore’s Hackett River Project. The silver royalty on Hackett River’s silver production is comprised of 22.5% of the first 190 million ounces produced and 12.5% of all the silver produced thereafter.
The Company had cash and equivalents of C$43m at March 31, 2017.
Forward Looking Information
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 of permitting and environmental assessment outcomes, 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 licenses 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, 2016 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 is authorized by the undersigned on behalf of Sabina Gold & Silver Corp.
Sabina Gold & Silver Corp
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