VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 19, 2016) - Sabina Gold & Silver Corp. (TSX:SBB) ("Sabina" or the "Company") provides an update on recent community engagement for the Back River Gold Project ("Back River" or the "Project") in Nunavut, Canada.
Following the Nunavut Impact Review Board's ("NIRB") recommendation and report to the Minister of Indigenous and Northern Affairs Canada ("INAC") that the Back River Project not proceed at this time, Sabina embarked on a community tour to solicit feedback regarding NIRB's recommendation from Kitikmeot constituents.
Over the course of four days, Sabina visited Cambridge Bay, Kugluktuk, Kugaaruk, Gjoa Haven and Taloyoak where community public meetings were held along with various engagements with municipal and territorial representatives. Overall, 16 formal meetings and public forums took place during the tour with approximately 230 people in attendance.
"We are very pleased with the significant support we continue to receive for the Back River Project," said Bruce McLeod, President & CEO "We continue to get the message from the communities that jobs and economic benefits are critical to the people of the Kitikmeot and that responsible mining is an opportunity by which this can be achieved. We also continue to engage with the Kitikmeot Inuit Association ("KIA") and are working to advance agreements for land tenure rights and Inuit benefits which would address employment and contract initiatives and commitments. We believe we have earned a good reputation in the region as a company that follows through on our commitments and that we have proven our high regard for the people and the land."
Over the four-year period that Sabina has been involved in the environmental assessment process, we have had over 290 engagements with all interested communities and northern stakeholders. We have been involved with several socio-economic and environmental initiatives resulting from these consultations, for example the Bernard Harbour fisheries restoration project near Kugluktuk. Sabina's partnership on this project with the Kugluktuk Hunters and Trappers Organization will directly result in an improvement of the Arctic Char fisheries in Nulahugyuk Creek and Hingittok Lake delivering higher quantities of fish for harvesting. The Bernard Harbour restoration project has been the result of a combination of scientific baseline studies as well as significant consultation regarding traditional knowledge.
The positive support for the project from the communities and their surprise with the NIRB recommendation is evidenced by the numerous letters sent to the Minister of INAC and the NIRB urging the Minister to reject the NIRB recommendation. These letters can be seen on the NIRB website at:
We will continue to constructively engage with all of these communities as well as the seasonal outpost communities in the Back River area for ongoing ecosystemic and socio-economic consultation and input.
Sabina is preparing a response to the NIRB Report, to be submitted to the Minister imminently. In our response, we will be emphasizing the support for the Project by Inuit representatives and communities, the significant socio-economic benefits of the Project to be secured for the region, and appropriate terms and conditions that could be considered if the Report is referred back to NIRB.
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.
Sabina recently 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.
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 silver produced thereafter.
The Company has approximately $44 million in its treasury and is currently amending the budget and plans for 2016.
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 our ability to address and resolve the concerns of the NIRB through further consultation and collaboration with stakeholders. 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 risks, uncertainties, assumptions and factors include, among others, the actions by government and regulatory authorities, such as NIRB. 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; 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, 2015 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.