Final major license received for construction and operations at Back River gold

first_imgSabina Gold & Silver Corp has received its Type A Water License from the Nunavut Water Board (NWB) for the company’s 100% owned Back River gold project in Nunavut, Canada. Receipt of the Type A Water License represents a key step in the environmental permitting process and will enable activities at site including mine construction and operations and sets the closure bonding amounts for the project moving forward.On September 21, 2018, Sabina received a copy of the NWB’s recommendation to the Minister of Intergovernmental Affairs, Northern Affairs and Internal Trade, the responsible Federal Minister, that the Project’s Type A Water License should be issued with proposed terms and conditions. On November 14, 2018, Sabina received confirmation that the Minister has approved the Type A water license with no changes to the terms and conditions.Sabina says “the Type A Water License includes development of the Umwelt Open Pit and Underground, as well as the Llama and Goose Main Open Pits as envisioned in the current development plans. The Type A Water License also includes the ability to develop the Llama and Goose Main Undergrounds as well as the Echo Open Pit and Underground should we choose to do so in the future.”“The issuance of the Type A Water License is the culmination of significant work completed during the environmental assessment and permitting process, as well as the negotiation of long term land tenure with the Kitikmeot Inuit Association. We appreciate the professional approach of the Nunavut Water Board during the licensing process, as well as the support for the project from our other stakeholders in the Kitikmeot. While a rigorous process, the receipt of this last major license demonstrates the responsible mining friendly jurisdiction in which we work.” said Bruce McLeod, President & CEO.Sabina Gold & Silver Corp. is well-financed with about C$39.4 million as at September 30, 2018 in cash and equivalents, and is an emerging precious metals company with district scale, advanced, high grade gold assets in one of the world’s newest, politically stable mining jurisdictions: Nunavut, Canada.Sabina released a feasibility study on Back River which presents a project that has been designed on a fit-for purpose basis, with the potential to produce ~200,000 oz/y for ~11 years with a rapid payback of 2.9 years. At a $1,150 gold price and a 0.80 (US$:C$) 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 Moz produced and 12.5% of all silver produced thereafter.last_img

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