Sabina Gold re­ceives INAC OK to ad­vance Back River

Stockwatch Daily - - MINES & METALS - Mr. Bruce McLeod re­ports

SABINA GOLD & Sil­ver Corp. has re­ceived a pos­i­tive de­ci­sion from the Min­is­ter of Indige­nous and North­ern Af­fairs Canada (INAC) that the Back River project may move for­ward to the reg­u­la­tory and li­cens­ing phase, which would in­clude com­ple­tion of all nec­es­sary per­mits to com­mence mine con­struc­tion.

In July, 2017, the Nu­navut Im­pact Re­view Board (NIRB) com­pleted its re­view of the en­vi­ron­men­tal as­sess­ment of the project and rec­om­mended to the min­is­ter that the project should be given ap­proval to ob­tain the re­quired per­mits and li­cences for mine con­struc­tion and oper­a­tion. In a let­ter dated Dec. 5, 2017, the min­is­ter, on be­half of the five re­spon­si­ble fed­eral min­is­ters, ac­cepted NIRB’s rec­om­men­da­tion. The NIRB will now work to­ward is­su­ing a project cer­tifi­cate for Back River, which will at­tach the terms and con­di­tions for mine de­vel­op­ment, con­struc­tion, oper­a­tion and even­tual clo­sure.

“This let­ter is a sig­nif­i­cant mile­stone event for the Back River project and for Sabina as it is the most im­por­tant de­ci­sion in the per­mit­ting process,” said Bruce McLeod, pres­i­dent and chief ex­ec­u­tive of­fi­cer. “Af­ter a mul­ti­year en­vi­ron­men­tal as­sess­ment, we are ex­tremely pleased that Back River now has the green light to move ahead to the fi­nal phase. The is­suance of a project cer­tifi­cate for Back River en­ables us to start pre­par­ing in earnest to­wards our goal of be­com­ing a mid-tier gold pro­ducer in one of the world’s best min­ing ju­ris­dic­tions and now en­ables us to for­mal­ize our bud­get and work plans for 2018. In ad­di­tion, the re­cent ex­e­cu­tion of a bind­ing term sheet with the Ki­tik­meot Inuit As­so­ci­a­tion has strength­ened our re­la­tion­ship with our stake­hold­ers, and we look for­ward to cre­at­ing a long-last­ing legacy of en­vi­ron­men­tal stew­ard­ship and sus­tain­able eco­nomic de­vel­op­ment for the peo­ple of the Ki­tik­meot re­gion and Nu­navut.”

Carolyn Ben­nett, Min­is­ter of INAC, stated: “Sabina can now pro­ceed to the reg­u­la­tory phase of project de­vel­op­ment. The min­ing in­dus­try plays a key role in the de­vel­op­ment of Canada’s North: help­ing with the tran­si­tion to a wage econ­omy, strength­en­ing the ca­pac­ity of north­ern peo­ple to par­tic­i­pate in the min­ing sec­tor, and con­tribut­ing to com­mu­nity and in­fra­struc­ture de­vel­op­ment. The grow­ing pros­per­ity of North­ern Canada is re­liant upon vi­brant and sus­tain­able re­source de­vel­op­ment, and Sabina is now poised to play a sig­nif­i­cant con­tribut­ing role in the Ki­tik­meot. The other re­spon­si­ble min­is­ters and I look for­ward to work­ing closely with Sabina while en­sur­ing that en­vi­ron­men­tal pro­tec­tions are im­ple­mented and that the so­cio-eco­nomic ben­e­fits of the project are fully re­al­ized.” Next steps

The file is now with the NIRB, which will be hold­ing a work­shop in the com­ing weeks to re­view terms and con­di­tions for the project cer­tifi­cate, fol­low­ing which a project cer­tifi­cate would be is­sued in ap­prox­i­mately 30 to 45 days. In the in­terim, Sabina has sub­mit­ted Type A and Type B water li­cence ap­pli­ca­tions to the Nu­navut Water Board. The Type B water li­cence will en­able Sabina to com­mence ini­tial ac­tiv­i­ties to fur­ther de­risk the project and is ex­pected in Q1 2018. The Type A water li­cence will en­able full con­struc­tion and oper­a­tion and is ex­pected by Q4 2018. The com­pany an­tic­i­pates re­view of these ap­pli­ca­tions to com­mence in the com­ing weeks.

About Sabina Gold & Sil­ver Corp.

Sabina Gold & Sil­ver is a well-fi­nanced, emerg­ing pre­cious metal 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-per-cent-owned Back River gold project which presents a project that has been de­signed on a fit-for-pur­pose ba­sis, with the po­ten­tial to pro­duce ap­prox­i­mately 200,000 ounces a year for ap­prox­i­mately 11 years with a rapid pay­back of 2.9 years.

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 com­prises 22.5 per cent of the first 190 mil­lion ounces pro­duced and 12.5 per cent of all the sil­ver pro­duced there­after.

The com­pany had cash and equiv­a­lents of $38.5-mil­lion at Sept. 30, 2017.

We seek Safe Har­bor.

David Allen Fen­nell, Jonathan Carter Good­man, Don­ald Bruce McLeod, James Ni­chol­son Mor­ton, Wal­ter Thomas Segsworth, Anna Stylian­ides, An­thony Peter Walsh, LeRoy Ellsworth Wilkes

(SBB) Shares: 226,653,652

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