Sabina Gold & Silver Announces Interim Financial Results For the Quarter Ended September 30, 2020
November 10 2020 - 7:00AM
Sabina Gold & Silver Corp. (“Sabina”) or (the “Company”) (SBB –
TSX/ SGSVF - OTCQX) reports the interim financial results for the
quarter ended September 30, 2020.
“During the quarter, under a rigid COVID 19
operational framework, the Company commenced pre-construction
activities including extension of the permanent air strip at Goose,
construction of a road network at the Goose Property and
commencement of the box cut to prepare for the Goose underground
exploration decline construction in 2021,” said Bruce McLeod,
the Company’s President & CEO. “The Company also
recommenced its 2020 drilling and field campaign, targeting the
high-grade underground at Umwelt, resulting in defining the V2
Zone, as well as drilling at Llama and other field programs. Final
drill results are anticipated in the coming weeks and deposit
remodeling for an updated resource estimate and feasibility study
is underway. I am very pleased with the hard work and commitment of
our crews and staff to be able to accomplish so much at site in
such a restricted work environment due to our COVID protocols:
their efforts have been remarkable and much appreciated.”
The Company continues to closely assess and
monitor the COVID-19 situation as it evolves and has undertaken
measures to mitigate associated risks, including establishing
procedures and protocols to safeguard employees. Given the highly
uncertain nature of this situation, the Company is not able to
reliably estimate the duration and severity of this pandemic nor
the potential impact it could have on the Company’s operating
activities and financial position.
Q3 2020 Highlights:
The Company had cash and cash equivalents and
short-term investments of $64.8 million at September 30, 2020.
- During the quarter, the Company
drilled 8,095 meters, targeting additional high-grade potential at
Umwelt, infill and plunge extension at Llama and other new
exploration targets within the 8km Goose Property gold complex.
Drilling was successful in highlighting a 300m plunge extent “V2
zone” below the current limits of the planned open pit with
exceptional widths of strong gold mineralization that averages 2 to
3 times the current underground reserve grade. Significant results
include: drill hole 20GSE575C, which returned 19.89 g/t Au over
32.20m, drill hole 20GSE581, which returned 16.59 g/t over 20.55m,
drill hole 20GSE582, which returned 14.78 g/t over 22.75m, and
drill hole 20GSE571, which returned 15.15 g/t over 19.40m. The
Company also completed an airborne geophysics program totaling
2,063-line kilometers in and around the Goose, George and Del
properties.
- During the quarter, project
development activities were focused on: a) a phased extension of
the Goose property all-weather airstrip to accommodate larger
aircraft; b) activities to prepare an underground decline for
exploration drilling from subsurface, including construction of
road access to the portal location, box cut at portal, and
development of a portal laydown area; c) procurement of underground
mining equipment and infrastructure to support the exploration
decline program; and d) commencement of detailed engineering for
the process plant and other key infrastructure.
- During the quarter, the Company
elected to move forward with a cost reimbursable delivery model for
all remaining Project engineering aspects.
- During the quarter, the Company
commenced work on an update to its 2015 feasibility study. The
updated feasibility study will include revisions to the mine
schedule to bring high-grade Umwelt underground ore into the
beginning of the mine life as well an updated CAPEX requirement in
a more relevant gold price. The revised mine plan is expected to
increase total gold production and mine life and increase annual
gold production in the first several years of production. The
updated feasibility study is anticipated to be completed in Q1,
2021.
For the three months ended September 30, 2020,
the Company’s net loss was $1.0 million compared with $0.7 million
during the comparative quarter in 2019, the increase driven
primarily by higher deferred income tax expense and partially
offset by higher net finance income. For the nine months ended
September 30, 2020, the Company reported a net loss of $3.0 million
compared with $6.7 million during the comparative period in 2019.
The difference was largely the result of a mineral property
write-down of $5.7 million on the Company’s non-core Red Lake
mineral properties in 2019, partially offset by higher deferred
income tax expense in 2020. For the full September 30, 2020 interim
financial statements and Management’s Discussion and Analysis,
please see the Company website at www.sabinagoldsilver.com or on
SEDAR.
SABINA GOLD & SILVER
CORP
Sabina Gold & Silver Corp. is well-financed
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 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 (see “Technical Report for the Initial Project
Feasibility Study on the Back River Gold Property, Nunavut, Canada”
dated October 28, 2015).
The Project received its final Project
Certificate on December 19, 2017. The Project received its Type A
Water License on November 14, 2018 and its listing to enable
deposition of tailings on Schedule 2 of the Metals and Diamond
Mining Effluent Regulations on June 25, 2020. The Company is now in
receipt of all major authorizations for construction and
operations.
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.
All news releases and further information can be
found on the Company’s website at www.sabinagoldsilver.com or on
SEDAR at www.sedar.com. All technical reports have been filed on
www.sedar.com
For further information please contact: |
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Nicole Hoeller, Vice-President, Communications: |
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1 888 648-4218
nhoeller@sabinagoldsilver.com |
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Bruce McLeod, President & CEO 1800-555
Burrard Street, Two Bentall Centre Vancouver, BC V7X 1M9 Tel 604
998-4175 Fax 604 998-1051
http://www.sabinagoldsilver.com
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 and
timing of and various studies relating to engineering studies,
infrastructure improvement activities, exploration results and
permitting and licensing outcomes. 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, 2019 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 has been authorized
by the undersigned on behalf of Sabina Gold & Silver Corp.
Bruce McLeod, President & CEO Suite 1800 –
Two Bentall Centre 555 Burrard Street Vancouver, BC V7X 1M7 Tel 604
998-4175 Fax 604 998-1051
http://www.sabinagoldsilver.com
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