Sabina Gold & Silver Corp (SBB.T/SGSVF.OTCQX), (“Sabina” or the
“Company”) is pleased to report that the detail engineering
contract has been awarded and work has commenced on the Goose Mine
at its 100%-owned Back River Gold Project (“Back River” or the
“Project”) in Nunavut, Canada.
After comprehensive evaluation of various
construction delivery methods for the Process Plant at Goose,
Sabina believes that a modified Engineering, Procurement,
Construction Management (“EPCM”) method offers the greatest
efficiency, flexibility and risk mitigation for development of the
Goose Project.
This delivery model includes completion of detail
engineering in a reimbursable cost model for engineering and
procurement directly sourcing major process equipment, and pursuit
of a fixed price construction bid.
Detail engineering will provide definitive material
requirements per AACE class II standards (up to 70% project
definition) and will result in development of procurement packages
and delivery of issued for construction drawings. This approach
de-risks the engineering aspect, better defines the execution plan
and provides greater certainty of procurement and construction
costs. With these details in hand, Sabina will solicit fixed price
construction bids for the plant, including performance
guarantees.
CONSULTANTS
Sabina has engaged Sacré-Davey Engineering
Inc. (“SD”) to complete the detail engineering scope for the
process plant and experienced Arctic builders, CGT Industrial
(“CGT”) to review and evaluate the detailed design's
constructability and operability. The CGT team is also assisting in
developing a construction execution plan.
SD has extensive experience ranging from
feasibility studies and concepts to detailed design, system
integration, and construction. They have executed projects across
many industries, including mining, oil & gas, and forestry,
among others.
CGT is a northern Arctic constructor with proven
experience in the mining industry with a successful track record of
involvement in projects that includes Pretivm’s Brucejack gold
mine, Dominion Diamond’s Ekati and Diavik Diamond mines and Yukon
Zinc’s Wolverine mine.
Both detailed engineering and the constructability
and operations review have begun and are expected to be completed
during Q1, 2021.
“We are pleased to be working with Sacre Davey and
CGT on these initiatives,” said Bruce McLeod, President & CEO.
“Both firms have significant experience which we believe aligns
with Sabina’s approach to this Project. We also believe that given
the global supply chain volatility due to the COVID-19 pandemic,
this revised delivery approach bodes well for delivering more
certainty around project costs and deliverables. We look forward to
reporting further on our pre-development activities as they
progress.”
OTHER KEY INITIATIVES
Sabina had selected FLSmidth (“FLS”) as the
equipment manufacturer and FLS is actively working on their line-up
of equipment and a definitive pricing model with a performance
guarantee for the plant. FLS will also be engaged in commissioning
support and critical spares management. This continued engagement
with FLS will provide Sabina with more certainty for the phases of
the Project throughout detailed engineering, commissioning,
optimization, and training.
Sabina is also reaching out to power plant
technology providers to support the design and development of
construction drawings for a ~15MW power plant. Sabina expects this
contract will be awarded before the end of the
year.
Sabina has engaged DT Engineering to design the
Port Facility fuel farm and fuel distribution process. The
objective is to receive, store and dispense 40 Million liters at
the Port Facility area and at the Goose site.
Sabina consultants are also working on the design
of various water diversion structures designed to mitigate seasonal
flow, site wide road networks, waste dump designs and site wide
water balance calculations.
In 2019 Sabina obtained a third-party logistics
review for Project construction. As part of the process,
Sabina engaged various vessel operators to do a logistics review
while finalizing plans for the material consolidation points for
the Project, the Port Facility receiving schedule and offloading
requirements. The inaugural winter ice road in 2018/19 provided the
experience required to develop a robust logistics and procurement
execution plan to support the Project’s material
requirements. The opportunity enabled Sabina to conduct
winter ice road time studies and road management plans. All
these initiatives have been carried forward and will be
incorporated into the updated Project execution plan.
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.
For further information please contact:
Nicole Hoeller, Vice-President,
Communications: 1 888 648-4218
nhoeller@sabinagoldsilver.com
Forward Looking InformationThis
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 & CEOSuite 1800 – Two
Bentall Centre555 Burrard StreetVancouver, BC V7X 1M7Tel 604
998-4175 Fax 604
998-1051http://www.sabinagoldsilver.com
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