NUNAVUT – Vancouver-based Sabina Gold & Silver says the feasibility study for its Back River gold project is positive. Assuming a gold price of US$1,200/oz and a Canadian exchange rate of $0.87, the project has a post tax net present value of C$539 million and an internal rate of return of 21.7%.
The Back River gold belt lies in the West Kitikmeot region, approximately 75 km from tidewater at Bathurst Inlet. Thus far exploration has focused on only two claim blocks (George and Goose) of the five that make up the property.
Sabina expects the Back River production to come mainly from open pits feeding a 6,000 t/d mill. Annual gold output would average 346,000 oz over the life of the mine. The initial capital investment would be C$695 million, and the sustaining capital requirement would be C$529 million, including closure costs. The life of mine all-in sustaining cash cost is estimated to be US$671.
The Goose and George deposits contain measured and indicated resources of 28.24 million tonnes averaging 5.87 g/t Au or 5.33 million contained ounces. The inferred portion is 7.75 million tonnes at 7.43 g/t or 1.85 contained ounces of gold. Back River reserves are estimated at 8.16 million proven tonnes grading 5.36 g/t Au or 1.41 million contained ounces plus 11.63 million probable tonnes with a grade of 5.94 g/t Au and containing 2.22 million oz of gold.
Sabina will undoubtedly post the entire Back River feasibility study on its website soon. Visit SabinaGoldSilver.com.
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