Canadian Mining Journal

News

GOLD: Positive PFS for Sabina’s Back River project

NUNAVUT – Sabina Gold and Silver Corp. of Toronto says the results of the pre-feasibility study is positive for its 100% owned Back River gold project in the West Kitikmeot region, about 75 km from tide water at Bathurst Inlet.



NUNAVUT – Sabina Gold and Silver Corp. of Toronto says the results of the pre-feasibility study is positive for its 100% owned Back River gold project in the West Kitikmeot region, about 75 km from tide water at Bathurst Inlet.

The PFS expects the project to generate a post-tax internal rate of return of 16.5% and a net present value (5% discount) of $290 million. Over the life of the mine, it will generate an after tax net cash flow of $582 million on gross revenues of $3.3 billion. The initial capital cost will be $605 million, and it will bay for itself in 3.3 years from the start of operation.

Back River would have a processing rate of 5,000 t/d producing approximately 287,000 oz Au per year. Total cash costs are estimated at $685/oz Au over the 8.4-year life of the mine. All told, the mill will treat 15.0 million tonnes grading 5.69 g/t Au at a recovery of 88% Au.

The Back River PFS is based on only half the 2012 mineral resource, and does not refer to any mineralization identified by drilling done in 2013.

Details of the PFS are available at SabinaGoldSilver.com in the news release dated Oct. 9, 2013. Better yet, readers interested in working at the project can visit BackRiverProject.com.