Canadian Mining Journal

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GOLD STUDY: Back River PEA puts NPV at over $1-B

NUNAVUT – Vancouver-based Sabina Gold & Silver Corp. has completed a positive preliminary economic assessment for its 100%-owned Back River gold project 75 km from Bathurst Inlet. The pre-tax net present value (5%) is $1.1 billion and...



NUNAVUT – Vancouver-based Sabina Gold & Silver Corp. has completed a positive preliminary economic assessment for its 100%-owned Back River gold project 75 km from Bathurst Inlet. The pre-tax net present value (5%) is $1.1 billion and the internal rate of return will be 32%.

The PEA recommends concurrent open pit and underground mining of the Llama, Umwelt, Goose and George deposits to feed ore to a central 5,000-t/d processing plant near the Umwelt deposit. Gold production will average 300,000 oz per year of 12.3 years for total recovery of 3.7 million oz. Life-of-mine average grade is estimated at 6.13 g/t Au and metallurgical recoveries at 90%.

Sabina purchased the Back River project in late 2009. Since that time, resources have been expanded to 22.3 million tonnes at 6.69 g/t Au (pit and underground indicated) and 10.0 million tonnes at 6.23 g/t (total inferred). Production could begin in late 2015 or early 2017.

The Back River project carries a pre-production capital cost of $450 million and a sustaining capital cost of $388 million, including closure and contingencies. Total cash costs are estimated at $542 per oz over the life of the project, including royalties, refining and transportation. (Base case assumptions include a gold price of $1,250/oz and a diesel fuel price of $1.20/L.)

Sabina is currently seeking project geologists, core logging geologists and geotechnicians for its projects. Email resume, cover letter, and salary expectations to employment@sabinagoldsilver.com.