Sabina focuses on optionality at Back River project

A feasibility study for Sabina Gold & Silver’s (TSX: SBB) Back River gold project in Nunavut demonstrates the project is a large, low cost producer, which could be scaled down to lower capital requirements.

The study, led by JDS Energy & Mining Inc., envisions a combined open pit and underground mine at Back River producing 346,000 oz annually at total cash costs of US$535 per oz over a 10-year mine life. Projected all-in sustaining costs are US$671 per oz.

In comparison, the 2013 prefeasibility study estimated Back River producing 287,000 oz annually at total cash costs of US$685 per oz over an 8.4-year mine life. The longer mine life resulted from an expansion in the project’s measured and indicated resources, while the higher production came from the firm’s move to increase throughput to 6,000 t/d, up from 5,000 daily tonnes.  

The higher throughput has added $90 million to the start-up costs of $695 million, which BMO analyst Andrew Kaip notes is “offset by higher processing rates, recoveries and a longer mine life.” (Gold recoveries have gone from 88% to 93%.)

Read the complete article at NorthernMiner.com/news/sabina