VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 27, 2017) - Sabina Gold & Silver Corp. ("Sabina" or the "Company") (TSX:SBB) is pleased to announce the Company's Addendum to the Final Environmental Impact Statement (the "FEIS Addendum") for the Back River Gold Project (the "Project"), submitted to the Nunavut Impact Review Board ("NIRB") on the 15th of February, 2017, has been formally accepted by NIRB and the technical review has begun.
On June 15, 2016, the NIRB recommended to the Minister of Indigenous and Northern Affairs Canada ("INAC") that the Back River Project should not proceed to the next phase of permitting. On January 12, 2017, the Minister of INAC referred the report back to NIRB for further consideration.
On January 24, 2017, the NIRB requested that Sabina file an updated Final Environmental Impact Statement ("FEIS") or FEIS Addendum "as soon as practicable". Sabina filed the FEIS Addendum on February 16, 2017 which focusses on the deficiencies noted in the NIRB's Final Hearing Report as well as the Minister's Referral Letter. On February 23, 2017, Sabina was advised by NIRB that the FEIS Addendum was formally accepted and the technical review has begun.
A link to a copy of the Minister's letter as well as the recently received February 23rd NIRB letter can be found here: http://www.sabinagoldsilver.com/assets/docs/media/Minister-Ltr-to-NIRB-Re-Final-Hearing-Report.pdf. And here: http://www.sabinagoldsilver.com/assets/docs/letter-from-nirb-providing-timelines.pdf.
The NIRB has provided the following guidance for timelines for review of the FEIS Addendum.
| February 23 2017 | NIRB initiates the Technical Review of the project proposal and requests final written submissions from interested parties |
| March 2017: | NIRB issues notice of Final Hearing (60 day public notice requirement) |
| April 24 2017 | Parties submit final written submissions to the NIRB |
| May 15 2017 | Sabina submits its response to final written submissions to NIRB |
| May 24 2017 | NIRB facilitates a Technical Meeting via teleconference (optional step to be utilized if deemed necessary/appropriate) |
| May 26 2017 | Parties file presentations for Final Hearing (tentative date only); |
| May 31 - June 3 2017 | NIRB Final Hearing (tentative dates only); and |
| July 2017 | NIRB issues the updated Final Hearing Report for the Back River Project proposal. |
"Sabina has worked diligently in anticipation of submitting additional information to the NIRB and we look forward to working through the next steps in the process with all parties," stated Bruce McLeod, President and CEO. "We have focused on the concerns outlined in the NIRB report from last June and believe we will be able to present relevant and new information to address the NIRB's high level of caution with relation to project impacts in Nunavut. We continue to receive broad based Inuit support for the Project and continue to engage and consult with all stakeholders. We believe Back River is a world class project with a large high grade reserve/resource in a jurisdiction that is supportive of responsible mining."
Copies of the Addendum will be provided to relevant regulatory authorities, aboriginal groups, communities and other interested parties over the coming weeks. Reviewers may participate in the review phase which will culminate in a final public hearing anticipated tentatively to be held May 31 - June 3, 2017 in Cambridge Bay. Following this review process, NIRB will issue a new recommendation to the Minister of INAC on whether or not the project should proceed to the next stage in the permitting project. If the Project successfully passes through this stage, the Company could be in a positon to receive a project certificate during the second half of 2017. A project certificate would be a major de-risking event for Back River and the Company.
Flow-Through Financing
The Company expects to close its recently announced flow through financing including the overallotment on February 28, 2017 for gross proceeds of approximately C$6 million.
Sabina Gold & Silver Corp
Sabina Gold & Silver Corp. is a well-financed, emerging precious metals company with district scale, world class undeveloped assets in one of the world's newest, politically stable mining jurisdictions: Nunavut, Canada.
Sabina recently 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. At a US$1,150 gold price and a 0.80 exchange rate, the Study delivers a potential after tax internal rate of return of approximately 24.2% with an initial CAPEX of $415 million.
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.
The Company had approximately C$40 million at December 31, 2016.
