Sabina Gold & Silver Announces Interim Q1 Financial Results and Site Update
- The Company has cash and cash equivalents and short-term investments of $72.1 million at March 31, 2021.
- On March 16, 2021, the Company completed a bought deal prospectus financing of 18,000,000 common shares at a price of $1.95 per common share for gross proceeds of $35.1 million. Pursuant to its Shareholder Agreement, Zhaojin International Mining Co., Ltd. elected to maintain its 9.9% holdings in Sabina and purchased by private placement, 2,117,640 Common Shares $1.95 per Common Share for gross proceeds of approximately $4.1 million.The net proceeds of the financings were approximately $37.1 million.
- During the quarter, the Company prepared for 2021 site activities by opening its Goose camp in early March.There is a spring drill program planned for 4,000 meters over 8 to 10 holes, targeting an equal mix of early-stage exploration areas and the Hook zone.Additionally, project development activities at site will initially focus on the continuation of the underground ramp project, whereby Sabina is developing a ramp for underground exploration of the Umwelt deposit.
- On January 20, 2021, the Company announced an updated mineral resource estimate for the Project.Resources now total 6.32 million ounces (33,452,000 tonnes at 5.88 g/t) in the Measured and Indicated (“M&I”) categories and an additional 2.86 million ounces (13,794,000 tonnes at 6.44 g/t) in the Inferred category.
- On February 24, 2021, the Company announced the results of its UFS which included improvements to the mine schedule to bring forward high-grade areas at Umwelt underground amongst other changes.The revised mine plan increased total gold production by 1.0 million ounces, with annual average production of 287 koz in years 1 through 5 (with peak production of 303k oz in year 3) and 223 koz per year over the 15-year mine life.The UFS generates a post-tax internal rate of return of 27.7% and net present value(5%) of C$1.1B (US$860M) with a rapid pay back of 2.3 years using a gold price of US$1,600/oz and an exchange rate of 1.31 $C/$US.
- For the three months ended March 31, 2021, the Company reported a net loss of $1.4 million or $0.00 per share.
- Procurement of the initial surface mining fleet for the first year of pit development consisting of seven 64 tonne haul trucks with associated drilling, loading and support equipment.Procurement of phase I of the permanent accommodation complex (287 beds), building steel and cladding for the process plant, crusher building and truck shop, construction equipment necessary for concrete placement and building erection as well as equipment required for winter ice road construction.Sabina is also working with a logistics specialist (air and sealift) to finalize the execution strategy for mobilizing goods and equipment to site.
- Site civil works continue including ground support of the box cut face which Sabina is developing for the underground exploration ramp and harvesting of esker material for concrete production and plant site preparation work.
- The erection of a 60’ x 100’ underground shop has been completed and installation of site services for power and compressed air supply for underground activities is ongoing.
- 1,800 meters of a planned 4,000 meter exploration drilling program has been completed.
- Necessary geotechnical drilling of proposed water containment areas is finished.
Source: https://www.miningnorth.com/member-news/102687
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