Published: May 26, 2016 |

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Sabina Gold & Silver Corp has seen positive preliminary metallurgical optimization test results on its 100 percent-owned Back River gold project in Nunavut, Canada.

After release of the Back River initial project feasibility study in September of last year, Sabina has identified several metallurgical optimization opportunities that could have a positive economic impact on the Back River project. The two opportunities with the greatest potential impact are coarser grinding as part of the CIP circuit contemplated in the feasibility study, and revisiting flotation with the addition of regrinding concentrates to 50 micron before leaching.

Sabina has completed the initial scoping test work for the flotation and grinding of concentrates followed by leaching with very encouraging preliminary results.

“These results are the first of many optimization studies underway on the project. These test results continue to demonstrate the optionality of Back River. This work could not only positively impact the economics of the initial production scenario, but could also generate compelling alternatives for future satellite production, at George for example. We are very encouraged and look forward to continuing work on the flow sheet,” said Bruce McLeod, president and CEO of Sabina.

Four representative composites were created, one for each of the Llama, Goose, Umwelt open pit and Umwelt underground deposits. The results from this first round of test work showed promising results. Recoveries for three of four composites (Umwelt open pit, Umwelt underground and Llama, representing approximately 71 percent of the reserves in the feasibility study) showed a potential increase in gold recoveries of approximately 2-3 percent. The Goose composite showed a potential reduction of approximately 3-4 percent in gold recovery. If further studies support the preliminary test work, this could result in an overall increase of 25,000 ounces of gold produced over the current life of mine.

Initial desktop studies have also indicated that changing to a flotation circuit could have positive impacts on both CAPEX and OPEX. Operating costs would largely be impacted by a potential reduction in installed power, and a reduction in reagent consumption. Additional benefits could include a reduction in GHG emissions due to reduced power and transportation requirements.

A flotation optimization test work program to further define the impacts to the project has been initiated.

During April 2016, the company attended its final public hearings on the environmental assessment of the project in Cambridge Bay, Nunavut. The Nunavut Impact Review Board is reviewing all submissions from those hearings and advised that they will make a final project recommendation to the Minister of Indigenous and Northern Affairs Canada on or about June 15, 2016. A positive recommendation would be a significant milestone in the permitting/environmental assessment process and enable the transition into the licensing phase.

About Sabina Gold & Silver
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 percent owned Back River Gold Project which presents a project that has been designed on a fit-for purpose basis, with the potential to produce approx. 200,000 ounces a year for approx. 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 percent 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 percent of the first 190 million ounces produced and 12.5 percent of all silver produced thereafter.

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