Sabina Gold & Silver Reports Significant Estimated Improvement
in Gold Recoveries for Back River Gold Project, Nunavut
Metallurgical test results indicate recovery improvement from
88.0% to 93.9%
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 22, 2014) -
Sabina Gold & Silver Corp. (TSX:SBB) ("Sabina" or the
"Company") is pleased to announce the results of ongoing bench
scale metallurgical testing on its 100% owned Back River Gold
Project in Nunavut, Canada ("Back River" or the "Project").
"We are very pleased with the results of our ongoing
metallurgical testing" said Rob Pease, President & CEO, "The
results confirm that the gold at Back River is free milling by
conventional cyanide leaching at reasonable grind sizes. The
substantial increase in overall recoveries from 88.0% to an
indicated 93.9% continues to demonstrate the high quality nature of
the Project. We believe that the improved recoveries in combination
with our increased Mineral Resource Estimate, are solid foundations
on which to build our Feasibility Study ("FS"), although the final
recovery and reserve estimate will not be known until the FS is
completed. Additionally, we continue to make progress on
optimization studies, which could present other opportunities to
further refine the Project.
We believe we have a premier project, in a premier geopolitical
jurisdiction, with a well-funded treasury, which will enable us to
advance through permitting and engineering studies with a surplus
of cash on hand at the end of 2015. We are very excited about the
next phase of growth for our Company as we work to become a gold
producer."
Back River
In the fall of 2013, the Company announced the results of a
Pre-feasibility Study ("PFS") on the Back River Project. The
results of the PFS were based on a mineral resource estimate
compiling all drilling up to and including 2012 with metallurgical
testing and studies that had been completed by September 2013.
Recognizing that the PFS metallurgical recoveries might be
improved with additional testing, in October, 2013 the Company
launched a further test program including 934 discreet samples
totalling 6,113kg of material.
Additionally, an updated mineral resource estimate was announced
in March 2014 that compiled all of the results of the 2013
drilling, reporting increased overall resources, particularly in
the Measured category (see table below).
Metallurgical recovery and increased mineral resources are two
areas where opportunities were identified for project optimization
in the upcoming FS.
Metallurgy
The 2013 Back River PFS identified a proposed operation with
gold recovery techniques that include conventional crushing and
grinding, gravity concentration, cyanidation by carbon-in-leach
("CIL") and gold recovery from loaded carbon to produce gold doré.
The life of mine average gold recoveries in the PFS are estimated
to average 88.0%. In particular, recoveries at Umwelt and Llama,
the first two open pits in the PFS mine sequence, reported the
lowest recoveries at approximately 85.2% and 84.4%
respectively.
The ongoing test program being undertaken at ALS Laboratories in
Kamloops, BC, has included investigation of sixty six (66) discreet
metallurgical variability composites that spatially represent the
PFS mine plans, the updated mineral resource estimate released in
March of this year and were also selected to cover all rock types
and ore zones identified to-date. An optimization composite was
created from fresh drill core and designed to represent the
different ore zones in the three main pits, (Llama, Umwelt and
Goose Main) which together represent the process facility feed over
the initial years of mining. The variability composites were
originally tested using the PFS process flowsheet, the results of
which indicate the ore zones and pits have limited variability. The
optimization composite was tested to improve the PFS process
flowsheet, the gravity and leaching metallurgical recoveries, and
the other process variables.
Table of Metallurgical Recoveries by deposit
Mineral Zone |
Head Grade (g/t Au) |
PFS Estimated Gold Recovery (%) |
2014 Estimated Gold Recovery (%) |
Llama |
6.30 |
84.4 |
95.1 |
Umwelt Pit |
5.65 |
85.2 |
94.0 |
Goose Main |
4.47 |
92.3 |
92.7 |
George |
4.96 |
87.3 |
96.1 |
Umwelt Underground |
8.11 |
90.3 |
94.1 |
Life of Mine |
5.69 |
88.0 |
93.9 |
The results from this testing suggest:
- Significant improvement in recoveries across all deposits;
- Limited variability in the leach testing results across the 66
variability composites collected from the deposits;
- Cyanide consumption would be significantly reduced from the PFS
(250 ppm versus 2,000ppm for the CIL circuit and 2,000 ppm versus
20,000 ppm for the intensive leach circuit);
- a finer grind is required (from K80 of 100 micrometers in the
PFS, to K80 of 50 micrometers); and
- Organic carbon shown to be present in the ores is relatively
high (~1% TOC) but has limited effect on leach kinetics.
Further optimization of the metallurgy, recoveries and process
flowsheet design will be undertaken in the upcoming FS. The
economic implications of the metallurgical test results will be
better understood once the FS is completed.
Mineral Reserves and
Resources
On March 4, 2014, the Company announced an updated Mineral
Resource Estimate for Back River with a corresponding technical
report entitled Mineral Resource Update for the Back River Gold
Property, Nunavut, Canada (the "Updated Back River Report")
filed on www.sedar.com on March 27th, 2014 and also on the
Company's website at www.sabinagoldsilver.com.
In summary, the new mineral resource estimate reported a
significant increase in measured resources and an increase in
overall contained ounces in all categories. Infill drilling in 2013
allowed Measured Resources to be classified at Llama and Umwelt
(the first two proposed open pits) for the first time.
Additionally, drilling in 2013 enabled a resource estimate for the
Echo deposit at the Goose Property, which could provide
opportunities for the early life of mine and is the focus of
drilling for 2014. This increased Mineral Resource Estimate offers
potential for an increased Mineral Reserve estimate on the project
which will be completed as part of the FS work.
Table 1 - Back River
Mineral Resource Estimate February 28, 2014
Classification |
Tonnes (kt) |
Au (g/t) |
Metal (koz Au) |
Measured |
10,446 |
5.24 |
1,761 |
Indicated |
17,907 |
6.14 |
3,536 |
Measured and Indicated |
28,354 |
5.81 |
5,297 |
Inferred |
8,179 |
7.33 |
1,927 |
Notes:
- CIM definition standards were used for the Mineral
Resources.
- The Qualified Persons are Dinara Nussipakynova, P Geo. and
Andrew Fowler MAusIMM CP (Geo) both of AMC Mining Consultants
(Canada) Ltd.
- Open pit Mineral Resources are constrained by an optimized pit
shell at a gold price of $1500 oz Au.
- The cut-off grade applied to the open pit resources are 1.0 g/t
Au. The underground cut-off grade for Goose Main, Echo, and Llama
deposits is 3.5 g/t Au; and for Umwelt is 4.5 g/t Au. The
underground cut-off grade for the George resources is 4.0 g/t
Au.
- Metallurgical recovery varies with gold grade, averaging
between 88 and 89%.
- The George underground Mineral Resources (LCP - North, LCP -
South, Locale 1, Locale 2, GH & Slave) were estimated within
mineral domains expanded to a minimum width of 2 m.
- Drilling results to December 31, 2013 were used.
- The increase in Measured Resources at Goose Main is attributed
to re-verifying and resolving previous conflicts of historical
surveys and geological data. This has resulted in increased
confidence in interpreted geologic continuity and subsequently an
increase in resource confidence.
- Numbers may not add due to rounding.
- Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
- Readers should refer to the Updated Back River Report for
additional information regarding the Resource Estimate at Back
River.
Table 2 - Summary of
difference between 2013 and 2014 Mineral Resource
Estimates
Classification |
Year |
Tonnes (Kt) |
Au (g/t) |
Metal (Koz Au) |
% +/- ounces |
Measured |
2013 |
2,168 |
4.4 |
304 |
479% |
|
2014 |
10,446 |
5.2 |
1,761 |
|
Indicated |
2013 |
21,481 |
6.2 |
4,258 |
-17% |
|
2014 |
17,907 |
6.1 |
3,536 |
|
M & I |
2013 |
23,649 |
6.0 |
4,562 |
16% |
|
2014 |
28,354 |
5.8 |
5,297 |
|
Inferred |
2013 |
7,289 |
8.0 |
1,879 |
3% |
|
2014 |
8,179 |
7.3 |
1,927 |
|
Note:
The results of the 2013 mineral resource estimates can be found
in the Technical Report entitled, Back River Gold Property,
Nunavut Territory Canada filed on April 2, 2013 on
www.sedar.com.
2014 Work
Program
Goose Camp is now open with a view to having three drills up and
running on the Project by April 30th, 2014.
2014 Objectives:
1) |
To
Complete a drilling program targeting and conversion and expansion
of resources at the Echo deposit; |
2) |
To
drill test two or three high potential exploration targets for new
resource additions to the Goose property; |
3) |
To
complete ongoing optimization studies on the Project that began in
2013, i.e. metallurgical testing, mine sequencing and capital and
operating cost studies; |
4) |
To
incorporate results of Echo drilling and optimizations studies into
the FS to be launched later this year and completed in the first
half of 2015; |
5) |
To
continue necessary environmental and baseline work for the Final
Environmental Impact Statement; |
6) |
To
continue with community engagement for the Project; |
SABINA GOLD & SILVER CORP.
Sabina Gold & Silver Corp. is an emerging gold developer
with district scale, world class assets in one of the world's
newest, most politically stable mining jurisdictions: Nunavut,
Canada.
Sabina's primary assets, all located in Nunavut, consist of: the
Back River Gold Project, currently in the pre-feasibility and
permitting phase; the Wishbone Claims, a vastly prospective grass
roots project; and the Hackett River Silver Royalty, a silver
production royalty on Xstrata Zinc's Hackett River project
comprising 22.5% of the first 190 million ounces produced and 12.5%
of all the silver produced thereafter. The Company ended 2013 with
approximately $58 million in cash and expect to end 2014 with
approximately $36 million.
All news releases and further information can be found on the
Company's website at www.sabinagoldsilver.com or on SEDAR at
www.sedar.com.
Quality Assurance
The Mineral Resources for the Back River deposits were estimated
by AMC Mining Consultants (Canada) Ltd. The Qualified Persons under
the terms of NI 43-101 are Dinara Nussipakynova, P Geo. and Andrew
Fowler MAusIMM CP (Geo) both of AMC Mining Consultants (Canada)
Ltd., are independent of Sabina and they have approved the contents
of this press release that pertain to their estimation work and
results.
The metallurgical testwork was completed by ALS Laboratories,
under the supervision of Stacy Freudigmann of Canenco Canada Inc.,
a Qualified Person under the terms of NI 43-101. Stacy Freudigmann,
P. Eng of Canenco Canada Inc., is independent of Sabina and has
approved the contents of this press release that pertain to the
metallurgical test work results and their interpretation.
Mr. Wes Carson, P.Eng and Vice-President, Project Development
for Sabina Gold and Silver Corp. is a Qualified Person under the
terms of NI 43-101 and has reviewed the technical content of this
press release for the Back River Project and has approved its
dissemination.
Forward Looking Statements
This news release contains "forward-looking information" within
the meaning of applicable securities laws (the "forward-looking
statements"), including our belief as to the extent, results and
timing of exploration programs and various studies including the FS
and the Environmental Impact Study, and exploration results, the
results of the PFS, the potential tonnage, grades and content of
deposits, estimated recoveries, timing, establishment and extent of
resources and reserves estimates, potential production from and
viability of the Company's properties, production and operating
costs and permitting submission, timing and receipt of necessary
permits and project approvals for future operations and access to
project funding. These forward-looking statements are made as of
the date of this news release. Readers are cautioned not to place
undue reliance on forward-looking statements, as there can be no
assurance that the future circumstances, outcomes or results
anticipated in or implied by such forward-looking statements will
occur or that plans, intentions or expectations upon which the
forward-looking statements are based will occur. While we have
based these forward-looking statements on our expectations about
future events as at the date that such statements were prepared,
the statements are not a guarantee that such future events will
occur and are subject to risks, uncertainties, assumptions and
other factors which could cause events or outcomes to differ
materially from those expressed or implied by such forward-looking
statements. Such factors and assumptions include, among others, the
effects of general economic conditions, commodity prices, changing
foreign exchange rates and actions by government and regulatory
authorities and misjudgments in the course of preparing
forward-looking statements. In addition, there are known and
unknown risk factors which could cause our actual results,
performance or achievements to differ materially from any future
results, performance or achievements expressed or implied by the
forward-looking statements. Known risk factors include risks
associated with exploration and project development; the need for
additional financing; the calculation of mineral resources and
reserves; operational risks associated with mining and mineral
processing; fluctuations in metal prices; title matters; government
regulation; obtaining and renewing necessary licences and permits;
environmental liability and insurance; reliance on key personnel;
the potential for conflicts of interest among certain of our
officers or directors; the absence of dividends; currency
fluctuations; labour disputes; competition; dilution; the
volatility of the our common share price and volume; future sales
of shares by existing shareholders; and other risks and
uncertainties, including those relating to the Back River Project
and general risks associated with the mineral exploration and
development industry described in our Annual Information Form,
financial statements and MD&A for the fiscal period ended
December 31, 2013 filed with the Canadian Securities Administrators
and available at www.sedar.com. Although we have attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements. We are under no obligation to update or
alter any forward-looking statements except as required under
applicable securities laws. This news release has been authorized
by the undersigned on behalf of Sabina Gold & Silver Corp.
Sabina Gold & Silver Corp.Nicole HoellerVP, Communications1
888 648-4218nhoeller@sabinagoldsilver.comSabina Gold & Silver
Corp.Rob PeasePresident & CEO604 998-4175604
998-1051www.sabinagoldsilver.com
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