The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Sabina Gold & Silver Corp. Sept. 14 reported positive results for an initial project feasibility study that investigates starting with a 3,000-metric-ton-per-day operation at its Back River gold project in Nunavut.
At a gold price of US$1,150 per ounce, this study indicates Back River could generate a post-tax internal rate of return of 24.2 percent and net present value (five percent discount) of C$480.3 million with a pay back of 2.9 years.
At an average head grade of 6.3 grams per metric ton gold, the study anticipates the 3,000 tpd operation would average 198,100 ounces of gold in annual production over an 11.8-year mine life at a cost of US$534 per oz. Initial capital for the project is estimated at C$415 million with sustaining capital of C$185 million.
Earlier this year, Sabina published a feasibility study that envisions a 6,000-metric-ton-per-day mill producing on average 346,000 ounces of gold annually over a 10-year mine life.
Sabina President and CEO Bruce McLeod said, "The 3,000 tpd FS is the most compelling opportunity for Sabina in this current market environment." An environmental assessment for the Back River project is roughly 75 percent through the process.
Sabina plans to submit its Final Environmental Impact Statement to the Nunavut Impact Review Board in November.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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