On May 20, 2015, Sabina Gold & Silver Corp. released its much awaited Feasibility Study on the Back River Project.
The Project generates a post-tax IRR of 21.7% and NPV (at 5% discount rate) of $539 million;
The Project generates LOM post-tax net cash flow of $914 million on gross revenues of $4.5 billion with a payback period of 2.2 years (from start of operations);
Processing rate of 6,000 tpd producing an average of ~352,000 oz Au per year (50/50 open pit and underground);
Average production of 413,000 oz Au in years 1 through 4;
Initial capital of $695 million and sustaining capital of $529 million (including closure);
A total of 19.8 million tonnes of mineralized material to be milled over 9.6 years with a LOM average grade of 5.70 g/t Au and metallurgical recoveries of 93%;
Sabina will continue to advance the environmental assessment and will work to obtain the necessary permits for future construction and operation of the Back River Project. Over the next few months Sabina will be in the communities to discuss the outcomes of the FS and will also be engaging with various Inuit, federal and territories entities.
For more information, read the full press release.