Sabina recently issued positive results of the Preliminary Feasibility Study (“PFS”) for the Back River Gold Project.
- The Project generates a post-tax IRR of 16.5% and NPV (at 5% discount rate) of $290 million;
- The Project generates life of mine (LOM) post-tax net cash flow of $582 million on gross revenues of $3.3 billion with a payback period of 3.3 years (from start of operations);
- Processing rate of 5,000 tpd producing an average of ~287,000 oz Au per year from open pit and underground operations for a total of 2.4 million oz Au;
- Initial capital of $605 million and sustaining capital of $226 million;
- Total cash costs of $685/oz Au LOM including royalties, refining and transport;
- A total of 15.0 million tonnes of mineralized material to be milled over 8.4 years with a LOM average grade of 5.69 g/t Au and metallurgical recoveries of 88%;
- Base case commodity assumptions of $1,350/oz gold and $1.25/litre diesel; and
- OP strip ratio of 10:1 over LOM.
Sabina will advance the final Feasibility Study in 2014 and remains on schedule for submission of the Draft Environmental Impact Statement in January 2014 as previously communicated the Nunavut Impact Review Board and the Nunavut Water Board.
For more information, read the full press release.