Sabina Gold & Silver Provides Update on Advancement of its Back River Gold Project

VANCOUVER, British Columbia, Aug. 25, 2020 (GLOBE NEWSWIRE) -- Sabina Gold & Silver Corp (SBB.T/SGSVF.OTCQX), (“Sabina” or the “Company”) is pleased to provide an update on activities and undertakings for the Company’s 100%-owned 80km Back River Gold District (“Back River” or the “Goose Project”) in Nunavut, Canada.

The Goose Project, the initial focus for production at Back River, has evolved significantly on its path to production since the feasibility study (“FS”) was completed in 2015.  Through this work, there have been significant project advancements in engineering, project development, exploration, and permitting which have improved, optimized, and further de-risked the Goose Project towards a production decision.

Key Milestones Include:

• The Goose Project is now fully permitted for construction and operations.
• Completion of a Framework Agreement with the Kitikmeot Inuit Association including a 20-year renewable mining lease agreement.
• Demonstration of project logistics and supply chain from the south to site, including: construction of the Port facility, receipt of sealifts delivering materials, inaugural construction and operation of a 172km winter ice road for delivery of all materials from the Port facility to Goose.
• Preliminary earthworks and quarrying at the Goose site.
• Completion of basic engineering and advancement of detailed engineering, procurement, contracting strategy and project execution plans for the process plant, balance of plant and other major structures.
• Additional metallurgical testing to further de-risk and aid in design of proposed plant flow sheet. Major processing equipment selected, and additional detoxification work completed including project water quality test work
• Discovery of a large new mineral zone at Nuvuyak, identification and successful drill targeting of a higher-grade corridor of mineralization within the Umwelt underground resource and extension of the Llama gold structure by over 500m down plunge from the current resource limits.
• Continued community engagement and maintenance of social license and release of Sabina’s first Environmental and Social Governance Report.
• Positive ruling from Canada Revenue Agency that the exploration underground ramp at Umwelt can be funded with flow-through shares (enables raising equity with less dilution).
• Continued advancement of a Project Debt structure within a framework of due diligence process including positive independent engineer review. 
• Since the FS, the gold price has continued to increase, both in USD and Canadian Dollar terms (from ~C$1,438/oz in our FS to ~C$2,560/oz current spot) providing opportunities to significantly impact project economics.
• Opening in 2020 of the Goose camp and commencement of all planned activities with full support of the territory and community stakeholders within a detailed Covid-19 operational framework.

“Since the feasibility, Sabina has been able to make great progress in advancing the Goose Project towards a production decision,” said Bruce McLeod, President & CEO.  “As we waited for the capital markets to improve to be able to finance the Project, we focused considerable activity on identifying opportunities that we believe will significantly de-risk and enhance the project.   The Back River Project benefits from a large resource base: only 2.5M oz of a 5.1M ounce measured and indicated resource has been converted to reserve.  We have also made new discoveries since during this time that have demonstrated the potential for resource expansion and have highlighted the high-grade nature of our deposits. Given this significant resource optionality, internal studies revisiting mine sequencing have demonstrated strong opportunities to significantly increase the production profile at a similar through-put which at current long- term gold prices, could positively impact overall project economics.  While we push forward on our detailed engineering, our continued drilling will enable us to complete an updated resource estimate, with an updated feasibility study to follow in Q1, 2021.  Additional infill drilling may be undertaken during next year’s drilling season to inform further resource updates later in 2021. We are also very encouraged by the improvement in market sentiment and are well positioned to take advantage of an appropriate project financing window at any time.”