Sabina Gold & Silver Announces Interim Financial Results For the Quarter Ended September 30, 2020
~$65 million in cash and short-term investments, pre-development activities commenced
VANCOUVER, British Columbia, Nov. 10, 2020 (GLOBE NEWSWIRE) -- Sabina Gold & Silver Corp. (“Sabina”) or (the “Company”) (SBB – TSX/ SGSVF - OTCQX) reports the interim financial results for the quarter ended September 30, 2020.
“During the quarter, under a rigid COVID 19 operational framework, the Company commenced pre-construction activities including extension of the permanent air strip at Goose, construction of a road network at the Goose Property and commencement of the box cut to prepare for the Goose underground exploration decline construction in 2021,” said Bruce McLeod, the Company’s President & CEO. “The Company also recommenced its 2020 drilling and field campaign, targeting the high-grade underground at Umwelt, resulting in defining the V2 Zone, as well as drilling at Llama and other field programs. Final drill results are anticipated in the coming weeks and deposit remodeling for an updated resource estimate and feasibility study is underway. I am very pleased with the hard work and commitment of our crews and staff to be able to accomplish so much at site in such a restricted work environment due to our COVID protocols: their efforts have been remarkable and much appreciated.”
The Company continues to closely assess and monitor the COVID-19 situation as it evolves and has undertaken measures to mitigate associated risks, including establishing procedures and protocols to safeguard employees. Given the highly uncertain nature of this situation, the Company is not able to reliably estimate the duration and severity of this pandemic nor the potential impact it could have on the Company’s operating activities and financial position.
Q3 2020 Highlights:
The Company had cash and cash equivalents and short-term investments of $64.8 million at September 30, 2020.
- During the quarter, the Company drilled 8,095 meters, targeting additional high-grade potential at Umwelt, infill and plunge extension at Llama and other new exploration targets within the 8km Goose Property gold complex. Drilling was successful in highlighting a 300m plunge extent “V2 zone” below the current limits of the planned open pit with exceptional widths of strong gold mineralization that averages 2 to 3 times the current underground reserve grade. Significant results include: drill hole 20GSE575C, which returned 19.89 g/t Au over 32.20m, drill hole 20GSE581, which returned 16.59 g/t over 20.55m, drill hole 20GSE582, which returned 14.78 g/t over 22.75m, and drill hole 20GSE571, which returned 15.15 g/t over 19.40m. The Company also completed an airborne geophysics program totaling 2,063-line kilometers in and around the Goose, George and Del properties.
- During the quarter, project development activities were focused on: a) a phased extension of the Goose property all-weather airstrip to accommodate larger aircraft; b) activities to prepare an underground decline for exploration drilling from subsurface, including construction of road access to the portal location, box cut at portal, and development of a portal laydown area; c) procurement of underground mining equipment and infrastructure to support the exploration decline program; and d) commencement of detailed engineering for the process plant and other key infrastructure.
- During the quarter, the Company elected to move forward with a cost reimbursable delivery model for all remaining Project engineering aspects.
- During the quarter, the Company commenced work on an update to its 2015 feasibility study. The updated feasibility study will include revisions to the mine schedule to bring high-grade Umwelt underground ore into the beginning of the mine life as well an updated CAPEX requirement in a more relevant gold price. The revised mine plan is expected to increase total gold production and mine life and increase annual gold production in the first several years of production. The updated feasibility study is anticipated to be completed in Q1, 2021.
For the three months ended September 30, 2020, the Company’s net loss was $1.0 million compared with $0.7 million during the comparative quarter in 2019, the increase driven primarily by higher deferred income tax expense and partially offset by higher net finance income. For the nine months ended September 30, 2020, the Company reported a net loss of $3.0 million compared with $6.7 million during the comparative period in 2019. The difference was largely the result of a mineral property write-down of $5.7 million on the Company’s non-core Red Lake mineral properties in 2019, partially offset by higher deferred income tax expense in 2020. For the full September 30, 2020 interim financial statements and Management’s Discussion and Analysis, please see the Company website at www.sabinagoldsilver.com or on SEDAR.