Sabina Gold & Silver Updates on Detail Engineering and Constructability Review Contracts for Proposed Goose Mine at Back River Gold Project in Nunavut, Canada

VANCOUVER, British Columbia, Nov. 12, 2020 (GLOBE NEWSWIRE) -- Sabina Gold & Silver Corp (SBB.T/SGSVF.OTCQX), (“Sabina” or the “Company”) is pleased to report that the detail engineering contract has been awarded and work has commenced on the Goose Mine at its 100%-owned Back River Gold Project (“Back River” or the “Project”) in Nunavut, Canada.

After comprehensive evaluation of various construction delivery methods for the Process Plant at Goose, Sabina believes that a modified Engineering, Procurement, Construction Management (“EPCM”) method offers the greatest efficiency, flexibility and risk mitigation for development of the Goose Project.

This delivery model includes completion of detail engineering in a reimbursable cost model for engineering and procurement directly sourcing major process equipment, and pursuit of a fixed price construction bid.

Detail engineering will provide definitive material requirements per AACE class II standards (up to 70% project definition) and will result in development of procurement packages and delivery of issued for construction drawings. This approach de-risks the engineering aspect, better defines the execution plan and provides greater certainty of procurement and construction costs. With these details in hand, Sabina will solicit fixed price construction bids for the plant, including performance guarantees.

CONSULTANTS

Sabina has engaged Sacré-Davey Engineering Inc. (“SD”) to complete the detail engineering scope for the process plant and experienced Arctic builders, CGT Industrial (“CGT”) to review and evaluate the detailed design's constructability and operability. The CGT team is also assisting in developing a construction execution plan.

SD has extensive experience ranging from feasibility studies and concepts to detailed design, system integration, and construction. They have executed projects across many industries, including mining, oil & gas, and forestry, among others.

CGT is a northern Arctic constructor with proven experience in the mining industry with a successful track record of involvement in projects that includes Pretivm’s Brucejack gold mine, Dominion Diamond’s Ekati and Diavik Diamond mines and Yukon Zinc’s Wolverine mine.

Both detailed engineering and the constructability and operations review have begun and are expected to be completed during Q1, 2021.

“We are pleased to be working with Sacre Davey and CGT on these initiatives,” said Bruce McLeod, President & CEO. “Both firms have significant experience which we believe aligns with Sabina’s approach to this Project. We also believe that given the global supply chain volatility due to the COVID-19 pandemic, this revised delivery approach bodes well for delivering more certainty around project costs and deliverables. We look forward to reporting further on our pre-development activities as they progress.”