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Sabina finds more gold at Back River

A summer exploration drill programme at Sabina Gold & Silver’s (CN:SBB) Back River gold project has brought with it fresh hope of expanding the mine life of the Nunavut development.
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Back River is located some 520km northeast of Yellowknife in Canada

Staff reporter

The company drilled 9,868m in 17 holes over the summer months at Back River and came back with notable hits such as 31.9m grading 8.65g/t from 795.10m depth and 33.25m averaging 5.99g/t from 731.65m depth.

The former expanded the down-plunge length of Sabina's high-grade targeted zone to greater than 45m south of a previous hole drilled in 2012. The latter confirmed mineralisation central to the Vault Zone, and was positioned some 75m up plunge of another previously-drilled hole.

CEO Bruce McLeod heralded the results saying the company's core strategy of targeting high-impact exploration targets to "potentially optimise mine life and economics continues to yield success".

McLeod told Mining Journal recently that his plan was to start construction at the 200,000 ounce per annum project in the second half of 2018.

Using a US$1,150 gold price and a 0.80 (US$:C$) exchange rate, Back River's 2015 feasibility study estimated an initial capex of C$415 million (US$333 million) and an after-tax IRR of 24.2%.

The planned 11-year project lies about 520km northeast of Yellowknife.

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