The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
SBB: TSX
President and CEO: Robert Pease
Vice President, Project Development: Wes Carson
Vice-President, Exploration: Angus Campbell
With the goal of evolving from an exploration company to mid-tier gold producer, Sabina Gold & Silver Corp. budgeted C$23 million for the 2014 field program at its Back River gold project in western Nunavut.
The primary objective of the 2014 work program was to complete definition and expansion drilling at Echo, one of four deposits that comprise mineral resources at the Goose Property and is centrally located in the area of planned mine infrastructure for the project.
The Back River project is currently in feasibility stage with a published measured mineral resource of 10.4 million metric tons grading 5.2 grams per metric ton (1.76 million ounces) gold; an indicated mineral resource of 17.9 million metric tons grading 6.1 g/t (3.54 million ounces) gold; and an inferred mineral resource of 8.2 million metric tons grading 7.3 g/t (1.93 million ounces) gold for eight deposits at Goose and George, two property areas that make up the larger Back River project.
The Echo deposit has indicated resources of 607,053 metric tons grading 6.8 g/t (132,690 ounces) gold; and inferred resources of 550,907 metric tons grading 7.2 g/t (127,545 ounces) gold.
Twenty-five holes for a total of 8,832 meters of drilling were completed at Echo in 2014 to test the feasibility of including an open pit/underground operation in the early mine plan.
The 2014 Echo drilling increased the drill-hole density of the main deposit to about 50-meter centers to enable conversion of resources; drill tested for extensions to mineralization at depths of up to 350-meter vertical; tested for significant lateral extensions of the known mineral horizon; and collected data for metallurgical and geotechnical studies that will aid in the assessment of development potential.
The results of the drilling indicate that the deposit is open at depth, below current drilling and also along strike to the northeast and west.
At depth and extensional to the main mineral zone, higher grade potential is demonstrated by holes 14GSE474B, which returned four meters of 5.22 g/t gold from a depth of 334 meters, and 14GSE475 which returned five meters of 12.02 g/t gold from a depth of 331.4 meters.
Sabina said the infill drilling will support an updated resource to be estimated for Echo later this year.
It is expected to be included in a feasibility study due to be completed in the first half of 2015.
Sabina said the new resource estimate will enable it to determine opportunities that the Echo zone could provide to early mine life.
The 2014 program also saw roughly 2,500 meters of drilling at three other exploration targets near existing deposits on the Goose property, along with geotechnical drilling to support the feasibility study; ongoing optimization studies to be included in the feasibility study; ongoing baseline studies; and continued community engagement.
Cash and short-term deposits: C$45.6 million (June 30, 2014)
Working capital: C$44.2 million (June 30, 2014)
Market capitalization: C$102.8 million (Sept. 30, 2014)
930 West 1st St.
Suite 202, North
Vancouver, BC
Canada V7P 3N4
Tel: 604-998-4175
Fax: 604-998-1051
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