Sabina Gold & Silver Reports Q2 2014 Financial Results

Sabina Gold & Silver Corp. (TSX:SBB) announced its financial results for the second quarter of 2014, commenting that as of June 30, 2014 it held cash and short-term investments of $45.6 million.

The company also said that prior to the end of the quarter it “formally launched” its feasibility study. It should be completed during the first half of next year.

Other highlights include:

• On April 22, 2014, the Company reported the results of ongoing metallurgical testing at Back River. The improved recoveries (88% in the pre-feasibility study to an indicated 94%) in combination with the increased mineral resource estimate announced earlier this year will be incorporated into the Feasibility Study (‘FS’).
• On April 28, 2014, the Company and the Kitikmeot Inuit Association jointly announced that they have finalized the agreements for the Development Trust and Capacity Funding. These two important agreements will continue to foster and build a relationship of cooperation between the two organizations as we work together towards the responsible development of the Back River Gold Project.
• On June 12, 2014, the Company held its annual general meeting of shareholders; all nominated directors to the board were re-elected.
• During the quarter, the Company completed 11,392 meters of drilling, including 7,523 meters of exploration drilling focused on near deposit and extension to existing resources and 3,869 meters of geo-mechanical drilling targeting additional data for the FS.
• On June 25, 2014, the Company completed the sale of the Company’s 100% owned Newman-Madsen property to Pure Gold Mining Inc. (‘Pure Gold’, formerly Laurentian Goldfields Ltd.). As consideration, Sabina received 6.5 million shares of Pure Gold; the shares received had a fair value of $0.42 per share or $2.73 million on the closing date.

Rob Pease, president and CEO of Sabina, commented:

Q2 has been a productive quarter for the Company. We were successful on a number of fronts, demonstrating the continuity and expansion potential at Echo, finalizing some very important agreements with the KIA and completing metallurgical testing that has the opportunity to enhance project economics. We look forward to a busy Q3 as we launch into our FS. We are very pleased with our team of consultants, all of which have substantial Arctic experience. Work completed to-date continues to demonstrate the potential for Back River to become a meaningful gold producer.

Click here to read the full Sabina Gold & Silver Corp. (TSX:SBB) press release.