Sabina Starts Feasibility Study on Lower-capex Option for Back River

Sabina Gold & Silver Corp. (TSX:SBB) announced that it’s started work on a feasibility for the initial project at its Nunavut-based Back River project. The initial project was originally referred to as the “low-capex case.”
As quoted in the press release:

Earlier this year, the Company released a feasibility study on Back River that contemplated a 6,000 tonne per day (“tpd”) operation, producing approximately 350,000 ounces of gold for ~10 years (“Large Project” see news release dated May 20, 2015). The Large Project Feasibility Study indicated a very positive project generating an after tax internal rate of return of 21.7% and NPV of C$540 million. The study was completed using US$1,200 / oz gold and C$0.87.

Bruce McLeod, president and CEO of Sabina, commented:

We are very pleased with the results of the recent feasibility study, and believe it indicates the potential for Back River to become a significant gold producer. However, raising the initial C$695 million to build the Large Project would be challenging for a company the size of Sabina in the current market environment. Recognizing this, as part of the work completed for the Large Project Feasibility Study, a scenario that starts smaller targeting a lower initial capex at Back River was explored. We are happy to commence a full feasibility study on this Initial Project scenario which we anticipate will be completed early this fall.

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