A positive PEA for it Black River gold project in Nunavut, Canada gave Sabina Gold & Silver (TSX:SBB) a 5.6% bump in its stock price Tuesday.
The project is one of two Sabina properties in the West Kitikmeot Region of Nunavut and is about 75 km from tide water at Bathurst Inlet. The property is made up of a series of seven claim blocks of which only two have been the focus of exploration and resource development to date: Goose and George.
The PEA contemplates a scenario with concurrent open-pit and underground mining operations delivering mineralized material from the Llama, Umwelt, Goose and George deposits to a centralized 5,000 tonne per day (“tpd”) processing facility located near the Umwelt deposit. Gold production is projected to average approx. 300,000 oz/year over 12.3 years for total production of 3,677,000 oz Au, beginning in late 2016 or early 2017. Sabina is currently funded to advance the project through feasibility and permitting. The conclusions and recommendations of the PEA are that the project may be economically viable and the company should proceed to a pre-feasibility study (“PFS”).
Project Highlights (at Base Case $1,250/oz Au):
All dollar figures are in C$ and the study assumes a 1:1 US$:C$ exchange rate.