Sabina Gold & Silver Announces 2013 Year End Financial Results
$58.3 million at December 31, 2013 in cash and equivalents
NI 43-101 Technical Report filed on updated Back River
Resource
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Mar 26, 2014) -
Sabina Gold & Silver Corp. (the "Company") (TSX:SBB) reported
today the financial results for the year ended December 31,
2013.
2013 was a year of
continued growth and change for Sabina. Highlights of the year
include:
- The Company had cash and cash equivalents and short-term
investments of $58.3 million at December 31, 2013.
- During the year, the Company had a total of up to eight drill
rigs operating on its Back River project and completed over 82,000
metres of drilling. The program was focused on a combination of
infill, extension, geo-technical and geo-mechanical drilling and
investigation of highly prospective greenfield targets.
- At the same time, the Company expanded its camp infrastructure
at Back River by installing additional bulk fuel storage and
constructing an all-weather airstrip. The field program in 2013 was
one of the largest and most productive completed to-date and was
successfully completed with a high standard of safety and
environmental compliance. There was more than 350,000 manhours
deployed at site with no lost-time or significant environmental
incidents.
- In June, 2013, the Company further added to its treasury by
completing flow-through equity financing to raise gross proceeds of
approximately $20 million.
- In October, 2013 the Company announced the results of the
Preliminary Feasibility Study ("PFS") on the Back River Project
which contemplated a project with average annual production of
~300,000 ounces of gold over a 8+ year mine life; initial capital
of $605 million and total LOM cash costs of $685/oz including
royalties, shipping and refining. Based on the results of the PFS,
the Company determined to move the project forward to a Feasibility
Study.
- Subsequent to the year end, early in 2014 the Company filed its
Draft Environmental Impact Statement ("DEIS") with the Nunavut
Impact Review Board ("NIRB") and was advised that the Back River
DEIS conforms to the environmental assessment guideline
requirements and that the technical review process has begun.
- Also subsequent to year-end, the Company announced an updated
mineral resource estimate on the Back River project, incorporating
the results of the significant 2013 drill program. This new
estimate consists of a Measured Mineral Resource of 10.4 million
tonnes grading 5.2 g/t for a contained 1,761,000 ounces Au, an
Indicated Mineral Resource of 17.9 million tonnes grading 6.1 g/t
for a contained 3,536,000 ounces Au and an Inferred Mineral
Resource of 8.2 million tonnes grading 7.3 g/t for a contained
1,927,000 ounces Au.
"The exploration
program in 2013 was the largest and most complex we have ever
executed at Back River with results falling very much in line with
our objectives," said Rob Pease, President & CEO, "A major
focus was to upgrade confidence in our resources with the objective
of ultimately increasing reserves and results have delivered a
significant increase in measured resources, with a large component
coming from our open pit resources at Umwelt and Llama.
Additionally, since completion of the PFS in October 2013, we have
also been working on optimization studies for the project,
including metallurgical testing, mining methods and scheduling
among others. These studies are progressing well and we look
forward to announcing their results in the coming months."
Financial Results
For the year ended
December 31, 2013, the Company reported a net loss of $9.5 million
compared to a net loss of $14.1 million in 2012. The decrease of
$4.6 million was primarily due to a reduction recorded in 2012 in
carrying value for the Cook Lake mineral property of $3.8
million.
Operating expenses
in 2013 were $7.7 million compared to $11.9 million in 2012. As
noted above, in Q4 2012, following a review of exploration results
at Cook Lake, the Company determined that it would not continue
with its option on the property and, consequently, all deferred
exploration costs were written-off. Share based compensation
payments decreased in 2013 by $0.6 million due to primarily to a
decrease in the option value. For the year ended December 31, 2013,
the Company had granted 3.7 million options compared with 3.1
million options granted in 2012.
Interest income in
2013 was $1.5 million compared to $2.4 million in 2012; the
decrease was due to the reduced average cash and short term
investment balances in 2013 compared to 2012.
The total
flow-through premium income recognized in 2013 was $1.5 million
compared to $4.1 million in 2012. In addition to timing differences
related to amortization of the flow-through premium, the Company
had a lower premium in 2013, both in terms of gross premium amount
and percentage of share price. Deferred income tax expense was $4.8
million in 2013 compared to $8.7 million in 2012; the difference
was primarily the result of less flow-through financing completed
in the period.
The primary costs
incurred by the Company are associated with exploration and
evaluation of its mineral properties and are deferred until the
properties are placed into production, sold or abandoned. In 2013,
total deferred expenditures were $73.4 million compared to $66.8
million in 2012. The increase of $6.6 million resulted from
increased drilling as well as environmental and economic assessment
activities on the Back River Project in 2013 compared to 2012.
For the full
December 31, 2013 financial statements and Management's Discussion
and Analysis, please see the Company website at
www.sabinagoldsilver.com.
SABINA GOLD &
SILVER CORP
Sabina Gold &
Silver Corp. is an emerging gold developer with district scale,
world class assets in one of the world's newest, most politically
stable mining jurisdictions: Nunavut, Canada. Sabina's primary
assets, all located in Nunavut, consist of: the Back River Gold
Project, currently in the pre-feasibility and permitting phase; the
Wishbone Claims, a vastly prospective grass roots project; and the
Hackett River Silver Royalty, a silver production royalty on
Glencore's Zinc's Hackett River project comprising 22.5% of the
first 190 million ounces produced and 12.5% of all the silver
produced thereafter. The Company ended 2013 with approximately $58
million in cash.
All news releases
and further information can be found on the Company's website at
www.sabinagoldsilver.com or on SEDAR at www.sedar.com.
Quality
Assurance
Mr. Angus Campbell,
P.Geo, and Vice President Exploration of Sabina Gold & Silver
Corp is a Qualified Person under the terms of NI 43-101 and has
reviewed the technical content of this press release and approved
its dissemination.
The Mineral Resource
estimates for the Back River deposits were estimated by AMC Mining
Consultants (Canada) Ltd. The Qualified Persons are Dinara
Nussipakynova, P Geo. and Andrew Fowler MAusIMM CP (Geo) both of
AMC Mining Consultants (Canada) Ltd.
Mineral
resources that are not mineral reserves do not have demonstrated
economic viability. Mineral resource estimates do not account for
mineability, selectivity, mining loss and dilution. These mineral
resource estimates include inferred mineral resources that are
normally considered too speculative geologically to have economic
considerations applied to them that would enable them to be
categorized as mineral reserves. There is also no certainty that
these inferred mineral resources will be converted to measured and
indicated categories through further drilling, or into mineral
reserves, once economic considerations are applied.
All technical
reports have been filed on www.sedar.com.
Forward Looking
Statements
This news release
contains "forward-looking information" within the meaning of
applicable securities laws (the "forward-looking statements"),
including our belief as to the extent, results and timing of
exploration programs and various studies including the FS, and
exploration results, the results of the PFS, the potential tonnage,
grades and content of deposits, timing, establishment and extent of
resources and reserves estimates, potential production from and
viability of the Company's properties, production and operating
costs and permitting submission, timing and receipt of necessary
permits and project approvals for future operations and access to
project funding. These forward-looking statements are made as of
the date of this news release. Readers are cautioned not to place
undue reliance on forward-looking statements, as there can be no
assurance that the future circumstances, outcomes or results
anticipated in or implied by such forward-looking statements will
occur or that plans, intentions or expectations upon which the
forward-looking statements are based will occur. While we have
based these forward-looking statements on our expectations about
future events as at the date that such statements were prepared,
the statements are not a guarantee that such future events will
occur and are subject to risks, uncertainties, assumptions and
other factors which could cause events or outcomes to differ
materially from those expressed or implied by such forward-looking
statements. Such factors and assumptions include, among others, the
effects of general economic conditions, commodity prices, changing
foreign exchange rates and actions by government and regulatory
authorities and misjudgments in the course of preparing
forward-looking statements.
In addition, there
are known and unknown risk factors which could cause our actual
results, performance or achievements to differ materially from any
future results, performance or achievements expressed or implied by
the forward-looking statements. Known risk factors include risks
associated with exploration and project development; the need for
additional financing; the calculation of mineral resources and
reserves; operational risks associated with mining and mineral
processing; fluctuations in metal prices; title matters; government
regulation; obtaining and renewing necessary licences and permits;
environmental liability and insurance; reliance on key personnel;
the potential for conflicts of interest among certain of our
officers or directors; the absence of dividends; currency
fluctuations; labour disputes; competition; dilution; the
volatility of the our common share price and volume; future sales
of shares by existing shareholders; and other risks and
uncertainties, including those relating to the Back River Project
and general risks associated with the mineral exploration and
development industry described in our Annual Information Form,
financial statements and MD&A for the fiscal period ended
December 31, 2012 filed with the Canadian Securities Administrators
and available at www.sedar.com. Although we have attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements. We are under no obligation to update or
alter any forward-looking statements except as required under
applicable securities laws. This news release has been authorized
by the undersigned on behalf of Sabina Gold & Silver Corp.
Sabina Gold & Silver Corp.Nicole HoellerVice-President,
Communications1 888 648-4218nhoeller@sabinagoldsilver.comSabina
Gold & Silver Corp.Rob PeasePresident & CEO604 998-4175604
998-1051www.sabinagoldsilver.com
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