“Summer saw another successful quarter for the Company,” said Bruce McLeod, the Company’s President & CEO. “Underground development continues to advance with approximately 1,200 meters complete with the first lateral access to the Umwelt zone and preparations for the first ventilation raise commencing. Plant, camp and laydown civil works are complete with pre-stripping at the Echo pit well underway with the first ore now encountered. Additionally, civil works continued at the Port Facility which enabled the delivery of materials and fuel for our 2022 sealift. Our human resources team continued its major recruiting and hiring campaign with many key positions filled in Q3. Additionally, we opened the George camp for the first time in a decade and completed a field program in preparation for exploration drilling in spring of 2023. Preparations are now underway for construction of the
Q3 2022 Highlights:
- The Company ended the quarter with cash and cash equivalents and short-term investments of
$80.6 million .
- After a formal construction decision in early September, on
September 28, 2022 , the Company received the first of four payments ofUS$31.25 million of theUS$125 million gold stream arrangement with Wheaton Precious Metals Corp.
- During the quarter, the Company advanced various initiatives for construction of the
Goose Mine , including the 2022 sealift of critical supplies and equipment to the Port Facility and a bulk fuel delivery of 9.2 million litres of diesel, internal quality checks related to the various engineering design packages, and activities related to the finalization of performance guarantees with FLSmidth on key equipment for theGoose Mine processing flowsheet.
- The Company completed a summer exploration field program at
George , which involved the re-logging of select historic drill core sections and targeted field evaluations to build a revised structural map that will provide critical controls on gold mineralization. A drill program is being planned for the Spring of 2023.
- For the three and nine months ended
September 30, 2022 , the Company reported net income of$19.0 million or$0.03 per share and net income of$27.4 million or$0.06 per share, respectively. The reported net income is driven primarily by the unrealized gains on the change in fair value of the construction financing obligations, with after-tax amounts of$21.5 million and$37.1 million for the three and nine months endedSeptember 30, 2022 , respectively.
For the full
Sabina filed an Updated Feasibility Study (the “UFS”) on its first mine on the district, the
The Project has received all major permits and authorizations for construction and operations.
The Company has arranged a comprehensive project financing package comprised of:
- A
US$425 million senior secured debt facility, gold prepay and stream package withOrion Mine Finance and Wheaton Precious Metals Corp.; and US$221 million in equity including Zhaojin’s participation.
The Company is also very committed to its Inuit stakeholders, with Inuit employment and opportunities a focus. The Company has signed a 20-year renewable land use agreement with the
The Company continues to advance exploration and project optimization, including advancing the planned plant expansion to 4,000 tonnes per day from year two to initial startup.
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. All technical reports have been filed on www.sedar.com
For further information please contact:
nhoeller@sabinagoldsilver.com |
Forward Looking Information
This news release contains “forward-looking information” within the meaning of applicable securities laws (the “forward-looking statements”), including, but not limited to, statements related to the expected use of proceeds of the construction financing package and the projections and assumptions of the results of the UFS. 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 uncertainty of production, development plans and costs estimates for the
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http://www.sabinagoldsilver.com
Source:
2022 GlobeNewswire, Inc., source