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| April 03, 2014 --- Vol. 08, No. 14 | April 2014
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Nunavut
FINANCIAL RESULTS Sabina Gold & Silver Corp. Mar. 26 announced the financial results for the year ended Dec. 31, 2013. At the end of the year the company had C$58.3 million in cash, cash equivalents and short-term investments. For the year, Sabina reported a loss of C$9.5 million compared with a loss of C$14.1 million in 2012. The decrease is primarily due to a reduction recorded in 2012 in carrying value for the Cook Lake mineral property of C$3.8 million. Following a review of exploration results at Cook Lake, Sabina determined that it would not continue with its option on the property and all deferred exploration costs were written-off. Operating expenses in 2013 totaled C$7.7 million compared with C$11.9 million in 2012. Share based compensation payments decreased in 2013 by C$600,000 due primarily to a decrease in the option value. For the year ended Dec. 31, 2013, Sabina had granted 3.7 million options compared with 3.1 million options granted in 2012. Interest income in 2013 was C$1.5 million compared to C$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 C$1.5 million compared to C$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 C$4.8 million in 2013 compared to C$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 Sabina 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 C$73.4 million compared to C$66.8 million in 2012. The increase of C$6.6 million resulted from increased drilling as well as environmental and economic assessment activities on the Back River gold project in 2013 compared to 2012. Incorporating the results from the 2013 drilling, Sabina had an updated mineral resource estimate calculated for the Back River project. This new estimate, released by the company in March, consists of a measured mineral resource of 10.4 million metric tons grading 5.2 grams per metric ton (1.76 million ounces) gold; an indicated mineral resource of 17.9 million metric tons grading 6.1 g/t (3.54 million ounces) gold; and an inferred mineral resource of 8.2 million metric tons grading 7.3 g/t (1.03 million ounces gold. 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 Sabina President and CEO Rob Pease. 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. In October, Sabina reported the results of a preliminary feasibility study on Back River which contemplates a mine with average annual production of 300,000 ounces of gold over an eight-plus-year year mine life; initial capital of C$605 million and total life-of-mine cash costs of US$685 per ounce of gold, including royalties, shipping and refining. Sabina has decided to move the project forward to a feasibility study. Early in 2014, the company filed its draft environmental impact statement with the Nunavut Impact Review Board and was advised that the impact statement conforms to the environmental assessment guideline requirements and that the technical review process has begun.
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