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| October 09, 2014 --- Vol. 08, No. 41 | October 2014
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Nunavut
GOLD – Sabina Gold & Silver Corp. Oct. 7 provided a progress report on optimization work underway as part of a feasibility study being prepared for its Back River gold project in Nunavut. The company said a team of engineering and environmental firms working on the study – JDS Energy and Mining Inc. (lead), Hatch, SRK Consulting, Knight Piesold Ltd., and AMC Consultants Pty Ltd. – have extensive recent Arctic experience. “Our studies for the Back River FS are very much on track,” said Sabina President and CEO Rob Pease. “While final results and economics for the FS are not expected to be completed until the first half of next year, we are very encouraged by our progress so far and believe with the volume of additional information we now have, that Back River is going to be a compelling project. We are also very fortunate to have what we believe is the best Arctic team in Canada working on the project. Our consultants all have significant Northern experience in design, construction, operations and permitting, which will bring relevant hands-on credibility to the FS.” Since the completion of a pre-feasibility study in October 2013, a number of opportunities to enhance project economics have been identified. This includes a new mineral resource estimate that incorporates 82,000 meters drilled in 2013. The current estimate includes a measured resource of 10.4 million metric tons grading 5.2 grams per metric ton (1.76 million ounces) gold; an indicated resource of 17.9 million metric tons grading 6.1 g/t (3.54 million ounces) gold; and an inferred resource of 8.2 million metric tons grading 7.3 g/t (1.93 million ounces) gold. Sabina believes the increase in measured and indicated mineral resources and increase in confidence in the continuity and grade of the deposits offers the potential for a larger mineral reserve on the project and a potentially longer mine life than was anticipated in the pre-feasibility study. Sabina said a review of mining areas is demonstrating areas that could lead to more efficient underground mining. Improved metallurgy and increased mill throughput are other areas being considered to further enhance the economics of a mine at Back River. Detailed engineering on these concepts is ongoing and results will be included in the feasibility study, which is expected to be completed in the first half of 2015. The feasibility study will inform a final environmental impact statement for Back River, which is expected to be submitted to Nunavut Impact Review Board during the third quarter of 2015. Sabina anticipates having roughly C$30 million in cash at the end of 2014. The company forecasts that its cash balance after completion of the feasibility study and final environmental impact statement will total about C$23 million at the end of 2015. This estimated balance does not include any field work that may be required to complete the FEIS. Management is currently informally exploring project financing alternatives and opportunities. While Back River is expected to be substantively de-risked by the end of 2015, subject to the results of the FS and FEIS, Sabina says it would start construction of the project once financing is secured on satisfactory terms in a manner which is in the best interests of all shareholders.
URANIUM – AREVA Resources Canada Oct. 2 said has submitted the final environmental impact statement for its Kiggavik Project to the Nunavut Impact Review Board. Located 80 kilometers (50 miles) west of Baker Lake, Nunavut, the Kiggavik Project is a proposed uranium mining and milling operation owned by AREVA (64.8 percent), JCU (Canada) Exploration Co. Ltd. (33.5 percent) and DAEWOO Corp. (1.7 percent) and is operated by AREVA. The work presented to NIRB reflects more than six years of engineering, environmental and public engagement studies. AREVA has sought community input and Inuit Qaujimajatuqangit to refine the project design and environmental assessment. The submission includes detailed studies demonstrating that modern uranium development is safe for workers, the public and the environment. AREVA’s proposed Kiggavik project would require three to four years of construction, followed by about 14 years of operation based on estimated resources of 130 million pounds of uranium. “We thank the people of Baker Lake and the Kivalliq Region for openly sharing their concerns and aspirations related to the potential development of the Kiggavik Project, in addition to the local knowledge they provided our team in the course of the studies performed for the final environmental impact statement,” said Vincent Martin, president and CEO of AREVA Resources Canada. AREVA has a positive track record in Canada spanning more than 50 years ensuring the safety of employees, the public and the environment. The next steps in the Kiggavik environmental assessment include a technical review of the FEIS and public hearings to be held in Baker Lake. While uranium market conditions do not currently favor a construction decision, completing the environmental assessment would allow the project to move forward with the next steps when the market improves as expected.
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