Sabina sees 300 000 oz/y low-cost mine at Nunavut project

30th May 2012 By: Matthew Hill

JOHANNESBURG (miningweekly.com) – Sabina Gold & Silver, hoping to build the Back River gold project in Nunavut’s West Kitikmeot region, on Tuesday said the asset came out of a preliminary economic assessment with a pre-tax $1.1-billion net present value.

The study outlined a potential 300 000 oz/y gold mine, costing $450-million to build and which would produce at total cash costs of $542/oz, the Vancouver-based junior said.

“The high grade and continuity of the deposits provide us with the flexibility to design and build a midtier gold mine with attractive operating costs for a modest up-front capital commitment,” Sabina CEO Rob Pease said in a statement.

The company had several financing options it was considering, including selling some or all of the silver royalty it owns at Xstrata’s Hackett River zinc project, also in Nunavut, Pease added.