Developing the Goose Gold Mine at the 100% owned Back River Gold District in Nunavut, Canada - Corporate Presentation - January 2021
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Goose Gold Project, Back River, Nunavut, Canada
Developing the Goose Gold Mine at the 100% owned
Back River Gold District in Nunavut, Canada
Corporate Presentation – January 2021
2 Forward Looking Information Statements relating to our belief as to the results of exploration activities, timing of receipt of necessary authorizations and licenses, the availability of project financing, the timing of the start of construction and the first gold pour, and the results of further optimization studies to the feasibility study, the potential tonnage and grades and contents of deposits and the potential production from and viability of Sabina’s properties are forward looking information within the meaning of securities legislation of certain Provinces in Canada. Forward looking information are statements that are not historical facts and are generally, but not always identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential,” “opportunities,” and similar expressions, or that events or conditions “will,” “would.” “may,” “could,” or should occur. The forward looking information is made of the date of this video. This forward looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward looking information, including, without limitation: the effects of general economic conditions; changing foreign exchange rates; risks associated with exploration and project development; the calculation of mineral resources and reserves; risks related to fluctuations in metal prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work arising from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company’s properties; risk of accidents, equipment breakdowns and labour disputes; access to project funding or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; title matters; government regulation; obtaining and receiving necessary licenses and permits; the risk of environmental contamination or damage resulting from Sabina’s operations and other risks and uncertainties including those described in Sabina’s annual information form for the year ended December 31, 2019 available at www.sedar.com Forward looking information is based on the beliefs, estimates and opinions of Sabina’s management on the date the statements are made. Sabina undertakes no obligation to update the forward-looking information should management’s beliefs, estimates or opinions, or other factors, change, except as required by applicable law
3
Creating value from the 80km Back River Gold District in Northern Canada
Goose Mine – one of seven prospective properties of gold bearing iron formation in the belt – 100% owned by Sabina
Assets Partners Catalysts
• Large gold resources/reserves • Experienced management • Updated Resource Estimate and
• High grade (6g/t au open pits) and Board Feasibility Study due Q1, 2021
• District scale • Successful track record • Detail Engineering due H1, 2021
• Offers development flexibility • Supportive strategic and • Production Decision subject to
• Mining friendly jurisdiction institutional shareholders project financing due H1, 2021
• Robust economics at US$1150 • Strong community support • Camp opening and collaring of
gold price (being updated at • Landowners aligned Under ground exploration ramp,
US$1600) shareholders 2021
• Hackett River Silver royalty • Well funded ($65m Q3, • Exploration to begin at George
2020) Camp in 2021
New Resource Estimate and Updated Feasibility Study Imminent
Added to GDXJ December 2020
4
Development Companies by size and grade
SBB
RBC Capital Markets 12/20/21
5 Nunavut Canada – Over four decades of prosperity in mining • Nunavut is well endowed with sizeable gold deposits • Many historic and operating mines in the region • Agnico Eagle – Meadowbank Mine, a good performing mine at ½ grade of Back River • Agnico has two new mines in Nunavut and has just acquired TMAC/Hope Bay • A safe jurisdiction with certainty of tenure and district scale opportunities
6
Over 575,000 meters of drilling completed at Back River
• Back River – Deposits are
well drilled, well
understood and ALL OPEN
• UPDATED RESOURCE: 6.32M
ounces at 5.88 g/t Au in
M&I and 2.86M ounces
6.44 g/t Au in the Inferred
category.
• All in finding costs of
C$24.95 per ounce (since
2021
2014)
• Foundation for Reserve
estimate in UFS later in Q1, Mineral Resources are not Mineral Reserves and as such do not have demonstrated economic viability.
2021
See slides #27 & 28 for resource/reserve estimate QA/QP
7
Back River Property
Back River: A District Scale Gold Opportunity Port
100% OWNED BY SABINA
Bath LEGEND
Multigenerational Mining opportunities: Camp
• 7 claim blocks on the 80km belt Area of Interest
Claim
• Most advanced is Goose – initial mine – 8km of Lease
iron formation
Inuit Owned Land
• Second most advanced is George – 50 km from Surface
Goose Mine Subsurface and Surface
Indicated: 1.1 m oz @ 5.6g/t Au
• Continue to generate brownfield & greenfield Inferred: 980k oz @ 6.32g/t Au
targets. George Project
80 Km
• Growth to be generated internally
Boulder
Boot
Significant existing resources at George on 20km of M&I: 5.3m oz @ 5.87g/t Au
Inferred: 1.8m oz@ 7.43g/t Au
largely unexplored iron formation offering Goose Project
opportunity for another mining complex on the Del
Back River district. As development continues at
Goose, exploration will turn to George.
0 12.5 25
See slides #27 & 28 for resource/reserve estimate QA/QP Kilometres
8
There are few permitted advanced exploration Stories in the Canadian North that Compare
George Property 50km from first mine at Goose.
Next area of development?
Company Market
Northern Exploration Projects
Capitalization
Atac Minerals - Orsis and Tiger
Rockhaven Resources - Kaza Gold Mining Inc $440m
Gold Terra Resource - Yellowknife City… 2 White Gold Corp $104m
White Gold - Golden Saddle/Arc
7
Gold Mining Inc - Yellowknife Gold… Nighthawk Gold $75m
Nighthawk Gold - Colomac
Gold Terra Resource $60m
Sabina - George Project 6 Corp.
Rockhaven $40m
0 1 2 3 4 5 6 7 Resources
Atac Resources $32m
Grade (g/t Au) Resource Ounces Gold (MOz)
5
4
Sabina’s George Project is more advanced, higher grade and
permitted for exploration. Minimal value being realized
9
Back River is Permitted, Shovel Ready and Offers Robust Economics
• At US$1150 gold price and Updated Feasibility Study underway
$.80 FX generates 24.2% after
incorporating higher-grade underground
tax IRR with cash costs of
US$534 and all in LOM costs material. This will increase the production
of US$763 (9/15 Feasibility Study) profile and with a current gold price, will
positively impact the already robust project
• Simple executable first mine economics.
produces ~200,000 Oz per
year for ~12 years. Expanded CAD millions After Tax 5% discount
mine life demonstrated. FS gold price sensitivity NPV IRR Payback
USD 2,100, forex 0.758 $ 1,817 58.3% 1.0
• Fully permitted and shovel USD 2,000, forex 0.758 $ 1,686 55.6% 1.1
USD 1,900, forex 0.758 $ 1,555 52.8% 1.2
ready. Strong government USD 1,800, forex 0.758 $ 1,423 49.9% 1.3
and community support; USD 1,700, forex 0.758 $ 1,290 46.9% 1.4
USD 1,600, forex 0.758 $ 1,159 43.7% 1.5
USD 1,500, forex 0.758 $ 1,027 40.4% 1.6
• Social license in hand
See slides #29 for Feasibility Study QA/QP
10
Key Milestones in the Project since the Feasibility Study
Oct 2020 - Updated
Sep 2015- resource estimate and Dec 2020 – significant civil
Goose feasibility study started
May 2019 – Winter Ice works completed and
Feasibility Sep 2018 – Port Sabina
along with detail equipment procured at
Study constructed three sealifts Road and haulage of
equipment to site engineering Goose with no COVID
Announced received
completed cases
Nov 2017 – Vault Aug 2018 – Nuvuyak Aug 2020 – high grade V2
& Llama extension Zone discovered Zone at Umwelt Dec 2020 –
delineated delineated demonstrating Addition to GDXJ
Apr 2018 – IIBA Signed, June 2020 – all major permits high grade underground
social license received and licenses in hand Jan 2021
corridor
New Resource Announced
9 million ounces in all
categories
Raised approximately $225m in equity financings through markets and
strategic shareholders during opportunistic financing windows. Project Debt
process being updated.11
Environment, Permitting and Social License Achieved
• Completed Environmental Assessment
Process – Project certificate received
• All Major authorizations for construction
and operations received including
authorizations for recent changes in
Project scope.
• Finalized Agreements with landowner
Kitikmeot Inuit Association (KIA)
• Will provide training, jobs,
contracting opportunities and royalty
payments to Kitikmeot Region
• Renewable 20- year land use lease
• KIA an aligned shareholder
• Regional wealth creation initiative
payments – creating jobs outside of
the mining industry – new precedent Unprecedented support from communities
in Nunavut12
EVOLVING THE GOOSE PROJECT GOLD SYSTEM – THE FIRST MINE
Targeting 10 million ounces13
Umwelt High Grade Corridor – 2020 drilling
• High-grade corridor within
current under ground resource
extending up and down plunge
from the Vault zone
• Average 2020 grades
encountered are 2x to 3x the
Umwelt resource of 7g/t with
greater than average mining
widths
• V2 zone identified below the
bottom of the open pit
providing opportunity for
additional higher-grade ounces
to come in earlier in the mine
Update for all 2020 holes life14
Exploration Decline Ramp at Umwelt to further explore high
grade corridor
• Since the Feasibility Study, exploration
at Umwelt has demonstrated higher
grades underground (Vault & V2 Zones)
to drive increased production perhaps
earlier in the mine life
• To facilitate more efficient drilling of
these areas an underground exploration
ramp will be collared in early 2021 to
begin initial underground drilling at V2
Zone in 2022
• Preparations completed in 2020 include
box cut and shop pads with 2km of
connecting roads
Box Cut development for underground ramp completed in 202015
Significant Site Progress
2020 Work
• Extension of all-weather airstrip from 3,000 to 4,500 feet • Completion of the underground equipment workshop pad
• Completion of 220 flights hauling fuel, equipment, supplies and major earthworks for the underground water settling
and personnel completed safely during the year; pond;
• The procurement and transport of underground equipment • Construction of approximately 4 km of all-weather roads
required for 2021 to collar and advance the exploration connecting the exploration camp, the underground portal
ramp; workshop/collar area, the underground water settling
• Completion of the box cut excavation for the future pond, the fuel tank pads and the permanent
underground exploration ramp, in preparation for collaring accommodation camp complex area.
of the decline in spring 2021;16
16
Port Sabina – Completed 201817 Winter Ice Road – “The Connector” Completed 2019
18
18
All weather Air Strip Expansion to accommodate large aircraft - 2020
First Hercules aircraft lands on all weather strip at Goose19 Underground equipment procured, hauled and assembled - 2020
20
20
4km of roads built in 202021
Hackett Silver Royalty 60km west of Back River, one of
• Significant potential cash flow at no cost world’s largest undeveloped
from silver royalty.
silver rich VMS deposits
• 22.5% x 190 million ounces of silver = cash
equivalent of ~3 million ounces of silver 160
per year; and 140
Tonnes ( millions)
120 PRECIOUS METALS
BASE METALS
• 12.5% x of silver production after 190 100
80
million ounces
60
40
Sabina mineral resource estimate: 20
0
Indicated resources of 25 million tonnes at 4.2% Zn
and 130 g/t Ag
Inferred resources of 57 million tonnes at 3% Zn and
100 g/t Ag
Data source: alley et al. , Mineral deposits of Canada, 2007 and selected company websites. Metal distribution using
Wardrop PEA metal prices, 2.00 Cu, 0.80 Zn, 0.50 Pb, 14.00 Ag, 600 Au
QA/QC – slide 3022 A re-rating to come with financing and a production decision
23
Back River is a Company Maker
Upcoming Catalysts
Last Bull Gold Market – 1800%
• Updated feasibility and
resource estimate due Q1, Next Bull Gold Market?
2021
• Completion of detailed
engineering 1H, 2021
• Debt Process being
refreshed with new
project parameters
concurrently with updated
feasibility
• Preparing for financing
window to make a
production decision
Sabina is fortunate to own one of the best development projects in the sector. Shovel
ready, district scale, large, high grade and in Canada: positioned for a re-rating once a
production decision is made24
Sabina is Poised for a re-rating once a production decision is made
No Value ascribed for:
• Multi-generational district owned
100% by Sabina – imbedded growth
• Premier jurisdiction
• Remaining ounces in mineral
Sabina is here resource estimate & exploration
upside
• Revised mine plan to release high-
grade ore earlier in mine life
enhancing economics and production
profile and reducing payback period
• Hackett River Royalty – option on
silver for the future
• Environmental and Social Licenses in
hand
BACK RIVER IS A COMPANY MAKER AND A COVETED PROJECT25
Capital Structure Major Shareholders Analyst Coverage
BMO Andrew Mikitchook
Share Price C$2.50 Zhaojin International ~9.9%
Dundee Precious ~9% Canaccord Kevin Mackenzie
TSX SBB Metals Cantor Fitzgerald Matt O’Keefe
Van Eck ~8% Cormark Brock Colterjohn
OTCQX SGSVF Sun Valley Gold ~6% Echelon Ryan Walker
Wheaton Precious ~4% Industrial Alliance George Topping
Market Cap C$820m Metals National Bank Jonathan Egilo
Directors and ~1.1% Paradigm Don MacLean
I&O ~326m Management RBC Wayne Lam
Sprott Chris Tonkin
Fully Diluted ~340m Share Ownership Breakdown TD Arun Lumba
1.1 % management
Cash (Q3, 2020) C$65m 22.9% Strategic
Debt None
41% Retail
Average target price: $3.70
35% Institutional26
Management & Board of Directors David Fennell Nominating & Governance
Committee, HS&E Committee
Bruce McLeod President & CEO James Morton Nominating & Governance
Elaine Bennett Vice-President, Finance & Committee Chair, Audit
Committee
CFO David Rae HS&E Committee Chair,
Nicole Hoeller Vice-President, Compensation Committee
Communications & Walter Segsworth, Chair of Compensation Committee
Corporate Secretary the Board Chair, HS&E Committee
Angus Campbell Vice-President, Exploration Anna Stylianides Audit Committee,
Mathew Pickard Vice-President, Compensation Committee
Anna Tudela Nominating & Governance
Environment & Committee
Sustainability Anthony Walsh Audit Committee Chair,
Nominating & Governance
Committee
Leo Zhao Compensation Committee,
Nominating & Governance
Committee
D. Bruce McLeod President & CEO
Combined exploration, mine development, permitting operations &
capital markets experience in over 110 projects & companies27 Appendix
28
Mineral Resource Estimate – December 2020
Mineral Resources are not Mineral Reserves and as such do not Source: AMC, 2020.
Notes: CIM Definition Standards (2014) were used for
have demonstrated economic viability. reporting the Mineral Resources.
Resource Grade (g/t Metal (koz The Qualified Person is Dinara Nussipakynova, P.Geo. of AMC
Tonnes (kt) Mining Consultants (Canada) Ltd.
Classification Au) Au) Measured and Indicated Mineral Resources are inclusive of Mineral
Reserves.
Measured 9,707 5.75 1,796 Metal price: US$1,550 /troy oz for gold
Exchange rate: 1.00 US$:1.31 C$.
Indicated 23,745 5.93 4,525 Process Recovery: Goose deposits is 93% and for George deposits
Measured and is 95%.
33,452 5.88 6,321 Cut-off grade: for Goose and George deposits, open pit is 1.4 g/t Au.
Indicated Goose deposits underground is 3.0 g/t Au. George deposits
underground is 3.5 g/t Au.
Inferred 13,794 6.44 2,856 Goose Mineral Resources deposits are Goose Main, Umwelt, Echo,
• Geological and mineralization 3D wireframes were created by Sabina in Leapfrog Geo software, Llama, Llama Extension and Nuvuyak.
and were informed with diamond drilling intersected lithologies, alteration, sulphidation, gold George Mineral Resources deposits are LCP North, LCP South,
assays and structure, as well as surface mapping data. Gold domains range from two to 40 metres Locale 1, Locale 2, GH, and Slave.
in true thickness and occur predominantly within antiform fold hinges and limbs of oxide iron Open pit Mineral Resources are constrained by an optimized pit shell
formation. The number of gold domains across the property range from two at Echo to 24 at using gold price and exchange stated above.
Goose Main, reflecting the increase in structural complexity at the deposits. The George underground Mineral Resources were estimated within
• Ten block models were updated and two block models were created, all produced using mineral domains expanded to a minimum horizontal width of 2 m.
DatamineTM Studio RM software. Block sizes within the block models vary by deposit ranging Drilling results for Goose Main, Echo, Llama Extension and Nuvuyak
between two and ten metres in length, width and height, and all models were sub-blocked by are up to November 15, 2020.
geology and mineralization. All models except the Echo deposit were rotated to align to deposit Drilling results for Umwelt are up to October 16, 2020.
specific mineralization. Drilling results for Llama and all George deposits are up to
• Estimation was carried out predominantly by Ordinary Kriging (OK), with smaller or less populated December 31, 2013.
gold domains by Inverse Distance Squared (ID2). At the George Site, 2D Accumulation was utilized The numbers may not add due to rounding.
at the Locale 1, Locale 2, GH and Slave deposits prior to estimation. All parameters for estimation
were informed by variography on composited intervals.29
Mineral Reserve Estimate - August, 2015
Included in Mineral Resource Estimate
Mineral Reserve Classificat Tonnes
Estimate Aug/15 ion (kt) Au (g/t) Au (koz)
Proven 6,983 5.97 1,340
Total Open Pit
Probable 1,885 5.52 335
Proven 20 9.52 6
Total Underground
Probable 3,471 7.37 822
Total Back River Proven 7,003 5.98 1,346
Property Probable 5,356 6.72 1,15730
Back River Feasibility Study QA/QC
The FS was prepared under the direction of JDS Energy & Mining Inc. by leading independent industry consultants,
all Qualified Persons (QP) under National Instrument 43-101.
Qualified Person, Designation Company QP Responsibility/Role
Executive Summary, Introduction, Reliance on Other Experts, Reserves,
Infrastructure, Market Studies, Capex, Opex, Economic Analysis, Adjacent
Gord Doerksen, P.Eng. JDS Energy & Mining Inc. Properties, Environmental, Other Relevant Data, Interpretations,
Recommendations, References, Abbreviations, Project Execution Plan,
Logistics, Infrastructure, G&A
Dino Pilotto, P.Eng. JDS Energy & Mining Inc. Mining Methods
Andrew Fowler, MAusIMM, CP (Geo) AMC Mining Consultants (Canada) Ltd. Mineral Resource Estimates for George
Dinara Nussipakynova, P.Geo AMC Mining Consultants (Canada) Ltd. Mineral Resource Estimates for Goose
Property Description, Accessibility, History, Geology, Deposits, Exploration,
John Morton Shannon, P.Geo AMC Mining Consultants (Canada) Ltd.
Drilling, sample Preparation, Data Verification
Maritz Rykaart, P.Eng. SRK Consulting (Canada) Inc. Geochemistry, Tailings Management, Water Management
Stacy Freudigmann, P.Eng Canenco Canada Inc. Metallurgy, Recoveries, Process
Rob Mercer, Ph.D., P.Eng Knight Piésold Ltd. Geomechanical
Angus Campbell, P.Geo, Vice-President, Exploration, is a qualified person under NI-43-101 where the information relates to mineral resource estimates and Jeff Eng, P.Eng
Director, Engineering are qualified persons under NI 43-101 for the feasibility study and both approve the scientific and technical information contained herein. Further
information can be found at Technical Report for the Initial Project Feasibility Study on the Back River Gold Property, Nunavut” dated October 28, 2015 and filed on SEDAR at
http://www.sedar.com.31 Hackett River QA/QC The updated mineral resource estimate was originally prepared by Glencore (previously Xstrata) under the JORC code and was reported by Glencore on May 3, 2013 in its annual report of mineral resources and reserves as at December, 31, 2012. Glencore’s updated mineral resource estimate has been reviewed by Sabina and is stated in the Report dated July 31, 2013 and titled “Sabina Gold & Silver Corp. Hackett River Property Royalty NI 43- 101 Technical Report, Nunavut, Canada” in accordance with NI 43-101 thus conforming to CIM Definition Standards. 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.
You can also read
