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Sabina spends millions in Kitikmeot

Guy Quenneville
Northern News Services
Published Monday, August 23, 2010

KINNGUAK/BATHURST INLET - Sabina Gold and Silver Corporation will end up spending somewhere between $25 to $30 million on two Kitikmeot-based mineral exploration projects by the end of summer.

NNSL photo/graphic

Fraser McLean, left, and Frank Ipakohak conduct tests on a meteorological station at Hackett River. - photo courtesy of Sabina Gold and Silver Corporation

Hackett river by the numbers
  • Company: Sabina Gold & Silver Corporation
  • Commodities: silver, lead, copper, gold, zinc
  • Location: 104 km south-southwest of Bathurst Inlet
  • Current indicated resource: 43.6 million tonnes at grades of 4.15 per cent zinc, 129 grams per tonne of silver, 0.35 per cent copper, 0.58 per cent lead and 0.27 grams per tonne of gold.
  • Current inferred resource: 16 million tonnes with 3.53% zinc, 111 grams per tonne of silver, 0.24 per cent copper, 0.46 per cent lead and 0.25 grams per tonne of gold
  • Potential mine life: 14 years
  • Projected cost: approximately $1 billion
  • Projected construction jobs: 250 to 325
  • Projected mine production jobs: 250 to 325

The two companies join a crowded exploration theatre that also includes Newmont Mining Corporations' Hope Bay gold project and MMG Resources' Izok Lake precious metals project.

Sabina's projects, which boast a total labour force of 100 people, are employing 27 residents from the Kitikmeot region - almost a third of the labour force.

Of the local workers, 11 are from Kugluktuk, while Cambridge Bay and Gjoa Haven are each providing another eight workers.

The projects are the silver-zinc play at Hackett River, located 104 km south-southwest of Bathurst Inlet, and the gold play at Back River, located approximately 375 km southeast of Cambridge Bay and acquired by Sabina last year from Dundee Precious Metals.

Most of the work conducted by Inuit is done in the camps, but some of them are also acquiring technical skills, said Pete Manojlovic, Sabina's vice-president of exploration.

"A lot of them are working in the camps themselves to make sure the camps are running properly," he said. "Some of them are learning new skills such as helping with geophysical surveys."

Though Sabina has had several men return to work with the company for many years, having both Newmont and MMG also vying for Kitikmeot labour has made it somewhat more difficult to find staff this year, said Manojlovic.

"Looking forward, we are expanding our activities, and yes, I think we're having a little bit more difficulty finding people to fill the jobs that we require there."

At Goose Lake, a gold-bearing property at Back River, the company recently discovered two new gold zones previously unknown to Sabina and Dundee.

"The excitement that we have right now is on this Goose Lake property," said Manojlovic.

Given the positive work at Back River, activity there will likely increase next year, though a budget is still months away from determination.

"We've been very happy with the results this year and I certainly don't see a decrease in our activities next year. If anything, it will be an increase," said Manojlovic.

Hackett River, which Manojlovic called a "world-class" lead-zinc deposit, shows equal promise (see sidebar).

"We still have to do some analysis to figure out which of those options is the best (to develop first)," he said.

Sabina's share price as of Thursday was $3.45.

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