KINGOAK/BATHURST INLET
The Sabina Gold and Silver Corp. (TSX:SBB) recently confirmed it is on track to complete and submit its Final Environmental Impact Statement (FEIS) for the company's Back River gold project to the Nunavut Impact Review Board by the middle of 2015.

A 2013 aerial view of Sabina Gold and Silver Corp.'s Back River gold project Goose camp. The company expects to file its final environmental impact statement this year, as well as produce a new project feasibility study. - photo courtesy of Sabina Gold and Silver Corp.

This announcement follows a busy year of technical and community hearings following the submission and approval of the project's draft environmental impact statement.

Recommendations surrounding caribou habitat, marine and shipping proposals, socio-economic impact benefits, tailings storage, and other concerns will inform the company's FEIS.

"This is a milestone in the permitting process for us as the wealth of information and guidance we received ... is critical for us to complete a positive final economic impact statement," Sabina president and CEO Rob Pease stated in a press release.

Sabina entered 2015 with more than $30 million cash in company reserves. Although this year's work program has not been announced yet, it will not be as extensive as last year's.

In 2014, Sabina spent approximately $19 million at Back Bay, 80 km south of Bathurst Inlet, and drilled more than 82,000 metres to expand documented resources. Total combined measured, indicated, and inferred resource estimates on Back River give 7.2 million ounces of gold.

Looking at the resource categories individually, measured gold resources are 1.76 million ounces gold in 10.4 million tonnes ore (grading 5.2 grammes per tonne (g/t) gold).

This, incidentally, is a major improvement over a 2013 pre-feasibility study, which included only 304,000 ounces of measured gold resource.

Indicated resources are 3.54 million ounces gold in 17.9 million tonnes, for a grade of 6.1 g/t gold. Inferred resources are 1.93 million ounces gold in 8.2 million tonnes, for a grade of 7.3 g/t.

In addition to proving larger gold reserves over last summer's drill program, Sabina reported improved milling characteristics for the ore. Gold recovery is now pegged at 93.9 per cent, up from the 88 per cent recovery rate the 2013 pre-feasibility was based on.

This could mean a 20 per cent improvement on gold production over the life of the mine, or 344,400 ounces of gold per year instead of 287,000 ounces of gold per year.

Both the new reserves and improved gold recovery rate will be worked into a new feasibility study underway and expected to be released mid-2015.

Nicole Hoeller, Sabina Gold's vice president of communications, told Nunavut News North the deposit at Back Bay is open at depth, meaning there is some optimism the new feasibility study could include a increased life for the mine.

The current life of mine according to the 2013 pre-feasibility study is approximately 8.5 years.

Capital cost to construct the mine and bring it into production is $605 million over two years. The all-in operating costs assumed for the mine are approximately $1,000 per ounce.

With COMEX gold market prices floating at just over $1,200 per ounce, Hoeller said the company would be looking for higher margins before proceeding to construction.

The company will complete environmental baseline work to support is final environmental impact statement over the coming months.

Although no winter exploration drilling is planned for this winter, the company will continue to define targets for future exploration and drilling.

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