Sabina Gold's Back River project could have 20 million tonnes of ore
Feasibility study of Sabina Gold project says company's open pit mine could be open for 10 years
The latest feasibility study of Sabina Gold and Silver's Back River project in Nunavut's Kitikmeot region says the proposed gold mining project has the potential to produce billions of dollars worth of gold.
The Back River property is located in Nunavut's Kitikmeot region, 75 kilometres south of Bathurst Inlet.
According to the study, the company says, the open pit gold mine could have a life span of 10 years. The company says it expects to recover 3.4 million ounces of gold in that time. Based on a gold price of $1,200 per ounce, those numbers could produce net revenues of over $4 billion during the life of the project.
"Back River offers a rare opportunity for significant high grade gold production by both open pit and underground operations in one of the world's safest mining jurisdictions," said Bruce McLeod, Sabina's President and CEO, in a press release. "We are very pleased to announce what we believe is a very compelling [feasibility study]."
The release states almost 20 million tonnes of ore could be milled over the life of the mine, with a projected average production of 413,000 tonnes of ore for each of the first four years of the project's life.
Sabina's draft environmental impact statement, submitted in January of 2014 to the Nunavut Impact Review Board, says construction on the site could begin as early as 2016.
The initial phase of the project would require the building of a winter road to Bathurst Inlet, as well as one connecting the site to the N.W.T.'s Tibbitt to Contwoyto winter road. Re-supply would also take place by sealift.
Sabina says it will hand off its final environmental impact statement to the Nunavut Impact Review Board this year.