A ‘must watch’ gold developer for when the bull market returns

POSTED ON October 07, 2014 BY James Fraser
CATEGORY Sabina Gold and Silver,

Sabina Gold (SBB.to) is a a development-stage gold company to watch, largely because of its high grade (~6 g/t) 7.3 million ounce Back River project in Nunavut. The company is working on a Feasibility Study to be released mid 2015 that it hopes will show improved economics. Currently they are forecasting having $30 million in the bank at year end as they move through Feasibility and permitting.

Mr. Pease

Rob Pease is the CEO of Sabina Gold, and he has an impressive track record in the sector. His accomplishments include the sale of Terrane Metals to Thompson Creek Metals (TCM.T) in 2010 for $700 million.

A press release was issued this morning updating the market on the progress of the Back River project. The FS is being completed by reputable engineering firms including lead JDS Energy and Mining Inc, with considerable experience in the Canadian Arctic.

A Pre Feasibility study was released in October 2013 and since then Sabina has identified several aspects of the project for optimization.

An updated 43-101 mineral resource estimate in March increased the measured and indicated resources which could potentially mean a longer mine life
A comprehensive review of mining areas could help to reduce underground mining costs
Metallurgical testing is showing an increase in metal recovery
Tailings disposal optimization will reduce life of mine capex
Analysis on increasing the throughput of the mine by up to 20% is under way

* Caution: these items could show increased project economics but until the Feasibility Study is completed they remain 'projections'.

"Our studies for the Back River FS are very much on track," said Rob Pease, Sabina's CEO. "The prefeasibility study (PFS) was a snapshot in time and enabled us to identify strategies to optimize the project. While final results and economics for the FS are not expected to be completed until the first half of next year, we are very encouraged by our progress so far and believe with the volume of additional information we now have, that Back River is going to be a compelling project. We are also very fortunate to have what we believe is the best Arctic team in Canada working on the project. Our consultants all have significant Northern experience in design, construction, operations and permitting which will bring relevant hands-on credibility to the FS."

In a bull market, Majors will be looking to acquire strong gold development companies that have completed economic studies and permitting. Sabina has the size and grade of deposits that should make it an attractive candidate for acquisition. With that said, shares in Sabina have taken an absolute beating recently, and have fallen nearly 50% in the last six months. Three years ago the stock was six times higher.

'If you liked it a $3, well then you should love it at $.495!"

Symbol: SBB.T
Shares price intraday: $0.49
Shares outstanding: 194.02M
Market Cap: $107 M

Read: Sabina Gold and Silver Reports On Back River Feasibility Study Progress

I have no position in any of the stocks mentioned. This is not investment advice. As always please do your own due diligence.

James Fraser

Mr. Fraser joined CEO.ca in October 2014. He is passionate about the mining industry. His passion led to co-authoring the e-book "Mining Stocks Investor Guide: A Guide to Investing in Mining Companies." He has a finance background and has completed his Canadian Securities Course (CSC) and Conduct and Practices Handbook (CPH). When Fraser is not "digging" up the latest mining stock, he can be found enjoying a wide variety of sports or travelling the world. More →

Twitter: @miningstocks

james@miningstocksguide.com

James Fraser

Twitter: @miningstocks

james@miningstocksguide.com

Disclaimer:

Readers are advised that the material contained herein is solely for information purposes. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities. The information contained herein is based on sources which the publisher believes to be reliable, but is not guaranteed to be accurate, and does not purport to be a complete statement or summary of the available data. Any opinions expressed are subject to change without notice. The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. They may from time to time have a position in the securities of the companies mentioned herein, and may change their positions without notice. (Any significant positions will be disclosed explicitly. This article is not intended to meet your specific individual investment needs and it is not tailored to your personal financial situation. Nothing contained herein constitutes, is intended, or deemed to be — either implied or otherwise — investment advice. Thomas Humphreys, Pacific Website Company Inc., and other entities in which he has an interest, employees, officers, family, and associates may from time to time have positions in the securities or commodities covered in these publications or web site. We reserve the right to buy and sell such securities or commodities without notice to readers. While the information herein is believed to be accurate and reliable it is not guaranteed or implied to be so. The information herein may not be complete or correct; it is provided in good faith but without any legal responsibility or obligation to provide future updates. Neither Thomas Humphreys, nor anyone else, accepts any responsibility, or assumes any liability, whatsoever, for any direct, indirect or consequential loss arising from the use of the information in these publications or web site.

Forward-Looking Statements: This article may include certain "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "forecast", "expect", "potential", "project", "target", "schedule", budget" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the potential of the Company's properties are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Company's expectations include actual exploration results, changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, delays or inability to receive required approvals, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements which speak only as of the date of this article. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Always do your own due diligence. We seek safe harbor.