Sabina Gold & Silver Announces Q2 2010 Financial Results
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/12/10 -- Sabina Gold & Silver Corp. (the 'Company') (TSX: SBB) reported today the financial results for the quarter ended June 30, 2010.
Q2 Highlights
The first quarter culminated in a number of events for the Company:
-- On May 4, the Company announced a potentially significant new gold
discovery at Llama Lake at Back River, Nunavut.
-- On June 21, the Company announced another potentially significant new
gold discovery at Umwelt Lake approximately 1.3 km to the south of Llama
Lake.
-- The Company announced the signing of a term sheet with Xstrata Canada
Corporation, Xstrata Copper Canada Division for an option to earn 100%
of the Cook Lake property in Snow Lake Manitoba, directly adjacent to
the Lalor Lake deposit.
-- On June 1 the Company completed a brokered equity placement of 7,500,000
flow through common shares at $2.00 per share raising gross proceeds of
$15 million, and a non-brokered equity placement of 450,000 flow through
common shares at $2.00 per share raising gross proceeds of $0.9 million.
Significant events which occurred just subsequent to the quarter include:
-- On August 5, the Company completed a bought deal equity financing
qualified by short form prospectus of 9,545,000 common shares at $2.70
per share for gross proceeds of $25.8 million. In conjunction with this
public offering, Dundee Precious Metals elected to exercise its equity
participation rights and accordingly, the Company issued 1,539,173
common shares at $2.70 per share for proceeds of $4.1 million.
-- In conjunction with the filing of the Short Form Prospectus, the Company
filed an updated technical report on the Back River Project, Nunavut
(filed on SEDAR).
'The first half of 2010 has been both productive and exciting for us,' said Tony Walsh, President & CEO. 'Successes at our Nunavut projects have enabled us to access equity markets with a strong share price allowing us to fund our aggressive plans for Back River and Hackett River going forward. We are very pleased with the successes we've had to date, especially with the new discoveries at Back River.'
Financial Results
For the three and six month periods ended June 30, 2010, the Company reported net losses of $1.0 million and $2.5 million respectively compared to $1.5 million and $1.9 million in the corresponding periods of 2009. The loss for the six month period in 2010 was $0.6 million higher than in the same period of 2009 due largely to an unrealized gain on a held-for-trading investment of $0.8 million recorded in 2009. In November 2009, the Company sold that investment, realizing a total gain of $6.9 million and consequently, no further investment gains were recorded in 2010.
The company had cash and cash equivalents of $42 million at June 30, 2010 compared to cash and cash equivalents of $45.0 million at December 31, 2009.
For the full June 30, 2010 financial statements and Management's Discussion and Analysis, please see the Company website at www.sabinagoldsilver.com.
SABINA GOLD & SILVER CORP.
Sabina Gold & Silver Corp. is an emerging precious metals company with district scale, world class undeveloped assets in one of the world's newest, most politically stable mining jurisdictions: Nunavut, Canada.
The properties consist of the Hackett River silver-zinc Project, and the Back River Gold Project, both advanced exploration properties, as well as the Wishbone Claims, a vastly prospective grass roots project.
The combined holdings total approximately 3,000 square kilometres and cover the largely unexplored Wishbone Greenstone belt.
Hackett River is one of the largest undeveloped silver-zinc volcanic massive sulphide ('VMS') deposits in the world with indicated resources totaling 43.6 million tonnes with diluted (recovery) grades of 4.15% zinc, 129 g/t silver, 0.35% copper, 0.58% lead and 0.27 g/t gold. An additional inferred open resource totaling 16.0 million tonnes with diluted (recovery) grades of 3.53% zinc, 111 g/t silver, 0.24% copper, 0.46% lead and 0.25 g/t gold is also contained at Hackett River.
The Back River Project is comprised of the George and Goose Lake gold deposits and contain measured & indicated gold resources of 3.4 million tonnes grading 10.9 g/t Au for 1.19 million ounces and inferred resources of 3.6 million tonnes grading 10.2 g/t Au for 1.16 million ounces of gold.
Quality Assurance
Mr. John Wakeford, P.Geo., and Sr. Vice President corporate Development of Sabina Gold & Silver Corp. is a Qualified Person under the terms of NI43-101 and has reviewed the technical content of this press release and approved its dissemination.
Mineral resources for Goose Lake and George Lake were generated by RSG Global Consulting Pty Ltd (Coffey Mining) in September 2007.
The mineral resource estimate for Hackett River was prepared as part of the Preliminary Economic Assessment (PEA) update by Gordon Zurowski, P.Eng., Principal Mine Engineer of PEG Mining Consultants Inc, and can be found on SEDAR at www.sedar.com. Gordon Zurowski is a qualified person as defined by National Instrument (NI) 43-101. CIM Definition Standards (2005) have been used in defining the mineral resource categories.
All technical reports have been filed on www.sedar.com.
Statements relating to development, feasibility and exploration work at the Hackett River project the Back River gold project and the Wishbone Greenstone Belt, the Terms Sheet on the Cook Lake properties and the expected results of this work are forward-looking statements within the meaning of securities legislation of certain Provinces in Canada. Forward looking statements 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' and similar expressions, or that events or conditions 'will', 'would', 'may', 'could' or 'should' occur. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are 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 statements, including, without limitation: risks related to fluctuations in gold prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting 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; uncertainties involved in the estimation of metal reserves and resources; the possibility that required permits may not be obtained in a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from Sabina's operations, failure to negotiate a formal option agreement on the Cook Lake property, unsatisfactory due-diligence results on the Cook Lake property and other risks and uncertainties, including those described in Sabina's Annual Report for the year ended December 31, 2009.
Forward-looking statements are based on the beliefs, estimates and opinions of Sabina's management on the date the statements are made. Sabina undertakes no obligation to update these forward-looking statements should management's beliefs, estimates or opinions, or other factors, change.
This news release has been authorized by the undersigned on behalf of Sabina Gold & Silver Corp.
Tony Walsh, President and CEO
Contacts:
Sabina Gold & Silver Corp.
Nicole Hoeller
Director, IR
(604) 998-4175 or Toll Free: 1-888-648-4218
(604) 998-1051 (FAX)
nhoeller@sabinagoldsilver.com
www.sabinagoldsilver.com