developing the goose gold mine at the 100% owned back ......3 assets partners catalysts creating...
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Developing the Goose Gold Mine at the 100% owned Back River Gold District in Nunavut, Canada
Corporate Presentation – January 2021
Goose Gold Project, Back River, Nunavut, Canada
Forward Looking InformationStatements relating to our belief as to the results of exploration activities, timing of receipt of necessary authorizations and licenses,the availability of project financing, the timing of the start of construction and the first gold pour, and the results of furtheroptimization studies to the feasibility study, the potential tonnage and grades and contents of deposits and the potential productionfrom and viability of Sabina’s properties are forward looking information within the meaning of securities legislation of certainProvinces in Canada. Forward looking information are statements that are not historical facts and are generally, but not alwaysidentified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential,” “opportunities,”and similar expressions, or that events or conditions “will,” “would.” “may,” “could,” or should occur. The forward looking informationis made of the date of this video. This forward looking information is subject to a variety of risks and uncertainties which could causeactual events or results to differ materially from those reflected in the forward looking information, including, without limitation: theeffects of general economic conditions; changing foreign exchange rates; risks associated with exploration and project development;the calculation of mineral resources and reserves; risks related to fluctuations in metal prices; uncertainties related to raising sufficientfinancing to fund the planned work in a timely manner and on acceptable terms; changes in planned work arising from weather,logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potentialof the Company’s properties; risk of accidents, equipment breakdowns and labour disputes; access to project funding or otherunanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; titlematters; government regulation; obtaining and receiving necessary licenses and permits; the risk of environmental contamination ordamage resulting from Sabina’s operations and other risks and uncertainties including those described in Sabina’s annual informationform for the year ended December 31, 2019 available at www.sedar.com
Forward looking information is based on the beliefs, estimates and opinions of Sabina’s management on the date the statements aremade. Sabina undertakes no obligation to update the forward-looking information should management’s beliefs, estimates oropinions, or other factors, change, except as required by applicable law
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Assets Partners Catalysts
Creating value from the 80km Back River Gold District in Northern CanadaGoose Mine – one of seven prospective properties of gold bearing iron formation in the belt – 100% owned by Sabina
• Large gold resources/reserves• High grade (6g/t au open pits)• District scale• Offers development flexibility• Mining friendly jurisdiction• Robust economics at US$1150
gold price (2015)• Hackett River Silver royalty
• Experienced management and Board
• Successful track record• Supportive strategic and
institutional shareholders• Strong community support• Landowners aligned
shareholders• Well funded ($65m Q3,
2020)
• Updated Resource Estimate and Feasibility Study due Q1, 2021
• Detail Engineering due H1, 2021• Production Decision subject to
project financing due H1, 2021• Camp opening and collaring of
Under ground exploration ramp, 2021
• Exploration to begin at George Camp in 2021
New Resource Estimate and Updated Feasibility Study ImminentAdded to GDXJ December 2020
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Based on old resource estimate. New Resource estimate imminent
Development Companies by size and grade
RBC Capital Markets 12/20
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Nunavut Canada – Over four decades of prosperity in mining
• Nunavut is well endowed with sizeable gold deposits
• Many historic and operating mines in the region
• Agnico Eagle – Meadowbank Mine, a good performing mine at ½ grade of Back River
• Agnico has two new mines in Nunavut and has just acquired TMAC/Hope Bay
• A safe jurisdiction with certainty of tenure and district scale opportunities
Over 575,000 meters of drilling completed at Back River
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1998 2002 2007 2009 2010 2012 2015
Gold ResourceMillions oz
Indicated Inferred Ind Hist Inf Hist
2021
?• Back River – Deposits are
well drilled, well understood and ALL OPEN
• Majority in M&I categories
• Three new discoveries at Goose in the last three years
• Finding costs of C$24.95 per ounce (since 2014)
• New Resource/Reserve estimate Q1, 2021
See slides #27 & 28 for resource/reserve estimate QA/QP
Back River: A District Scale Gold Opportunity100% OWNED BY SABINA
Multigenerational Mining opportunities:
• 7 claim blocks on the 80km belt
• Most advanced is Goose – initial mine – 8km of iron formation
• Second most advanced is George – 50 km from Goose Mine
• Continue to generate brownfield & greenfield targets.
• Growth to be generated internally
Back River Property
80 Km
Kilometres
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LEGEND
Inuit Owned Land
Camp
Area of Interest
Claim
Lease
Surface
Subsurface and Surface
George Project
BootBoulder
Goose Project
Del
Bath
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Port
Significant existing resources at George on 20km of largely unexplored iron formation offering opportunity for another mining complex on the Back River district. As development continues at Goose, exploration will turn to George.
Indicated: 1.1 m oz @ 5.6g/t AuInferred: 980k oz @ 6.32g/t Au
M&I: 5.3m oz @ 5.87g/t AuInferred: 1.8m oz@ 7.43g/t Au
See slides #27 & 28 for resource/reserve estimate QA/QP
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There are few permitted advanced exploration Stories in the Canadian North that Compare
George Property 50km from first mine at Goose.Next area of development?
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Sabina - George Project
Nighthawk Gold - Colomac
Gold Mining Inc - Yellowknife Gold…
White Gold - Golden Saddle/Arc
Gold Terra Resource - Yellowknife City…
Rockhaven Resources - Kaza
Atac Minerals - Orsis and Tiger
Northern Exploration Projects
Grade (g/t Au) Resource Ounces Gold (MOz)
Company Market
Capitalization
Gold Mining Inc $440m
White Gold Corp $104m
Nighthawk Gold $75m
Gold Terra Resource
Corp.
$60m
Rockhaven
Resources
$40m
Atac Resources $32m
Sabina’s George Project is more advanced, higher grade and permitted for exploration. Minimal value being realized
Back River is Permitted, Shovel Ready and Offers Robust Economics
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• At US$1150 gold price and $.80 FX generates 24.2% after tax IRR with cash costs of US$534 and all in LOM costs of US$763 (9/15 Feasibility Study)
• Simple executable first mine produces ~200,000 Oz per year for ~12 years. Expanded mine life demonstrated.
• Fully permitted and shovel ready. Strong government and community support;
• Social license in hand
CAD millions After Tax 5% discount
FS gold price sensitivity NPV IRR Payback
USD 2,100, forex 0.758 $ 1,817 58.3% 1.0
USD 2,000, forex 0.758 $ 1,686 55.6% 1.1
USD 1,900, forex 0.758 $ 1,555 52.8% 1.2
USD 1,800, forex 0.758 $ 1,423 49.9% 1.3
USD 1,700, forex 0.758 $ 1,290 46.9% 1.4
USD 1,600, forex 0.758 $ 1,159 43.7% 1.5
USD 1,500, forex 0.758 $ 1,027 40.4% 1.6
Updated Feasibility Study underway incorporating higher-grade underground material. This will increase the production profile and with a current gold price, will positively impact the already robust project economics.
See slides #29 for Feasibility Study QA/QP
Key Milestones in the Project since the Feasibility Study
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Sep 2015-Goose Feasibility Study Announced
Nov 2017 – Vault & Llama extension delineated
Apr 2018 – IIBA Signed, social license received
Aug 2018 – NuvuyakZone discovered
Sep 2018 – Port Sabina constructed three sealifts received
June 2020 – all major permits and licenses in hand
May 2019 – Winter Ice Road and haulage of equipment to site completed
Aug 2020 – high grade V2 Zone at Umwelt delineated demonstrating high grade underground corridor
Dec 2020 – significant civil works completed and equipment procured at Goose with no COVID cases
Oct 2020 - Updated resource estimate and feasibility study started along with detail engineering
Raised approximately $225m in equity financings through markets and strategic shareholders during opportunistic financing windows. Project Debt
process being updated.
Dec 2020 –Addition to GDXJ
Environment, Permitting and Social License Achieved
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• Completed Environmental Assessment Process – Project certificate received
• All Major authorizations for construction and operations received including authorizations for recent changes in Project scope.
• Finalized Agreements with landowner Kitikmeot Inuit Association (KIA)• Will provide training, jobs,
contracting opportunities and royalty payments to Kitikmeot Region
• Renewable 20- year land use lease• KIA an aligned shareholder• Regional wealth creation initiative
payments – creating jobs outside of the mining industry – new precedent in Nunavut
Unprecedented support from communities
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Umwelt High Grade Corridor – 2020 drilling
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• High-grade corridor within current under ground resource extending up and down plunge from the Vault zone
• Average 2020 grades encountered are 2x to 3x the Umwelt resource of 7g/t with greater than average mining widths
• V2 zone identified below the bottom of the open pit providing opportunity for additional higher-grade ounces to come in earlier in the mine lifeUpdate for all 2020 holes
Exploration Decline Ramp at Umwelt to further explore high grade corridor
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• Since the Feasibility Study, exploration at Umwelt has demonstrated higher grades underground (Vault & V2 Zones) to drive increased production perhaps earlier in the mine life
• To facilitate more efficient drilling of these areas an underground exploration ramp will be collared in early 2021 to begin initial underground drilling at V2 Zone in 2022
• Preparations completed in 2020 include box cut and shop pads with 2km of connecting roads
Box Cut development for underground ramp completed in 2020
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Significant Site Progress
• Extension of all-weather airstrip from 3,000 to 4,500 feet• Completion of 220 flights hauling fuel, equipment, supplies
and personnel completed safely during the year;• The procurement and transport of underground equipment
required for 2021 to collar and advance the explorationramp;
• Completion of the box cut excavation for the futureunderground exploration ramp, in preparation for collaringof the decline in spring 2021;
• Completion of the underground equipment workshop padand major earthworks for the underground water settlingpond;
• Construction of approximately 4 km of all-weather roadsconnecting the exploration camp, the underground portalworkshop/collar area, the underground water settlingpond, the fuel tank pads and the permanentaccommodation camp complex area.
2020 Work
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Port Sabina – Completed 2018
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Winter Ice Road – “The Connector” Completed 2019
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All weather Air Strip Expansion to accommodate large aircraft - 2020
First Hercules aircraft lands on all weather strip at Goose
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Underground equipment procured, hauled and assembled - 2020
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4km of roads built in 2020
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Hackett Silver Royalty
• Significant potential cash flow at no costfrom silver royalty.
• 22.5% x 190 million ounces of silver = cash equivalent of ~3 million ounces of silver per year; and
• 12.5% x of silver production after 190 million ounces
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PRECIOUS METALSBASE METALS
To
nn
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( m
illi
on
s)
Data source: alley et al. , Mineral deposits of Canada, 2007 and selected company websites. Metal distribution using
Wardrop PEA metal prices, 2.00 Cu, 0.80 Zn, 0.50 Pb, 14.00 Ag, 600 Au
Sabina mineral resource estimate:
Indicated resources of 25 million tonnes at 4.2% Zn and 130 g/t Ag
Inferred resources of 57 million tonnes at 3% Zn and 100 g/t Ag
60km west of Back River, one of world’s largest undeveloped silver rich VMS deposits
QA/QC – slide 30
Back River is a Company Maker
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• Updated feasibility and resource estimate due Q1, 2021
• Completion of detailed engineering 1H, 2021
• Debt Process being refreshed with new project parameters concurrently with updated feasibility
• Preparing for financing window to make a production decision
Upcoming Catalysts
Sabina is fortunate to own one of the best development projects in the sector. Shovel ready, district scale, large, high grade and in Canada: positioned for a re-rating once a production decision is made
Last Bull Gold Market – 1800%
Next Bull Gold Market?
Sabina is Poised for a re-rating once a production decision is made
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No Value ascribed for:
• Multi-generational district owned 100% by Sabina – imbedded growth
• Premier jurisdiction• Remaining ounces in mineral
resource estimate & exploration upside
• Revised mine plan to release high-grade ore earlier in mine life enhancing economics and production profile and reducing payback period
• Hackett River Royalty – option on silver for the future
• Environmental and Social Licenses in hand
BACK RIVER IS A COMPANY MAKER AND A COVETED PROJECT
Sabina is here
Capital Structure
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Major Shareholders Analyst Coverage
Share Price C$2.90
TSX SBB
OTCQX SGSVF
Market Cap C$945m
I & O ~326m
Fully Diluted ~340mCash (Q3, 2020) C$65mDebt None
Zhaojin International ~9.9%Dundee Precious
Metals
~9%
Van Eck ~8%Sun Valley Gold ~6%Wheaton Precious
Metals
~4%
Directors and
Management
~1.1%
BMO Andrew Mikitchook
Canaccord Kevin MackenzieCantor Fitzgerald Matt O’KeefeCormark Brock ColterjohnEchelon Ryan WalkerIndustrial Alliance George ToppingNational Bank John SclodnickParadigm Don MacLeanRBC TBDSprott Chris TonkinTD Arun LumbaShare Ownership Breakdown
22.9% Strategic
35% Institutional
41% Retail
1.1 % management
Average target price: $3.70
Management & Board of Directors
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Bruce McLeod President & CEOElaine Bennett Vice-President, Finance &
CFONicole Hoeller Vice-President,
Communications &
Corporate SecretaryAngus Campbell Vice-President, ExplorationMathew Pickard Vice-President,
Environment &
Sustainability
Combined exploration, mine development, permitting operations & capital markets experience in over 100 projects & companies
David Fennell Nominating & Governance Committee, HS&E Committee
James Morton Nominating & Governance Committee Chair, Audit Committee
David Rae HS&E Committee Chair, Compensation Committee
Walter Segsworth, Chair of the Board
Compensation Committee Chair, HS&E Committee
Anna Stylianides Audit Committee, Compensation Committee
Anthony Walsh Audit Committee Chair, Nominating & Governance Committee
Leo Zhao Compensation Committee, Nominating & Governance Committee
D. Bruce McLeod President & CEO
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Appendix
Mineral Resource Estimate – October 2014
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Mineral Resource EstimateOct/14 Tonnes (kt) Au (g/t)
Metal (kozAu)
Measured 10,273 5.27 1,740
Indicated 17,969 6.22 3,593
Measured and
Indicated28,242 5.87 5,333
Inferred 7,750 7.43 1,851
Mineral Reserve Estimate - August, 2015
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Mineral Reserve Estimate Aug/15
Classification
Tonnes (kt) Au (g/t) Au (koz)
Total Open PitProven 6,983 5.97 1,340
Probable 1,885 5.52 335
Total UndergroundProven 20 9.52 6
Probable 3,471 7.37 822
Total Back River
Property
Proven 7,003 5.98 1,346
Probable 5,356 6.72 1,157
Included in Mineral Resource Estimate
Back River Feasibility Study QA/QCThe FS was prepared under the direction of JDS Energy & Mining Inc. by leading independent industry consultants,all Qualified Persons (QP) under National Instrument 43-101.
Angus Campbell, P.Geo, Vice-President, Exploration, is a qualified person under NI-43-101 where the information relates to mineral resource estimates and Jeff Eng, P.EngDirector, Engineering are qualified persons under NI 43-101 for the feasibility study and both approve the scientific and technical information contained herein. Furtherinformation can be found at Technical Report for the Initial Project Feasibility Study on the Back River Gold Property, Nunavut” dated October 28, 2015 and filed on SEDAR athttp://www.sedar.com.
Qualified Person, Designation Company QP Responsibility/Role
Gord Doerksen, P.Eng. JDS Energy & Mining Inc.
Executive Summary, Introduction, Reliance on Other Experts, Reserves,
Infrastructure, Market Studies, Capex, Opex, Economic Analysis, Adjacent
Properties, Environmental, Other Relevant Data, Interpretations,
Recommendations, References, Abbreviations, Project Execution Plan,
Logistics, Infrastructure, G&A
Dino Pilotto, P.Eng. JDS Energy & Mining Inc. Mining Methods
Andrew Fowler, MAusIMM, CP (Geo) AMC Mining Consultants (Canada) Ltd. Mineral Resource Estimates for George
Dinara Nussipakynova, P.Geo AMC Mining Consultants (Canada) Ltd. Mineral Resource Estimates for Goose
John Morton Shannon, P.Geo AMC Mining Consultants (Canada) Ltd.Property Description, Accessibility, History, Geology, Deposits, Exploration,
Drilling, sample Preparation, Data Verification
Maritz Rykaart, P.Eng. SRK Consulting (Canada) Inc. Geochemistry, Tailings Management, Water Management
Stacy Freudigmann, P.Eng Canenco Canada Inc. Metallurgy, Recoveries, Process
Rob Mercer, Ph.D., P.Eng Knight Piésold Ltd. Geomechanical
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Hackett River QA/QC
The updated mineral resource estimate was originally prepared by Glencore (previously Xstrata) under the JORC code and was reported by Glencore on May 3, 2013 in its annual report of mineral resources and reserves as at December, 31, 2012. Glencore’s updated mineral resource estimate has been reviewed by Sabina and is stated in the Report dated July 31, 2013 and titled “Sabina Gold & Silver Corp. Hackett River Property Royalty NI 43-101 Technical Report, Nunavut, Canada” in accordance with NI 43-101 thus conforming to CIM Definition Standards. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.
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