VANCOUVER, BRITISH COLUMBIA — (Marketwired) — 04/02/13 — Sabina Gold & Silver Corp. (the „Company“) (TSX: SBB) reported today the financial results for the year ended December 31, 2012.
2012 was a year of continued growth and change for Sabina. Highlights of the year include:
„Last year, we executed one of the largest exploration programs for the Company with impressive results,“ said Rob Pease, President & CEO, „This year, we are continuing to aggressively push Back River forward to the next stage of development. Currently, eight drills are running at our Goose and George projects with engineering and environmental baseline work for the FS and ongoing PFS work underway“ he said „We look forward to providing further details about Xstrata-s progress on Hackett River and anticipate the beginning of Back River drill results in the near future.“
Technical Report Filed
Subsequent to the end of the year, on February 15, 2013, the Company announced an updated resource estimate for Back River. The new mineral resource is comprised of measured and indicated resources of 24.2 million tonnes grading 6.0 g/t for 4.7 million ounces of gold, and inferred resources of 7.7 million tonnes grading 7.8 g/t for 1.9 million ounces of gold. Remodelling from first principles was conducted on all deposits and in combination with 2012 drilling, resulted in increasing overall confidence and grade, and added approximately 740,000 ounces (or 13%) of gold in all categories.
The report, entitled, Back River Gold Property, Nunavut Territory Canada, has now been filed on and can be found at or on the Company-s website at .
Financial Results
For the year ended December 31, 2012, the Company reported a net loss of $14.1 million compared to a loss of $12.7 million in 2011. The increase of $1.4 million was the net result of a write-off of the Cook Lake mineral property and lower net finance income, offset by decreased share-based payments costs and lower deferred income tax expense.
Operating expenses in 2012 were $11.9 million compared to $10.0 million for the same period 2011. In Q4, 2012, the Company wrote-off the carrying value of its Cook Lake property of $3.8 million. Following a review of exploration results at Cook Lake, the Company determined that it would not continue with its option on the property and, consequently, all deferred exploration costs were written-off. Share based compensation payments decreased in 2012 by $2.0 million due to primarily to a decrease in the option value. Approximately 10% more share purchase options were granted and vested in 2012 compared to the same period in 2011.
Interest income in 2012 was $2.4 million compared to $2.1 million in 2011, higher by 15% due to higher average cash balances ($138.2 million in 2012 versus $131.0 million in 2011) and a higher realized interest rate which increased to 1.71% from 1.54%.
The total flow-through premium income recognized in 2012 was $4.1 million compared to $8.1 million in 2011. In addition to timing differences related to renunciation of eligible expenditures, the Company had a larger flow-through premium in 2011, both in terms of gross premium amount and percentage of share price.
Deferred income tax expense was $8.7 million in 2012 compared to $12.8 million in 2011; the difference was the result of less flow-through financing completed in the period and timing of renunciation of flow-through eligible expenditures.
For the full December 31, 2012 financial statements and Management-s Discussion and Analysis, please see the Company website at .
SABINA GOLD & SILVER CORP
Sabina Gold & Silver Corp. is an emerging gold developer with district scale, world class assets in one of the world-s newest, most politically stable mining jurisdictions: Nunavut, Canada.
Sabina-s primary assets, all located in Nunavut, consist of: the Back River Gold Project, currently in the pre-feasibility and permitting phase; the Wishbone Claims, a vastly prospective grass roots project; and the Hackett River Silver Royalty, a silver production royalty on Xstrata Zinc-s Hackett River project comprising 22.5% of the first 190 million ounces produced and 12.5% of all the silver produced thereafter. The company ended December 31, 2012 with approximately $116 million in cash.
Quality Assurance
Mr. Angus Campbell, P.Geo, and Vice President Exploration of Sabina Gold & Silver Corp is a Qualified Person under the terms of NI 43-101 and has reviewed the technical content of this press release and approved its dissemination.
The Mineral Resource estimates for the Back River deposits were estimated by AMC Mining Consultants (Canada) Ltd. The Qualified Persons are Dinara Nussipakynova, P Geo. and Andrew Fowler MAusIMM CP (Geo) both of AMC Mining Consultants (Canada) Ltd.
All technical reports have been filed on
Forward Looking Statements
Statements relating to future operations at the Hackett River Project, the Back River Project and the 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 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 metal 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; 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 and other risks and uncertainties, including those described in Sabina-s Annual Report for the year ended December 31, 2012.
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.,
Rob Pease, President & CEO
Contacts: Sabina Gold & Silver Corp. Nicole Hoelle Vice-President, IR 1 888 648-4218
Sabina Gold & Silver Corp. Rob Pease President & CEO 604 998-4175 604 998-1051 (FAX)
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