(TheNewswire)
March 28, 2022 - TheNewswire - Global StocksNews - On March 24, 2022 Sabre Gold Mines (TSX:SGLD) (OTC:SGLDF) released underground drillingresults at its Copperstone gold project inArizona, U.S.
Although the Fed is raising interest rates, with inflation running hot at7.9% real rates are negative (investorsbuying bonds are guarantee to lose purchasing power) - a positive environment forgold .
“Copperstone was an open pit that produced about ahalf a million gold ounces at close to 3 grams per tonne” Bonifaciotold Global Stocks News on March 13, 2022, “It is fully permitted.The intent is to chase and access the underground higher-gradedeposits that run in the range of 5 to 7 grams”.
SGLD’s March 24, 2022 drill results confirm thevalidity of the company’s low-capex near-term gold productionobjectives.
Hole RC P2F95 (10.7 meters @ 14.3 g/t) made it onto .
Sabre Gold holds 100% interest in two near-term NorthAmerican gold producers: the fully permitted Copperstone gold mine located in Arizona,USA , and the Brewery Creek gold mine located in Yukon,Canada , both of which are former producers .
Management intends to restart production at Copperstonefollowed by Brewery Creek in the near term.
“Results from what was known as the northern edge ofthe D zone continue to return high grade gold intercepts,” statedMike Maslowski, V.P. of Technical Services and Exploration for SGLD,“The gold grades and continuity of the intercepts indicates the DZone may extend further north.:
“We are planning future underground development toestablish additional drill stations to the north to test for theextension of this zone,” continued Maslowski.
Holes were drilled from eight drill stations targetingthe D zone and two stations targeting the C Zone.
Results reported in this release are from holes drilledalong the known northern edge of the D Zone. Intercept values fromthis round of assays match the earlier results and continue to be highgrade and carry across the modeled geologic zone.
GSN asked Bonifacio about the anticipated financingsources for the estimated $35 million capex to put Copperstone back inproduction,
“The critical source for us will be a lendingfacility with third party lenders,” stated Bonifacio, “We'lllikely look to remove some of the existing debt because the debtholders are big shareholders of Sabre. We'll look at some sort of debtconversion. And we'll raise a modest amount of company equity, on astaged basis to mitigate and minimize dilution”.
On January 18, 2022 Sabre Gold published a Preliminary EconomicAssessment (PEA) for the former Yukon gold mine BreweryCreek, targeted for a near-term re-start.
“The PEA and initial results confirm our plans to move to resumption of production at BreweryCreek with what will be low re-start capital with attractiveeconomics which we believe will be further enhanced in 2022,” statedBonifacio.
Brewery Creek PEA Highlights:
After-tax NPV at 5% of $112 million at an Internal Rate of Return (IRR) of 27.6% at$1,700 per ounce gold increasing to $157 million at an IRR of35.7% at $1,900 per ounce gold
After-tax average annual cash flow of$36 million at $1,700 per ounce gold increasing to $44 millionat $1,900 per ounce gold
Average Annual Production of 60,000ounces per year for a total 473,000 ounces gold over an initial8-year mine life;
Total cash cost of $850 per ounce and all-in sustaining cost (AISC) US$966 per ounce gold
Pre-production capital costs of$105 million with life of mine sustaining costs of $18 million
Payback period of 2.6 years at$1,700 per ounce gold
Excellent expansion potential to extend mine life and annualproduction with three openprospective resource areas and several targets within a 182square kilometers project boundary.
Lower technical and execution risk as a past brownfields producer with existing infrastructure androad access from previous mining operation.
Sabre Gold has approximately 1.5 million ounces gold inthe Measured and Indicated categories, and approximately 1.2 millionounces gold in the Inferred category.
Based on March 25, 2022 market cap of CND $37 million, the SGLD gold-in-the-ground (Measured/Indicated/Inferred) is valued at less than USD$12/ounce on two brownfield formerproducing gold mines.
At the Copperstone Arizona project, assay results forthe underground reverse circulation (RC) drill program have beenreceived on 80 out of the 83 RC holes sampled and submitted withfurther assays results pending.
“The Copperstone project has a wealth of upside andopportunity,” Bonifacio told Global Stocks News in the March 13, 2022 video interview ,“We believe we can put it into production within the next nine to 12months, and that it will be cashflow generating with very goodmargins.”
Contact: guy.bennett@globalstocksnews.com
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