Sabre Gold Files Brewery Creek Preliminary Economic Assessment

Rhea-AI Summary

Sabre Gold Mines Corp. has filed an independent technical report supporting the Preliminary Economic Assessment (PEA) for its Brewery Creek gold project in Yukon, Canada. Highlights include:

• After-tax NPV of $112 million at 5% and an IRR of 27.6% at $1,700/oz gold.
• Average annual cash flow of $36 million, increasing to $44 million at $1,900/oz.
• Average annual production of 60,000 ounces over an 8-year mine life.
• Total cash cost of $850/oz and all-in sustaining cost of $966/oz.
• Pre-production capital costs of $105 million.

Positive

• Strong after-tax NPV of $112 million at a 5% discount rate at $1,700 gold price.
• Attractive IRR of 27.6% at $1,700 gold price, rising to 35.7% at $1,900.
• Positive cash flow projections with an average of $36 million annually at $1,700 gold.

Negative

• None.

VANCOUVER, British Columbia, Jan. 28, 2022 (GLOBE NEWSWIRE) -- Sabre Gold Mines Corp. (TSX: SGLD, OTCQB: SGLDF) (“Sabre Gold” or the “Company”) has filed on SEDAR an independent technical report prepared in accordance with National Instrument 43-101 supporting the result of a Preliminary Economic Assessment (“PEA”) at its 100%-owned Brewery Creek gold project located in Yukon Territory, Canada. The summary results of the PEA were reported in the Company’s news release dated January 18, 2022, and there are no material differences in the report from those results.

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 of 35.7% at $1,900 per ounce gold;
• After-tax average annual cash flow of $36 million at $1,700 per ounce gold increasing to $44 million at $1,900 per ounce gold
• Average Annual Production of 60,000 ounces per year for a total 473,000 ounces gold over an initial 8 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 annual production with three open prospective resource areas and several targets within a 182 square kilometers project boundary; and,
• Lower technical and execution risk as a past brownfields producer with existing infrastructure and road access from previous mining operation.

The Preliminary Economic Assessment has an effective date of January 18, 2022 and was prepared in accordance with National Instrument 43-101 (“NI 43-101”) and evaluated the economics of resuming mining at Brewery Creek through open pit mining and heap leaching mined material for gold recovery to doré. The PEA study was prepared by Kappes, Cassiday & Associates of Reno, Nevada in cooperation with Tetra Tech Inc. of Golden, CO, Gustavson and Associates of Lakewood, CO and Wood Environment & Infrastructure Solutions, of Vancouver, British Columbia.

Summary of Economic Results

Gold Price Sensitivity
Gold Price		NPV 5% After Tax				NPV 5% Pre-Tax				Avg. Annual After tax CF
US$/oz		US$M		IRR%		US$M		IRR%		US$M
$1450		53.4		16.2		73.0		19.1		27.2
$1500		65.4		18.6		90.4		22.1		29.1
$1600		88.7		23.2		125.2		28.0		32.7
$1700		111.6		27.6		160.0		33.5		36.3
$1800		134.3		31.7		194.7		38.9		39.9
$1900		156.8		35.7		229.5		44.2		43.5
$2000		179.3		39.6		264.2		49.2		47.1

PEA Capital Cost Summary
	Description	Pre-Production		Sustaining Capital		Life of Mine
		US$000s		US$000s		US$000s
	Pre-strip, off load heap	$18,105				$18,105
	Mine equipment (net of lease)	4,499		$4,601		9,100
	Site Infrastructure	29,207		11,182		40,389
	Site Infrastructure Haul Roads	1,810				1,810
	Process Plant	29,649				29,649
	Indirects	2,655				2,655
	Owners, EPCM	8,487				8,487
	Contingency	10,974		2,236		13,210
	Subtotal	$105,386		$18,019		$123,405
	Working Capital	11,181		(11,181)		-
	GST (recovery)	5,269		(5,269)		-
	Reclamation	-		13,992		13,992
	Total Capital	$121,836		$15,561		$137,397

PEA Operating Costs Summary
	Mining per tonne moved	1.96
	Strip ratio	4:1
	Unit Operating Costs (per tonne leached)	US$/tonne
	Mining	$11.31
	Processing	7.62
	General & Administrative	2.52
	Total Operating Costs	$21.45
	Total Cash Costs per ounce gold sold	$850/oz
	All-in-Sustaining Costs per ounce gold sold	$966/oz

The technical information in this news release has been reviewed and approved by Michael Maslowski, CPG, a qualified person as defined by National Instrument 43-101 and is employed by the company as its Vice President, Technical Services & Exploration.

About Sabre Gold Mines Corp.
Sabre Gold is a diversified, multi-asset near-term gold producer in North America which holds 100-per-cent ownership of both the fully permitted Copperstone gold mine located in Arizona, United States, and the Brewery Creek gold mine located in Yukon, Canada, both of which are former producers. Management intends to restart production at Copperstone followed by Brewery Creek in the near term. Sabre Gold also holds other investments and projects at varying stages of development.

Sabre Gold has approximately 1.1 million ounces gold in the Measured and Indicated categories, and approximately 1.5 million ounces gold in the Inferred category. Additionally, both Copperstone and Brewery Creek have considerable exploration upside with a combined land package of over 230 square kilometres that will be further drill tested with high-priority targets currently identified. Sabre Gold is led by an experienced team of mining professionals with backgrounds in exploration, mine building and operations.

For further information please visit the Sabre Gold Mines Corp. website (www.sabre.gold).

Cautionary Note Regarding Forward Looking Statements

This news release contains forward-looking information under Canadian securities legislation including statements regarding drill results, potential mineralization, potential expansion and upgrade of mineral resources and current expectations on future exploration and development plans. Forward looking information includes, but is not limited to, the results of the Brewery Creek PEA, including statements relating to net present value, future production, estimates of cash cost, proposed mining plans and methods, mine life estimates, cash flow forecasts, metal recoveries, estimates of capital and operating costs, timing for permitting and environmental assessments, realization of mineral resource estimates, capital and operating cost estimates, project and life of mine estimates, ability to obtain permitting by the time targeted, size and ranking of project upon achieving production, economic return estimates, the timing and amount of estimated future production and capital, operating and exploration expenditures and potential upside and alternatives.

These forward-looking statements also entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to: the strength of the Canadian economy; the price of gold; operational, funding, and liquidity risks; reliance on third parties, exploration risk, failure to upgrade resources, the degree to which mineral resource and reserve estimates are reflective of actual mineral resources and reserves; the degree to which factors which would make a mineral deposit commercially viable are present, and the risks and hazards associated with underground operations and other risks involved in the mineral exploration and development industry.

Risks and uncertainties about Sabre Gold’s business are more fully discussed in the Company’s disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. Sabre Gold assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.

For further information please contact:

Sabre Gold Mines Corp.
Giulio Bonifacio
President & Chief Executive Officer
gtbonifacio@sabre.gold

FAQ

What is the NPV and IRR from the Preliminary Economic Assessment for SGLDF?

The Preliminary Economic Assessment indicates an after-tax NPV of $112 million at a 5% discount rate, with an IRR of 27.6% at a gold price of $1,700 per ounce.

What are the average annual production projections for Brewery Creek project by SGLDF?

The Brewery Creek project is projected to average annual production of 60,000 ounces of gold over an initial 8-year mine life.

What are the capital costs outlined in the PEA for SGLDF?

The PEA outlines pre-production capital costs of $105 million and life of mine sustaining costs of $18 million.

What are the cash costs associated with gold production as per the PEA for SGLDF?

The total cash cost is $850 per ounce, with all-in sustaining costs of $966 per ounce of gold.

What is the significance of the Brewery Creek project for SGLDF?

The Brewery Creek project holds significant potential due to its strong economic indicators and existing infrastructure, enhancing its viability for gold production.