BACK RIVER NEWS. Sabina HANNIGAYOK WHAT S NEW? Feasibility Studies

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1 Sabina GOLD & SILVER CORP. BACK RIVER NEWS HANNIGAYOK WHAT S NEW? 2015 was another busy year for Sabina. We spent most of last year preparing our Final Environmental Impact Statement (Final EIS) for the Back River Project, which we submitted to the Nunavut Impact Review Board (NIRB) in November. With feedback from communities, government, and regulatory agencies, we enhanced the Final EIS significantly. of the Project; the 6,000-tonneper-day project being proposed in the Final EIS and a smaller initial 3,000-tonne-per day project. These studies highlighted the economic strength of both projects, but suggested the smaller initial project may be more financially realistic to pursue under current weak market conditions. Bruce McLeod Sabina President and CEO Feasibility Studies Under our new President and CEO Bruce McLeod s direction we released two feasibility studies for the Project in These studies described engineering plans and financial details for two potential versions We re very excited about the potential Back River holds, says Bruce, and we re optimistic that the Project will be financed and developed in the near future. WINTER 2016

2 Community Engagement Sabina also conducted community visits in the Kitikmeot Region and Yellowknife last June and October. During these visits, we met with members of the public and the Kitikmeot Inuit Association (KIA), as well as local HTO and Hamlet representatives to discuss the Project. In 2015, Sabina (in partnership with Explore IT Network Solutions) donated refurbished laptops with software to the following community organizations: Cambridge Bay Wellness Centre, Kitikmeot Heritage Society, Cambridge Bay Youth Centre, Kugluktuk Day Care, Kugluktuk Search and Rescue, Gjoa Haven Search and Rescue, Taloyoak Day Care, Taloyoak Search and Rescue, Kugaaruk Day Care, and Kugaaruk Search and Rescue. On Site We also ran some short duration field programs at the Project site that involved a small group of people. These programs included environmental baseline data collection, geotechnical and geophysical studies, and resource expansion drilling. Jason Prno (Community Relations Advisor) providing a Project update to the residents of Bathurst Inlet and Bay Chimo (June 2015) Sabina s Vice President of Communications and Corporate Secretary, Nicole Hoeller, (second from right) with donated laptop recipients in Cambridge Bay (June 2015) Question, comments or concerns? All you need to do is contact John Kaiyogana (jkaiyogana@sabinagoldsilver.com) or drop by our Cambridge Bay office (Kitnuna Building, 10 Omilik Road, P.O. Box 2239, ). You can also contact our Vancouver office at

3 PROJECT INFORMATION Where are we in the Regulatory Process? Over the past year, our team worked diligently to address any concerns that were brought forward during the Environmental Assessment (EA) process into the Project s Final EIS. One of our biggest priorities was addressing the NIRB s comments pertaining to environmental and community matters. These included issues regarding caribou, tailings, waste and water management, shipping and the marine environment, support for communities and youth, wildlife, and transportation. Sabina s EA began in June 2012 and involved various stakeholders who reviewed our regulatory submissions and participated in Project meetings, commenting periods, and hearings. The last significant EA meetings for the Project took place in November 2014 when the NIRB held technical meetings, a community roundtable and a pre-hearing conference to review our Draft EIS. What is an Environmental Assessment (EA)? An EA is a process used to evaluate the potential environmental and socio-economic effects of a project (such as a mine like the Back River Project). In Nunavut, this process is normally run by the NIRB and can take approximately four years to complete. GETTING THE BACK RIVER PROJECT APPROVED STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 WE ARE HERE! Land Use Planning Our first step was to submit an application to the Nunavut Planning Commission. Impact Assessment Then we entered the environmental assessment stage where NIRB reviews the environmental, social and economic impacts of the Back River Project. Decision Making Once we complete the Final EIS hearings, NIRB s report is reviewed by the federal minister(s) responsible for decision-making. If approved, the Project can move to licensing. Licensing All authorizing agencies set out the explicit terms and conditions of the Back River Project s approval. Monitoring Once the Project receives the necessary licences, permits and approvals, the Project may require monitoring. 3

4 The Final EIS hearings have been scheduled for the end of April Like the 2014 meetings, these hearings will be led by the NIRB and will take place in Cambridge Bay. The Final EIS hearings will be open to all interested parties including Sabina, government, non-governmental organizations, community organizations, regulatory agencies, and the public. The NIRB will use these hearings to gather information and make a recommendation to the Minister of Indigenous and Northern Affairs Canada (INAC) on whether the Back River Project should proceed. Providing the Project receives INAC ministerial approval, a Project Certificate will be issued describing the various conditions Sabina will need to follow. In addition to a water licence and other required permits, Sabina and the KIA will negotiate an Inuit Impact and Benefit Agreement (IIBA). Assuming the above activities and tasks are completed under current schedules, Project mobilization could begin in late 2016 or early We ll continue to engage communities throughout all the phases of the Project. Shipping News Shipping will form a small, but essential part of our operations at the Back River Project. Construction materials, mining equipment, fuel, and other Project supplies will need to be brought in by ship during the open water season. We ll use Canadian approved vessels similar to those already used in annual community resupply across the north. Both ocean-going barges (deadweight tonnage: 16,000 tonnes; draft: 5.9 m) and ships (deadweight tonnage: 17,000 tonnes; draft: 9.7 m) will be used. Approximately 3-5 vessels per year will be needed during Project construction and 4-5 vessels per year will be needed during operations. Project shipping schedules will be communicated to local communities throughout the open water season. All materials will be off-loaded at the Marine Laydown Area (MLA) located in southern Bathurst Inlet, temporarily stored, and then transported to the Goose Property by trucks over a winter ice road (once temperatures permit). Shipping activities are highly regulated and Sabina will meet all the legal requirements related to shipping in Canadian waters. These include regulations related to: Shipboard operation and navigation Transport of fuel and other hazardous materials Spill response Shipping-related effects assessments were prepared for the marine environment using both scientific methods and traditional knowledge. These findings, found in our Final EIS, show that Sabina will conduct shipping in a safe and responsible manner. 4

5 A Golden Opportunity We know how we re going to mine the Back River Project s gold deposits (open pit and underground methods) and how much gold we hope to produce, but what happens to the gold that s extracted from the ground? Gold from the Back River Project will be produced into doré (semi-refined) bars directly on site. These bars will then be transported by aircraft to an offsite refinery for further processing. At this stage, the gold will be ready to sell. Here are some interesting gold uses and facts: Around half of all mined gold in the world is made into jewellery, with China, India and the United States being the largest markets. Gold can be used for investment purposes by individuals, institutions, and central banks. In small quantities, gold is used in technological applications (e.g. electronics, dentistry, aerospace, fuel cells, automotive, healthcare). All of the gold ever mined would fit into an area 21 m³. one ounce of gold can be stretched into a wire 80 km long or a sheet 9 m². the water contained in the world s oceans is estimated to hold up to 15,000 tonnes of gold. there are million ounces (around 4,600 tonnes) of gold stored in the U.S. Bullion Depository at Fort Knox. Source: World Gold Council ( 5

6 EYE ON KITIKMEOT Restoring Bernard Harbour Rock-by-Rock The Bernard Harbour restoration project was first proposed by the Kugluktuk Hunters and Trappers Organization (HTO) and Golder Associates (Golder) in the early 2000s, with Sabina becoming an industry partner in Sabina provided financing to start the project. Bernard Harbour is located in the western Kitikmeot Region approximately 100km north of Kugluktuk. This area has traditionally been used by Inuit for fishing, hunting, and camping and is known to have supported a thriving Arctic Char fishery in the past. Fish harvesting was concentrated at the mouth of Nulahugyuk Creek, which flows into the Arctic Ocean at Bernard Harbour from Hingittok Lake, 10km upstream. The restoration project s goal is to restore sections of Nulahugyuk Creek, which have become too shallow or too rocky for Arctic Char to complete their upstream migration to spawn in Hingittok Lake. The team uses low impact methods (e.g. removal and placement of rocks by hand) to deepen and restore problematic sections of Nulahugyuk Creek. Not only did preliminary work show that this approach was effective, the project is a great opportunity for Kugluktuk community members to get involved. DID YOU KNOW? Historically, fish were caught using kakivaks (traditional Inuit fish spears) after being trapped in seasonally-constructed rock weirs. Sabina and the Kugluktuk HTO Sabina and the Kugluktuk HTO are partners in completing the Bernard Harbour restoration project and signed a project agreement in June It s important that local people know that Sabina is working on these types of local environmental projects, said Kugluktuk HTO Chairperson David Nivingalok. Sabina and the Kugluktuk HTO have an excellent partnership and share the same goal of restoring Bernard Harbour for the benefit of Kugluktukmiut who harvest there and the Arctic Char that use Bernard Harbour to spawn. Completion of the Bernard Harbour restoration project will help Sabina compensate for fisheries impacts that may occur as a result of the Back River Project, adds Matthew Pickard, Sabina s Vice President of Environment and Sustainability. We ve 6

7 developed a comprehensive Fish Offsetting Plan that is now under review by the Department Fisheries, Oceans and the Canadian Coast Guard that describes our efforts in more detail. With Sabina and the Kugluktuk HTO working together we anticipate restoring Bernard Harbour and Nulahugyuk Creek to a sustainable Aboriginal fishery. David would like the Bernard Harbour restoration project to continue for a few more years. He s hoping they can move even more rocks and tag more fish. We ll know this project is successful when fish stop dying when trying to get to their spawning lake, he adds. We still see some now, but not as many as we did at the beginning of the project. Inuit harvesting fish at the Bernard Harbour fish weir (June 1916) [Reference: Copper Inuits spearing salmon at Nulahugyuk Creek, Northwest Territories (Nunavut), Canadian Museum of History, 37080] Expect more updates on this exciting project in the near future. INTERESTING FACT: The Bernard Harbour Project was originally proposed by Nunavut s Premier, Peter Taptuna, who was the Chair of the Kugluktuk HTO at the time. Peter continues to have close ties to the land in-and-around Bernard Harbour. Fisherman and Arctic Char caught in nets at Bernard Harbour (June 1916) [Reference: Mangalina holding three large salmon trout at Bernard Harbour, Northwest Territories (Nunavut), Canadian Museum of History, 38992] 7

8 Sabina GOLD & SILVER CORP. IN THE COMMUNITY Adding Value Sabina values the role we play as a member of the Kitikmeot community. That s why we engage community members and organizations to share information about the Project and solicit their feedback. To date, there have been over 185 meetings and events with communities in the north where the Back River Project was discussed! Sabina s Matthew Pickard and Jason Prno, spend time with Ariel Tweto, prior to her Popping Bubbles Tour. Sabina also maintains an active donations program focused on supporting youth and education, community wellness, and traditional lifestyles. Since 2012, Sabina donated over $125,000 to community organizations and initiatives in the Kitikmeot. This included support for visits by Ariel Tweto on her Popping Bubbles tour; week-long science, technology, engineering, and mathematics camps for youth hosted by the charity Actua; and various KIA-led training initiatives (e.g. Women Building Futures Workshop, Emergency Medical Responder Program). OTHER DONATIONS: Cambridge Bay Food bank Daycare Wellness Centre Kitikmeot Heritage Society Frolics Aboriginal Day Celebrations Square Dance Group Drum Dance Group Kitikmeot Summer Games gjoa Haven Food Bank Daycare Search and Rescue Dog Sled Race Amauligak Dancers Kugluktuk Food Bank Daycare Kitikmeot Cup Community Readiness Initiative Frolics Inuit Summer Games Fishing Derby Canoe and Soccer Clinics Taloyoak Food bank Day Care Kitikmeot Cup Fishing Derby Fish Youth Camp Youth Hockey Equipment Search and Rescue Bathurst Inlet/ Bay Chimo Christmas Festivities Kugaaruk Food Bank Daycare Search and Rescue Fishing Derby 8 Sabina Gold & Silver Corp. Suite Burrard Street, Box 220, Vancouver, BC V7X 1M7 Canada Phone: