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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

Developing the Goose Gold Mine at the 100% owned Back River Gold … · 2021. 1. 27. · Developing the Goose Gold Mine at the 100% owned Back River Gold District in Nunavut, Canada

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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

    2

    http://www.sedar.com/

  • 3

    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 (being updated at US$1600)

    • 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

  • 4

    Development Companies by size and grade

    RBC Capital Markets 12/20/21

    SBB

  • 5

    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

    6

    2021

    • Back River – Deposits are well drilled, well understood and ALL OPEN

    • UPDATED RESOURCE: 6.32M ounces at 5.88 g/t Au in M&I and 2.86M ounces 6.44 g/t Au in the Inferred category.

    • All in finding costs of C$24.95 per ounce (since 2014)

    • Foundation for Reserve estimate in UFS later in Q1, 2021

    See slides #27 & 28 for resource/reserve estimate QA/QP

    Mineral Resources are not Mineral Reserves and as such do not have demonstrated economic viability.

  • 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

    0 12.5 25

    LEGEND

    Inuit Owned Land

    Camp

    Area of Interest

    Claim

    Lease

    Surface

    Subsurface and Surface

    George Project

    BootBoulder

    Goose Project

    Del

    Bath

    7

    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 [email protected] 7.43g/t Au

    See slides #27 & 28 for resource/reserve estimate QA/QP

  • 8

    2

    7

    6

    54

    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?

    0 1 2 3 4 5 6 7

    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

    9

    • 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

    10

    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

    Jan 2021New Resource Announced9 million ounces in all categories

  • Environment, Permitting and Social License Achieved

    11

    • 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

  • 12

    EVOLVING THE GOOSE PROJECT GOLD SYSTEM – THE FIRST MINE

    Targeting 10 million ounces

  • Umwelt High Grade Corridor – 2020 drilling

    13

    • 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

    14

    • 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

  • 15

    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

  • 16

    Port Sabina – Completed 2018

    16

  • 17

    Winter Ice Road – “The Connector” Completed 2019

  • 18

    All weather Air Strip Expansion to accommodate large aircraft - 2020

    First Hercules aircraft lands on all weather strip at Goose

    18

  • Underground equipment procured, hauled and assembled - 2020

    19

  • 20

    4km of roads built in 2020

    20

  • 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

    21

    0

    20

    40

    60

    80

    100

    120

    140

    160

    PRECIOUS METALSBASE METALS

    To

    nn

    es

    ( 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

  • 22

    A re-rating to come with financing and a production decision

  • Back River is a Company Maker

    23

    • 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

    24

    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

    25

    Major Shareholders Analyst Coverage

    Share Price C$2.50

    TSX SBB

    OTCQX SGSVF

    Market Cap C$820m

    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 Jonathan EgiloParadigm Don MacLeanRBC Wayne LamSprott 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

    26

    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 110 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

    Anna Tudela Nominating & Governance Committee

    Anthony Walsh Audit Committee Chair, Nominating & Governance Committee

    Leo Zhao Compensation Committee, Nominating & Governance Committee

    D. Bruce McLeod President & CEO

  • 27

    Appendix

  • Mineral Resource Estimate – December 2020

    28

    Resource

    ClassificationTonnes (kt)

    Grade (g/t

    Au)

    Metal (koz

    Au)

    Measured 9,707 5.75 1,796

    Indicated 23,745 5.93 4,525

    Measured and

    Indicated33,452 5.88 6,321

    Inferred 13,794 6.44 2,856

    Source: AMC, 2020.

    Notes: CIM Definition Standards (2014) were used for

    reporting the Mineral Resources.

    The Qualified Person is Dinara Nussipakynova, P.Geo. of AMC

    Mining Consultants (Canada) Ltd.

    Measured and Indicated Mineral Resources are inclusive of Mineral

    Reserves.

    Metal price: US$1,550 /troy oz for gold

    Exchange rate: 1.00 US$:1.31 C$.

    Process Recovery: Goose deposits is 93% and for George deposits

    is 95%.

    Cut-off grade: for Goose and George deposits, open pit is 1.4 g/t Au.

    Goose deposits underground is 3.0 g/t Au. George deposits

    underground is 3.5 g/t Au.

    Goose Mineral Resources deposits are Goose Main, Umwelt, Echo,

    Llama, Llama Extension and Nuvuyak.

    George Mineral Resources deposits are LCP North, LCP South,

    Locale 1, Locale 2, GH, and Slave.

    Open pit Mineral Resources are constrained by an optimized pit shell

    using gold price and exchange stated above.

    The George underground Mineral Resources were estimated within

    mineral domains expanded to a minimum horizontal width of 2 m.

    Drilling results for Goose Main, Echo, Llama Extension and Nuvuyak

    are up to November 15, 2020.

    Drilling results for Umwelt are up to October 16, 2020.

    Drilling results for Llama and all George deposits are up to

    December 31, 2013.

    The numbers may not add due to rounding.

    • Geological and mineralization 3D wireframes were created by Sabina in Leapfrog Geo software,

    and were informed with diamond drilling intersected lithologies, alteration, sulphidation, gold

    assays and structure, as well as surface mapping data. Gold domains range from two to 40 metres

    in true thickness and occur predominantly within antiform fold hinges and limbs of oxide iron

    formation. The number of gold domains across the property range from two at Echo to 24 at

    Goose Main, reflecting the increase in structural complexity at the deposits.

    • Ten block models were updated and two block models were created, all produced using

    DatamineTM Studio RM software. Block sizes within the block models vary by deposit ranging

    between two and ten metres in length, width and height, and all models were sub-blocked by

    geology and mineralization. All models except the Echo deposit were rotated to align to deposit

    specific mineralization.

    • Estimation was carried out predominantly by Ordinary Kriging (OK), with smaller or less populated

    gold domains by Inverse Distance Squared (ID2). At the George Site, 2D Accumulation was utilized

    at the Locale 1, Locale 2, GH and Slave deposits prior to estimation. All parameters for estimation

    were informed by variography on composited intervals.

    Mineral Resources are not Mineral Reserves and as such do not have demonstrated economic viability.

  • 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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