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Saber Gold Files Brewery Creek Preliminary Economic Assessment

By Terrie Graves

January 28, 2022

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

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AEP Highlights:

After-tax NPV at 5% of $112 million at an internal rate of return (“IRR”) of 27.6% at $1,700 per ounce of gold rising to $157 million at an IRR of 35.7 % at $1,900 per ounce of gold;
Average annual after-tax cash flow from $36 million at $1,700 per ounce gold to $44 million at $1,900 per ounce gold
Average annual production of 60,000 ounces per year for a total of 473,000 ounces of gold over an initial life of 8 years;
Total cash cost of $850 per ounce and all-in sustaining cost (“AISC”) of US$966 per ounce of 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 multiple targets within a 182 square kilometer project boundary; and,
Reduced technical and execution risk as a former brownfield producer with existing infrastructure and road access from previous mining.

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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 assessed the economics of the resumption of operations mining at Brewery Creek by surface mining and heap leaching. material for the recovery of gold in gold. 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% before tax				Avg. Annual CF after tax
US$/oz		US$ million		SORTING%		US$ million		SORTING%		US$ million
$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

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Summary of AEP Capital Costs
	The description	Pre-production		Maintenance capital		My life
		$000		$000		$000
	Pre-stripping, heap off load	$18,105				$18,105
	Mining equipment (net of rental)	4,499		$4,601		9,100
	Site infrastructure	29 207		11,182		40,389
	Site infrastructure Transport routes	1,810				1,810
	processing plant	29,649				29,649
	Indirect	2,655				2,655
	Owners, EPCM	8,487				8,487
	Contingency	10,974		2,236		13,210
	Total	$105,386		$18,019		$123,405
	Working capital	11,181		(11,181)		–
	GST (recovery)	5,269		(5,269)		–
	Complaint	–		13,992		13,992
	total capital	$121,836		$15,561		$137,397

Summary of PEA operating costs
	Mining per ton moved	1.96
	Stripping report	4:1
	Unit operating costs (per ton leached)	USD/tonne
	Mining	$11.31
	Processing	7.62
	General Administration	2.52
	Total operating costs	$21.45
	Total cash costs per ounce of gold sold	$850/ounce
	All-in sustaining costs per ounce of gold sold	$966/oz

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The technical information contained in this press 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 Vice President, Technical Services and Exploration .

About Saber Gold Mines Corp.
Saber Gold is a diversified, multi-asset North American short-term gold producer that owns 100% ownership of the fully licensed Copperstone Gold Mine located in Arizona, USA, and the ‘or Creek Brewery located in Yukon, Canada, both of whom are former producers. Management intends to restart production at Copperstone and then Brewery Creek in the short term. Saber Gold also has other investments and projects in various stages of development.

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Saber Gold has approximately 1.1 million ounces of gold in the measured and indicated categories, and approximately 1.5 million ounces of gold in the inferred category. Additionally, Copperstone and Brewery Creek have considerable exploration potential with a combined land package of over 230 square kilometers that will be drill tested with currently identified high priority targets. Saber Gold is led by an experienced team of mining professionals with a background in exploration, construction and mining operations.

For more information, please visit the Saber Gold Mines Corp website. ( www.sabre.gold ).

Caution Regarding Forward-Looking Statements

This press release contains forward-looking information under Canadian securities laws, including statements regarding drilling results, potential mineralization, potential expansion and upgrading of mineral resources and current expectations regarding 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, cash cost estimates, operating plans and methods. proposed mines, life of mine estimates, cash flow forecasts, metal recoveries, capital and operating cost estimates, timing for obtaining permits and environmental assessments, completion of estimates of mineral resources, capital and operating cost estimates, project and life of mine estimates, ability to obtain permits on schedule, project size and ranking on achievement of production, estimates of economic return, timing and amount of estimated future production and investments, operating and exploration expenses and benefits s potentials and the alternatives.

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These forward-looking statements also involve various risks and uncertainties that could cause actual results to differ materially from those reflected in such forward-looking statements. These 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 these 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, inability to upgrade resources, the extent to which mineral resource and reserve estimates reflect actual mineral resources and reserves; the extent to which the factors which would make a mineral deposit commercially viable are present, and the risks and dangers associated with underground operations and other risks involved in the mineral exploration and development industry.

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Risks and uncertainties regarding Saber Gold’s business are further discussed in the Company’s disclosure documents, including its Annual Information Form and MD&A, filed with securities regulators in Canada and available at www.sedar.com and readers are urged to read these documents. Saber Gold undertakes no obligation to update any forward-looking statements or to update why actual results may differ from such statements, except as required by law.

For more information, please contact:

Saber Gold Mines Corp.
Julien Bonifacio
President and CEO
[email protected]

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