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TICKERS: SBB; RXC; SGSVF

Explorer Completes Predevelopment Work at Nunavut Project
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A BMO Capital Markets note covered the company's recently announced progress, which included moving toward 'proof of concept for development.'

In a Sept. 4 research report, analyst Andrew Kaip with BMO Capital Markets indicated that Sabina Gold & Silver Corp. (SBB:TSX; RXC:FSE; SGSVF:OTCPK) has "provided the first step towards demonstrating proof of concept for development of the Back River project in Nunavut."

It did so by completing the building the infrastructure there, including a marine laydown area and a sealift. Further, the company finished it before the targeted completion date.

The cost to develop the infrastructure was CA$24 million, which compares to the CA$22.6 million, excluding contingencies, that were budgeted. "Sabina got more for dollars spent with improvements made to the laydown site, including an airstrip, larger laydown pads and the purchase of construction equipment," he added.

The company also received its first sealifted portion of supplies at Back River.

Earlier in the year, in March, Sabina transported equipment and supplies by a Cat Train along its planned winter ice road route to the place where the laydown was to be constructed, essentially testing the passageway in advance.

Next, Sabina will use that ice road to get equipment to Back River for the start of site construction in 2019.

Before then, the company is expected to release drill results for the Nuvuyak zone, "where the discovery hole released last month intersected 11.6 grams per ton gold over 39.5 meters," Kaip stated.

BMO has an Outperform rating and a CA$3 per share target price on Sabina. Its current share price is around CA$1.35.

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Disclosures from BMO Capital Markets, Sabina Gold & Silver, Sept. 4, 2018

IMPORTANT DISCLOSURES

Analyst's Certification
I, Andrew Kaip, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.

Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Limited are not registered as research analysts with FINRA. These analysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Company Specific Disclosures
Disclosure 2: BMO Capital Markets has provided investment banking services with respect to Sabina Gold & Silver within the past 12 months.
Disclosure 4: BMO Capital Markets or an affiliate has received compensation for investment banking services from Sabina Gold & Silver within the past 12 months.
Disclosure 6A: Sabina Gold & Silver is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or an affiliate within the past 12 months: A) Investment Banking Services.

For Important Disclosures on the stocks discussed in this report, please click here.





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