Sabina Gold greenlights Goose mine build in western Nunavut

Shares in Sabina Gold & Silver (TSX: SBB; OTCMKTS: SGSVF) jumped almost 4% on Wednesday after the Canadian miner formally committed to building the $610-million Goose gold mine in Nunavut.

Construction at the site, located in the Back River gold district about 400 km south of Cambridge Bay in western Nunavut is planned to fully start in 2023, with first gold production expected in 2025.

The Vancouver-based miner has already completed pre-development activities, while major equipment and materials required for construction have been either procured, delivered or in transit, it said.

“This is a milestone decision for the company,” Bruce McLeod, president and CEO said in a statement. “We are fortunate that our strategy of pre-planning and accelerating procurement efforts has reduced our exposure to inflationary impacts and supply chain issues, and we are sufficiently funded for construction.”

The mining camp at Sabina Gold & Silver’s Back River property in Nunavut. Credit: Sabina Gold & Silver

Sabina earlier this year raised about $800 million in project financing, which allowed for significant procurement, engineering and civil work to be completed at the mine site and port.

Of the $610-million capital expenditure estimated, about $218-million was identified as direct equipment and materials purchases.

The miner has submitted a regulatory package to the Nunavut Planning Commission and the Nunavut Impact Review Board to build the Back River Alternate Energy Centre. 

If approved, the company will install up to 13 wind turbines, each with a power capacity of up to 4.5 megawatts, a solar panel array with a power capacity of 5 MW and a battery storage system with a capacity of 50 MWh.

The company says the centre will significantly reduce projected greenhouse gas emissions, traffic on the winter ice road, and the number of ships required.

Shares in Sabina were trading at $1.04 in Toronto on Wednesday afternoon. Its equity has traded in a 52-week window of 93¢ and $1.82. It has a market cap of $570 million.