Sabina says yes to building a gold mine in western Nunavut
CBC
Nunavut is set to see a third operating gold mine in 2025 with Sabina Gold and Silver Corp.'s recent decision to move ahead on building its Goose gold mine.
Sabina's CEO and president, Bruce McLeod, called the Sept. 7 construction announcement "a milestone decision for the company," adding it was exciting "to formally commit to becoming a significant Canadian gold producer."
The Goose mine is located about 400 kilometres south of Cambridge Bay and lies 172 kilometres away from Sabina's marine laydown facility in Bathurst Inlet.
By the first quarter of 2025, the company aims for Goose to become the territory's third operating gold mine, joining Agnico Eagle's two gold mines in the Kivalliq region.
The Goose gold mine project's challenge is its remoteness and logistics, McLeod said.
Construction of the mine facility is set to start in the first quarter of 2023.
"This has also been an opportunity for us, as we have had to start to plan and procure early to ensure that logistics run smoothly and do not delay the project," he said.
"If we had not spent so much time and effort in preparing for construction, we would have been far more uneasy about making a construction decision."
McLeod said that as early as 2020, the company started identifying materials and suppliers, issuing purchase orders and getting materials and equipment up to the site.
All major items for construction have been procured, including a 24-megawatt power plant, cranes and major construction support equipment, a water and sewage treatment plant, most process plant components and a permanent accommodation complex.
"In addition, we have been advancing early earth works prior to a construction decision. So when we made the decision this month, we had already blasted and laid the foundation for the plant site, the accommodation complex, the laydown area, the fuel storage area and the truck shop area," McLeod said.
Sabina is more advanced than many other southern projects at this stage, he said.
"This has mitigated exposure to inflation and supply chain issues," he said. "At this stage, we believe we have raised enough funds to build the project as was contemplated in the feasibility study."
That study said Sabina had to raise $800 million in project financing, of which $610 million would go to build the mine.
