The company said all pre-development activities are completed and it is ready for full construction to commence in 2023, with the first production expected in early 2025.
"We are excited to formally commit to becoming a significant Canadian gold producer," said Sabina Gold & Silver president and CEO Bruce McLeod.
Sabina has arranged over C$800 million of financing for the project via debt, streaming, and equity financings. The project has an estimated initial capital cost of $610 million.
An updated feasibility study from March 2021 presented Goose as a project that will produce around 223,000 ounces of gold per year for about 15 years with a payback of 2.3 years. The post-tax internal return rate was 28% at a gold price of US$1,600.
Some $218 million of this is for direct equipment and materials purchases. Sabina said it has procured or signed contracts for about 75% of these with an average overall inflationary escalation of 14% since March of 2021, with a 20% escalation on the purchases made this year.
Development of the underground portal has progressed with approximately 992m completed.
Sabina has also submitted a proposal to the Nunavut Planning Commission and the Nunavut Impact Review Board for the Back River Alternate Energy Center. This could allow Sabina to 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 5MW and a battery storage system with a capacity of 50MW hours.
The company said the energy centre would significantly reduce the project's greenhouse gas emissions and traffic on the winter ice road and the number of ships required in the annual sealift.
Shares in Sabina Gold & Silver are trading at C$1, valuing the company at $548 million.
