Vancouver-based Sabina Gold & Silver has accelerated preconstruction and procurement activities at Goose mine, located at the company's wholly-owned Back River gold district in Nunavut.
Sabina has procured or committed agreements to procure over 70% of all direct purchases identified in the 2021 updated feasibility study. The UFS estimated direct equipment purchases would cost approximately C$218 million.
The company has seen an average overall inflation of 14% since March 2021, with a 20% inflationary escalation on purchases made this year.
Purchasing has included 90% of the mining fleet, process plant equipment for the 4000 tonne-per-day plant, a permanent accommodation complex of 500 units, cranes and construction equipment, and all piping for tailings, reclamation, and the project.
Sabina has also acquired all conveyor galleries and arctic corridors, electrical E-houses with MCC and VFD, an HVAC unit, dust collection systems, and an aggregate crusher and washer unit on site.
Earthworks are approximately 67% complete.
"Inflation and global supply chain issues have impacted all new capital investment projects and Sabina continues to monitor these potential impacts as we develop the Goose mine," chief executive Bruce McLeod said.
"Our strategy of pre-planning and accelerating procurement efforts has reduced our exposure to inflationary impacts."
The updated feasibility projects a 15-year mine life with annual production of 223,000 ounces of gold per year.