Vancouver-based Sabina Gold & Silver (TSX:SBB) released a preliminary feasibility study for its large-scale Back River gold project in western Nunavut October 9.
According to a company press release, the preliminary feasibility study is based on a conventional open-pit mine plan. Initial mine operations are designed to produce an average of 287,000 ounces of gold per year over an expected 8-year mine life. The mine would take two years to build and cost $650 million.
Supplies for both mine construction and operations would be brought in by sealift during the summer months to Bathurst Inlet, then transported to Back River via winter road.
The company plans to draft a lengthy feasibility study immediately.
The Back River project is comprised of seven claims. Only two of those claims, Goose and George, have been the primary focus of exploration to date.
Production at Back River is expected to begin in 2016-17.
The only producing mine in Nunavut currently is Agnico-Eagle Mine’s (TSX:AEM) Meadowbank gold mine in central Nunavut.
