Goldcorp said on Monday that the Quebec government has given the green light to its Eleonore project, allowing Canada's second largest gold producer to start full construction at the mine in Northern Quebec.

The project, which is located in the James Bay region of Quebec, is expected to boost Goldcorp's output by 600,000 ounces of gold a year, with cash costs under $400 per ounce.

Eleonore will be one of the largest underground mines in Canada and is expected to cost $1.4 billion to build. First production is slated for late 2014.

The certificate of authorization comes after the Vancouver-based company reached a collaborative agreement with local First Nations communities.

It allows for a second shaft to be sunk at the site and for the construction of related infrastructure, including a processing facility, an access road and a power plant.

Shares of Goldcorp, which owns projects throughout the Americas, were down 1.67 percent at C$53.67 on Monday on the Toronto Stock Exchange, as the spot price for gold slipped slightly to $1,778 an ounce on a stronger U.S. dollar.