B2Gold’s Goose Mine Progress and Cost Increases
As B2Gold’s first mine on its Back River project in Nunavut, the Goose Mine is nearing completion, with final 2024 supply shipments set to be offloaded by the end of the month. The company remains on track to pour its first gold bar by mid-2025. However, the costs to bring the Goose Mine into production have been trending higher than originally estimated.
Cost Estimates and Investments
B2Gold now estimates that the total construction and mine development costs for the Goose Mine will reach C$1.54 billion ($1.13 billion), a 23% increase from the initial estimate of C$1.25 billion ($920 million) at the beginning of the year. This increase is mainly attributed to a three-month delay in achieving production and decisions to accelerate certain mine development investments.
Accelerated Investments
The company has decided to advance investments in key areas to enhance the Goose Project’s operational reliability and reduce risks. These accelerated investments include purchases of mining equipment for increased mining rates, construction of living quarters at the Bathurst Inlet marine laydown area, expansion of critical infrastructure at Goose, and the installation of a reverse osmosis plant for optimized water management.
Cost Breakdown and Expectations
Out of the total costs, C$1.19 billion ($880 million) is allocated for site construction, with higher-than-expected expenses related to transport costs and necessary upgrades to equipment acquired from the Back River project. The remaining C$350 million ($258 million) is designated for mine development to ensure robust stockpiles of ore for consistent mill feed.
B2Gold anticipates pouring the first gold at Goose Mine in the second quarter of 2025 and achieving commercial production by the second quarter. The company expects to produce between 120,000 and 150,000 oz of gold in the first year, with an average annual production of 310,000 oz from 2026 through 2031.
Insight on the Future of the Goose Mine
Investing in the acceleration of key developments at the Goose Mine not only ensures timely production but also sets the stage for a successful and sustainable operation. By prioritizing these areas, B2Gold aims to establish a solid foundation for long-term success in its Canadian mining ventures.
