B2Gold (BTO-T) Goose mine in the Back River area of Nunavut "remains on schedule for mill completion" in the first quarter of 2025. The project is now expected to cost $800-million, "in line with B2Gold expectations," says Mr. Johnson, although he quickly goes on to add another $90-million to the tab to cover accelerated underground mining.
That brings the bill to $890-million, handily above the $610-million estimate that Sabina Gold & Silver Corp. touted at feasibility in 2021, and above the $740-million estimate that Sabina last promoted prior to B2Gold's acquisition of Sabina two months ago. Mr. Johnson and his crew took that latter estimate, pared away $70-million in savings they thought they could achieve, then added $130-million to cover "additional equipment, steel and tankage," as well as inflationary pressures on the cost of fuel and consumables. And so, although $340-million has already been spent, B2Gold is still looking at a $550-million tab to complete the build.
The mine, according to the feasibility study, is to run at 3,000 tonnes per day as a combined open-pit and underground operation, although an expansion to 4,000 tonnes per day is contemplated. The reserve, 18.7 million tonnes grading nearly six grams of gold per tonne diluted -- about 3.59 million ounces -- is sufficient to support a 15-year operation and good enough for an internal rate of 27.7 per cent after taxes.
Business Reporter |
