Clive Johnson's B2Gold Corp. (BTO) added nine cents to $4.70 on 9.85 million shares on word that its 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.