B2Gold raises cost estimate for Goose project in Nunavut by 23%
B2Gold (TSX: BTO, NYSE: BTG) has announced an update on its Goose mine project in Nunavut, highlighting an increase in its cost by 23% to $1.13 billion.
The increase is primarily owing to a three-month delay in the expected start of gold production, now pushed to the second quarter of 2025, B2Gold said.
The acceleration of certain capital expenses, which were initially scheduled for after the start of production, has also contributed to the revised estimate, it added.
According to the company, construction and development continues to progress on track for first gold pour at Goose in the second quarter of 2025 followed by a ramp-up to commercial production in the third quarter.
B2Gold anticipates that once in commercial production, the Goose mine will produce approximately 310,000 ounces of gold per year over the first full five years.
Deal for Fekola mine
Earlier this week, B2Gold announced that it has reached terms with the government of Mali to resolve all issues surrounding the Fekola mine complex and related projects in light of the application of a new mining code.
The Malian government, under a new regime, currently holds a 20% interest in Fekola.
In a press release dated Sept. 11, the Canadian gold miner confirmed that the Fekola mine complex, including the Fekola and Cardinal open pits and the proposed underground project, will continue to be governed by the 2012 mining code.
This, said B2Gold, would offer the company continued stability of ownership, income tax and customs regimes, and its dispute resolution rights under the Fekola Mining Convention, which would run through 2040.
B2Gold estimates Fekola regional projects could generate approximately 80,000 to 100,000 ounces of additional gold production per year starting in early 2025. Initial gold production from the Fekola underground project is expected to begin shortly after.
Shares of B2Gold rose 4% by 12:10 p.m. EDT in Toronto. The miner has a market capitalization of C$5.72 billion ($4.21 billion).