Toronto-listed miner B2Gold has earmarked an additional C$90-million for the construction of its first mine in Canada, bringing the Goose project’s total capital expenditure (capex) to C$890-million.
The updated budget, announced on Friday, follows a decision to accelerate underground mining development in a move that will increase average gold production in the first five years to more than 300 00 oz/y.
Underground mining is scheduled to mine and backfill the full Umwelt crown pillar earlier in the mine life, which is expected to contribute more than 150 000 oz of gold production to the life-of-mine (LoM) plan.
B2Gold acquired the Goose project in April, when it bought Sabina Gold. The previous owner’s internal capex estimate was C$740-million.
B2Gold’s in-house construction and purchasing teams have managed to identify C$70-million in savings, while design changes, such as additional equipment, steel and tankage usage, as well as inflation of fuel and consumables, have added C$130-million to the capex estimate.
To date, C$340-million has been spent on building the new mine, leaving B2Gold with C$550-million to spend before the mine goes into production in 2025.
B2Gold reports that the project is on schedule for mill completion in the first quarter of 2025, having successfully completed the 2023 winter ice road season that delivered all critical materials needed to maintain the construction schedule.
Currently, camp construction is under way, generators are being installed and construction workshops are being erected.
The Sabina team previously identified the potential for wind generation at Goose. B2Gold is progressing studies to identify the best solution and to quantify the potential operational and cost impact to the Goose project.
An LoM plan will be announced in the second half of the year.