B2Gold Corp (TSE: BTO) (NYSE: BTG) has provided an updated life of mine plan for its gold projects in Nunavut based on a recently updated mineral reserve estimate (MRE).
The company announced these results in a technical report released on Thursday for its Back River Gold District in Nunavut, Canada.
The Back River Gold District spans 11 mineral claims blocks along an 80-kilometer belt. Construction crews are actively developing the district’s most advanced project, Goose. Goose also remains on schedule for its first gold pour in the second quarter of 2025. The project is set to ramp up to commercial production in the third quarter of 2025.
The Goose Project hosts robust mineral resources with strong potential for expansion and new discoveries. The indicated mineral resource estimate stands at 3,560,000 ounces of gold within 15.5 million tonnes grading 7.16 grams per tonne (g/t) gold.
This represents a 16 per cent improvement in gold grade compared to the last published report by the previous owner.
The inferred mineral resource estimate totals 2.4 million ounces of gold within 10.1 million tonnes grading 7.54 g/t gold, marking a 14 per cent improvement over the prior report.
B2Gold’s new geological model, outlined in the Back River Technical Report, applies a revised methodology for mineral resource estimation.
The company reclassified a portion of previously reported indicated mineral resources to inferred mineral resources by implementing more stringent drill hole spacing requirements.
Additionally, these proprietary changes resulted in a commensurate shift in the totals for indicated and inferred mineral resources.
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B2Gold converts over 75% of inferred resources to indicated
At Umwelt underground, B2Gold completed infill drilling based on its revised drill hole spacing parameters. This work enhanced mine design, improved operational efficiencies, and reduced risk.
The company remains highly confident that additional infill drilling will convert a significant portion of inferred mineral resources to indicated mineral resources.
Furthermore, this will making them eligible for classification as mineral reserves.
Historically, B2Gold has converted more than 75 per cent of inferred mineral resources to indicated mineral resources through infill drilling.
B2Gold’s gold production profile strengthens and diversifies with the addition of the Goose Project. Additionally, the open-pit and underground gold mine has an initial mineral reserve mine life of approximately nine years. This plan includes mining the Echo, Umwelt, Llama, and Goose open pits, along with the Umwelt underground deposit.
B2Gold remains highly confident that further infill drilling will convert multiple areas from inferred mineral resources to indicated mineral resources. The company also expects mineral reserve life of mine production to reach approximately 2.3 million ounces of gold.
From 2026 through 2031, the mine will produce an average of approximately 300,000 ounces of gold per year. Between 2027 and 2031, production will exceed 310,000 ounces per year, representing steady-state operations for the Goose Project.
The average gold grade processed over the mineral reserve life of mine will reach 6.82 grams per tonne (g/t). Furthermore, this reflects a 14 per cent improvement compared to the prior report. Gold recovery is expected to average 92.5 per cent over the mine’s lifespan.
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Costs include installing renewable energy
B2Gold anticipates attractive all-in sustaining costs (AISC) at the Goose Project.
From 2025 through 2027, AISC will reflect sustaining capital costs associated with developing and installing a new power solution for the Back River Gold District.
These costs include optimizing the power plant and installing a renewable energy facility. These are both further classified as sustaining capital but considered one-time expenses that could benefit the operation for decades.
B2Gold believes the weighted average AISC of approximately USD$1,360 per ounce from 2027 through 2031 better represents the project’s long-term potential. These are supported by ongoing efforts to expand mineral reserves.
The company projects an overall AISC of approximately USD$1,547 per ounce over the mineral reserve life of mine but expects costs to decline as additional mineral reserves are delineated through the conversion of existing inferred mineral resources and new discoveries that could extend mine life.
Excluding the one-time costs for the renewable energy facility and power plant optimization, AISC over the mine’s lifespan would be approximately $1,490 per ounce.
B2Gold’s updated mineral reserve estimate for the Goose Project now stands at approximately 2.5 million ounces of gold.
The probable mineral reserve estimate includes 11.3 million tonnes grading 6.82 grams per tonne (g/t) gold, totalling 2,480,000 ounces.
Ongoing exploration drilling across the Back River Gold District continues to demonstrate strong potential for a significant increase in Mineral Reserves, particularly at the Echo, Llama, and Goose underground deposits.
These deposits require tighter spaced drilling to justify the conversion of inferred mineral resources to indicated mineral resources. This will make them eligible for classification as mineral reserves.
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George Project hosts indicated resource of 420K ounces
B2Gold sees significant exploration potential across the Back River Gold District. It has allocated $32 million for exploration in 2025, with $21 million focused on the Goose Project.
The company has also increased its budget for regional exploration to $11 million, targeting the George Project, which sits 50 kilometers northwest of Goose.
The George Project currently hosts an indicated mineral resource of 420,000 ounces of gold and an inferred mineral resource of 1,120,000 ounces.
To enhance long-term value at Goose, B2Gold is conducting multiple optimization studies.
In processing, the company is evaluating a flotation/concentrate leach process to improve gold recovery and reduce costs. It is also launching a study on adding a semi-autogenous grinding (SAG) mill to work alongside the existing 4,000 tonnes per day (tpd) ball mill, potentially increasing throughput.
On the mining side, B2Gold will assess underground and open-pit strategies to lower costs and integrate more Mineral Resources into the mine plan. The company is also exploring the feasibility of operating the Goose Project winter ice road on a less frequent basis.
Given the updated Goose Project Mineral Resource inventory and strong exploration potential across the district, B2Gold is studying an expansion of mill throughput from 4,000 tpd to as much as 6,000 tpd.
The project already holds permits for this level of throughput. The company plans to study the addition of a SAG mill. This would boost annual gold production, lower life-of-mine AISC, and increase the project’s net present value.
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joseph@mugglehead.com
