The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
North of 60 Mining News - May 8, 2024
More than 2,100 loads of fuel, equipment, and supplies were trucked over an ice road to Goose mine.
With mining falling slightly behind schedule, B2Gold Corp. now expects to pour the first gold at the Goose mine on its Back River project in Nunavut sometime during the second quarter of 2025, slightly behind the first quarter start originally anticipated. The company, however, also reports that its winter ice road project to deliver equipment, fuel, and supplies was a success, and the mill remains on track to be completed on schedule.
B2Gold said a delay in the availability of surface mining equipment, adverse weather, and prioritization of critical path construction activities all contributed to mining at Goose falling behind schedule.
The company currently anticipates that it is going to take an additional three months of mining to ensure that the Umwelt open pit, underground development, and crown pillar activities align and that there is sufficient tailings storage capacity in the Echo open pit before commissioning the mill.
With the delayed start, B2Gold now expects to produce between 120,000 and 150,000 ounces of gold in 2025, which is roughly 100,000 oz less than the 220,000 to 260,000 oz originally forecast for next year.
The later start in 2025, however, has resulted in the company estimating that average annual gold production from 2026 to 2030 will top 310,000 oz per year, which is slightly higher than the 300,000 oz per year that was originally forecast for the newest gold mine in Nunavut.
While preproduction mining has fallen slightly behind schedule, the delivery of equipment, fuel, and supplies vital to getting the Goose gold mine up and running was a success.
Development of the Goose mine and exploration of the district-scale Back River gold project where the mine is located is supported by a port and marine laydown area on Bathurst Inlet north of Goose.
During the summer, ships deliver goods to the Canadian Arctic port – most of which is transported to the mine site itself via a roughly 160-kilometer (100 miles) winter ice road.
B2Gold completed the ice road and delivered 2,100 truckloads of goods to the mine site, roughly double the loads delivered in 2023.
Key materials delivered over the ice road this year include all modular units necessary to expand the camp to 500-person capacity; all steel and rebar needed to complete the mill and concrete work; roughly 19 million liters (5 million gallons) of fuel, enough to last until March 2025; all cement necessary to complete the construction project; more than 4,500 cubic meters (5,900 cubic yards) of cement; and the reagents necessary to commission and operate the mill starting in 2025.
Once construction is complete, diesel fuel will be the single largest item that will need to be delivered to sustain production at Goose.
To ensure there is enough diesel fuel storage capacity, B2Gold is expanding the existing tank farms at the Bathurst Inlet laydown area and Goose mine site from 25 million liters (6.6 million gallons) storage capacity to more than 80 million liters (21 million gallons). This increase requires the addition of three more tanks at each site. All the steel required to complete the tank expansion is present at each site, and construction crews have commenced assembling the tank bases. These tanks are slated for completion by the end of August, so they are ready to receive the 2024 sealift shipment of fuel that will sustain the project through the end of construction and into production in 2025.
While mining is running slightly behind, construction of the mill and other facilities remains on pace.
Earlier this year, B2Gold raised its estimated total costs for Goose mine construction to C$1.05 billion (US$760 million).
The company attributes much of this increase to underestimated labor and site operating costs in the feasibility study, along with inflationary impacts on materials and transportation.
Before the first gold is poured at Goose, B2Gold estimates that it will spend an additional C$200 million (US$146 million) on underground development, deferred stripping, and sustaining capital, along with an additional C$205 million (US$149 million) for fuels, reagents, and other working capital items necessary to build up site inventory levels due to the seasonality of the project logistics.
As of the end of March, approximately C$841 million (US$612 million) had been spent on construction and mine development activities and C$47 million (US$34 million) on supplies inventory.
This leaves roughly C$209 million (US$152 million) in construction and mine development costs remaining. Continued inflationary pressures, coupled with the delayed mine start, could push the total price tag slightly higher.
B2Gold is in the process of completing a new review of the total cost to be incurred before first gold production.
As a result of construction activities being on or ahead of schedule and the updated first gold production estimate relating solely to the mining schedule change, the company estimates that the total spend to be incurred before first gold production will not be significantly different than the previous estimate.
The updated total cost estimate to reach the first gold pour at Goose mine is slated for completion in June.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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