B2Gold (TSX: BTO; NYSE: BTG, NSX: B2G) has made the first gold pour at its Goose mine in southwestern Nunavut, making it the company’s first producing mine in Canada and putting it on track to be the territory’s third producing gold site after Agnico Eagle Mines’ (TSX, NYSE: AEM) Meadowbank and Meliadine operations.
The milestone on Monday came less than a week after B2Gold fed the first ore into the processing facilities on June 24, with the mill operating consistently at about 50% of nameplate capacity during the initial stage, B2Gold said in a release.
“With first gold achieved, the near-term focus shifts to the ramp-up to commercial production in [the third quarter of this year],” Canaccord Genuity analyst Carey MacRury said in a note on Wednesday.
“Longer term, we see upside beyond the initial mine plan,” he said. “We expect the mine life to extend significantly as B2Gold deploys its $32 million 2025 exploration budget for the Back River district to upgrade and expand resources.”
Mill capacity expansion
A company study is investigating expanding the Goose mill capacity to 6,000 tonnes per day from 4,000, which could offer more catalysts for the mine, MacRury said. The mine’s reserve-focused plan targets 2.3 million oz. over nine years, though that’s based on just a fraction of the Back River Gold district’s 6-million-oz. resource base, he added. MacRury models a net present value for Goose of $3.4 billion, one-third of its operating net asset value for B2Gold.
“The commencement of gold production at the Goose mine marks an exciting step in B2Gold’s history, further diversifying and adding to the quality of the company’s existing global operating portfolio,” B2Gold CEO Clive Johnson said in a release. “We look forward to many years of safe and successful production at the Goose mine, as well as further unlocking the value of the entire Back River gold district.”
The company forecasts a production range of 120,000 to 150,000 gold oz. this year and annual output for 2026 to 2031 of around 300,000 ounces. Goose hosts probable reserves of 11.3 million tonnes grading 6.82 grams per tonne gold for a total of 2.48 million contained ounces.
Company shares gained 1.2% to $4.97 apiece on Wednesday at mid-day in Toronto, for a market capitalization of $6.53 billion. Its stock traded in a 12-month range of $3.16 to $5.21.
– with files from Blair McBride
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