McEwen’s Los Azules copper project gets key environmental approval
The company anticipates construction to begin as early as 2026.
Drill results from B2Gold’s (TSX: BTO; NYSE: BTG) Goose project in Nunavut, which is under construction and expected to yield first gold next year, may point to a longer mine life and bigger resource base, the company said Wednesday.
Drill hole 24GSE-683Z1 at the Nuvuyak deposit at Goose cut 28.8 metres at 6.39 grams gold per tonne from 982.2 metres. It had a higher-grade interval of 23.49 grams gold over 6.5 metres from 1,005 metres depth. This extends high-grade mineralization by 150 metres to the north-northwest.
“These results affirm the continuity of high-grade zones at Nuvuyak, suggesting a larger resource base and potentially extending the Goose project’s mine life,” CEO Clive Johnson said in a statement.
The company is in the midst of a $28 million, 25,126-metre drill campaign at Goose that has found more high-grade gold at Nuvuyak deposit and the Mammoth target at the property. This points to expansion potential beyond the current mine plan, the company said.
The Mammoth target, 450 metres up plunge from Nuvuyak toward Goose Main, also returned juicy results. Drill hole 24GSE-687Z1 cut 11 metres at 17.45 grams gold per tonne from 837.14 metres, including 68.61 grams over 2.5 metres.
The company said this indicates a high-grade system between Nuvuyak and Mammoth. B2Gold’s exploration team sees high potential for underground mining here. It could boost future production.
B2Gold shares on Thursday gained as much as 3.2% to C$3.87 before early afternoon bids fell back to C$3.84. Shares have ranged between C$3.18 and C$4.84 over the past 12 months and it has a market capitalization of C$5 billion.
In May, the company pushed back expected first production from Goose, which was originally slated to start production in the first quarter next year, by three months. First gold is now expected in the second quarter next year and full production the following quarter. B2Gold expects Goose to contribute about 120,000–150,000 oz. gold to its 2025 production guidance of more than 900,000 oz. gold. It said the delay was due to equipment availability, weather, and construction prioritization.
As of September, the construction and development capital estimate rose by 23% to $1.54 billion compared with January estimates. Higher capital investments to improve reliability and higher logistics costs drove the cost creep.
The company has revised the mine plan and timeline for an increased production profile from 2026 to 2031 of over 310,000 oz. yearly.
With an average grade of 6 grams gold per tonne, Goose ranks as one of the highest-grade undeveloped open-pit deposits globally.
Goose has proven reserves of 8 million tonnes grading 5.54 grams gold per tonne for 1.4 million oz. of metal, and 10.7 million tonnes of probable reserves at 6.3 grams gold per tonne for 2.2 million ounces. It has another 9.7 million measured tonnes at 5.75 grams gold for 1.8 million oz. and 16.6 million indicated tonnes at 6.28 grams gold for 3.3 million ounces.
In April last year, B2Gold acquired distressed Sabina Gold & Silver in an all-stock deal worth $1.1 billion to gain the Back River Gold District. At a gold price of $1,600, a March 2021 updated feasibility study projected an after-tax net present value of $1.1 billion at a 5% discount rate. It also projects a 27.7% after-tax internal rate of return.
Meanwhile, infill drilling at the nearby Umwelt deposit, a planned early anchor for production at Goose, continued to find high-grade gold, the company said.
Drill hole 24GSE-671 returned 11.1 metres at 27.28 grams gold per tonne from 457.8 metres depth. Hole 24GSE-684B produced 22.8 metres at 29.49 grams of gold from 332.3 metres depth. This included a bonanza-grade interval of 0.7 metre at 301 grams of gold per tonne from the start of the longer interval.
“These results reinforce the confidence in high-grade continuity at Umwelt, supporting the initial production plan and signalling the potential for higher-than-expected early yields,” Johnson said.
B2Gold also drilled down at the Llama deposit, which returned 28 metres at 14.34 grams gold per tonne from 406.06 metres depth in hole 24GSE-663. This shows the deposit is open at depth, the company said.
Regional drilling extended to nine exploration targets across the Back River district, for 6,610 metres. The campaign created a pipeline of future drilling targets for resource development, B2Gold said.
It plans to continue its exploration program into next year, informed by results from the current season.
