Projects

Masbate Mine – The Philippines (1)

The Masbate Gold Project ("MGP") is located on Masbate Island in the Philippines. The Masbate Mine is located approximately 360 km southeast of the country's capital, Manila. Click here for mine/project location map. 

B2Gold acquired the Masbate Mine through a merger with CGA Mining Limited in January 2013. Prior to the completion of the merger agreement, B2Gold’s engineering team identified several areas of the operations that could be improved or optimized. Work commenced almost immediately following the closing of the agreement and included transitioning from contract mining to self-mining and making a series of upgrades to the processing plant. This, and other optimization projects, resulted in an increased average annual gold production and a significant reduction in cash operating costs(2) and all-in-sustaining costs (“AISC”)(2), compared to the original mine plan. Other projects included replacing and upgrading the original SAG mill, as well as initiating systems and training programs, which resulted in a more efficient and safer mine site. The Company continues to optimize operations at Masbate and is currently expanding the mill from 6.5 million tonnes per annum (“Mtpa”) to 8 Mtpa (expected to be on line in early 2019), which will maintain gold production near 200 Koz/y during the mining phase and 100 Koz/y when the low-grade stockpiles are processed at the end of the open-pit mine life. Click here for Masbate Mine overview. 

Recent Updates:

  • On July 3, 2018, the Department of Environment and Natural Resources ("DENR") Secretary, Roy Cimatu, lifted the Ban on accepting, processing and approving applications for Exploration Permits that was put in place by the former Secretary. The text refers to attracting foreign direct investment to the Philippines “in-line with the President’s Economic Agenda.” B2Gold views this as a significant step towards normalizing the process for permitting new mining development in the country

Q2 2018 Performance Snapshot:

  • Gold production(3) was 54,254 oz25% above budget
  • Cash operating costs were $531/ozsignificantly below budget by 27%
  • AISC were $727/ozsignificantly below budget by 27% 

FH 2018 Performance Snapshot: 

  • Gold production(3) was 107,401 oz, 19% above budget
  • Cash operating costs were $537/ozsignificantly below budget by 24%
  • AISC were $739/ozsignificantly below budget by 21% 

Click here for B2Gold's Q2 & FH 2018 Earnings news release, dated August 7, 2018

Looking Forward: 

  • Based on strong year-to-date performance, B2Gold has revised Masbate’s 2018 annual gold production guidance range higher to be between 200 Koz - 210 Koz(3), at cash operating costs of between $675 - $720/oz and AISC of between $875 - $925/oz
  • Masbate expansion project for the upgrade of the processing plant from 6.5 Mtpa to 8.0 Mtpa remains on track for completion in early 2019
  • When the expansion comes online, it is projected to keep Masbate's annual gold production near 200 Koz/y during the mining phase and above 100 Koz/y when the low-grade stockpiles are processed at the end of the open-pit mine life

Click here for Masbate Exploration & Development section

Health, Safety & Environment: 

  • Safety performance: As at June 30, 2018, achieved almost 2.8 years (989 days) without a Lost-Time-Injury
  • Click here for B2Gold's 2017 Responsible Mining Report, Raising the Bar

Click here for Masbate Mine overview

Mine/Project Location Map:

Mine Overview (as at June 30, 2018):

Q2 2018 Production, Cash Costs, Revenue & Sales:
Q2 2018 gold production 54,254 oz
Q2 2018 cash operating costs $531 /oz
Q2 2018 AISC $727 /oz
Q2 2018  gold revenue $62,858
Q2 2018  gold sales 48,400 oz
Q2 2018  average realized gold price $1,299 /oz
FH 2018 Production, Cash Costs, Revenue & Sales:
FH 2018 gold production 107,401 oz
FH 2018 cash operating costs $537 /oz
FH 2018 AISC $739 /oz
FH 2018  gold revenue $142,994
FH 2018  gold sales 108,400 oz
FH 2018  average realized gold price $1,319 /oz
Q2 2018 Processing: 
Q2 2018 tonnes of ore milled 1.69 M
Q2 2018 grade 1.29 g/t
Q2 2018 recovery 77.3%
FH 2018 Processing:
FH 2018 tonnes of ore milled 3.48 M
FH 2018 grade 1.23 g/t
FH 2018 recovery 77.9%
2018 Guidance:  
2018 E gold production 200 Koz-210 Koz
2018 E cash operating costs $675-$720 /oz
2018 E AISC $875-$925 /oz
2018 E tonnes of ore milled (budget) 6.80 M (average)
2018 E grade (budget) 1.26 g/t (average)
2018 E recovery (budget) 65.9% (average)
2018 exploration budget $5 M
2019 Guidance:
2019 E gold production(3) 190 Koz-200 Koz
General Information:
Location Philippines
Mine type Open pit
Metals mined Gold
Ownership(4) B2Gold: Filminera/PGPRC/Zoom
Processing plant Carbon-in-leach process
Power Heavy fuel oil power plant with diesel powered back-up (100% self-generated)
Number of employees (not including contractors) 845
Local employee workforce 98%
Mineral Reserve & Resource Estimates (Contained Gold):
Probable Mineral Reserves (100% attributable)(5) 2.42 Moz
Indicated Mineral Resources (100% attributable)(5) 3.41 Moz
Inferred Mineral Resources (100% attributable)(5) 0.19 Moz

Supporting Documents:

For the latest details and news releases pertaining to the Masbate Mine:

  • Click here for 'B2Gold Reports Positive Second Quarter & First-Half 2018 Results; Strong Growth in Gold Production/Revenues and Operating Cash Flows; Significant Beat Against Budget for Cash Operating Costs and AISC' news release, dated August 7, 2018

For a more detailed overview of the Fekola Mine, please refer to the following, most recent company documents:

  • Click here for Q2 2018 Management’s Discussion & Analysis ("MD&A")(6)
  • Click here for Q2 2018 Financial Statements(6)
  • Click here for Annual Information Form ("AIF") 2018, dated March 23, 2018(6)
Footnotes (Click to expand)
  1. The disclosure contains forward-looking statements. Refer to the Legal section of the website (click here) for caution regarding forward-looking statements and the basis for presentation of mineral reserves, mineral resources and other technical disclosures.
  2. Refer to “Non-IFRS measures” in the Company’s most recently filed MD&A. Click here for MD&A..
  3. B2Gold’s Q2 2018 and FH 2018 production results, and 2018 and 2019 annual production guidance are presented on a 100% basis.
  4. MGP: B2Gold holds its project interest through indirectly-owned subsidiaries. B2Gold has a 40% interest in Filminera Resources Corporation ("Filminera") and a 100% interest in Philippine Gold Processing & Refining Corporation ("PGPRC"). The remaining 60% interest in Filminera is held by a Philippines-registered company, Zoom. Mineral Holdings Inc. (“Zoom”). Refer to pages 29-30 in the Company's AIF, dated March 23, 2018, for more details - click here.
  5. Refer to respective footnotes in Summary of Mineral Reserve and Mineral Resource Estimates  - click here and see 'Mineral Resource & Mineral Reserve Estimates' section below.
  6. Also available on SEDAR and at www.sedar.com and on the U.S. Securities and Exchange Commission’s website at www.sec.gov.

Certain portions of the following information are derived from and based on the technical report entitled “Masbate Gold Operation, Republic of the Philippines, NI 43-101 Technical Report on Operations” (click here) that has an effective date of December 31, 2016, and was prepared by Tom Garagan, P. Geo., Ken Jones, P.E., Kevin Pemberton, P.E. and John Rajala, P.E., and from our most recent AIF, dated March 28, 2018 - click here for AIF, and are based on the assumptions, qualifications and procedures set out therein.

Mineral Resource & Mineral Reserve Estimates:

Probable Mineral Reserves Statement:

Area Tonnes
(t)
Gold Grade
(g/t Au)
Contained Gold
Ounces (oz)
Contained Gold
Kilograms (kg)
South 45,720,000 0.97 1,424,000 44,300
North 11,520,000 1.11 411,000 12,800
ROM Stockpile 620,000 1.12 22,000 700
LG Stockpile 30,650,000 0.57 562,000 17,500
Total 88,520,000 0.85 2,420,000 75,300
Footnotes (Click to expand)
  1. Mineral Reserves have been classified using the Canadian Institute of Mining (“CIM”) Standards (refer to the Company's AIF, dated March 23, 2018 (click here for additional information regarding these Mineral Reserves)).
  2. All tonnage, grade and contained metal content estimates have been rounded; rounding may result in apparent summation differences between tonnes, grade, and contained metal content.
  3. Mineral Reserves are reported on a 100% attributable basis. Pursuant to the ore sales and purchase agreement between Filminera and PGPRC, B2Gold’s wholly-owned subsidiary, PGPRC has the right to purchase all ore from the Masbate Gold Project.
  4. The Qualified Person for the reserve estimate is Kevin Pemberton, P.E., who is B2Gold’s Chief Mine Planning Engineer. 
  5. Mineral Reserve estimates assume an open-pit mining method, gold price of US$1,250/oz, modeled metallurgical recovery (resulting in average LoM metallurgical recoveries by pit that range from 65% to 82%), and operating cost estimates of US$1.50/t to $1.60/t mined (mining), a variable ore mining differential cost by pit (average cost is US$0.17), US$8.45/t processed (processing) and US$2.50–3.83/t processed (general and administrative).
  6. Dilution and ore loss were applied through block averaging such that at a cut-off of 0.49 g/t Au, there is a 7% increase in tonnes, a 6% reduction in grade and no change in ounces when compared to the Mineral Resource model.
  7. Mineral Reserves are reported at cutoffs that range from 0.44–0.52 g/t Au.
  8. North and South designations refer to locations north and south of the Guinobatan River, respectively.

Masbate Indicated Mineral Resources Statement:

Area Tonnes
(t)
Gold Grade
(g/t Au)
Contained Gold
Ounces (oz)
Contained Gold
Kilograms (kg)
South 71,440,000 0.97 2,226,000 69,200
North 17,710,000 1.05 600,000 18,700
ROM Stockpile 620,000 1.12 22,000 700
LG Stockpile 30,650,000 0.57 562,000 17,500
Total 120,430,000 0.88 3,411,000 106,100

Masbate Inferred Mineral Resources Statement:

Area Tonnes
(t)
Gold Grade
(g/t Au)
Contained Gold
Ounces (oz)
Contained Gold
Kilograms (kg)
South 4,850,000 0.87 136,000 4,200
North 2,350,000 0.76 58,000 1,800
Total 7,200,000 0.84 193,000 6,000
Footnotes (Click to expand)
  1. Mineral Resources have been classified using the CIM Standards (refer to the Company's AIF, dated March 23, 2018 (click here for additional information regarding these Mineral Resources)). Mineral Resources are reported inclusive of those Mineral Resources that have been modified to Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 
  2. All tonnage, grade and contained metal content estimates have been rounded; rounding may result in apparent summation differences between tonnes, grade, and contained metal content.
  3. Mineral Resources are reported on a 100% attributable basis. Pursuant to the ore sales and purchase agreement between Filminera and PGPRC, B2Gold’s wholly-owned subsidiary, PGPRC has the right to purchase all ore from the Masbate Gold Project.
  4. The Qualified Person for the resource estimate is Tom Garagan, P.Geo., who is B2Gold’s Senior Vice President, Exploration.
  5. The Qualified Person for the stockpile estimate is Kevin Pemberton, P.E., who is B2Gold’s Chief Mine Planning Engineer.
  6. Mineral Resource estimates assume an open-pit mining method, gold price of US$1,400/oz, modeled metallurgical recovery (resulting in average LoM metallurgical recoveries by pit that range from 65% to 82%), and operating cost estimates of US$1.50-$1.60/t mined (mining), a variable ore mining differential cost by pit (average cost is US$0.17), US$8.45/t processed (processing) and US$2.50–3.83/t processed (general and administrative). 
  7. Mineral Resources are reported at an average cutoff of 0.43 g/t Au.
  8. North and South designations refer to locations north and south of the Guinobatan River, respectively.

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