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 its interest in the Masbate Mine through its acquisition of CGA Mining Limited in January 2013. B2Gold has an indirect ownership of Philippine Gold Limited which owns 40% of Filminera Resources Corporation ("Filminera"). Zoom Mineral Holdings Inc. (“Zoom”) owns 60% of Filminera. Prior to the completion of the 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. In early 2019, the Company completed an expansion project for the upgrade of the processing plant from 6.5 million tonnes per annum ("Mtpa") to 8.0 Mtpa. Masbate's annual gold production is projected to average approximately 200 Koz/y during the mining phase and above 100 Koz/y when the low-grade stockpiles are processed in the subsequent period after open-pit mining activities have ceased. 

Click here for Masbate Mine overview.

Recent Updates

Second Quarter ("Q2") 2020 Performance Snapshot:

  • Gold production(3): 48,654 oz 
  • Cash operating costs : $740 /oz sold
  • AISC: $1,060 /oz sold
  • Gold revenue: $75 K
  • Gold sales: 43,500 oz
  • Average realized gold price: $1,737 /oz

Full-year (“FY”) 2020 Guidance:

  • Gold production(3): 200 Koz - 210 Koz
  • Cash operating costs : $665 - $705 /oz 
  • AISC: $965 - $1,005 /oz 

Click here for B2Gold's Q2 2020 Earnings news release (dated August 5, 2020)

Health, Safety & Environment:

  • As at June 1, 2020, Masbate had:
    • Zero lost time incident rate 
    • 82% reduction in total recordable incident rate
    • 83% reduction in injury severity rate
    • Approx. 560 days lost time injury free

Click here for B2Gold's 2019 Responsible Mining Report, Raising the Bar

Mine/Project Location Map:

Masbate Project Location Map

Mine Overview (as at June 30, 2020):

FY 2020 Guidance Production, Costs, Revenue & Sales:
Gold production 200 Koz - 210 Koz
Cash operating costs $665 - $705 /oz sold
AISC $965 - $1,005 /oz sold
FY 2019 Production, Costs, Revenue & Sales:
Gold production 217,340 oz
Cash operating costs $589 /oz sold
AISC $815 /oz sold
Gold revenue $293,875
Gold sales 211,300 oz
Average realized gold price $1,391 /oz
FY 2020 Guidance Processing: 
Projected tonnes of ore milled (budget) 8.2 M
Projected grade (budget) 1.01 g/t
Projected recovery (budget) 76.3%
FY 2019 Processing:
Tonnes of ore milled 8.0 M
Grade 1.16 g/t
Recovery 73.2%
General Information:
Location The Philippines
Mine type Open pit
Metals mined Gold
Ownership B2Gold has an indirect ownership of Philippine Gold Limited which owns 40% of Filminera . Zoom owns 60% of Filminera
Processing plant Carbon-in-leach process
Power Heavy fuel oil power plant with diesel powered back-up (100% self-generated)
Total number of employees(4) 880
Local employee workforce(4) 98.6%
Mineral Reserve & Resource Estimates (Contained Gold)  – 100% Project Basis:
Probable Mineral Reserves(5) 2.21 Moz
Indicated Mineral Resources(5) 3.37 Moz
Inferred Mineral Resources(5) 0.58 Moz
2020 Exploration Budget
The Philippines (Masbate) $8 M

Supporting Documents:

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

  • Click here for B2Gold's Q2 2020 Earnings news release (dated August 5, 2020)
  • Click here for B2Gold's Q2 and FH 2020 Production news release (dated July 13, 2020)
  • Click here for B2Gold's Q1 2020 Earnings Results news release (dated May 5, 2020)
  • Click here for B2Gold's COVID-19 Financial Support to Charities & Governments news release (dated April 22, 2020)

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

  • Click here for B2Gold's Q2 2020 Management Discussion & Analysis ("MD&A") (dated June 30, 2020)
  • Click here for B2Gold's Q2 2019 MD&A (dated June 30, 2019)
  • Click here for B2Gold's Q2 2020 Financial Statements (dated June 30, 2020)
  • Click here for B2Gold's Q2 2019 Financial Statements (dated June 30, 2019)
  • Click here for B2Gold's 2020 Annual Information Form ("AIF") (dated March 20, 2020)
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).
  3. B2Gold’s Q32019,YTD2019 and FY 2019 gold production are presented on a 100% basis, unless otherwise stated.
  4. As at December 31, 2019. Refer to pages70-71 in the Company's' Responsible Mining Report 2019– Raising the Bar'(click here), dated June 12, 2012.
  5. Refer to respective notes in the 'Mineral Resource & Mineral Reserve Estimates' section below.
  6. Also available on SEDAR at www.sedar.com and on the U.S. Securities and Exchange Commission’s website at www.sec.gov.
  7. 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 the Company's most recent AIF, dated March 20, 2019 - click hereand are based on the assumptions, qualifications and procedures set out therein.

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Mineral Resource & Mineral Reserve Estimates:

Masbate Indicated Mineral Resources Statement:

Mineral Resources are reported inclusive of Mineral Reserves.

  100% Project Basis
Area Tonnes

 

(x 1,000)

Gold Grade

 

(g/t Au)

Contained Gold Ounces
(x 1,000)
North 17,300 1.01 560
South 71,800 0.95 2,200
Stockpiles 32,800 0.58 610
Total Indicated 121,900 0.86 3,370

Masbate Inferred Mineral Resources Statement:
  100% Project Basis
Area Tonnes

 

(x 1,000)

Gold Grade

 

(g/t Au)

Contained Gold Ounces
(x 1,000)
North 3,800 0.84 100
South 16,000 0.92 480
Total Inferred 19,800 0.91 580
Notes: (Click to expand)
  1. Mineral Resources have been classified using the Canadian Institute of Mining Standards. 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% project basis. Pursuant to the ore sales and purchase agreement between Filminera Resource Corporation ("Filminera") and Philippine Gold Processing & Refining Corporation ("PGPRC"), our wholly-owned subsidiary, PGPRC has the right to purchase all ore from the Masbate Gold Project. We have a 40% interest in Filminera, which owns the majority of the Masbate Gold Project tenements. Please see heading “- Property Description, Location, and Access” on page 31 of the 2020 Annual Information Form for a further discussion of the foregoing.
  4. The Qualified Person for the resource estimate is Tom Garagan, P.Geo., our Senior Vice President, Exploration.
  5. The Qualified Person for the stockpile estimate is Kevin Pemberton, P.E., our Chief Mine Planning Engineer.
  6. Mineral Resource estimates assume an open pit mining method, gold price of US$1,500/oz, modeled metallurgical recovery (resulting in average metallurgical recoveries by resource area that range from 58–82%), and operating cost estimates of US$1.41– $1.67/t mined (mining), US$11.38/t processed (processing) and US$1.98–US$3.31/t processed (general and administrative).
  7. Mineral Resources are reported at an average cut-off grade of 0.4 g/t Au. 8. North and South designations refer to locations north and south of the Guinobatan River, respectively.
  8. North and South designations refer to locations north and south of the Guinobatan River, respectively.

Probable Mineral Reserves Statement:

  100% Project Basis
Area Tonnes

 

(x 1,000)

Gold Grade

 

(g/t Au)

Contained
Gold Ounces
(x 1,000)
North 7,800 1.20 300
South 42,600 0.95 1,300
Stockpiles 32,800 0.58 610
Total Probable Reserves 83,200 0.83 2,210

Footnotes: (Click to expand)
  1. Mineral Reserves have been classified using the Canadian Institute of Mining Standards.
  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% project basis. Pursuant to the ore sales and purchase agreement between Filminera Resource Corporation ("Filminera") and Philippine Gold Processing & Refining Corporation ("PGPRC"), our wholly-owned subsidiary, PGPRC has the right to purchase all ore from the Masbate Gold Project. We have a 40% interest in Filminera, which owns the majority of the Masbate Gold Project tenements. Please see heading “- Property Description, Location, and Access” on page 31 of the 2020 Annual Information Form for a further discussion of the foregoing.
  4. The Qualified Person for the reserve estimate is Kevin Pemberton, P.E., our Chief Mine Planning Engineer.
  5. Mineral Reserves are based on a conventional open pit mining method, gold price of US$1,350/ounce, modeled metallurgical recovery (resulting in average life of mine metallurgical recoveries by pit that range from 64–85%), selling costs of $58.15/oz (including the excise tax), and average base operating cost estimates of US$1.41–$1.67/t mined (mining), US$11.37/t processed (processing including capital costs) and US$1.98–US$3.31/t processed (general and administrative).
  6. Dilution and ore loss were applied through block averaging such that at a cut-off of 0.45 g/t Au, there is a 5.1% increase in tonnes, a 5.6% reduction in grade and 0.8% reduction in ounces when compared to the Mineral Resource model.
  7. Mineral Reserves are reported at cut-off grades that range from 0.40–0.53 g/t Au.
  8. North and South designations refer to locations north and south of the Guinobatan River, respectively.

For more information, click here for B2Gold's 2020 Annual Information Form (pages 31 -37)

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