Projects

Masbate Mine – The Philippines

This page is currently being updated. For the most recent company information:

  • Click here for B2Gold’s Q3 & FH 2019 Management Discussion & Analysis
  • Click here for B2Gold’s Q3 & FH 2019 Financial Statements
  • Click here for 'B2Gold’s Q3 & YTD 2019 Earnings news release (dated November 5, 2019)
  • Click here for Annual Information Form ("AIF") 2019, dated March 20, 2019(6)

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. 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. With the expansion now fully commissioned and online, 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") 2019 Performance Snapshot: 

  • Gold production(3) was 57,572 oz 
  • Cash operating costs were $566 /oz sold
  • AISC were $749 /oz sold

First-half ("FH") 2019 Performance Snapshot:

  • Gold production(3) was 115,053 oz
  • Cash operating costs were $557 /oz sold
  • AISC were $746 /oz sold

2019 Guidance: 

  • Gold production(3) is expected to be between 200 Koz - 210 Koz
  • Cash operating costs are expected to be between $625 - $665 /oz sold
  • AISC are expected to be between $860 - $900 /oz sold

Click here for Q2 & FH 2019 Earnings news release, dated June 30, 2019

Health, Safety & Environment: 

  • Masbate Mine is approaching one year without a lost-time-injury (as at June 30, 2019)
  • Click here for B2Gold's 2018 Responsible Mining Report, Raising the Bar

Click here for Masbate Mine overview

Mine/Project Location Map:

Mine Overview (as at June 30, 2019):

Q2 2019 Production, Cash Costs, Revenue & Sales:
Gold production 57,572 oz
Cash operating costs $566 /oz sold
AISC $749 /oz sold
Gold revenue $81,469
Gold sales 62,100 oz
Average realized gold price $1,312 /oz
FH 2019 Production, Cash Costs, Revenue & Sales:
Gold production 115,053 oz
Cash operating costs $557 /oz sold
AISC $746 /oz sold
Gold revenue $147,296
Gold sales 112,500 oz
Average realized gold price $1,309 /oz
Q2 2019 Processing: 
Tonnes of ore milled 2.09 M
Grade 1.22 g/t
Recovery 70.2%
FH 2019 Processing:
Tonnes of ore milled 3.93 M
Grade 1.27 g/t
Recovery 72.0%
2019 Guidance:  
Projected gold production 200 Koz - 210 Koz
Projected cash operating costs $625 - $665 /oz sold
Projected AISC $860 - $900 /oz sold
Projected tonnes of ore milled (budget) 8 M
Projected grade (budget) 1.07 g/t (average)
Projected recovery (budget) 75.2%
Exploration budget $4 M
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 Resources Corporation ("Filminera"). Zoom Mineral Holdings Inc. 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) 907
Local employee workforce(4) 98.5%
Mineral Reserve & Resource Estimates (Contained Gold) – 100% Project Basis:
Probable Mineral Reserves(5) 2.16 Moz
Indicated Mineral Resources(5) 3.47 Moz
Inferred Mineral Resources(5) 0.52 Moz

Supporting Documents:

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

  • Click here for 'B2Gold Corp. Announces Strong Third Quarter and Year-to-Date 2019 Results and Declares its First Quarterly Dividend' news release, dated November 5, 2019
  • Click here for 'B2Gold Reports Strong Second Quarter 2019 Results; Record Quarterly Gold Production of 246,000 oz, 8% Above Budget; Beat Against Budget for Cash Operating Costs and AISC' news release, dated August 6, 2019

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

  • Click here for Q2 & FH 2019 Management’s Discussion & Analysis ("MD&A")(6)
  • Click here for Q2 & FH 2019 Financial Statements(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).
  3. B2Gold’s Q2 2019 and FH 2019 gold production results and 2019 annual gold production guidance are presented on a 100% basis.
  4. As at December 31, 2018. Refer to pages 51-54 in the Company's 'Responsible Mining Report 2018 – Raising the Bar' (click here), dated June 14, 2019. 
  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.

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 here and are based on the assumptions, qualifications and procedures set out therein.

Mineral Resource & Mineral Reserve Estimates – 100% Project Basis:

Probable Mineral Reserves Statement:

Area Tonnes
(x 1,000)
Gold Grade
(g/t Au)
Contained Gold
Ounces (x 1,000)
North 7,300 1.18 280
South 41,700 0.95 1,280
Stockpiles         32,500 0.58 610
Total Probable Reserves 81,500 0.82 2,160
Notes (Click to expand)
  1. Mineral Reserves have been classified using the CIM Standards (refer to the Company's AIF, dated March 20, 2019 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% project 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. B2Gold has a 40% interest in Filminera, which owns the majority of the Masbate Gold Project tenements. Please see heading "Property Description, Location, and Access" for a further discussion of the foregoing.
  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 63% to 86%), selling costs of $54.11/ oz., and operating cost estimates of US$1.50/t to $1.80/t mined (mining), US$9.57/t processed (processing) and US$1.84–3.45/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 7.7% increase in tonnes, a 6.6% reduction in grade and a 0.7% reduction in ounces when compared to the Mineral Resource model.
  7. Mineral Reserves are reported at cutoffs that range from 0.41–0.54 g/t Au.
  8. North and South designations refer to locations north and south of the Guinobatan River, respectively.

Masbate Indicated Mineral Resources Statement:

Mineral Resources are reported inclusive of Mineral Reserves.

Area Tonnes
(x 1,000)
Gold Grade
(g/t Au)
Contained Gold
Ounces (x 1,000)
South 76,800 0.96 2,360
North 15,000 1.05 510
ROM Stockpile 400 1.23 20
LG Stockpile 32,100 0.57 590
Total Indicated 124,300 0.87 3,470

Masbate Inferred Mineral Resources Statement:

Area Tonnes
(x 1,000)
Gold Grade
(g/t Au)
Contained Gold
Ounces (x 1,000)
South 15,000 0.91 440
North 2,900 0.85 80
Total Inferred 18,000 0.90 520
Notes (Click to expand)
  1. Mineral Reserves have been classified using the CIM Standards (refer to the Company's AIF, dated March 20, 2019 click here for additional information regarding these Mineral Reserves). 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 and PGPRC, B2Gold's wholly-owned subsidiary, PGPRC, has the right to purchase all ore from the Masbate Gold Project. B2Gold has a 40% interest in Filminera, which owns the majority of the Masbate Gold Project tenements. Please see heading "Property Description, Location, and Access" for a further discussion of the foregoing. 
  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 63% to 86%), and operating cost estimates of US$1.50–$1.80/t mined (mining), US$9.57/t processed (processing) and US$1.84–US$3.45/t processed (general and administrative). 
  7. Mineral Resources are reported at an average cutoff of 0.4 g/t Au.
  8. North and South designations refer to locations north and south of the Guinobatan River, respectively.

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