B2Gold announced an update on its Goose project in Nunavut, Canada, increasing its costs by 23%.

The total construction, mine development, and sustaining capital cash expenditures are now estimated at C$1.5 billion, up C$290 million from the previous estimate. Construction cash expenditure is expected to reach around C$1.2 billion, up C$140 million.

At the beginning of this year,  B2Gold announced a 25% increase in the capital cost estimate to build its Goose mine to C$1.1 billion from C$800 million before that.

According to B2Gold, about half of the additional costs are due to a epreviously disclosed dlay in the first gold production combined with an "acceleration of capital items that were previously anticipated to occur after first gold production".

"The acceleration of certain capital items is expected to make the Goose project a more reliable and de-risked operation upon mill startup," the company said.

25% of the cost increase is due to the higher cost of logistics for shipping materials to the site.

As of the end of June, around C$1 billion had been spent on the construction and development of Goose, with around 66% of the estimated total expected to be incurred before the first gold production.

"B2Gold continues to maintain a strong financial position with a working capital balance of $600 million as of June 30, 2024, plus access to the full amount of the company's undrawn $700 million revolving credit facility and anticipated operating cash flow from existing operations," the company said.

Construction and development are on track for the first gold pour at the project in the June 2025 quarter. Commercial production will ramp up in the following quarter.

In 2025, B2Gold projects that production at Goose will be around 120,000-150,000oz. Goose will produce an estimated 310,000ozpa of gold for the first five full years of production.