B2Gold (TSX: BTO) is set to begin underground mining operations at their Fekola Mine in Mali, which follows the receipt of approval the state for underground operations.
Stope production has already begun at the underground portion of the complex, which follows 9,300 metres of previously completed development work. Production in 2025 is estimated at 25,000 to 35,000 ounces of gold from the underground portion of the mine, with that production expected to ramp in 2026. 2025 guidance for the complex was reiterated as being 515,000 to 550,000 ounces.
The granting of the permit follows a meeting held last week between senior executives and representatives from the State of Mali, including the country’s Prime Minister, Minister of Mines, Minister of Finance, and certain advisors. As part of those meetings, it was determined that there would be a consolidation of certain regional permits, including from the Anaconda Area, which includes Bantako, Menankoto, and Bakolobi permits, with the Dandoko permit to establish what is known as Fekola Regional.
Fekola Regional will see the State of Mali own 35% of the entity, versus their 20% stake in the Fekola mine, which consists of the Medinandi permit that is centered around the Cardinal and Fekola open pits, alongside the Fekola underground.
Fekola Regional is expected to add 180,000 ounces of gold production to the Fekola complex during it’s first four years of operation, beginning in 2026. An exploitation permit is now expected to be received for Fekola Regional within Q3 2025, which would enable gold production to commence late in the year after three months of pre-stripping activities.
B2Gold last traded at $4.61 on the TSX.
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