B2Gold Secures Underground Mining Approval for Mali’s Fekola Mine

B2Gold's Fekola Underground Mining Approval: Expanding Mali's Gold Production Potential

The global mining industry is witnessing a significant development as B2Gold Corp. secures approval for underground mining operations at its flagship Fekola Mine in Mali. This strategic expansion marks a pivotal evolution in the company's West African operations, promising to bolster production capacity and extend the mine's operational lifespan. Recent gold prices analysis suggests this timing could be particularly advantageous.

The Fekola Mine Complex: Strategic Position in Mali's Gold Sector

Located in southwestern Mali near the Senegal border, the Fekola Mine has established itself as one of West Africa's premier gold-producing assets. The complex operates under a structured ownership model, with B2Gold holding an 80% stake in the main Fekola Mine and 65% in Fekola Regional (Anaconda Area), while the State of Mali maintains the remaining shares as a valued partner in the operation.

The Fekola Complex encompasses the Medinandi permit area, which contains both the Fekola and Cardinal open pits, alongside the expansive Fekola Regional territory that includes the promising Anaconda Area. Since achieving commercial production in November 2017, Fekola has consistently delivered strong gold market performance, establishing itself as B2Gold's cornerstone asset.

Strategic Significance of the Underground Expansion

The newly approved underground mining initiative represents a transformative step for B2Gold's Malian operations. This expansion facilitates a critical transition from exclusively open-pit extraction to a more diversified operational approach combining both surface and underground mining methodologies.

This dual-mining strategy offers several strategic advantages:

• Resource optimization: Accessing deeper, high-grade ore bodies that remain economically unfeasible for open-pit extraction
• Production sustainability: Creating a more balanced production profile to maintain consistent output levels
• Operational flexibility: Developing multiple mining fronts to mitigate production risks
• Asset value maximization: Extending the productive life of existing infrastructure investments

The underground development significantly strengthens B2Gold's position within Mali's mining sector while enhancing the company's global portfolio diversification strategy.

Securing Regulatory Approval Through Strategic Engagement

B2Gold's achievement of underground mining approval follows extensive engagement with Malian authorities. Recent high-level discussions between company executives and government officials, including Prime Minister Abdoulaye Maïga, have reinforced the cooperative relationship established through the September 2024 governance agreement for the Fekola Complex.

These negotiations have successfully balanced corporate development objectives with Mali's national interests, addressing key considerations such as:

• Local employment generation and skills development
• Technology transfer and capacity building
• Environmental protection protocols
• Community development initiatives
• Revenue sharing mechanisms

This collaborative approach has enabled B2Gold to navigate Mali's regulatory framework while maintaining positive government relations—a critical success factor in the region's mining sector.

Extensive Preparatory Work Underpinning the Expansion

The approval follows comprehensive underground exploration and development activities conducted throughout 2024-2025. B2Gold has completed over 9,300 meters of developmental work, establishing the foundation for efficient underground mining operations.

This preparatory phase has encompassed:

• Extensive geological mapping and modeling
• Geotechnical assessments to evaluate ground conditions
• Hydrological studies addressing water management requirements
• Ventilation system design and implementation
• Access decline development and infrastructure preparation

These investments demonstrate B2Gold's commitment to establishing sustainable underground operations that complement existing open-pit activities while maintaining the company's operational standards.

Production Projections: Near-Term Impact and Long-Term Potential

The underground expansion is expected to deliver an initial production contribution of 25,000-35,000 ounces of gold in 2025, supplementing the current production forecast for the entire Fekola Complex, which stands at 515,000-550,000 ounces for the year. Industry analysts following the gold price forecast are watching these developments closely.

This initial output represents just the beginning of the underground operation's potential. As development progresses and access to deeper ore bodies improves, production from underground sources is projected to increase substantially, enhancing the mine's overall production profile.

The company has implemented a strategic stockpiling approach to optimize mill throughput, ensuring efficient processing capacity utilization as underground production ramps up. This balanced approach maintains operational continuity while gradually integrating underground ore into the processing stream.

Fekola Regional Development: Complementary Growth Vector

While underground expansion progresses at the main Fekola site, B2Gold is simultaneously advancing the Fekola Regional development, with permit approvals anticipated by the end of Q3 2025. This regional initiative focuses on the promising Anaconda Area, encompassing the Menankoto and Dandoko permits.

Upon receiving regulatory clearance, preparatory mining activities will commence promptly, with production targeted to begin in 2026. The regional assets are projected to contribute approximately 180,000 ounces annually between 2026-2029, significantly augmenting the complex's overall output.

The development timeline includes:

• Q3-Q4 2025: Infrastructure development and site preparation
• Q1 2026: Initial mining operations
• Q2-Q3 2026: Production ramp-up
• 2026-2029: Sustained production contribution

This regional expansion creates valuable operational synergies with the main Fekola operation, optimizing resource utilization across the broader complex.

Historical Context: Fekola's Evolution from Acquisition to Production

B2Gold's journey with Fekola began through its strategic merger with Papillon Resources in 2014, securing access to one of West Africa's most promising gold development projects. Construction commenced in February 2015, with remarkable efficiency leading to the completion of the Fekola mill and initial ore processing by September 2017, as reported by Mining.com.

The project achieved several critical milestones in rapid succession:

• October 2017: First gold pour
• November 2017: Commercial production declaration
• 2018-2019: Production ramp-up exceeding initial design capacity
• 2020-2023: Multiple expansion initiatives enhancing throughput capacity
• 2024: Underground development approval

This progression demonstrates B2Gold's execution capabilities and long-term commitment to maximizing the Fekola asset's value potential through sustained investment and operational excellence.

Economic Impact on Mali's Mining Sector

The Fekola Complex represents a cornerstone of Mali's mining industry, generating substantial economic benefits for the nation. As one of Africa's leading gold producers, Mali relies heavily on its mining sector for export revenue, employment generation, and fiscal contributions.

Fekola's expansion delivers multiple economic advantages:

• Revenue enhancement: Increased gold production directly improves export earnings and government royalties
• Employment multiplication: Underground operations create specialized jobs requiring advanced technical skills
• Supply chain development: Extended operational life strengthens local business development opportunities
• Infrastructure improvement: Ongoing operations support continued infrastructure investment in the region

These economic impacts are particularly significant given Mali's position as Africa's third-largest gold producer, with the mining sector accounting for approximately 10% of GDP and over 70% of export revenues.

Regulatory Framework Supporting Mining Investment

Mali's mining code provides a structured framework governing foreign investment in the sector. The current regulations establish clear parameters for government participation, fiscal terms, and operational requirements, creating a relatively stable investment environment despite occasional political challenges.

Key aspects of Mali's mining regulatory structure include:

• Mandatory government participation in mining projects
• Defined royalty rates based on production values
• Clear environmental compliance requirements
• Community development obligations
• Provisions for stability agreements protecting major investments

While regional security concerns and political transitions have created periodic uncertainties, Mali's fundamental recognition of mining's economic importance has generally supported continued sector development.

Technical Complexities of Underground Mining at Fekola

The transition to underground mining presents several technical challenges requiring specialized solutions. The geotechnical characteristics of the Fekola deposit demand careful engineering approaches to ensure safe and efficient extraction.

Primary technical considerations include:

• Ground support systems: Implementing appropriate support mechanisms to maintain stability in various rock conditions
• Water management: Developing comprehensive dewatering systems to control groundwater inflows
• Ventilation infrastructure: Establishing effective air circulation to maintain safe working conditions
• Transition zone management: Coordinating underground development with ongoing open-pit operations to prevent interference

B2Gold's technical team has developed comprehensive solutions addressing these challenges, drawing on global best practices while adapting approaches to Fekola's specific geological conditions.

Operational Integration Strategies

Successful implementation of the underground expansion requires seamless integration with existing open-pit operations. B2Gold has developed a coordinated approach balancing multiple mining fronts while optimizing shared infrastructure and resources.

Key integration elements include:

• Synchronized production scheduling between underground and open-pit sources
• Blending strategies optimizing mill feed characteristics
• Shared maintenance facilities and equipment resources
• Integrated workforce management with specialized training programs
• Unified environmental monitoring and management systems

This integrated operational approach maximizes efficiency while maintaining production continuity throughout the transition period.

Future Exploration Potential and Resource Expansion

Beyond current development plans, Fekola maintains substantial exploration potential supporting future resource expansion. Ongoing drilling programs continue to identify promising mineralization zones both laterally and at depth, creating opportunities for reserve replacement and potential production increases.

Exploration priorities include:

• Deep mineralization targets beneath the current Fekola pit
• Satellite deposits within the broader permit area
• Regional targets across the Anaconda Area
• Structural corridors with favorable geological characteristics

These exploration initiatives provide a pipeline of potential development opportunities extending beyond current operational horizons, supporting B2Gold's long-term presence in Mali. The company may benefit from investment in undervalued gold stocks across its portfolio.

Investment Outlook and Long-Term Production Profile

The underground expansion represents a strategic capital investment enhancing Fekola's long-term value proposition. While requiring significant upfront development expenditure, the project strengthens the operation's production sustainability and cost structure.

Key financial and operational projections include:

• Gradual production contribution increase from underground sources
• Processing capacity optimization through strategic ore blending
• Operational cost management through efficiency initiatives
• Technology adoption enhancing productivity and safety performance

These elements support a robust long-term production profile maintaining Fekola's position as a cornerstone asset within B2Gold's global portfolio.

Environmental and Social Considerations

The underground expansion incorporates comprehensive environmental management protocols addressing potential impacts. Compared to open-pit mining, underground operations typically generate a smaller surface footprint, though they present different environmental management requirements.

Key environmental focus areas include:

• Water quality management and discharge control
• Energy consumption optimization and efficiency initiatives
• Ventilation emission management
• Tailings storage facility management and monitoring
• Land disturbance minimization and progressive rehabilitation

Complementing these environmental measures, B2Gold maintains extensive social investment programs supporting community development, education, healthcare, and infrastructure improvements in the mine's vicinity.

Frequently Asked Questions About Fekola's Underground Expansion

What production increases can be expected from the underground operations?

The underground mining operations are projected to contribute 25,000-35,000 ounces of gold in 2025, supplementing the Fekola Complex's overall production forecast of 515,000-550,000 ounces. As development progresses and access to deeper ore bodies improves, production from underground sources is expected to increase substantially in subsequent years, enhancing the mine's overall production profile.

How does underground mining differ from open-pit operations at Fekola?

Underground mining at Fekola employs fundamentally different extraction methodologies compared to open-pit operations:

• Mining methods: Underground utilizes decline access with sublevel stoping techniques versus conventional drill-blast-haul cycles in open pit
• Equipment requirements: Specialized low-profile machinery for underground versus larger surface equipment
• Ventilation needs: Comprehensive air circulation systems required underground
• Support systems: Extensive ground support infrastructure necessary for underground development
• Production rates: Typically lower daily tonnages but accessing higher-grade material

These differences require specialized expertise and equipment while offering access to ore bodies that would remain uneconomical through surface mining methods.

What environmental considerations are associated with the underground expansion?

The underground development incorporates several environmental management adaptations:

• Water management: Enhanced dewatering systems with expanded treatment capacity
• Energy consumption: Increased power requirements for ventilation and underground equipment
• Surface disturbance: Reduced footprint compared to equivalent open-pit expansion
• Waste rock management: Different geochemical characteristics requiring adapted storage approaches
• Closure planning: Modified rehabilitation requirements for underground workings

These considerations are addressed through comprehensive environmental management systems aligned with international best practices and Malian regulatory requirements.

How will the underground expansion affect local communities?

The underground expansion creates several positive community impacts:

• Employment opportunities: Creation of specialized technical roles requiring advanced training
• Skills development: Enhanced workforce development programs focusing on underground mining competencies
• Extended operational timeline: Prolonged economic benefits for local communities through continued operation
• Infrastructure support: Sustained investment in regional infrastructure improvements
• Community investment: Ongoing social development programs supporting education, healthcare, and local business development

These benefits extend B2Gold's positive socioeconomic contribution to the region while maintaining the company's commitment to responsible mining practices and gold prospects insights.

Note: While underground mining operations present significant opportunities for production enhancement and mine life extension at Fekola, investors should recognize that mining operations involve inherent uncertainties related to geological conditions, operational execution, and regulatory environments. Production projections represent current estimates based on available information and may be subject to adjustment as development progresses.

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