B2 already has a big deposit nearby at Kiaka. Problem is that...

B2 already has a big deposit nearby at Kiaka. Problem is that Kiaka is low grade and likely not economic unless gold is north of US$1600. Toega could change the economics but isn’t big enough yet to justify building a processing plant.

B2Gold have openly stated they want a new project now that Fekola is up and running (brilliant early production numbers). I don’t think they want to wait around for another two years drilling out Toega. B2’s other mines are also not of the quality of Fekola and I think have declining production profiles.

Getting Sanbrado would allow B2 to start building a plant with an already quality, low cost resource. Meanwhile more work on Toega could be undertaken to firm up the resource and expand the combined production profile/mine life. B2 has done something similar at Fekola.

Longer term there is still the wider Kiaka project for an environment of higher gold prices.

In short I don’t think it really matters what B2 announce at Toega just now. Bigger is probably better though (but not so big they don’t need what WAF has).