Otjikoto Gold Project, Namibia (92% B2Gold, 8% EVI)
Late in 2011, the Company completed the acquisition of a 92% interest in the Otjikoto project in Namibia, by completing a business combination with Auryx Gold whereby we acquired all of their shares in exchange for B2Gold shares.
The Otjikoto gold project is located 300 km north of Namibia’s capital city of Windhoek. The project benefits significantly from Namibia’s history of mining and well established infrastructure. Located in the western part of southern Africa, Namibia is one of the continent’s most politically and socially stable jurisdictions with a government committed to the development of the mining industry.
The Company recently announced an update of the Company’s Mineral Resources as at December 31, 2011 for the Otjikoto project (see news release dated April 5, 2012). The Company contracted VBKom Consulting Engineers to constrain the new independent mineral resource block model using Whittle pit optimization software based on reasonable parameters for mining and processing provided by the Company. This pit optimization has resulted in an updated indicated mineral resource of 24.93 million tonnes at a grade of 1.74 g/t gold containing 1,392,690 ounces of gold on a 100% basis using a cut-off grade of 0.4 g/t gold. When a cut-off grade of 0.5 g/t gold is used, the Otjikoto project has an updated indicated mineral resource of 21.37 million tonnes at a grade of 1.95 g/t gold containing 1,340,385 ounces of gold on a 100% basis within the optimized pit shell.
B2Gold is conducting an aggressive 2012 exploration, feasibility and development program of $43.5 million to further drill test the exploration potential of the property, complete a feasibility study in the fourth quarter of 2012 and concurrently commence planning for mine construction at the Otjikoto gold project. Based on current projections the Otjikoto gold mine would commence production in late 2014.
B2Gold, along with Auryx Namibia’s experienced staff, is well placed to advance development at the Otjikoto gold project given B2Gold’s strong funding capacity and a management team with significant mine development and operating experience.
From the successful exploration programs completed by Auryx Gold and their Preliminary Economic Analysis, the Otjikoto mine has the potential to be built as an open pit gold mine capable of producing approximately 100,000 ounces of gold annually with a potential ten year mine life. Our exploration team believes there is also the significant potential to increase current gold resources on the property. We view this as a highly accretive acquisition based on the resources outlined on the project to date.
Please click here for a link to the location of the 2012 drill holes with alteration and mineralization trend.
Please click here for a link to the Wolfshag Zone long section with selected drill holes.