Calibre Mining Joint Venture
Calibre Mining Corp. Joint Venture, Nicaragua
(B2Gold option to earn up to 65% in stages)
Pursuant to an Option Agreement with Calibre dated July 21, 2009, as amended on June 18, 2010 and October 19, 2010, the Company has the right to earn up to a 65% interest in potential mining projects in the Borosi gold-silver-copper prospect in northeast Nicaragua. The initial Option Agreement provided that the Company could earn a 51% interest in 11 exploration and exploitation mineral concessions with terms ranging from 20 to over 35 years covering approximately 70,000 hectares by funding C$8 million of exploration expenditures on the property by July 1, 2014, of which over C$2.5 million was funded by July 2010. The Option Agreement was amended on June 18, 2010 to include two concessions and a portion of a third concession with a total combined area of 32,234 hectares. The Company may increase its interest in specific project areas to 65% by funding a preliminary feasibility study of the viability of a mining project in that area. Under the terms of the Option Agreement, Calibre was the operator for the initial year of the program (2009/2010). The Company may elect to become operator for subsequent years.
The Borosi property is located in the Bonanza-Rosita-Siuna areas of northeast Nicaragua. The “Mining Triangle” of Nicaragua is estimated to have had historical production totalling more than 5 million ounces of gold, 4 million ounces of silver, 158,000 tons of copper and 106,000 tons of zinc. The initial exploration had focused on the Eastern Epithermal, Bonanza and Rosita Gold Camps with geological mapping, prospecting, soil surveying and trenching. Exploration by Calibre since the amended Option Agreement has outlined a number of new regional targets and sample results are awaited. The Company has a 2011 exploration budget of US$0.75 million for further regional exploration on the Borosi property.
