El Limon Mine – Nicaragua(1)

Open Pit and Underground, 95% B2Gold Ownership

Property Location and Access:

El Limon Mine is located in northwestern Nicaragua approximately 100 kilometres (“km”) northwest of Managua, the capital of Nicaragua. The mine straddles the boundary of the municipalities of Larreynaga and Telica of the Department of Leon and the municipalities of Chinandega and Villa Nueva of the Department of Chinandega. The mine is readily accessed by a paved highway and a 15 km gravel mine road with a total road distance from Managua of 140 km.


In 2016, El Limon produced 45,483 ounces of gold. El Limon’s full-year 2016 cash operating costs(2) were $781 per ounce of gold. El Limon’s full-year 2016 all-in sustaining costs (“AISC”)(2) were $1,189 per ounce of gold.

Q1 2017:

First quarter gold production at El Limon was 8,861 ounces, 2,246 ounces below budget and 1,355 ounces lower than the same quarter last year. The primary cause of the shortfall was lower processed grade which was 2.41 g/t versus a budget of 2.99 g/t and 2.92 g/t in the first quarter of 2016. El Limon’s production continued to be negatively affected by mine fleet availability limitations and water control issues which reduced high-grade ore flow from Santa Pancha Underground. As a result, mill feed was supplemented with smaller volumes of lower-grade ore recovered from surface stockpiles and purchased (small miner) high-grade ore. To improve overall mine performance, additional mining equipment has been purchased and delivered, and the mine development contractor has accelerated operations. For Santa Pancha 1 Mine, the deep well is being reamed and relined, and is expected to be operational in the third quarter of 2017. The auxiliary dewatering system has been improved but the deep well is essential in order to develop the higher-grade stopes. Tonnage milled for the quarter was 122,856 tonnes compared to budget of 123,701 tonnes and 116,481 tonnes in the first quarter of 2016. Mill recoveries averaged 92.9% compared to budget of 93.5% and 93.6% in the first quarter of 2016.

El Limon’s cash operating costs were $994 per ounce in the first quarter of 2017, $112 per ounce higher than budget and $219 per ounce higher than the prior-year quarter. The increase was mainly attributable to the limited access to higher-grade ore at Santa Pancha Underground. AISC in the quarter were $1,572 per ounce compared to budget of $1,459 per ounce and $1,127 per ounce in the prior-year quarter.

El Limon

2017 Guidance:

For full-year 2017, El Limon is expected to produce between 50,000 and 60,000 ounces of gold at cash operating costs of between $655 and $695 per ounce and AISC between $1,065 and $1,095 per ounce. As a result of the operational improvements being implemented (as discussed above), the Company believes that El Limon remains on track to meet its full-year 2017 production guidance.

Recent News Releases:

Please click here for the full news release “B2Gold Corp. Reports Strong First Quarter 2017 Results Exceeding its Budget Guidance; Fekola Project Mine Construction Remains on Target for an October 1, 2017 Production Start”, dated May 3, 2017.

Please click here for the full news release "B2Gold Reports 2016 Fourth Quarter and Full-Year Results; Achieves 2016 Record Gold Production, Record-Low Cash Operating Costs and Record Operating Cash Flow; Outlook Provides for Very Strong Gold Production Growth Profile by 2018", dated March 16, 2017.

El Limon

Click here for details on El Limon “Exploration” section.

Footnotes (Click to expand)

  1. The disclosure contains forward-looking statements. Refer to the Legal section of the website (click here) for caution regarding forward-looking statements and the basis for presentation of Mineral Reserves, Mineral Resources and other technical disclosures
  2. Refer to “Non-IFRS measures” in the Company’s most recently filed Management’s Discussion and Analysis (“MD&A”). Click here for MD&A

El Limon

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