El Limon mine - Nicaragua

Open Pit and Underground, 95% B2Gold Ownership

Q3 2016 Update:

El Limon mine produced 14,185 ounces of gold in the third quarter of 2016, slightly below budget (of 15,208 ounces), but consistent with the prior-year quarter of 14,517 ounces. The mill continues to operate well, and both throughput and recoveries were slightly above budget.

El Limon's third quarter 2016 cash operating costs(1) were $682 per ounce of gold, $99 per ounce (or 17%) above budget and $38 per ounce (or 6%) higher compared to the prior-year quarter. The increase was mainly due to lower gold production.

El Limon's third quarter 2016 all-in sustaining costs(1) were $1,067 per ounce of gold compared to budget of $933 per ounce and $1,202 per ounce in the prior-year quarter, reflecting the increase in cash operating costs and differences in the timing of capital expenditures.

YTD(2)2016 Update:

El Limon's year-to-date(2) 2016 production was 35,476 ounces of gold, compared to budget of 40,826 ounces and 43,361 ounces produced in the same period last year.

El Limon's year-to-date 2016 cash operating costs were $725 per ounce of gold, $80 per ounce (or 12%) above budget and $63 per ounce (or 10%) higher than in the same period last year.

El Limon's year-to-date 2016 all-in sustaining costs were $1,101 per ounce of gold compared to budget of $1,057 per ounce and $1,240 per ounce in the first nine months of 2015.

FY 2016 & Beyond:

El Limon is on track to meet the low end of its full-year 2016 production guidance range of between 50,000 to 60,000 ounces of gold. B2Gold has updated its full-year 2016 cost guidance for El Limon: The Company now expects El Limon's cash operating costs to be higher than the original guidance ($610 to $650 per ounce) with a revised cash operating cost range of $690 to $730 per ounce of gold, and revised all-in sustaining costs are expected to be in the range of $1,060 to $1,100 per ounce of gold.

News Releases:

Please click here for the full news release "B2Gold Corp. Reports Q3 2016 Results; Operating Cash Flows Significantly Higher on Record Gold Production, Record Low Costs and Higher Gold Prices; 2016 Guidance Favourably Revised", dated November 3, 2016.

(1) Refer to Non-IFRS measures
(2) Nine months ending September 30, 2016

Certain portions of the following information are derived from and based on the assumptions, qualifications and procedures set out in the technical report entitled “Technical Report of Mineral Resources and Mineral Reserves, Limon Mines and Mestiza La India Areas, Nicaragua” dated March 14, 2009 and prepared by William Pearson, Ph.D., P.Geo., and Graham Speirs, P.Eng. (the “2009 Limon Technical Report”); and from our most recent Annual Information Form (“AIF”). For a more detailed overview of El Limon mine, please refer to the technical report noted above and our most recent AIF, which are available on SEDAR at

Project Location

El Limon mine is located in northwestern Nicaragua approximately 100 km northwest of Managua, the capital of Nicaragua. EL Limon mine property consists of the 12,000 hectare “Mina El Limon” mineral concession that has a term of 25 years expiring in April 2027. Each mineral concession under the Nicaraguan Mining Code is subject to an agreement issued by the government of Nicaragua that includes the rights to explore, develop, mine, extract, export and sell the mineral commodities found and produced from the concession.

Project Description

B2Gold holds an indirect 95% interest in Triton Minera S.A. (“Triton”), which owns and operates El Limon mine, and holds three other mineral concessions Bonete-Limon, San Antonio and Villanueva 2 which cover a total of 7,200 hectares, all at an exploration stage. The remaining 5% of Triton is held by Inversiones Mineras S.A. (“IMISA”). Triton directly owns or controls the surface rights for all of the property upon which the current mining, milling, tailings and related facilities at EL Limon mine are located. Triton also owns a portion of the surface rights for other properties. As required, Triton has negotiated and entered into access agreements with individual surface right holders in respect of those properties for which it does not hold the surface rights within the concession. All of the permits required for exploration, mining and milling activities are in place for El Limon mine. RG Exchangeco Inc., a subsidiary of Royal Gold, Inc., holds a 3% net smelter returns (“NSR”) royalty on the gold production from EL Limon mine and certain other concessions. The revenue from EL Limon mine is also subject to a 3% ad valorem tax on gold production payable to the Government of Nicaragua, which is considered a deductible expense for purposes of computing corporate income tax.  Net profit is defined as the excess of gross revenue (being all revenue received from the operation by Triton Mining (USA), LLC of its business) over expenses (being specified as costs incurred and charged as expenses by Triton Mining (USA), LLC arising from its business, including working capital and operating expenses, royalties paid, borrowing costs, taxes and general sales and administrative expenses).

Gold mining in EL Limon district began in the 1850s and modern mining and exploration began in 1918. Production from EL Limon mine has been continuous since 1941.

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