Projects

La Libertad mine - Nicaragua

Open Pit and Underground, 100% B2Gold Ownership

FY 2016: Update

For the full-year 2016, La Libertad mine produced 132,431 ounces of gold, near the high end of its production guidance range (of 125,000 to 135,000 ounces) and 11% (or 12,956 ounces) higher than 2015. Better grade and higher recoveries contributed to the successful production year.

On May 5, 2016, B2Gold received the 2015 Award for Social Responsibility in Nicaragua for its work on the Jabalí Antena settlement project. The award recognizes the Company’s commitment to social development projects that benefit the local communities in which it operates.

Q4 2016: Update

La Libertad’s fourth quarter 2016 production was 35,165 ounces of gold, consistent with the fourth quarter of 2015.

Q3 2016:

La Libertad's third quarter 2016 cash operating costs(1) were $637 per ounce of gold, $64 per ounce (or 9%) below budget and $22 per ounce (or 3%) below the prior-year quarter.

La Libertad's third quarter 2016 all-in sustaining costs(1) were $788 per ounce of gold, below both budget of $908 per ounce and $812 per ounce in the prior-year quarter.

YTD(2)2016:

La Libertad's year-to-date 2016 cash operating costs were $658 per ounce of gold, $41 per ounce (or 6%) below budget and $106 per ounce (or 14%) below the same period in 2015.

La Libertad's year-to-date 2016 all-in sustaining costs were $913 per ounce of gold, below both budget of $1,153 per ounce and $1,034 per ounce in the same period in 2015.

2017: Update

During the third quarter of 2016, La Libertad’s mine schedule was adjusted to mine additional high-grade ore from the Jabali Central pit to offset permitting delays at the Jabali Antenna pit. The Jabali Antenna pit is now planned for production in the third quarter of 2017, pending completion of permitting and relocation activities. However, as in 2016, La Libertad retains some flexibility in sourcing its ore while the Jabali Antena permitting and relocation activities are being completed.

In 2017, La Libertad is budgeted to process 2.3 million tonnes of ore at an average grade of 1.73 g/t with gold recoveries averaging 94%. Mill feed is expected to consist mainly of high grade ore from Jabali Central pit (37%), Mojon underground (8%), and Jabali Antenna pit (5%), which will be blended with lower grade spent ore (50%). Jabali West underground mine development is expected to commence in 2017, with production expected to commence in 2018.

La Libertad is expected to produce between 110,000 and 120,000 ounces of gold in 2017 at cash operating costs of between $625 and $665 per ounce and all-in sustaining costs of between $785 and $815 per ounce. 

News Releases:

Please click here for the full news release “B2Gold Corp. Reports Record 2016 Gold Production; Fekola Project Mine Construction Ahead of Schedule and Now on Target for an October 2017 Production Start”, dated February 5, 2017.

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

La Libertad 1

Certain portions of the following information are derived from and based on the assumptions, qualifications and procedures set out in the technical report entitled “NI 43-101 Technical Report, La Libertad Mine, La Libertad Region, Nicaragua” dated March 27, 2015 prepared by Donald E. Hulse, P.E. and William J. Crowl, MMSA of Gustavson Associates, LLC and Deepak Malhotra, Ph.D. (the “Libertad Technical Report”) and from our most recent Annual Information Form (“AIF”). For a more detailed overview of La Libertad mine, please refer to the Libertad Technical Report and our most recent AIF, which are available on SEDAR at www.sedar.com.

Project Location

La Libertad mine is located approximately 110 km due east of Managua, the capital city of Nicaragua and 32 km northeast of Juigalpa. The property is situated near the town of La Libertad in La Libertad-Santo Domingo Region of the Department of Chontales in Central Nicaragua. Access to the La Libertad property is 201 km by paved road from Managua to Juigalpa, the capital city of the Department of Chontales. From Juigalpa, a newly paved road (paver stones) leads northeast for 30 km to the town of La Libertad. Access to the mine site is along a five km, secondary unsurfaced road that originates at the entrance to the town of La Libertad. In total, La Libertad mine is 236 km from Managua.

La Libertad 2

Project Description

B2Gold, indirectly through its subsidiary, Desarrollo Minero de Nicaragua S.A. (“Desminic”), hold a 100% interest in one exploitation concession for La Libertad covering 10,950 hectares, granted on September 6, 1994 for the term of 40 years pursuant to Ministerial Decree No. 032-RN-MC/94. The principal obligations under the Ministerial Accord include the annual payment of surface taxes, and a net 3.0% royalty on gross production revenues (ad valorem tax) payable to the government of Nicaragua. In addition, B2Gold holds an interest in two exploration concessions consisting of Buenaventura (100%) and Cerro Quiroz (80%) which cover a total of 4,600 hectares and are contiguous to the La Libertad exploitation concession.

La Libertad mine is also subject to a royalty interest granted to Inversiones Mineras S.A. (“IMISA”), a holding company formed to represent unionized mine workers in Nicaragua, equal to 2.0% of the value of total production of gold and silver from La Libertad exploitation concession. In Nicaragua, the government is entitled to an ad-valorem tax over the substances extracted from a mineral concession. The amount of ad-valorem tax is 3% for minerals. Under Nicaraguan law, the ad-valorem tax paid is considered a deductible expense for purposes of computing corporate income tax. However, when this law was enacted, it included a grandfathering rule which allowed concessions granted prior to this law to continue operating under its existing regime. Under the mining law applicable at the time, the amount paid as ad-valorem tax is applied as a direct credit against corporate income tax. The total royalty payable on La Libertad mine production is 5.0%. In addition, under Nicaraguan law, artisanal miners have the right to exploit secondary veins up to a total surface area that may not exceed 1% of the total area granted under a concession. Artisanal mining activities continue on the concession.

La Libertad 3

La Libertad Mine Reserves & Resources

Probable Mineral Reserves as of December 31, 2015 1,2,3,4,5,6,7,8

Vein Structure Tonnes Grade g/t Au Ounces Au Kg
Au
Jabali Central 1,360,000 2.67 117,000 3,600
Jabali Antenna 550,000 3.61 64,000 2,000
Spent Ore 1,060,000 0.95 32,000 1,000
Total Probable Mineral Reserves 2,970,000 2.23 213,000 6,600
Footnotes (Click to expand)

Notes:

  1. Mineral Reserves reported at a $1,200 per ounce gold price within design pits.
  2. Cut-off grades and design pits based on 2016 budget costs.
  3. Mineral Reserves reported are fully diluted. The amount of dilution applied varies by deposit.
  4. Mineral Reserves are reported above an open pit cut-off grade of 0.74 g/t gold for spent ore and 0.81 g/t gold for Jabali Central and 0.79 g/t gold for Jabali Antenna.
  5. The mining permit for Jabali Antenna is anticipated to be received in the second quarter of 2016.
  6. Mineral Reserves numbers are rounded to reflect the accuracy of the estimate and numbers may not add due to rounding.
  7. The Mineral Reserve estimates for La Libertad Mine were compiled and verified under the supervision of Kevin Pemberton, P.E. (Florida, USA), Chief Mine Planning Engineer, and a Qualified Person.
  8. The estimates reflect our 100% interest in La Libertad Mine.

Indicated Mineral Resources as of December 31, 2015 1,2,3,4,5,6,7

Vein structure Tonnes Grade g/t Au Ounces
Au
Kg
Au
Indicated - - - -
Jabali Antenna – Open Pit 1,890,000 3.87 235,000 7,300
Jabali Central – Open Pit 1,490,000 2.85 137,000 4,200
Spent Ore 1,560,000 0.87 43,000 1,300
Total Indicated Mineral Resources 4,940,000 2.61 415,000 12,900

Inferred Mineral Resources as of December 31, 2015 1,2,3,4,5,6,7

Vein Structure Tonnes Grade g/t
Au
Ounces
Au
Kg
Au
Open Pit – Inferred - - - -
Jabali Antenna 340,000 2.83 31,000 1,000
Jabali Central 280,000 3.35 30,000 900
Spent Ore 340,000 0.85 9,000 300
Subtotal Inferred Resources
Open Pit & Spent Ore
960,000 2.29 70,000 2,200
Underground – Inferred 1,550,000 5.91 296,000 9,200
Total Inferred Mineral Resources 2,510,000 4.53 366,000 11,400
Footnotes (Click to expand)

Notes:

  1. Mineral Resources are inclusive of Mineral Reserves.
  2. Open pit Mineral Resources for La Libertad are reported within pit shells based on a gold price of $1,400 per ounce and current costs and metallurgical recovery. Open pit Mineral Resources are reported above a cut-off grade of 0.70 g/t gold. Spent ore is reported above a gold cut-off grade of  0.65 g/t. Underground Mineral Resources are reported above a cut-off grade of 2.5 g/t gold.
  3. Due to the uncertainty which may be attached to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resources as a result of continued exploration.
  4. Mineral Resources numbers are rounded to reflect the accuracy of the estimate and numbers may not add due to rounding.
  5. Mineral Resource estimates for La Libertad Mine were compiled and verified as of December 31, 2015 under the supervision of Brian Scott, P.Geo., our Vice President Geology and Technical Services, and a Qualified Person.
  6. The estimates reflect a 100% interest in La Libertad Mine.
  7. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

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