Projects

Otjikoto mine - Namibia

Open Pit, 90% B2Gold Ownership

The Otjikoto mine produced 36,172 ounces of gold in the second quarter of 2016, compared to a budgeted 37,426 ounces and 36,963 ounces produced in the second quarter of 2015. During the first half of 2016, the mine produced 71,875 ounces of gold, approximately in line with a budgeted 73,079 ounces, and 6% higher compared to 68,097 ounces (including 18,815 ounces of pre-commercial production) produced in the first half of 2015.

Otjikoto’s second quarter cash operating costs were $386 per ounce, $63 per ounce (or 14%) below budget and $99 per ounce (or 20%) below the prior-year quarter. The mine’s first-half cash operating costs were $384 per ounce, $84 per ounce (or 18%) below budget and $99 per ounce (or 20%) below the same period last year.

Otjikoto’s all-in sustaining costs in the second quarter were $570 per ounce, below both a budgeted $795 per ounce and $611 per ounce in the prior-year quarter. The mine’s all-in sustaining costs in the first half of 2016 were $702 per ounce compared to a budgeted $819 per ounce and $615 per ounce in the first half of 2015.

For 2016, Otjikoto’s annual production is expected to produce between 160,000 to 170,000 ounces of gold at cash operating costs of $400 to $440 per ounce.

Scheduled to enter production towards the end of the fourth quarter of 2016, the high-grade Wolfshag open pit is expected to increase production in 2017 and beyond at Otjikoto. A new life of mine plan is expected to also be completed in the fourth quarter of 2016. A detailed engineering study of Wolfshag underground mining is expected to commence in the third quarter of 2016, with results to be delivered in 2017.

Please click here for the full news release “B2Gold Corp. Reports Second Quarter Results 2016."

Certain portions of the following information have been derived from and are based on the assumptions, qualifications and procedures set out in the technical report entitled “Independent Technical Report on the Otjikoto Gold Project” dated March 31, 2010 prepared by Mark Wanless, Pr.Sci.Nat. and Shaun Crisp, Pr.Sci.Nat. (the “Otjikoto Technical Report”) and the technical report entitled “NI 43-101 Technical Report Feasibility Study: Otjikoto Gold Project, Province of Otjozondjupa, Republic of Namibia” dated February 25, 2013 prepared by, among others, Bill Lytle, P.E., M.Sc., B.Sc., Tom Garagan, P.Geo., BSc., Alan Naismith, Pr.Eng., M.Eng., Hermanus Kriel, Pr.Eng., B.Eng., Glenn Bezuidenhout, Pr.Eng., FSAIMM, Guy Wiid, Pr.Eng., M.Sc., B.Sc. and Werner Petrick, BSc.Eng., M.Env.Mgt. (the “Otjikoto Feasibility Study”). For a more detailed overview of the Otjikoto Project, please refer to the technical reports noted above, which are available on SEDAR at www.sedar.com.

Project Description and Location

B2Gold acquired the Otjikoto Gold Project through its acquisition of Auryx Gold in 2011. The Company began construction soon after and the Otjikoto Mine poured first gold on December 11, 2014, one week ahead of schedule. Based on the performance of the mill, and the fact that the Company met commercial production criteria of 30 consecutive days of mill throughput of 65% of faceplate capacity by February 28, 2015, the Otjikoto Mine declared commercial production on that date.

The Otjikoto Project is located approximately 70 kilometres northwest of the town of Otjiwarongo and 50 kilometres southwest of the town of Otavi within the Province of Otjozondjupa in the north-central part of the Republic of Namibia, approximately 300 kilometres north of Windhoek, the country’s capital.

On December 5, 2012 the Namibian Ministry of Mines and Energy (“MME”) granted Auryx Gold Namibia (Proprietary) Limited, later renamed to B2Gold Namibia, the Otjikoto mining license, ML 169. B2Gold Namibia is owned indirectly 90% by B2Gold and 10% by EVI, a Namibian empowerment company. The mining license (“ML”) was granted in accordance with the Minerals (Prospecting and Mining) Act of 1992 (the “Namibian Minerals Act”) and covers an area of 6,933.99 hectares. The license is valid for a term of 20 years with expiry of December 4, 2032. The license can be renewed for a further 20 years upon application to the MME. The ML requires payment of an annual fee, development of a works program, environmental compliance, commitment to seek local suppliers for fuel and lubricants, approval of the product take-off agreement, and payment of taxes by permanent employees in Namibia. Mine production is subject to royalties at 3% of net market value payable to the Namibian state.

The ML is situated within Exclusive Prospecting License (“EPL”) 2410. EPL 2410 covers an area of 54,125 hectares (inclusive of the ML) and is in good standing, with renewal for an additional two years granted by the MME on September 14, 2012. An annual fee of N$6,000 and filing of quarterly exploration reports with the MME and bi-annual environmental reports with the Ministry of Environment and Tourism (“MET”) are required to keep the license in good standing. Exploration is conducted under the terms of an ECC issued by the MET on June 20, 2002. The ECC was renewed by the MET on February 11, 2013. B2Gold Namibia holds two additional EPL’s in the Otjikoto area and seven EPL’s in other areas of Namibia.

In 2011, the farms Wolfshaag, Otjikoto, Gerhardshausen and Okaputa Nord I were purchased and consolidated by Auryx Properties Holdings (Proprietary) Limited, later renamed as B2Gold Namibia Property (Proprietary) Limited (“B2Gold Namibia Property”). The ML and all proposed infrastructure are situated on the B2Gold Namibia Property farms. 

Otjikoto Reserves & Resources Estimates

Attributable Probable Mineral Reserves as of December 31, 2015 1,2,3,4

Zone Tonnes Grade g/t Au Ounces Au Kg Au
Otjikoto Open Pit 21,920,000 1.26        888,000  27,600
Wolfshag Open Pit 1,950,000 2.14 134,000 4,200
Run-of-Mine Stockpile 930,000 0.87 26,000 800
Low-Grade Stockpile 1,080,000 0.51 18,000 500
Total Probable Mineral Reserves 25,880,000 1.28 1,065,000 33,100
Footnotes (Click to expand)

Notes:

  1. Mineral Reserves are reported at a gold price of $1,200 per ounce within designed pits and are fully diluted.
  2. Attributable Mineral Reserves are reported based on a 90% ownership basis.
  3. Mineral Reserve numbers are rounded to reflect the accuracy of the estimate and numbers may not add due to rounding.
  4. The Mineral Reserve estimate for the Otjikoto Mine was prepared as of December 31, 2015 under the supervision of Peter Montano, P.E. (Colorado, USA), our Senior Project Engineer, and a Qualified Person.

Attributable Indicated Mineral Resources as of December 31, 2015 1,2,3,4,5,6,7,8

Zone Tonnes Grade g/t Au Ounces Au Kg Au
Otjikoto Open Pit 27,350,000 1.17 1,029,000 32,000
Wolfshag Open Pit 3,640,000 3.27 383,000 11,900
ROM-Stockpile 930,000 0.87 26,000 800
Low Grade Stockpile 1,080,000 0.51 18,000 500
Total Indicated Mineral Resources 33,000,000 1.37 1,455,000 45,300

Attributable Inferred Mineral Resources as of December 31, 2015 1,2,3,4,5,6,7,8

Zone Tonnes Grade g/t Au Ounces Au Kg Au
Otjikoto  Open Pit 520,000 0.59 10,000 300
Wolfshag Open Pit 80,000 0.67 2,000 100
Wolfshag Underground 990,000 6.77 215,000 6,700
Total Inferred Mineral Resources 1,580,000 4.45 227,000 7,100
Footnotes (Click to expand)

Notes:

  1. Attributable Mineral Resources are reported based on 90% ownership basis.
  2. Mineral Resources are inclusive of Mineral Reserves.
  3. Mineral Resources have been rounded to reflect the accuracy of the estimate and numbers may not add due to rounding.
  4. Open pit Mineral Resources for Otjikoto and Wolfshag are reported above a cut-off grade of 0.40 g/t gold and within pit shells run at a gold price of $1,400 per ounce and other current costs and metallurgical recoveries.
  5. Wolfshag underground Mineral Resources are reported above a cut-off of 3.0 g/t gold.
  6. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
  7. Due to the uncertainty that 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 Resource as a result of continued exploration.
  8. Mineral Resource estimates for Otjikoto Mine were prepared under the supervision of Mr. Tom Garagan, P.Geo., our Senior Vice President of Exploration, and a Qualified Person.

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