Projects

Otjikoto Mine – Namibia (1)

Open Pit, 90% B2Gold Ownership

Property Location and Access:

The Otjikoto Mine is located in the north-central part of the Republic of Namibia. It is situated approximately 300 kilometres (“km”) north of Windhoek, the country’s capital, within the Province of Otjozondjupa. Otjikoto can be accessed off the main B1 road, a primary paved road, from the towns of Otjiwarongo or Otavi located approximately 70 km to the southwest and 50 km to the northwest of Otjikoto respectively. 

Second Quarter (“Q2”) 2017:

The Otjikoto Mine continued its very strong operational performance into the second quarter of 2017, producing 41,163 ounces of gold, 15% (or 5,273 ounces) above budget and 14% (or 4,991 ounces) higher than the second quarter of 2016. The increase over budget was mainly the result of better than expected grade and ore tonnage from the new Wolfshag Phase 1 Pit and higher than expected mill throughput.

The average gold grade processed in the quarter was 1.50 g/t compared to budget of 1.38 g/t and 1.29 g/t in the second quarter of 2016. To date, there has been a positive reconciliation in terms of both grade and ore tonnage from the oxide and transition portions of the Wolfshag Phase 1 Pit versus the resource model. Analysis of the Wolfshag model is ongoing to determine whether this positive variance continues throughout the Wolfshag orebody. Mill throughput for the quarter was 867,170 tonnes compared to budget of 823,732 tonnes and 890,704 tonnes in the second quarter of 2016. Mill recoveries remained high and averaged 98.6%, slightly above both budget and the prior-year quarter.       

Otjikoto’s second quarter cash operating costs(2) were $524 per ounce, significantly below budget by $200 per ounce (or 28%). This was mainly the result of higher than budgeted gold production combined with lower than budgeted fuel prices and reagent consumption. Compared to the prior-year quarter, cash operating costs were $138 per ounce higher as the prior-year quarter had benefited from a significantly weaker Namibian dollar/US dollar foreign exchange rate and lower fuel prices. All-in sustaining costs (“AISC”)(2) in the second quarter were $668 per ounce (Q2 2016 – $570 per ounce), significantly below budget by $726 per ounce (or 52%), mainly as a result of lower than budgeted mobile equipment purchases in the quarter (due to timing differences) and lower than budgeted cash operating costs per ounce.   

First-Half (“FH”) 2017:

For the first half of 2017, gold production at the Otjikoto Mine was 83,937 ounces of gold, significantly above budget by 17% (or 12,355 ounces) and 17% (or 12,062 ounces) higher than the first half of 2016.   

Otjikoto’s cash costs remained significantly below budget in the first half of the year with cash operating costs of $467 per ounce (FH 2016 – $384 per ounce), $162 per ounce (or 26%) below budget, and AISC of $721 per ounce (FH 2016 – $702 per ounce), $501 per ounce (or 41%) below budget. 

Life-of-mine production plans for the Otjikoto Mine, incorporating preliminary projections for the Wolfshag open pit and potential underground mines, have been completed for various options and will be further refined as the detailed geotechnical, hydrogeological, and design studies for Wolfshag are completed (expected at the end of the third quarter of 2017). Ongoing studies are leading the Company to re-evaluate the open pit and underground interface in order to determine the optimal mine plan and economics for the Wolfshag expansion.

Otjikoto

2017 Guidance:

Due to the continued strong first-half 2017 performance, the Company now expects full-year Otjikoto production to be at or above the top end of its original production guidance range, and has revised its annual guidance range to be between 170,000 to 180,000 ounces of gold (original guidance was 165,000 to 175,000 ounces). Forecast gold production at Otjikoto is weighted towards the second half of the year as the Wolfshag Phase 1 and Otjikoto Phase 2 pits reach higher grade and lower strip ratio benches. Otjikoto’s full-year cash operating costs are now expected to be lower at between $480 and $520 per ounce (original guidance was $510 to $550 per ounce) and AISC are now expected to be below its original guidance range and be between $725 and $765 per ounce (original guidance was $855 to $885 per ounce).

Recent News Releases:

Please click here for the full news release "B2Gold Corp. Reports Second Quarter 2017 Results; Achieves Both Higher Gold Production and Lower Costs than Budget; Fekola Project Mine Construction Remains on Target for an October 1, 2017, Production Start", dated August 9, 2017.

Otjikoto

Click here for details on Otjikoto “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 B2Gold's most recently filed Management’s Discussion and Analysis (“MD&A”). Click here for MD&A

Certain portions of the information provided herein are derived from and based on 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, the following Qualified Persons: William Lytle, P.E., Tom Garagan, P.Geo., Hermanus Kriel, Pr.Eng., Glenn Bezuidenhout, Pr.Eng., FSAIMM and Guy Wiid, Pr.Eng. and from our most recently filed Annual Information Form (“AIF”) – click here for AIF, and are based on the assumptions, qualifications and procedures set out therein. For a more detailed overview of the Otjikoto Project, please refer to the documents noted above, which are available on SEDAR at www.sedar.com and on the U.S. Securities and Exchange Commission’s website at www.sec.gov.

Otjikoto

Note: For more details on B2Gold’s Otjikoto Mine, click here for the Company’s Annual Information Form 2017 and click here for the Company's Management’s Discussion and Analysis (these are also available on SEDAR at www.sedar.com and on the U.S. Securities and Exchange Commission’s website at www.sec.gov).

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