Projects

Otjikoto Mine – Namibia (1)

Please note that this page is currently being updated. Please click here for B2Gold's most recent news release re: Q4 & Year-End 2017 Production & Revenue & Guidance for 2018.

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.

Third Quarter (“Q3”) 2017:

The Otjikoto Mine produced a quarterly record of 55,151 ounces of gold in the third quarter of 2017, 14% (or 6,793 ounces) above both (original) budget and reforecast production, and 16% (or 7,587 ounces) higher than the third quarter of 2016. As mining advances into the consolidated rock in the Wolfshag Phase 1 Pit, the amount of high-grade ore tonnage mined from Wolfshag continues to be significantly higher than modelled. Analysis of the Wolfshag model is ongoing to determine whether this positive variance in the amount of high-grade ore tonnage continues throughout the entire Wolfshag orebody.

The average gold grade processed in the quarter was 1.99 g/t compared to budget of 1.85 g/t and 1.66 g/t in the third quarter of 2016. Grade exceeded budget due to the higher amount of high-grade ore being sourced from Wolfshag, which increased the overall average mill feed grade at Otjikoto. Mill throughput for the quarter was 873,516 tonnes compared to budget of 832,784 tonnes and 910,036 tonnes in the third quarter of 2016. Mill recoveries remained high and averaged 98.5%, slightly above both budget and the prior-year quarter.       

Otjikoto’s third quarter cash operating costs(2) were $447 per ounce, slightly better than budget. Compared to the prior-year quarter, cash operating costs were $103 per ounce higher as the prior-year quarter had benefited from a weaker Namibian dollar and lower fuel prices. Otjikoto’s all-in sustaining costs (“AISC”)(2) in the third quarter were $809 per ounce (Q3 2016 – $474 per ounce), above budget by $160 per ounce. The increase over budget was mainly attributable to the timing of the purchase of mobile equipment during the third quarter which was originally planned for earlier in 2017.

Year-to-date (“YTD”)(3) 2017:

During the first nine months of 2017, the Otjikoto Mine produced a year-to-date record of 139,088 ounces of gold, 16% (or 19,148 ounces) above (original) budget and 5% (or 6,793 ounces) more than reforecast production, and 16% (or 19,649 ounces) higher compared to the same period last year.     

Otjikoto’s cash costs were significantly below budget in the first nine months of 2017 with cash operating costs of $459 per ounce (YTD 2016 – $368 per ounce), $101 per ounce (or 18%) below budget, and AISC of $756 per ounce (YTD 2016 – $611 per ounce), $235 per ounce (or 24%) below budget. 

Geotechnical, hydrogeological and design studies for Wolfshag have been completed. These studies, coupled with an updated resource model, indicate that a larger open pit, which is the Company’s preferred option, have similar positive economics to the underground option. In addition, the Wolfshag resource remains open down-plunge which may be exploitable in the future by underground mining.

Otjikoto

2017 Guidance:

For full-year 2017, the Otjikoto Mine remains well on track to meet or exceed the high end of its previously increased production guidance range of between 170,000 to 180,000 ounces of gold (original guidance was 165,000 to 175,000 ounces) while meeting the low end of its guidance range for cash operating costs of between $480 to $520 per ounce and AISC of between $725 and $765 per ounce.     

Recent News Releases:

Please click here for the full news release “B2Gold Reports Strong Third Quarter 2017 Results; New Fekola Mine Achieves First Gold Pour on October 7, 2017, and Gold Production of 40,286 Ounces to October 31 during Ramp-up Phase; Commercial Production at Fekola Anticipated by End of November,” dated November 7, 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
  3. First nine months of 2017

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 most recent 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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