Projects

Otjikoto mine - Namibia

Open Pit, 90% B2Gold Ownership

Q3 2016 Update:

The Otjikoto mine produced a quarterly record 47,564 ounces of gold in the third quarter of 2016, 10% (or 4,191 ounces) above budget and 24% (or 9,312 ounces) higher than the third quarter of 2015. The increased production was mainly due to higher mill throughput. Mill throughput exceeded budget and the same quarter in 2015, primarily due to the completion of Otjikoto’s mill expansion project in September 2015 (which has increased plant capacity from 2.5 million tonnes per annum to 3.0 million tonnes per annum).

Otjikoto’s third quarter 2016 cash operating costs(1) were a record low $344 per ounce of gold, $20 per ounce (or 5%) below budget and $49 per ounce (or 12%) below the prior-year quarter. This was mainly the result of higher gold production, lower fuel prices and lower fuel/reagent consumption.

Otjikoto’s third quarter 2016 all-in sustaining costs(1) were $474 per ounce of gold, below both budget of $486 per ounce and $510 per ounce in the prior-year quarter, mainly reflecting lower cash operating costs.   

YTD(2)2016 Update:
Otjikoto’s year-to-date(2) 2016 production was 119,439 ounces of gold, 3% (or 2,987 ounces) above budget and 12% higher compared to 106,349 ounces (including 18,815 ounces of pre-commercial production) produced in the same period last year.

Otjikoto’s year-to-date 2016 cash operating costs were a year-to-date record low of $368 per ounce of gold, $61 per ounce (or 14%) below budget and $76 per ounce (or 17%) lower than in the same period last year (following commercial production on February 28, 2015).

Otjikoto’s year-to-date 2016 all-in sustaining costs were $611 per ounce of gold compared to budget of $695 per ounce and $569 per ounce in the same period last year (following commercial production on February 28, 2015).

FY 2016 & Beyond:

Otjikoto is on track to meet its full-year 2016 production guidance of between 160,000 to 170,000 ounces of gold. B2Gold has updated its full-year 2016 cost guidance for Otjikoto and now expects cash operating costs to be lower than original guidance ($400 to $440 per ounce) with a revised cash operating cost range of $365 to $405 per ounce of gold, and revised all-in sustaining costs are expected to be in the range of $600 to $640 per ounce of gold.

In the fourth quarter of 2016, it is expected that the majority of ore produced will continue to be sourced from the Otjikoto Phase 1 pit, with minor ore tonnage from the Otjikoto Phase 2 pit and the new Wolfshag starter pit. Development of the Wolfshag pit is progressing on schedule, with the first ore expected before the end of 2016.

Life-of-mine (LOM) production plans for the Otjikoto project, incorporating the Wolfshag open pit and underground mines, have been completed for various options and will be further refined in the first quarter of 2017 (open pit) and first-half of 2017 (underground). Ongoing studies are leading B2Gold to re-evaluate the open pit and underground interface.

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".

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