Projects

La Libertad Mine - Nicaragua

Open Pit - 100% B2Gold Ownership

For the full-year 2015, La Libertad Mine produced 119,475 ounces of gold, in line with the re-guided range of 120,000 to 125,000 ounces, provided at the end of Q3 2015.

The new higher grade Jabali Antenna Pit is (now) scheduled to enter the production stream in Q2 2016. For the full-year 2016, La Libertad Mine is expected to produce between 125,000 to 135,000 ounces of gold at cash operating costs of approximately $650 - $680 per ounce.

For the full news release titled "B2Gold Reports 2015 Fourth Quarter and Full-Year Results", please click here.

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 on La Libertad Mine, Nicaragua” dated March 27, 2015 (the “La Libertad Technical Report”) prepared by Donald E. Hulse, RE., William J. Crowl, MMSA, and Deepak Malhotra, PhD. For a more detailed overview of La Libertad Mine, please refer to the technical report noted above, which is available on SEDAR at www.sedar.com.

Project Description and Location

La Libertad Mine is located approximately 110 kilometres due east of Managua, the capital city of Nicaragua and 32 kilometres 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. We, indirectly through our subsidiary, Desarrollo Minero de Nicaragua S.A. (“Desminic”), hold a 100% interest in one exploitation concession covering 10,950 hectares, granted on September 6, 1994 for the term of 40 years pursuant to Ministerial Decree No. 032-RNMC/94. The principal obligations under the Ministerial Accord include the payment annually of surface taxes, and a net 3.0% royalty on gross production revenues payable to the government of Nicaragua. In addition, we hold an additional exploration concession, Extension Quernos de Oro, which covers 1,196 hectares of the potential extension of a mineralized structure northwest of the exploitation concession. The exploitation and exploration concessions form one contiguous block.

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 advalorem 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, small scale or 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 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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