Projects

Otjikoto - Namibia

Open pit - 90% B2Gold Ownership

B2Gold acquired the Otjikoto Gold Project through its acquisition of Auryx Gold in 2011. The Company began construction soon after and the Otjikoto Gold 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 Gold Project declared commercial production on that date.  

For the full-year 2015, the Otjikoto Mine is expected to produce between 140,000 to 150,000 ounces of gold (including pre-commercial production) at a cash operating cost in the $500 to $525 per ounce range. All ore in 2015 will come from the existing Otjikoto Pit. Once the planned mill expansion is completed, expected in the third quarter of 2015, the Company expects that annual gold production from the main Otjikoto Pit will increase significantly to approximately 200,000 ounces in 2016 and 2017. Otjikoto’s gold production is also expected to be enhanced by the development of its Wolfshag zone, adjacent to the main Otjikoto Pit. The Company expects to complete an updated mine plan by the end of 2015 which will incorporate open pit and underground mining from the Wolfshag zone into the Otjikoto Mine Plan.

For the full news release titled "B2Gold Corp. Achieves Record Third Quarter and Year-to-Date 2015 Gold Production", please click here.

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.

Property Description, Location and Ownership

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. 

Attributable Probable Mineral Reserves 1,2,3

Zone Tonnes Grade g/t Au Ounces Au Kg Au

Otjikoto Mine

 

 

 

 

Open Pit

25,460,000

1.43

1,167,000

36,300

Run of Mine Stockpile

590,000

1.35

25,000

800

Low Grade Stockpile

250,000

0.52

4,000

100

Total Probable Reserves

26,300,000

1.41

1,196,000

37,200

Notes:

  1. Mineral Reserves are reported at a gold price of $1,300 per ounce within a design pit and are fully diluted.
  2. Attributable Mineral Reserves are reported based on a 90% ownership basis.
  3. Mineral Reserve numbers have been rounded to reflect the accuracy of the estimate and numbers may not add due to rounding.

Attributable Indicated Mineral Resources 1,2,3,4,5,6,7

Zone

Tonnes

Grade g/t Au

Ounces Au

Kg Au

Indicated Resources Open Pit

Otjikoto

28,680,000

1.43

1,321,000

41,100

Wolfshag

930,000

2.81

84,000

2,600

Subtotal – Indicated Open Pit

29,610,000

1.48

1,405,000

43,700

Indicated Resources Stockpiles

Run-of-Mine Stockpile

590,000

1.35

25,000

800

Low Grade Stockpile

250,000

0.52

4,000

100

Subtotal – Indicated Stockpiles

840,000

1.10

30,000

900

Total Indicated Resources

30,460,000

1.47

1,435,000

44,600


Attributable Inferred Mineral Resources 1,2,3,4,5,6,7

Zone

Tonnes

Grade g/t Au

Ounces Au

Kg Au

Inferred Resources – Open Pit

Otjikoto

2,030,000

0.99

64,000

2,000

Wolfshag

180,000

0.75

4,000

100

Subtotal Open Pit

2,200,000

0.97

68,000

2,100

Inferred Resources - Underground

 

Wolfshag

2,320,000

8.14

608,000

18,900

Total Inferred Resources
Open Pit and Underground

4,520,000

4.65

676,000

21,000

Notes:

  1. Attributable Mineral Resources are reported based on 90% ownership basis.
  2. Mineral Resources are inclusive of Mineral Reserves.
  3. Open pit Mineral Resources for Otjikoto are reported above a cutoff grade of 0.40 g/t gold within a pit shell run defined by a gold price of $1,500 per ounce.
  4. Open pit Mineral Resources for Wolfshag are reported with a $1,300 per ounce gold maximum NPV pit above a cut-off grade of 0.5 g/t gold.
  5. Wolfshag underground Mineral Resources are reported above a 3.0g/t gold cutoff.
  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.

 

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