FREE ARTICLE PREVIEW: You are enjoying a free sample of exclusive
subscriber content. There is a limit of three free articles per week.

TABLE OF CONTENTS Jan 21 - 27, 2013 Volume 98 Number 49 - 0 comments

Busy days for B2Gold

TEXT SIZE bigger text smaller text
2013-01-16

B2Gold (BTO-T) has delivered a flurry of good news to the market, and investors have responded accordingly.

The company announced solid results from a feasibility study on its Otjikoto gold project in Namibia, where it is building a mine, and revealed that it has secured a US$150-million loan.

The study on Otjikoto details an open-pit gold mine with a 12-year mine life, based on probable reserves. B2Gold has a 92% stake in Otjikoto, located 300 km north of the Namibian capital of Windhoek, while EVI Gold, a Namibian black empowerment group, holds the remaining 8%.

B2Gold expects the mine will average 141,000 oz. gold per year in its first five years at an operating cost of US$524 per oz. gold, with production over the mine’s life averaging 112,000 oz. per year at an operating cash cost of US$689 per oz. gold.

The company anticipates a US$244.2-million pre-production capital expenditure, which would build a mine with a US$413-million net cash flow over its life.

The after-tax net present value was US$243.4 million using a 5% discount rate, while the internal rate of return came in at 23.6%.

The company plans to bolster production from the initial design capacity of 2.5 million tonnes per year to 3 million tonnes per year, and says it can do so with minimal additional capital requirements.

B2Gold also updated its open-pittable probable reserves, which stand at 29.4 million tonnes grading 1.42 grams per tonne gold for 1.34 million oz., with a strip ratio of 5.59 to 1.

Metallurgical studies show average gold recoveries increasing to 95.6%.

Also boding well for the project are recent high-grade discoveries on the property that B2Gold says could expand reserves and mill-throughput capacity, which could increase annual gold production.

The company can proceed with construction, having received all of the required government permits and licences.

On Jan. 10 — the day the news was released — the company’s shares were up 5%, or 20¢, to $3.85, on 5.6 million shares traded.



© 1915 - 2014 The Northern Miner. All Rights Reserved.

Related News
B2Gold wrestles with operational issues at Masbate, Limon
TSX down again, Sept. 29 - Oct. 3
Calibre Mining wins over Pierre Lassonde
Related Press Releases
B2Gold Reports 2014 Third Quarter Gold Production and Revenue
B2Gold Corp.: Third Quarter 2014 Results Conference Call
B2Gold Corp. and Papillon Resources Limited Complete Merger
 

Companies in This Story

B2Gold Corp

Properties in This Story

Otjikoto Project



Horizontal ruler
Horizontal Ruler

Post A Comment

Disclaimer
Note: By submitting your comments you acknowledge that Northern Miner has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that due to the volume of e-mails we receive, not all comments will be published and those that are published will not be edited. However, all will be carefully read, considered and appreciated.

Your Name (this will appear with your post) *

Email Address (will not be published) *

Comments *



* mandatory fields