B2Gold Corp.
B2Gold drills 29 m of 9.53 g/t Au at Otjikoto
2014-06-13 07:34 ET - News Release
Mr. Clive Johnson reports
B2GOLD ANNOUNCES OTJIKOTO PROJECT UPDATE
B2Gold Corp.'s construction at the Otjikoto mine in Namibia remains on budget and on schedule for completion in the fourth quarter of 2014. In addition, the company announces further high-grade drilling results from the Wolfshag zone at Otjikoto.
Construction update
Construction of the Otjikoto open pit gold mine remains on schedule to commence gold production in late 2014. All major excavations on the project are complete, and the only substantial earthworks project remaining is the relocation of a gravel district road (scheduled to be completed in third-quarter 2014). More than 16,000 cubic metres of concrete have been poured, and less than 10 per cent of the total volume remains outstanding. Steel erection continues on site, and millwrights are currently installing the crusher and milling circuits. All material earthworks in the tailings pond have been completed, and water has been captured from the rainy season to start the mill. Total employees and contractors on site now total approximately 1,000.
Mining remains on budget with 2014 forecasts, and more than 7.5 million tonnes have been moved since pit inception. The project team has recently begun to mine ore and is placing material on the stockpile in anticipation for start-up.
Based on the feasibility study, the projected average annual production for the first five years is approximately 141,000 ounces of gold per year at an average operating cash cost of $525 per ounce and for the LOM approximately 112,000 ounces of gold per year at an average operating cash cost of $689 per ounce. Total construction and development costs remain in line with the Otjikoto feasibility study released in February, 2013, including predevelopment costs of $244-million and deferred stripping estimates of $33-million. The Otjikoto feasibility study also assumed that a further $60-million in mobile mining fleet and power plant costs would be lease financed. Leasing arrangements were finalized in the fourth quarter of 2013 and will finance a total of $34-million of mobile mining fleet costs based on current foreign exchange rates. The balance of the fleet and power plant costs has been financed from the company's existing cash flows and credit facilities.
Given the discovery of the high-grade Wolfshag zone near the planned open pit, the plant facility and support infrastructure will be built to support a plant expansion from the initial processing capability of 2.5 million tonnes per annum to 3.0 million tonnes. The increased throughput will be achieved through the installation of a pebble crusher, additional leach tanks and mining equipment at a total cost of approximately $15-million. Once the expansion is completed at the end of 2015, the company expects that the annual gold production from the main Otjikoto pit would increase to approximately 170,000 ounces per year. The company will rerun mine plans to include the higher-grade Wolfshag zone.
Exploration drill results
The company is also pleased to announce continued high-grade results from the exploration drilling program on the recently discovered Wolfshag zone at its Otjikoto gold project in Namibia. The infill drilling on the Wolfshag zone continues to confirm the continuity of the main high-grade shoots, WA and WB. The Wolfshag zone plunges at 10 degrees to 15 degrees to the southwest, has been traced down plunge for 1,600 metres and remains open to depth. Recent results are highlighted by hole WH14-162, which intersected 29.65 metres grading 9.53 grams per tonne gold (7.70 grams per tonne gold with assays capped at 45 grams per tonne gold), including 15.30 metres at 17.34 grams per tonne gold (13.78 grams per tonne gold with assays capped at 45 grams per tonne gold).
Drilling this year has concentrated on infilling the northern portion of the Wolfshag zone to allow for conversion of portions of the recently defined inferred resource of 6.8 million tonnes grading 3.2 g/t gold (703,000 contained ounces gold) (see B2Gold news release dated Jan. 22, 2014) to an indicated mineral resource category. Conceptual studies for incorporation of the Wolfshag resource into the Otjikoto mine plan have started in support of the Otjikoto mine expansion. Results have been received from all but five holes of the exploration program completed to date. Select significant new results (uncapped) from the Wolfshag drilling include, from north to south:
Exploration work is continuing on the Wolfshag zone, with two drills currently active on infill drilling of the southern extensions of the zone to potentially allow for inclusion of this area into an inferred mineral resource class. Additional results will be released as they become available. Future work will continue to follow the Wolfshag zone at depth and to test several other targets on the property.
Au g/t From To Length Au (cut to Hole ID (m) (m) (m) g/t 45 g/t) WH14-148 29.54 39.00 9.46 3.750 3.750 including 29.54 35.94 6.40 5.392 5.392 WH14-150 32.70 47.50 14.80 1.336 1.336 WH14-152 22.00 25.00 3.00 1.873 1.873 WH14-163 23.00 28.30 5.30 0.778 0.778 WH14-151 22.50 23.72 1.22 2.438 2.438 and 37.00 42.62 5.62 0.565 0.565 and 50.22 61.48 11.26 1.382 1.382 WH14-153 26.00 36.10 10.10 1.353 1.353 and 54.45 68.20 13.75 2.634 2.634 and 95.60 97.20 1.60 1.372 1.372 WH14-155 43.10 48.30 5.20 1.514 1.514 and 60.00 61.00 1.00 7.000 7.000 and 69.45 78.40 8.95 4.368 4.368 WH14-157 77.93 89.79 11.86 0.680 0.680 WH14-181 139.80 147.00 7.20 1.217 1.217 WH14-166 75.25 79.80 4.55 1.473 1.473 WH14-168 89.45 93.00 3.55 10.089 10.089 WH14-136 56.15 64.70 8.55 0.537 0.537 WH14-135 54.00 69.00 15.00 7.434 7.434 including 60.32 67.94 7.62 12.913 12.913 WH14-137 61.35 72.30 10.95 6.872 6.872 and 78.05 80.50 2.45 3.265 3.265 and 86.70 91.85 5.15 1.082 1.082 and 98.55 108.00 9.45 1.994 1.994 and 143.30 150.30 7.00 0.616 0.616 WH14-140 62.11 81.12 19.01 1.972 1.972 including 71.04 74.42 3.38 6.628 6.628 and 101.75 117.35 15.60 1.946 1.946 WH14-142 60.40 67.10 6.70 0.618 0.618 and 103.00 112.00 9.00 2.049 2.049 and 115.20 122.85 7.65 5.055 5.055 and 147.50 153.75 6.25 0.497 0.497 WH14-144 122.60 131.00 8.40 0.719 0.719 WH14-138 89.59 91.81 2.22 1.633 1.633 WH14-134 87.60 89.10 1.50 5.255 5.255 and 92.60 107.10 14.50 2.124 2.124 WH14-139 92.70 100.10 7.40 7.780 7.780 including 95.55 98.15 2.60 11.069 11.069 and 105.60 110.55 4.95 3.716 3.716 and 137.45 145.75 8.30 1.387 1.387 including 140.50 144.00 3.50 2.911 2.911 and 189.15 194.00 4.85 1.052 1.052 WH14-141 92.75 95.40 2.65 1.387 1.387 and 98.50 104.10 5.60 2.318 2.318 and 107.40 118.20 10.80 1.110 1.110 and 139.40 148.60 9.20 5.423 3.962 and 193.85 194.30 0.45 8.000 8.000 and 198.40 204.50 6.10 0.719 0.719 including 202.00 204.50 2.50 1.434 1.434 WH14-143 107.76 113.50 5.74 0.661 0.661 and 119.65 126.60 6.95 0.650 0.650 and 145.00 157.30 12.30 1.848 1.848 and 187.95 198.35 10.40 0.876 0.876 including 195.80 198.35 2.55 2.438 2.438 WH14-145 127.50 127.90 0.40 6.910 6.910 WH14-160 118.40 119.40 1.00 4.400 4.400 and 123.85 125.45 1.60 14.275 14.275 WH14-162 121.80 151.45 29.65 9.534 7.695 including 127.10 142.40 15.30 17.341 13.778 WH14-165 127.20 144.60 17.40 2.507 2.507 including 134.30 137.00 2.70 7.356 7.356 and 147.65 149.55 1.90 2.543 2.543 and 180.40 181.60 1.20 1.764 1.764 and 205.10 207.25 2.15 2.141 2.141 and 235.45 242.00 6.55 1.098 1.098 WH14-167 137.00 142.60 5.60 0.766 0.766 and 150.10 157.00 6.90 1.490 1.490 and 181.00 190.55 9.55 3.363 3.363 and 182.10 190.55 8.45 3.704 3.704 and 231.00 234.00 3.00 1.154 1.154 WH14-170 136.30 139.25 2.95 1.288 1.288 and 194.70 198.00 3.30 25.629 10.742 including 194.70 195.45 0.75 110.500 45.000 and 225.45 229.00 3.55 2.931 2.931 WH14-172 63.90 66.91 3.01 0.477 0.477 WH14-169 157.80 160.00 2.20 0.442 0.442 WH14-171 154.90 174.85 19.95 11.783 9.949 including 159.60 170.40 10.80 20.578 17.189 WH14-173 75.60 77.20 1.60 1.407 1.407 and 159.40 172.10 12.70 6.416 6.416 including 163.60 169.35 5.75 11.295 11.295 and 176.00 181.00 5.00 1.460 1.460 and 184.00 189.60 5.60 0.769 0.769 and 199.60 201.10 1.50 2.659 2.659 and 258.00 264.60 6.60 0.544 0.544 WH14-176 168.85 172.80 3.95 0.528 0.528 and 179.40 183.50 4.10 1.079 1.079 and 205.60 216.60 11.00 1.861 1.861 and 231.40 234.80 3.40 2.326 2.326 and 238.50 241.65 3.15 1.757 1.757 and 269.35 271.60 2.25 2.813 2.813 and 275.70 279.25 3.55 0.921 0.921 WH14-178 212.52 218.87 6.35 0.607 0.607 and 243.14 253.57 10.43 2.013 2.013 and 257.42 262.45 5.03 2.468 2.468 and 275.03 284.30 9.27 0.421 0.421 WH14-175 193.90 216.90 23.00 6.149 6.149 including 206.30 209.15 2.85 19.089 19.089 and 222.00 223.95 1.95 1.667 1.667 WH14-177 199.70 204.90 5.20 1.889 1.889 and 208.80 222.65 13.85 2.561 2.561 including 208.80 215.10 6.30 4.657 4.657 WH14-179 204.50 210.30 5.80 2.010 2.010 and 222.60 230.30 7.70 2.088 2.088 and 250.30 258.30 8.00 2.794 2.794 and 282.60 284.60 2.00 0.790 0.790 WH14-180 249.45 256.85 7.40 0.697 0.697 and 260.10 265.60 5.50 0.990 0.990 and 283.60 288.75 5.15 0.579 0.579 and 294.00 294.55 0.55 3.370 3.370 and 322.40 329.05 6.65 1.177 1.177 WH14-185 224.30 249.55 25.25 5.799 5.763 including 236.50 246.45 9.95 8.490 8.490 WH14-188 229.65 253.35 23.70 2.246 2.246 including 238.64 245.85 7.21 4.574 4.574 True widths for the WA and WB shoots are 85 per cent to 95 per cent of intersected widths. Revised geological interpretations and 3-D modelling are under way to determine the geometry of the lower and eastern shoots.
B2Gold's quality assurance/quality control
Quality assurance and quality control procedures include the systematic insertion of blanks, standards and duplicates into the core sample strings. The primary laboratory for Otjikoto is ALS Minerals in Johannesburg, South Africa, where samples are analyzed by metallic screen fire assay and/or fire assay with atomic absorption finish and/or gravimetric finish using one assay tonne. Samples are prepared at ALS Minerals in Swakopmund, Namibia. Bureau Vertitas, Swakopmund, Namibia, is the umpire laboratory. All results stated in this announcement have passed B2Gold's quality assurance and quality control protocols. Tom Garagan is the qualified person as defined under National Instrument 43-101.