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.