B2Gold Corp. (TSX:BTO) (NYSE AMERICAN:BTG) (NSX:B2G) (“B2Gold” or
the “Company”) is pleased to announce that the Company has
completed construction of the Fekola mill and commenced ore
processing, more than three months ahead of schedule and on budget,
at the Fekola Mine. Gold is now in the circuit and the first gold
pour is anticipated by mid-October 2017. The Company expects to
achieve commercial production and produce between 50,000 to 55,000
ounces of gold by the end of 2017. In addition, the Company
announces it has completed a new Life of Mine (“LoM”) plan for the
Fekola deposit that projects higher mill throughput and annual gold
production, and lower projected operating costs per ounce and
all-in sustaining costs (“AISC”) per ounce of gold than the
original (4 million tonnes per annum (“MTPA”)) plan in the
Optimized Feasibility Study (“OFS”). The new LoM plan was completed
based on the expanded 5 MTPA mill throughput and takes into account
an early start-up, increased processing throughput, and improved
open-pit design and scheduling versus the OFS (see table below).
New Fekola LoM Plan
Highlights:
A comparison of the OFS and LoM is as follows:
Parameters1 |
OFS – 4 MTPA (June 2015) |
New LoM – 5 MTPA(September 2017) |
LoM Gold Production (million ounces) |
3.45 |
3.45 |
LoM (years) |
12.5 |
10 |
Gold Production: LoM (‘000 ounces) |
276 |
345 |
Gold Production: Years 1-3 (‘000 ounces) |
333 |
400 |
Gold Production: Years 1-7 (‘000 ounces) |
350 |
374 |
Operating Cash Cost: LoM (US$/oz) |
552 |
428 |
Operating Cash Cost: Years 1-3 (US$/oz) |
464 |
357 |
Operating Cash Cost: Years 1-7 (US$/oz) |
418 |
391 |
AISC: LoM (US$/oz) |
752 |
664 |
AISC: Years 1-3 (US$/oz) |
717 |
604 |
AISC: Years 1-7 (US$/oz) |
661 |
643 |
|
|
|
- No material change to Feasibility Mineral Reserves with the new
resource model, pit and phase designs, and production plan. The
contained Mineral Reserve remains 3.34 million ounces2 contained in
43.8 million tonnes at an average grade of 2.37g/t
- No material change to mining production or fleet size
- Processing throughput increased to 5 Mtpa vs. 4 Mtpa in the
OFS
- Significant upside in mine life and ounces produced exists
within current resource, with further potential as adjacent and
other targets are developed
1Gold production, cash operating costs and AISC are presented on
an average annual basis2Mineral Reserves are reported on a 90%
attributable basis
The Fekola Project has been built using the same
construction team that had previously completed four gold mines, on
schedule and on budget, for B2Gold’s predecessor company (Bema Gold
Corporation) and B2Gold. Prior to construction, the Company
recognized the exploration potential beyond the initial reserves
and decided to build the Fekola mill with a 25% design capacity to
allow for future expansion of the mill throughput from 4 MTPA to 5
MTPA for an additional expenditure of approximately $18
million. Due to the success of the Fekola Mine construction
(more than three months ahead of schedule and on budget) and
further exploration success at Fekola, the Company decided to
expedite the expansion and complete it during the construction
phase rather than post construction. The Fekola Project remains on
budget; total cumulative forecast construction costs for the
project (from inception to completion) include pre-construction
sunk costs of approximately $41 million, feasibility study
construction costs of $462 million and $18 million additional costs
for the mill expansion to 5 MTPA. Additionally, another $20 million
is expected to be spent on relocating the village of Fadougou.
In 2018, the Fekola Mine is now projected to
produce between 400,000 and 410,000 ounces of gold at an operating
cost of approximately $354 and AISC of $609 per ounce of gold.
Exploration
B2Gold’s exploration team believes the expansive
Fekola property has the potential to host additional large
Fekola-style gold deposits. Surface exploration, regional drilling
and geophysics to date have identified numerous targets.
The Company has drilled approximately 2,800
aircore, reverse circulation and diamond drill holes totalling
180,000 metres. Approximately 75% of the drilling has focused on
exploration drilling with the remainder on in-fill drilling.
Based on the successful results to date, the Fekola Mine and
regional exploration budgets for 2017 have been increased by $3.8
million to $15.4 million.
The resource identified to date from drilling
below and to the north of the Fekola reserve boundary combined with
the near-pit portion of the Kiwi zone (to the north) could add
900,000 ounces (2/3 in the indicated category) and is being further
drilled to potentially move resources from the inferred category
into the measured and indicated categories. Drilling further to the
north of the reserve pit boundary has identified additional gold
mineralization near surface and in some deeper holes. This
indicates the potential to increase the gold resources and
ultimately expand the planned Fekola reserves further to the
north.
Deeper below the Kiwi zone is the down-plunge
extension of the main Fekola ore body. Drilling in this zone
(Fekola Deeps) has intercepted Fekola-type gold grades over large
intervals. If the on-going drilling between the near surface Kiwi
zone and Fekola Deeps continues to encounter good grade gold
mineralization, there is the potential for the Fekola pit to
ultimately become much larger to exploit both the Kiwi zone and a
portion of Fekola Deeps by open pit. The Fekola Deeps zone remains
open further to the north further down dip and has the potential to
be exploited by underground mining.
The Company anticipates another large
exploration budget (approximately $15 million) for Fekola in 2018,
for in-fill drilling, further exploration drilling at the Kiwi and
Fekola Deeps zones and regional exploration. The Company
anticipates announcing results from the 2017 drilling program in
November 2017.
Update on the Fekola Shareholder
Agreement and Mining Convention
In 2016, pursuant to applicable mining law, the
Company formed a new 100% owned subsidiary company, Fekola SA,
which now holds the Company’s interest in the Fekola Project. Upon
signing of a shareholder’s agreement between the Company and the
State of Mali (the “Fekola Shareholder Agreement”), the Company
will contribute a 10% free carried interest in Fekola SA to the
State of Mali. The State of Mali also has the option to purchase an
additional 10% of Fekola SA which it has confirmed its intent to
exercise. The Company has signed a mining convention in the form
required under the 2012 Mining Code (the “Fekola Convention”) that
relates to, among other things, the ownership, permitting,
reclamation bond requirements, development, operation and taxation
applicable to the Fekola Project with the State of Mali. The
Company recently finalized certain additional agreements with the
State of Mali including the Fekola Shareholders Agreement and an
amendment to the Fekola Mining convention to address and clarify
certain issues under the 2012 Mining Code. The Fekola Mining
Convention, as amended, will govern the procedural and economic
parameters pursuant to which the Company will operate the Fekola
Project.
About B2Gold Corp.
Headquartered in Vancouver, Canada, B2Gold Corp.
is one of the fastest-growing intermediate gold producers in the
world. Founded in 2007, today, B2Gold has five operating mines
(four in production and one in pre-production), and numerous
exploration and development projects in various countries including
Finland, Nicaragua, the Philippines, Namibia, Mali and Burkina
Faso.
Based on current assumptions and updates to
B2Gold’s current year guidance and long-term mine plans, the
Company is projecting consolidated gold production in 2017 of
between 530,000 and 570,000 ounces (including estimated
pre-commercial production from the Fekola Mine of between 50,000
and 55,000 ounces); and in 2018, significantly increasing to
between 925,000 and 975,000 ounces, with the inclusion of the
anticipated first full-year of commercial production at Fekola.
ON BEHALF OF B2GOLD CORP.
“Clive T.
Johnson”President and Chief Executive
Officer
Qualified Person
Tom Garagan, Senior Vice President of
Exploration for B2Gold, a qualified person under NI 43-101, has
approved the exploration information contained in this news
release.
Peter D. Montano, P.E., the Project Director of
B2Gold, a qualified person under NI 43-101, has approved the
scientific and technical information contained in this news
release.
For more information on B2Gold please visit the
Company website at www.b2gold.com or contact:
Ian MacLeanVice President, Investor
Relations604-681-8371imaclean@b2gold.com
Katie BromleyManager, Investor Relations &
Public Relations604-681-8371kbromley@b2gold.com
This news release includes certain
“forward-looking information” and “forward-looking statements”
(collectively “forward-looking statements”) within the meaning of
applicable securities legislation, including projections of future
financial and operational performance; statements with respect to
future events or future performance; production estimates and
guidance, including the Company’s projected gold production of
between 530,000 to 570,000 ounces in 2017 (including pre-commercial
production from Fekola of between 50,000 and 55,000 ounces) and
projected gold production of between 925,000 and 975,000 ounces in
2018; projected operating and production costs and guidance;
estimates of capital expenditures and planned investments and
budgets; and statements regarding anticipated exploration,
development, construction, production, permitting and other
activities of the Company, including: the Fekola Project being
approximately three months ahead of schedule and beginning
production in October 2017; the first gold pour at Fekola being by
or about mid-October 2017; Fekola achieving commercial production
and producing 50,000 to 55,000 ounces of gold by the end of 2017;
Fekola producing between 400,000 and 410,000 ounces of gold at an
operating cost of approximately $354 and AISC of $609 per ounce of
gold in 2018; the estimates, projections and anticipated results in
the OFS LoM plan and the new LoM plan, including the projection in
the new LoM plan of higher mill throughput and annual gold
production, lower operating costs per ounce and AISC per ounce
compared to the OFS; the Fekola Project being on budget; the
estimated pre-construction and construction costs at Fekola and the
cost to relocate the village of Fadougou; the State of Mali
exercising its option to acquire an additional 10% interest in the
Fekola Project, for an aggregate 20% interest; the results of
future exploration; the potential to identify additional mineral
resources and to convert existing and new mineral resources into
mineral reserves and to extend anticipated mine life; the potential
to extend the current Fekola LoM by 3 years and 900,000 ounces; the
potential for mineralization to extend north of the current Fekola
resource and for exploration to expand the resource at Fekola; the
potential to extend the Fekola pit to the north and mine a portion
of Kiwi and Fekola Deeps zones by open pit or underground;
exploration plans including future drilling; future cash flows; the
amendment of the Fekola Mining Convention; expectations of future
growth and profitability and the adequacy of capital for continued
operations. Estimates of mineral resources and reserves are also
forward-looking statements because they constitute projections,
based on certain estimates and assumptions, regarding the amount of
minerals that may be encountered in the future and/or the
anticipated economics of production, should a production decision
be made. All statements in this news release that address events or
developments that we expect to occur in the future are
forward-looking statements. Forward-looking statements are
statements that are not historical facts and are generally,
although not always, identified by words such as “expect”, “plan”,
“anticipate”, “project”, “target”, “potential”, “schedule”,
“forecast”, “budget”, “estimate”, “intend” or “believe” and similar
expressions or their negative connotations, or that events or
conditions “will”, “would”, “may”, “could”, “should” or “might”
occur.
Forward-looking statements necessarily involve
assumptions, risks and uncertainties, certain of which are beyond
B2Gold’s control, including risks associated with the volatility of
metal prices and the Company’s common shares; risks and dangers
inherent in exploration, development and mining activities;
uncertainty of reserve and resource estimates; risk of not
achieving production, cost or other estimates; risk that actual
production, development plans and costs differ materially from the
estimates in the Company’s feasibility studies; risks related to
ore purchase commitments; the ability to obtain and maintain any
necessary permits, consents or authorizations required for mining
activities; risks related to environmental regulations or hazards
and compliance with complex regulations associated with mining
activities; the ability to replace mineral reserves and identify
acquisition opportunities; availability of financing and financing
risks; risks related to operations in foreign and developing
countries and compliance with foreign laws; risks related to remote
operations and the availability adequate infrastructure,
fluctuations in price and availability of energy and other inputs
necessary for mining operations; regulatory, political and country
risks; the final outcome of the Department of Environment and
Natural Resources audit; as well as other factors identified and as
described in more detail under the heading “Risk Factors” in
B2Gold’s most recent Annual Information Form and B2Gold’s other
filings with Canadian securities regulators and the U.S. Securities
and Exchange Commission (the “SEC”), which may be viewed at
www.sedar.com and www.sec.gov, respectively. The list is not
exhaustive of the factors that may affect the Company’s
forward-looking statements. There can be no assurance that such
statements will prove to be accurate, and actual results,
performance or achievements could differ materially from those
expressed in, or implied by, these forward-looking statements.
Accordingly, no assurance can be given that any events anticipated
by the forward-looking statements will transpire or occur. The
Company’s forward-looking statements reflect current expectations
regarding future events and operating performance and speak only as
of the date hereof and the Company does not assume any obligation
to update forward-looking statements if circumstances or
management's beliefs, expectations or opinions should change other
than as required by applicable law. For the reasons set forth
above, undue reliance should not be placed on forward-looking
statements.
Non-IFRS Measures:
This news release includes certain terms or performance measures
commonly used in the mining industry that are not defined under
International Financial Reporting Standards (“IFRS”), including
“cash operating costs” and “all-in sustaining costs” (or “AISC”).
Non-IFRS measures do not have any standardized meaning prescribed
under IFRS, and therefore they may not be comparable to similar
measures employed by other companies. The data presented is
intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS and should be read in
conjunction with B2Gold’s consolidated financial statements.
Readers should refer to B2Gold’s management discussion and
analysis, available under B2Gold’s corporate profile at
www.sedar.com and at www.sec.gov or on its website at
www.b2gold.com, under the heading “Non-IFRS Measures” for a more
detailed discussion of how B2Gold calculates such measures.National
Instrument 43-101
Cautionary Note to United States
Investors:The Company has prepared its public disclosures
in accordance with Canadian securities laws, which differ in
certain respects from U.S. securities laws. In particular, this
news release refers to “mineral resources”, “indicated mineral
resources” and “inferred mineral resources”. While these categories
of mineralization are recognized and required by Canadian
securities laws, they are not recognized by the SEC and are not
normally permitted to be disclosed in SEC filings by U.S.
companies. U.S. investors are cautioned not to assume that any part
of a “mineral resource”, “indicated mineral resource” or an
“inferred mineral resource” will ever be converted into a
“reserve.” In addition, “reserves” reported by the Company under
Canadian standards may not qualify as reserves under SEC standards.
Under SEC standards, mineralization may not be classified as a
“reserve” unless the mineralization can be economically and legally
extracted or produced at the time the “reserve” determination is
made. Accordingly, information contained or referenced in this news
release containing descriptions of the Company’s mineral deposits
may not be compatible to similar information made public by U.S.
companies subject to the reporting and disclosure requirements of
U.S. federal securities laws, rules and regulations. “Inferred
mineral resources” have a great amount of uncertainty as to their
existence and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher
category. Historical results or feasibility models presented herein
are not guarantees or expectations of future performance.
Currency: All amounts in this
news release are expressed in United States dollars, unless
otherwise stated.
The Toronto Stock Exchange and the NYSE American
LLC have not reviewed and do not accept responsibility for the
accuracy or adequacy of this news release, which has been prepared
by the Company.