B2Gold Corp. (TSX:BTO) (NYSE AMERICAN:BTG) (NSX:B2G) (“B2Gold” or
the “Company”) is pleased to announce that the Fekola Mine in Mali
achieved commercial production on November 30, 2017, one month
ahead of the revised schedule and four months ahead of the schedule
announced in the Optimized Feasibility Study (“OFS”). Ramp up to
full-scale production at Fekola remains ahead of schedule with gold
production well above budget in each of the ramp-up months, beating
original recovery, grade and plant availability estimates in the
OFS design. To November 30, 2017, the Fekola Mine has produced
approximately 80,000 ounces of gold1, approximately 158% above
budget (31,000 ounces). Gold production from the Fekola Mine in
2017 is now forecast to be between 100,000 and 110,000 ounces, far
surpassing the upper end of the original guidance of 45,000 to
55,000 ounces. Based on current assumptions and updates to B2Gold’s
current year guidance and long-term mine plans, the Company is now
projecting consolidated gold production in 2017 of between 580,000
and 625,000 ounces.
In 2018, consolidated gold production is
forecast to be between 925,000 and 975,000 ounces. This represents
an increase in annual consolidated gold production of approximately
58% for B2Gold in 2018 versus 2017. Annual consolidated cash
operating costs (see “Non-IFRS Measures”) and all-in sustaining
costs (“AISC”) (see “Non-IFRS Measures”) for 2018 are forecast to
decrease in 2018 to approximately $525 per ounce and $800 per
ounce, respectively.
B2Gold has declared commercial production at the
Fekola Mine based on an internal commercial production measure of
30 consecutive days of mill throughput at 65% or greater of
nameplate capacity (607 dry tonnes per hour). During the 30
consecutive-day commercial test, the mill achieved an average
throughput of 626 dry tonnes per hour. This included an
availability for the mill of 95% (budget was 70%) for the test
period and a recovery that exceeded 95% (budget was 91%).
The Fekola mill started processing ore more than
three months ahead of schedule on September 25, 2017, (see news
release dated 09/25/2017) with the first pour at the Fekola Mine
achieved on October 7, 2017. In October, the first full month
of ramp-up and pre-commercial production, the Fekola mill treated
324,525 tonnes of ore (budgeted – 225,804 tonnes) at an average
grade of 3.40 g/t (budgeted – 2.33 g/t) with a gold recovery of
95.4% (budgeted – 90.0%), producing a total of 33,946 ounces of
gold in the month (surpassing budget of 15,100 ounces). Gold
production at Fekola in November 2017 was approximately 40,000
ounces1 from 426,836 tonnes of ore (budgeted 316,000 tonnes) at an
average grade of 3.05 g/t (2.33 g/t budgeted) with gold recoveries
of 95.5% (budget 91%). The higher than budgeted grade is a result
of the early start to mining (April 2017), allowing the site to
stockpile ore and blend mill feed for optimal production.
The estimated overall production from the Fekola
Mine for 2017 is now projected to be between 100,000 and 110,000
ounces. Commercial gold production in 2017 will include a projected
25,000 ounces in December 2017. This number is lower than the
production in October and November 2017, due to a planned shutdown
to finalize operational changes. The routine shutdown is expected
to last six to seven days.
Based on the life of mine (“LoM”) plan in 2018,
the first full year of Fekola production, the Company is projecting
production of approximately 400,000 to 410,000 ounces of gold from
the Fekola Mine with low projected cash operating costs and AISC of
approximately $354 per ounce and $609 per ounce, respectively.
For the first three years, the Fekola Mine is
projected to produce approximately 400,000 ounces of gold annually
at cash operating costs of $357 per ounce and AISC of $604 per
ounce. For the first seven years, Fekola is projected to produce
approximately 374,000 ounces of gold annually with cash operating
costs of $391 per ounce and AISC of $643 per ounce. Over the
initial ten-year LoM, Fekola is projected to produce an average of
345,000 ounces per annum at cash operating costs of $428 per ounce
and AISC of $664 per ounce.
Exploration
Positive drill results from the Company’s $15.4
million 2017 exploration program at the Fekola area (see news
release dated 11/9/2017) indicated that the main Fekola deposit,
with additional drilling, could extend significantly to the north.
In addition, drilling below the extensive saprolite resource at the
Anaconda, Adder and Mamba zones has discovered three, well
mineralized bedrock (sulphide) zones, indicating the potential for
large, Fekola-style mineralized
zones.
Drilling is ongoing to further test the Fekola
North Extension zone, infill the Fekola resource and further test
the new bedrock mineralization beneath the Anaconda, Adder and
Mamba saprolite resource. The Company is planning additional,
aggressive exploration drilling programs on these targets in
2018.
1. Production numbers are considered approximate
because monthly production has not been reconciled yet for November
2017.
Qualified Person
Tom Garagan, Senior Vice President of
Exploration of 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.
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 gold mines
and numerous exploration and development projects in various
countries including Nicaragua, the Philippines, Namibia, Mali,
Burkina Faso, Colombia and Finland.
ON BEHALF OF B2GOLD
CORP.“Clive T. Johnson”President
& Chief Executive Officer
For more information on B2Gold please visit the
Company website at www.b2gold.com or contact:
Ian MacLean Vice President, Investor
Relations 604-681-8371 imaclean@b2gold.com
Katie Bromley Manager, Investor Relations
& Public
Relations 604-681-8371 kbromley@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 consolidated gold
production of between 580,000 and 625,000 ounces in 2017 (including
production from Fekola of between 100,000 and 110,000 ounces) and
projected gold production of between 925,000 and 975,000 ounces in
2018; projected operating and production costs and guidance; and
statements regarding anticipated exploration, development,
construction, production and other activities of the Company,
including: estimated gold production at Fekola in November,
December and Q4 of 2017 and 2018; 2018 being the first full year of
production and anticipated increase of over 58% in gold production
in 2018; the anticipated shutdown lasting 6-7 days; under the LoM
plan for Fekola, the projected gold production, operating cash
costs and AISC in 2018 and over the initial 3, 7 and 10 year
operating periods; the results of future exploration including the
potential for additional Fekola-style mineralized zones; conversion
of inferred resources to indicated resources; and potential to add
900,000 ounces of gold with further drilling. 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 and assumptions 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. The Company's forward-looking
statements are based on the applicable assumptions and factors
management considers reasonable as of the date hereof, based on the
information available to management at such time. These assumptions
and factors include, but are not limited to, assumptions and
factors related to the Company's ability to carry on current and
future operations, including development and exploration
activities; the timing, extent, duration and economic viability of
such operations, including any mineral resources or reserves
identified thereby; the accuracy and reliability of estimates,
projections, forecasts, studies and assessments; the Company’s
ability to meet or achieve estimates, projections and forecasts;
the availability and cost of inputs; the price and market for
outputs, including gold; the timely receipt of necessary approvals
or permits; the ability to meet current and future obligations; the
ability to obtain timely financing on reasonable terms when
required; the current and future social, economic and political
conditions; and other assumptions and factors generally associated
with the mining industry. 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.
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 may refer to “mineral resources”, “measured mineral
resources”, “indicated mineral resources” or “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”, “measured mineral
resource”, “indicated mineral resource” or “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.