VANCOUVER, Oct. 25, 2018 /CNW/ - B2Gold Corp. (TSX:
BTO, NYSE AMERICAN: BTG, NSX: B2G) ("B2Gold" or the "Company")
announces a substantial increase in the Mineral Resource estimate
for the Fekola Mine and positive results from the ongoing Fekola
mill expansion study. The new increased Mineral Resource and the
positive results, to date, from the Fekola mill expansion study
indicate the potential to increase mill throughput tonnage and
increase annual gold production from Fekola with moderate capital
expenditure.
Based on approximately 192,000 metres of exploration drilling in
928 drill holes (including 70,877 metres in 294 holes drilled by
B2Gold since June 2014), B2Gold
is pleased to report an updated Indicated Mineral Resource estimate
of 92,810,000 tonnes at 1.92 grams per tonne ("g/t") gold, for a
total of 5,730,000 ounces of gold, and an Inferred Mineral Resource
estimate of 26,500,000 tonnes at 1.61 g/t gold, for a total of
1,370,000 ounces of gold, for the Fekola Mine located in
southwestern Mali. Mineral
Resources are reported within a pit shell using a $1,400/ounce gold price and above a cutoff of 0.6
g/t gold. Probable Reserves at the start of production at Fekola
were 49.2 million tonnes at 2.35 g/t gold containing 3.7 million
ounces. These initial reserves (less material mined to December 31, 2017) are contained within the
updated resource (see table and longitudinal section below).
In addition, pit shells were run using a gold price of
$1,250/ounce and demonstrate Fekola's
resiliency to lower gold prices. The Indicated Mineral Resource
contains 90,670,000 tonnes at 1.94 g/t gold for a total of
5,667,000 ounces of gold, and Inferred Mineral Resources of
16,620,000 tonnes at 1.58 g/t gold containing 844,000 ounces of
gold (see table and longitudinal section below).
The new Mineral Resource is contiguous to the north of the
current Fekola reserve pit boundary and extends the resource pit
boundary 1.2 km to the north (see attached longitudinal section).
Exploration drill results further north of the new resource pit
boundary demonstrate that gold mineralization continues to the
north, and remains open, indicating the potential to further expand
Mineral Resources with additional drilling.
Fekola Expanded Mine Plan and Mill Expansion Study
The B2Gold operations team is currently designing a new mine
plan based on the new Fekola Mineral Resource estimate, to
establish new Probable Mineral Reserves. In conjunction, an
engineering study is underway to evaluate the Fekola mill expansion
potential along with the evaluation of larger mining fleet options.
Current mill production rates have been averaging approximately 5.5
million tonnes per annum ("Mtpa") during 2018. The expansion study
is focused on expanding mill throughput to 7.5 Mtpa. The economics
of this case will be compared to a baseline throughput of 5.5 Mtpa
to 6.0 Mtpa. Given the capacity of the Fekola primary crusher, SAG
mill and ball mill, and engineering work to date, the 7.5 Mtpa
throughput can be achieved with an upgrade of the existing ball
mill circuit. Additional process equipment upgrades will be
required, which are being determined in the expansion study along
with capital and operating cost estimates.
The expansion study is being carried out by the same
Lycopodium-Brisbane and B2Gold technical team which performed the
prior engineering/design work for the current Fekola mill and
infrastructure. The study is expected to be completed by year-end
2018 and the results will feed into the overall mine/mill expansion
evaluation to optimize the economics of the significantly larger,
new Fekola Mineral Resource. A technical report will be written
once the expansion study is completed.
As part of the expansion study, the Fekola mill ran a 5-day
campaign of 1.1 g/t gold ore in early October to evaluate gold
recovery on low-grade material for long-term planning purposes. The
recovery for the 5-day period was 92.7% which was 1.4% higher than
the model predicted recovery from feasibility metallurgical test
work. The gold recovery for the low-grade ore was very encouraging,
especially with the very high mill throughput over the test period,
which was significantly above design throughput.
Mineral Resources
Mineral Resources within a pit shell run at a gold price of
$1,400/ounce, gold grade cutoff of
0.6 g/t.
Deposit
|
Resource
Class
|
Tonnes
(t)
|
Gold Grade
(g/t gold)
|
Contained Gold
Ounces (oz)
|
Fekola
|
Indicated
|
89,620,000
|
1.89
|
5,444,000
|
Indicated-ROM
Stockpiles
|
3,190,000
|
2.79
|
287,000
|
Total
Indicated
|
92,810,000
|
1.92
|
5,730,000
|
|
|
|
|
|
Fekola
|
Inferred
|
26,500,000
|
1.61
|
1,370,000
|
Sensitivity Case to Mineral Resources within a pit shell run at
a gold price of $1,250/ounce, gold
grade cutoff of 0.6 g/t.
Deposit
|
Resource
Class
|
Tonnes
(t)
|
Gold Grade
(g/t)
|
Contained Gold
Ounces (oz)
|
Fekola
|
Indicated
|
87,480,000
|
1.91
|
5,381,000
|
Indicated- ROM
Stockpiles
|
3,190,000
|
2.79
|
287,000
|
Total
Indicated
|
90,670,000
|
1.94
|
5,667,000
|
|
|
|
|
|
Fekola
|
Inferred
|
16,620,000
|
1.58
|
844,000
|
Mineral Resource and sensitivity case Table Notes:
- Fekola Mineral Resources and Fekola Mineral Resource
sensitivity case are reported inclusive of Mineral Reserves, within
a pit shell generated at a gold price of $1,400/ounce and $1,250/ounce, respectively, above a cutoff grade
of 0.6 g/t gold and below topography dated December 31, 2017. An average gold recovery of
94.5%, pit slope parameters of 41 degrees in fresh material and 34
degrees in weathered material were used. Costs used for pit
generation include a mining cost of US$2.00/tonne mined, processing cost of
US$14.50/ore tonne, and G&A cost
of US$4.50/ ore tonne. The updated
Mineral Resource model has an effective date of September 1, 2018, and is current as of
December 31, 2017.
- The Mineral Resource and sensitivity case are inclusive of
Fekola Mine production of 333,788 ounces of gold between
December 31, 2017, and September 30, 2018.
- Resources reported here are at 100% ownership basis, the
Company has an 80% attributable ownership. B2Gold owns 80% of
Fekola SA while the State of Mali
owns 20%.
- The Mineral Resource and sensitivity case update were
prepared in-house by B2Gold. Three-dimensional
mineralization domain models were built, the geometries of which
are strongly supported by models of stratigraphy and high strain
zones which are derived from oriented drill core logging. Tight,
asymmetric folds and shear zones are the primary controls on
mineralization.
- Assays were capped differently for each of the three
mineralization domains, capping thresholds used are 1.5 g/t, 5 g/t
and 30 g/t. Gold assays were capped prior to compositing to 2
metres. Grades were estimated into the block model using
Ordinary Kriging (OK) with searches dynamically controlled along
mineralization zone directions. All tonnage, grade and contained
metal content estimates have been rounded; rounding may result in
apparent summation differences between tonnes, grade, and contained
metal content. Indicated resources approximate 50x50 metre drill
centers and Inferred Resources were drilled at approximately 80x100
metre centers.
- A total of 14,266 bulk density measurements using the
water-displacement method on air-dried fresh core samples were
completed at the project site. Density variability for unweathered
rock is very low, so for tonnage and metal estimates, densities
were assigned based on averages by mineralization domain, waste and
regolith.
- Mineral Resources have been classified using the CIM
Standards. Mineral Resources are reported inclusive of those
Mineral Resources that have been modified to Mineral Reserves.
Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
Ongoing Exploration
For the remainder of 2018, exploration drilling will continue to
the immediate north and west of Fekola, and at the Anaconda zones
approximately 20 km from Fekola. In 2019, the Company plans to
continue its successful drilling to convert Fekola's Inferred
Resources to Reserves, further explore through drilling the
potential to the north and west of Fekola, and continue drilling at
and beneath the Anaconda saprolite zone.
In June 2017, the Company
previously released an Inferred Mineral Resource estimate
containing 767,000 ounces of gold at 1.1 g/t at Anaconda in
near-surface mineralization. Additional metallurgical
testwork and engineering studies are being carried out on Anaconda
towards evaluating the potential for a standalone oxide mine.
The Company will release more 2018 exploration results from
these zones in November, in conjunction with the third quarter
financial results.
B2Gold's in-house construction team completed construction of
the Fekola Mine in September 2017 and
the Company declared commercial production in December 2017, four months ahead of schedule. In
2018, the Fekola Mine is projected to produce between 420,000 and
430,000 ounces of gold with cash operating costs (see Non-IFRS
Measures) estimated between $345
and $390/ounce and all-in sustaining
costs ("AISC") (see Non-IFRS Measures) estimated between
$575 and $625/ounce.
QA/QC on Sample Collection and Assaying
The primary laboratories for Fekola are SGS
Laboratories in Bamako, Mali, and
Bureau Veritas Laboratories in Abidjan,
Cote d'Ivoire. Periodically, exploration samples will be
analyzed at the Fekola Mine Lab. At each lab, samples are
prepared and analyzed using 50g fire assay with atomic absorption
finish and/or gravimetric finish. Umpire assays are used to monitor
lab performance monthly.
Quality assurance and quality control ("QA/QC") procedures
include the systematic insertion of blanks, standards and
duplicates into the core, reverse circulation and aircore drilling
sample strings. The results of the control samples are evaluated on
a regular basis with batches re-analyzed and/or resubmitted as
needed. All results stated in this announcement have passed
B2Gold's quality assurance and quality control protocols.
About B2Gold Corp.
Headquartered in Vancouver,
Canada, B2Gold Corp. is the world's new senior gold
producer. 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.
With the first full year of production from the large, new
Fekola Mine, B2Gold is achieving transformational growth in 2018.
Consolidated gold production is forecast to be between 920,000 and
960,000 ounces, representing an increase in annual consolidated
gold production of approximately 300,000 ounces in 2018 versus
2017. Based on current assumptions, in 2018, consolidated cash
operating costs are projected to be
between $505 and $550/ounce, and
consolidated AISC are projected to be
between $780 and $830/ounce.
Qualified Persons
John Rajala, Vice President of
Metallurgy at B2Gold, a qualified person under NI 43-101, has
approved the scientific and technical information regarding
engineering matters contained in this news release.
Tom Garagan, Senior Vice
President of Exploration at B2Gold, a qualified person under NI
43-101, has approved the exploration information contained in this
news release.
On Behalf of B2GOLD CORP.
"Clive Johnson"
"Tom
Garagan"
President & Chief Executive
Officer
Senior Vice President,
Exploration
The Toronto Stock Exchange and the NYSE American
LLC neither approve nor disapprove the information
contained in this news release.
All amounts in this news release are expressed in
United States dollars, unless
otherwise stated.
This news release includes certain "forward-looking
information" and "forward-looking statements" (collectively
"forward-looking statements") within the meaning of applicable
Canadian and United States
securities legislation, including:
projections; outlook; guidance;
forecasts; estimates; and other
statements regarding future or estimated financial
and operational performance events, gold
production and sales, revenues and cash flows,
capital and operating costs, including projected cash
operating costs and AISC, and budgets;
statements regarding future or estimated mine life,
metal price assumptions, ore grades and
sources, stripping ratios, throughput, ore
processing; statements regarding anticipated
exploration, drilling, development, construction, permitting and
other activities or achievements of B2Gold;
and including, without limitation: B2Gold continuing infill
drilling to convert inferred resources to indicated and the timing
thereof; the release of more 2018 exploration results from drilling
to the north and the west of Fekola and the Anaconda Zones, and the
timing thereof; the economics of expanding the Fekola Mine mill
throughput of 7.5 Mtpa being compared to a baseline throughput of
6.0 Mtpa; the 7.5 Mtpa throughput being achievable with an upgrade
of the existing ball mill circuit given the overcapacity of the
Fekola primary crusher, sag mill and ball mill and engineering work
to date; additional process equipment upgrades being required and
such upgrades being determined in the expansion study along with
capital and operating cost estimates; the timing of completion of
the expansion study; the results of the expansion study feeding
into the overall mine/mill expansion evaluation to exploit the
significantly larger new Fekola gold resource; and exploration
samples being periodically analyzed at the Fekola Mine Lab.
Estimates of mineral resources and reserves,
including the new mineral resource estimate at Fekola, are
also forward-looking statements because they constitute projections
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. All such forward-looking statements are based on the
opinions and estimates of management as of the date such statements
are made.
Forward-looking statements necessarily involve assumptions,
risks and uncertainties, certain of which are beyond B2Gold's
control, including risks associated with or related to: the
volatility of metal prices and B2Gold's common shares; the dangers
inherent in exploration, development and mining activities; the
uncertainty of reserve and resource estimates; not achieving
production, cost or other estimates; actual production, development
plans and costs differing materially from the estimates in B2Gold's
feasibility studies; the ability to obtain and maintain any
necessary permits, consents or authorizations required for mining
activities; the current ongoing instability in Nicaragua; the uncertainty about;
environmental regulations or hazards and compliance with complex
regulations associated with mining activities; the ability to
replace mineral reserves and identify acquisition opportunities;
the unknown liabilities of companies acquired by B2Gold; the
ability to successfully integrate new acquisitions; fluctuations in
exchange rates; the availability of financing; financing and debt
activities, including potential restrictions imposed on B2Gold's
operations as a result thereof and the ability to generate
sufficient cash flows; operations in foreign and developing
countries and compliance with foreign laws, including those
associated with operations in Mali, Namibia, the
Philippines, Nicaragua and
Burkina Faso and including risks
related to changes in foreign laws and changing policies related to
mining and local ownership requirements; remote operations and the
availability of adequate infrastructure; fluctuations in price and
availability of energy and other inputs necessary for mining
operations; shortages or cost increases in necessary equipment,
supplies and labour; regulatory, political and country risks,
including local instability or acts of terrorism and the effects
thereof; the reliance upon contractors, third parties and joint
venture partners; the lack of sole decision-making authority
related to Filminera Resources Corporation, which owns the Masbate
Project; challenges to title or surface rights; the dependence on
key personnel and the ability to attract and retain skilled
personnel; the risk of an uninsurable or uninsured loss; adverse
climate and weather conditions; litigation risk; competition with
other mining companies; changes in tax laws; community support for
B2Gold's operations, including risks related to strikes and the
halting of such operations from time to time; conflicts with small
scale miners; failures of information systems or information
security threats; the final outcome of the audit by the Philippines
Department of Environment and Natural Resources in relation to the
Masbate Project; the ability to maintain adequate internal controls
over financial reporting as required by law, including Section 404
of the Sarbanes-Oxley Act; compliance with anti-corruption laws; 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, B2Gold's current Annual Report on
Form 40-F 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 "Websites"). The list is not exhaustive of the
factors that may affect B2Gold's forward-looking
statements.
B2Gold'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 B2Gold'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; B2Gold'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.
B2Gold's forward-looking statements are based on the
opinions and estimates of management and reflect their
current expectations regarding future events and operating
performance and speak only as of the date hereof.
B2Gold 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.
There can be no assurance that forward-looking
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, or if
any of them do, what benefits or liabilities B2Gold will derive
therefrom. 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 on the Websites,
under the heading "Non-IFRS Measures" for a more detailed
discussion of how B2Gold calculates such measures
and a reconciliation of certain measures to IFRS
terms.
Cautionary Note to United States Investors
The disclosure in this news release was prepared in
accordance with Canadian National Instrument 43-101 ("NI 43-101"),
which differs significantly from the requirements of the SEC set
out in Industry Guide 7. Accordingly, such disclosure may not be
comparable to similar information made public by companies that
report in accordance with U.S. standards. In particular, this news
release may refer to "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,"
"indicated mineral resource" or "inferred mineral
resource" will ever be converted into a "reserve." In addition,
this news release uses the terms "reserves" and
"probable mineral reserves" which are reported by the
Company under Canadian standards and 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. Disclosure of "contained ounces" in a resource is
permitted disclosure under Canadian reporting standards; however,
the SEC normally only permits issuers to report mineralization that
does not constitute "reserves" by SEC standards as in-place tonnage
and grade without reference to unit measures.
Historical results or feasibility models presented herein are
not guarantees or expectations of future performance.
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SOURCE B2Gold Corp.