VANCOUVER, May 13, 2019 /PRNewswire/ - B2Gold Corp. (TSX:
BTO, NYSE AMERICAN: BTG, NSX: B2G) ("B2Gold" or the
"Company") is pleased to announce that, further to its news
release dated March 26, 2019,
announcing results from the Expansion Study Preliminary Economic
Assessment ("PEA") for the Fekola Mine located in Mali, on May 10,
2019, the Company filed a National Instrument 43-101
Standards of Disclosure for Mineral Projects technical report
entitled "Fekola Gold Mine Mali NI 43-101 Technical
Report" with an effective date of March
26, 2019 (the "Report"). The Report was prepared by
Mr. Tom Garagan, P.Geo., Mr. Peter
Montano, P.E., Mr. John Rajala, P.E. and Mr. Ken Jones, P.E. of
B2Gold. There are no material differences in the Mineral Reserves,
the Mineral Resources or the results of the PEA in the Report and
those contained in the March 26,
2019, news release.
For additional details, please refer to the Report which may be
found under B2Gold's corporate profile on SEDAR at
www.sedar.com.
Fekola Expansion Technical Report Highlights:
- As currently envisioned, the Fekola Mine Expansion will include
a mine fleet expansion and a processing plant upgrade. The plant
upgrade will focus on increased ball mill power, with upgrades to
other components including a new cyclone classification system,
pebble crushers, and additional leach capacity to support the
higher throughput and increase operability
- Assuming an effective date of January 1,
2019, a gold price of $1,300
per ounce and a discount rate of 5%, project economics highlights
from the Expansion Study PEA include:
-
- Estimated optimized life of mine ("LoM") extended into 2030,
including significant estimated increases in average annual gold
production to over 550,000 ounces per year during the five-year
period 2020 - 2024 and over 400,000 ounces per year over the LoM
(2019 - 2030)
- Projected gold production of approximately 5,000,000 ounces
over the new mine life of 12 years of mining and processing
(including 2019). Prior to 2019, the Fekola Mine produced more than
550,000 ounces. The Fekola Mineral Resource remains open to the
north
- An increase in project pre-tax NPV of approximately
$500 million versus the comparable
amounts in the Company's latest Annual Information Form ("AIF")
Mineral Reserve LoM model (filed on SEDAR on March 20, 2019)
- Forecast LoM pre-tax net cash flow of approximately
$2.8 billion and post-tax net cash
flow of approximately $2.2
billion
- Forecast LoM pre-tax net present value of over $2.2 billion and post-tax net present value of
approximately $1.7 billion
- Based on the post-tax cash flow results in the Expansion Study
PEA, B2Gold is projecting LoM cash operating costs of approximately
$465 per ounce (see Non-IFRS
Measures) and all-in sustaining costs ("AISC") (see Non-IFRS
Measures) of approximately $725 per
ounce. Cash costs and AISC remain low despite mining a larger open
pit at a slightly lower gold grade. This is due to economies of
scale arising from increased mining and processing rates and the
new optimized mining schedule
- Forecast expansion capital payback period of less than one
year
- Estimated processing plant expansion capital cost of
approximately $50 million over a
period of approximately 18 months for processing expansion and
upgrades (through Q3 2020). Half of this capital is expected to be
spent in 2019 with the remaining half in 2020. It is anticipated
that this will be financed from existing Fekola Mine cash
flows. To date this year, the Company has ordered long lead
items totaling approximately $12
million including all items on the critical path for
commencement of increased throughput in Q3 2020
- Projected annual mining rate increased to a baseline of
approximately 54 million tonnes per annum ("Mtpa") and subsequently
stepped up to approximately 76 Mtpa to support the increased
processing and stockpiling necessary to maintain plant feed
grade
- Staged mining fleet additions totalling approximately
$56 million over the LoM are expected
to be equipment loans financed over respective five-year periods,
on terms similar to the existing Fekola fleet loan terms
- The Company continues to work on further optimizing the PEA and
expects to incorporate these results into an updated Fekola LoM
study which will be available in Q4 2019
- Projected annual processing rate increased to a baseline of 7.5
Mtpa (current capacity of 6 Mtpa plus 1.5 Mtpa)
- Ongoing drilling continues to infill the existing Inferred
Mineral Resources to Indicated Mineral Resources. Mineralization
remains open to the north and down plunge, indicating the potential
to further increase Fekola Mineral Resources and Reserves (see news
release dated October 25, 2018) – an
updated Mineral Resource will be announced in Q4 2019. A large
exploration drilling program will commence in Q3 2019 to further
test the Fekola North, Fekola South, Cardinal and Anaconda
zones
The Expansion Study PEA is preliminary in nature and includes
Inferred Mineral Resources that are considered too speculative
geologically to have the economic considerations applied to them
that would enable them to be categorized as Mineral Reserves. There
is no certainty that the PEA will be realized. Mineral
Resources that are not Mineral Reserves do not have demonstrated
economic viability.
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 and Colombia.
B2Gold will maintain a strong and profitable production profile
in 2019 with consolidated gold production forecast to be between
935,000 and 975,000 ounces. Based on current assumptions,
consolidated cash operating costs are projected to be between
$520 and $560 per ounce and consolidated AISC are
projected to be between $835 and $875 per
ounce. The Company continues to maximize cash flows by optimizing
its impressive operational and financial performance from existing
mines. In addition, the Company will balance its ongoing program of
debt reduction with pursuing expansion opportunities at existing
operations. Also, B2Gold will remain focussed on adding shareholder
value through growth, driven by the exploration, development and
expansion of its impressive pipeline of existing projects.
Potential acquisitions will focus on exploration opportunities.
Qualified Persons
Tom Garagan, Senior Vice
President of Exploration at B2Gold, a qualified person under NI
43-101, has approved the scientific and technical information
regarding exploration matters and the Mineral Resource estimate
contained in this news release. Mr. Garagan has visited the Fekola
mine site a number of times since 2015 and has reviewed and
approved the exploration practices that B2Gold conducts on
site.
John Rajala P.E., Vice President
of Metallurgy at B2Gold, a qualified person under NI 43-101, has
approved the scientific and technical information regarding mineral
processing related to Fekola expansion studies. Mr. Rajala has
visited the Fekola mine site multiple times since 2017 and has
reviewed the technical aspects of the Expansion Study that form the
basis for this release.
Peter D. Montano P.E., Project
Director at B2Gold, a qualified person under NI 43-101, has
approved the scientific and technical information related to
operations matters contained in this news release. Mr. Montano has
visited the Fekola mine site several times since 2015 and has
reviewed the mining operations and has reviewed the technical
aspects of the Expansion Study that form the basis for this
release.
Ken Jones, Manager, Health,
Safety, Environment and Permitting at B2Gold, a qualified person
under NI 43-101, has approved the scientific and technical
information regarding environmental matters contained in this news
release. Mr. Jones has visited the Fekola mine site a number of
times since 2015 and has reviewed and approved the environmental
practices that B2Gold conducts on site.
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
|
Katie
Bromley
|
Vice President,
Investor Relations
|
Manager, Investor
Relations & Public Relations
|
604-681-8371
|
604-681-8371
|
imaclean@b2gold.com
|
kbromley@b2gold.com
|
The Toronto Stock Exchange and NYSE
American LLC neither approve nor disapprove the
information contained in this news
release.
Production results and production guidance
presented in this news release reflect the total production at the
mines B2Gold operates on a 100% basis. Please
see our Annual Information Form dated March
20, 2019 for a discussion of our
ownership interest in the mines B2Gold operates.
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 or 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: the results of and estimates in the Fekola Expansion
PEA, including the mine life extending to 2030, increases in annual
production, projected total gold production, increased NPV,
post-tax net cash flow, net present value, cash operating costs and
AISC, payback, capital costs to complete the expansion and the
timing and source of funding and mining rate; an updated life of
mine study being available in Q4 2019; the potential to convert
inferred resources to indicated, and to further increase resources
and reserves; B2Gold maintaining a strong and profitable production
profile in 2019; projected consolidated gold production in 2019;
maximising cash flows by optimizing operational and financial
performance at existing mines; balancing ongoing debt reduction and
expansion opportunities at existing operations; and potential
acquisitions. Estimates of mineral resources and reserves 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 and uncertainties identified
in the Expansion Study PEA and risks
associated with or related to: the volatility of metal prices and
B2Gold's common shares; changes in tax
laws; 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 and the ramifications
thereof; environmental regulations or hazards and compliance
with complex regulations associated with mining
activities; climate change and climate change
regulations; 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 the 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 or resource
nationalization generally; 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; 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, and sanctions or other similar
measures; social media and B2Gold's
reputation; 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 Form
40-F Annual Report 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 contained in the Expansion
Study PEA and 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
certain of 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 current 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 Industry Guide 7. 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 Industry Guide
7 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 "mineral reserves" which are reported by the Company under
Canadian standards and may not qualify as reserves under Industry
Guide 7. Under Industry Guide 7, 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
comparable to similar information made public by
U.S. companies subject to the reporting and disclosure requirements
of Industry Guide 7. "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. Further, while NI 43-101 permits
companies to disclose economic projections contained in preliminary
economic assessments and pre-feasibility studies, which are not
based on "reserves", U.S. companies have not generally been
permitted to disclose economic projections for a mineral property
in their SEC filings prior to the establishment of
"reserves." Disclosure of "contained ounces" in a resource is
permitted disclosure under Canadian reporting standards; however,
Industry Guide 7 normally only permits issuers to report
mineralization that does not constitute "reserves" by Industry
Guide 7 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.