Gold miner, B2Gold’s capital expenditures for the first quarter of 2023 in Namibia totalled US$17 (about N$330 million), consisting of US$14 million (N$272 million) for pre-stripping in the Otjikoto pit, US$2 million (N$38.8 million) for Wolfshag underground mine development and US$1 million (N$19.4 million) for mobile equipment rebuilds.
The gold miner which earlier in the year announced its phased closure of the mine says it may extend underground mining operations if the on-going underground exploration program is successful in identifying more underground mineral deposits.
Underground operations are currently projected to continue until 2026.
“Open pit mining operations at the Otjikoto Mine are scheduled to ramp down in 2024 and conclude in 2025, while processing operations will continue until economically viable stockpiles are exhausted in approximately 2031,” further said the miner in its release of first quarter of 2023 financial results.
The Otjikoto Mine in Namibia, in which the Company holds a 90% interest, performed well during the first quarter of 2023, producing 38,491 ounces of gold. For the first quarter of 2023, mill feed grade was 1.47 g/t gold, mill throughput was 0.82 million tonnes, and gold recovery averaged 98.8%.
“Production from the Wolfshag underground mine continues to increase after stope ore production was achieved in the fourth quarter of 2022, with ore production for the first quarter of 2023 averaging over 1,000 tonnes per day at an average grade of 6.10 g/t gold. As of the beginning of 2023, the Probable Mineral Reserve estimate for the Wolfshag deposit includes 203,000 ounces of gold in 1.1 million tonnes of ore at an average grade of 5.55 g/t gold,” the miner said.
Cash operating costs for the first quarter of 2023 were US$605 per gold ounce produced (US$458 per ounce gold sold).
“Cash operating costs per ounce produced for the first quarter of 2023 were lower than expected as a result of higher production and a weaker Namibian dollar. Cash operating costs per gold ounce sold for the first quarter of 2023 were lower than the cash operating costs per ounce produced for the first quarter of 2023, as a result of the sale of lower cost inventory produced in the fourth quarter of 2022,” added the miner.
All-in sustaining costs for the first quarter of 2023 were US$905 per gold ounce sold. All-in sustaining costs for the first quarter of 2023 were lower than anticipated as a result of lower than expected cash operating costs described above, higher than expected gold ounces sold and lower than expected sustaining capital expenditures primarily related to underground development. The lower than expected sustaining capital expenditures are mainly a result of timing of expenditures and expected to be incurred later in 2023.
The Otjikoto Mine in Namibia is expected to produce between 190,000 and 210,000 ounces of gold in 2023 at cash operating costs of between US$590 and US$650 per ounce and all-in sustaining costs of between US$1,080 and US$1,140 per ounce. For 2023, Otjikoto is expected to process a total of 3.4 million tonnes of ore at an average grade of 1.87 g/t gold with a process gold recovery of 98.0%. In the first half of 2023, processed ore will be sourced from the Otjikoto pit and the Wolfshag underground mine, supplemented by existing medium and high grade ore stockpiles.
“Otjikoto’s gold production is expected to be weighted approximately 60% to the second half of 2023 due to the timing of high grade ore mining from the Otjikoto pit and increased ore volumes from the Wolfshag underground mine. The anticipated decrease in Otjikoto’s all-in sustaining costs for 2023 reflects the benefits of processing higher grade ore from the Otjikoto pit and the Wolfshag underground mine in the second half of 2023,” the miner extended.