As a result of the timing of higher-grade ore mining, B2Gold’s Otjikoto mine in Namibia’s annual gold production is expected to be 60% weighted to the second half of 2023, when mining is scheduled to reach the higher-grade portions of Phase 4 of the Otjikoto pit coupled with higher production from the Wolfshag underground mine.
This was revealed by Clive Johnson, President and Chief Executive Officer of B2Gold while presenting the miner’s second quarter financial results.
Capital expenditures for the second quarter of 2023 at B2Gold’s Otjikoto Mine in Namibia totalled US$16 million (about N$299 million), consisting of US$13 million (about N$243 million) for pre-stripping in the Otjikoto pit and US$2 million (about N$38 million) for Wolfshag underground mine development.
The Otjikoto Mine in which the Company holds a 90% interest, performed well during the second quarter of 2023, producing 44,056 ounces of gold. Mill feed grade was 1.59 g/t, mill throughput was 0.88 million tonnes, and gold recovery averaged 98.7%.
“Production from the Wolfshag underground mine remained consistent during the second quarter of 2023, averaging over 1,000 tonnes per day at an average grade of 4.31 g/t. 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,” Johnson said.
Cash operating costs for the second quarter of 2023 were US$611 per gold ounce produced (US$641 per ounce gold sold). Cash operating costs per ounce produced for the second quarter of 2023 were lower than expected as a result of higher production as described above, lower than budgeted fuel costs and a weaker Namibian dollar.
All-in sustaining costs for the second quarter of 2023 were US$1,187 per gold ounce sold. All-in sustaining costs for the second quarter of 2023 were lower than anticipated as a result of lower than expected cash operating costs described above, and lower than expected sustaining capital expenditures primarily related to the timing of 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%. Otjikoto’s gold production is still expected to be weighted 60% towards 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 Otjikoto Mine has benefited from lower fuel costs and a weaker Namibian dollar over the first half of 2023. The Company will continue to monitor the Namibian dollar and actual versus budget fuel prices in the third quarter of 2023 and if lower pricing continues to be observed, it will consider whether any revision to the Otjikoto Mine’s full-year cash operating costs and all-in sustaining costs guidance is required at that time,” Johnson said.
B2Gold is executing another year of extensive exploration in 2023 with an increased budget of approximately US$84 million (original budget of US$64 million). A significant focus will be in proximity to its operating mines in Mali, Namibia and the Philippines, as well as US$20 million of spending on both infill and generative exploration at the recently acquired Back River Gold District.
Ongoing exploration will continue to advance B2Gold’s early stage projects in Finland and Cote d’Ivoire. Target generation and pursuing new opportunities in prospective gold regions in Africa, Canada, South America, the Philippines and Central Asia continue. This generative initiative could include equity placements and new joint ventures with junior companies, similar to B2Gold’s 2023 investments in Snowline and its Rogue project in the Yukon, Canada, and its 2022 investment in Matador Mining Ltd. and its Cape Ray Gold project in Newfoundland, Canada.
“B2Gold expects to continue its strong operational performance in 2023 with total gold production forecast to be between 1,000,000 and 1,080,000 ounces (including 60,000 to 70,000 attributable ounces from Calibre). The Company’s total consolidated cash operating costs for the year (including estimated attributable results for Calibre) are forecast to be between US$670 and US$730 per ounce and total consolidated all-in sustaining (including estimated attributable results for Calibre) are forecast to be between US$1,195 and US$1,255 per ounce.
After a very successful year for exploration in 2022, B2Gold is conducting an aggressive exploration campaign in 2023.