B2Gold’s Otjikoto Mine performed well during the first quarter of 2022, producing 35,061 ounces of gold, 5% (1,803 ounces) above budget, with processed tonnes, grade and recoveries all slightly better than budget, Clive Johnson, President and Chief Executive Officer of the mine has said.
He further highlighted that as a result of the timing of higher-grade ore mining, Otjikoto’s gold production is expected to be significantly weighted to the second half of 2022 when mining is scheduled to reach the higher-grade portions of Phase 3 of the Otjikoto Pit and ore production ramps up at the Wolfshag underground mine.
“As expected, compared to the first quarter of 2021, gold production was significantly higher by 52% (12,019 ounces), as processed ore in the first quarter of 2021 was primarily sourced from existing stockpiles while significant waste stripping operations continued at both the Wolfshag and Otjikoto pits,” Johnson said.
For the first quarter of 2022, mill feed grade was 1.31 g/t compared to budget of 1.26 g/t and 0.82 g/t in the first quarter of 2021; mill throughput was 0.85 million tonnes compared to budget of 0.84 million tonnes and 0.89 million tonnes in the first quarter of 2021; and gold recovery averaged 98.5% compared to budget of 98.0% and 97.6% in the first quarter of 2021.
In the same quarter of 2022, Otjikoto’s cash operating costs were $770 per ounce produced ($590 per ounce sold), below budget by $35 per ounce produced (4%), mainly the result of higher gold production as discussed above. Otjikoto’s cash operating costs were slightly lower than budget for the first quarter of 2022 as higher than budgeted realized fuel prices were offset by an average weaker than budgeted Namibian dollar in the quarter. As expected, Otjikoto’s cash operating costs were significantly lower in the first quarter of 2022 compared to $940 per ounce produced ($823 per ounce sold) in the first quarter of 2021, mainly as a result of higher gold production.
“Otjikoto’s AISC for the first quarter of 2022 were $878 per ounce sold (Q1 2021 – $1,475 per ounce sold), significantly below budget by $457 per ounce sold (34%), mainly due to lower than budgeted cash operating costs, higher than budgeted gold ounces sold and lower than budgeted sustaining capital expenditures ($5 million). The lower than budgeted sustaining capital expenditures were primarily a result of timing and are expected to be incurred later in 2022. Capital expenditures for the first quarter of 2022 totaled $16 million, primarily consisting of $6 million for pre-stripping in the Otjikoto Pit, $6 million for Wolfshag underground mine development, $2 million for mobile equipment rebuilds and replacements and $2 million for the national power grid connection line.
“Development of the Wolfshag underground mine continues to progress with first development ore production expected to commence in the first half of 2022. The initial underground Mineral Reserve estimate for the down-plunge extension of the Wolfshag deposit includes 210,000 ounces of gold in 1.2 million tonnes of ore at 5.57 g/t gold. The Otjikoto Mine is expected to produce between 175,000 and 185,000 ounces of gold in 2022, with cash operating costs of between $740 and $780 per ounce,” Johnson said.