For the second half of 2022, B2 Gold’s Otjikoto mine’s gold production is expected to increase significantly to between 100,000 and 105,000 ounces, the company said adding that the Mine is now expected to produce between 165,000 and 175,000 ounces of gold in 2022 (original guidance range of 175,000 to 185,000 ounces).
For the first half of 2022, the Otjikoto Mine produced 66,478 ounces of gold, in line with budget and 33% (16,545 ounces) higher than the first half of 2021.
In the second quarter of 2022, the mine produced 31,417 ounces of gold, 2,027 ounces (6%) below budget.
“The lower than budgeted gold production in the second quarter of 2022 was due to a slower than planned ramp-up in development of the Wolfshag Underground mine, resulting in lower than budgeted mined grade. The Company recently appointed a new underground mining contractor and development rates in the Wolfshag Underground mine have recovered, with development ore now expected in the third quarter of 2022 and stope ore production commencing in the fourth quarter of 2022.
“As a result of this change in ore production timing, the 2022 annual production guidance range for Otjikoto has been revised to between 165,000 and 175,000 ounces of gold. As expected, gold production in the second quarter of 2022 was higher by 17% (4,526 ounces) compared to the second quarter of 2021 due to significant waste stripping operations at both the Wolfshag and Otjikoto pits in the first half of 2021,” the Company said last week.
For the second quarter of 2022, mill feed grade was 1.17 g/t compared to budget of 1.25 g/t and 0.99 g/t in the second quarter of 2021; mill throughput was 0.85 million tonnes compared to budget of 0.85 million tonnes and 0.86 million tonnes in the second quarter of 2021; and gold recovery averaged 98.4% compared to budget of 98.0% and 97.8% in the second quarter of 2021.
“As noted above, processed grade in the second quarter of 2022 was lower than budgeted due to delays in the development of the Wolfshag Underground mine and higher compared to the second quarter of 2021 due to significant waste stripping at both the Wolfshag and Otjikoto pits in the first half of 2021,” further stated the gold miner.
For the second quarter of 2022, Otjikoto’s cash operating costs were US$1,136 per ounce produced (US$1,018 per ounce sold), slightly below budget by US$24 per ounce produced (2%), mainly due to the benefits of a weaker than budgeted Namibian dollar and delay in incurring Wolfshag Underground mining operating costs, partially offset by higher than budgeted fuel prices. Otjikoto’s cash operating costs in the second quarter of 2022 were higher compared to US$854 per ounce produced (US$885 per ounce sold) in the second quarter of 2021, mainly as a result of higher fuel costs in 2022.
“Otjikoto’s AISC for the second quarter of 2022 were US$1,403 per ounce sold (Q2 2021 – US$1,613 per ounce sold), significantly below budget by US$214 per ounce sold (13%), mainly due to slightly lower than budgeted cash operating costs, lower than budgeted sustaining capital expenditures and higher than budgeted realized gains on the settlement of fuel derivatives, partially offset by lower than budgeted gold ounces sold. The lower sustaining capital expenditures are mainly a result of timing of expenditures and expected to be incurred later in 2022,” further stated the mine.