B2Gold lowers Otjikoto Mine annual production guidance

July 14, 2022

Canadian gold miner B2Gold has lowered the annual production guidance for its Otjikoto mine in Namibia to an average of 170 000 ounces from an average of 180 000 ounces.

This was after the Namibian mine produced 31,417 ounces of gold in the second quarter of 2022, 2,027 ounces (6%) below budget.

B2Gold President and CEO Clive Johnson said the Otjikoto Mine is now expected to produce between 165,000 and 175,000 ounces of gold in 2022, with cash operating costs of between US$740 and US$780 per ounce and AISC of between US$1,120 and US$1,160 per ounce.

“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,” Johnson said in the listed miner’s second quarter and first half production and revenue update.

Although the miner’s production decreased quarter on quarter, gold production was higher by 17% (4,526 ounces) compared to the same period last year due to significant waste stripping operations at both the Wolfshag and Otjikoto pits in the first half of 2021.

“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 was lower than budget in the second quarter of 2022 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.”

Johnson said the Otjikoto mine for the first half of 2022, produced 66,478 ounces of gold, “in line with budget and 33% (16,545 ounces) higher than the first half of 2021.”

He said the appointment of  Byrnecut, an international specialist underground mining contractor, on a N$1.6 billion development and production contract for its Wolfshag Underground Mine had seen an improvement in the mine’s development.

“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,” Johnson said.

The B2Gold CEO said, Otjikoto's gold production for the second half of 2022 is expected to increase significantly to between 100,000 and 105,000 ounces.

“Based mainly on the weighting of the planned production and timing of pre-stripping, Otjikoto's cash operating costs are expected to be between US$960 and US$1,000 per ounce in the first half of 2022, before significantly improving to between US$620 and US$660 per ounce during the second half of 2022. In addition, Otjikoto's AISC are expected to be between US$1,460 and US$1,500 per ounce in the first half of 2022, before significantly improving to between US$930 and US$970 per ounce during the second half of 2022.”

 

B2Gold recorded total gold production in the second quarter of 2022 of 223,623 ounces, slightly above budget by 1% (2,154 ounces), and consolidated gold production of 208,858 ounces from the company's three operating mines, in line with budget.

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Last modified on Tuesday, 19 July 2022 22:56

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