B2Gold Corp committed around N$1.1 billion at its Otjikoto Mine for the 2023 financial year.
B2Gold President and Chief Executive Officer Clive Johnson said the company’s capital expenditures for 2023 totalled N$1.1 billion (US$61 million), with the lion’s share, N$891 million (US$47 million), devoted to deferred stripping for the Otjikoto pit.
He added that Wolfshag’s underground development received N$190 million (US$10 million), while N$37 million (US$2 million) was set aside for mobile equipment rebuilds.
During the fourth quarter of 2023, “B2Gold allocated US$15 million to capital expenditures. Of this, US$10 million was specifically allocated to deferred stripping for the Otjikoto pit, with an additional US$3 million designated for Wolfshag underground development,” Johnson noted.
This comes as the Otjikoto Mine is expected to produce between 180,000 and 200,000 ounces of gold in 2024 at cash operating costs of between US$685 and US$745 per ounce and all-in sustaining costs of between US$960 and US$1,020 per ounce.
Gold production at Otjikoto is expected to be relatively consistent throughout 2024.
Johnson said for 2024, Otjikoto is expected to process a total of 3.4 million tonnes of ore at an average grade of 1.77 g/t with a process gold recovery of 98.0%.
Meanwhile, processed ore will be sourced from the Otjikoto pit and the Wolfshag underground mine, supplemented by existing medium and high-grade ore stockpiles.
“Capital expenditures in 2024 at Otjikoto are expected to total US$33 million, of which approximately US$32 million is classified as sustaining capital expenditures and US$1 million is classified as non-sustaining capital expenditures,” the CEO noted.
Similarly, sustaining capital expenditures are anticipated to include US$32 million for deferred stripping and deferred underground development.
Otjikoto Mine in Namibia, in which the company holds a 90% interest, had a strong finish to 2023 and produced an annual record of 208,598 ounces of gold, at the upper end of the guidance range of 190,000 to 210,000 ounces.
The CEO attributed this to improved processed grade as a result of higher-grade ore mined from the Wolfshag underground mine.
For the year ended 31 December 2023, mill feed grade was 1.91 g/t, mill throughput was 3.44 million tonnes, and gold recovery averaged 98.6%.
Meanwhile, in the fourth quarter of 2023, the Otjikoto Mine produced a quarterly record of 81,111 ounces of gold.
For the fourth quarter of 2023, mill feed grade was 2.88 g/t, mill throughput was 0.89 million tonnes, and gold recovery averaged 98.5%.
As of the beginning of 2023, the Probable Mineral Reserve estimate for the Wolfshag deposit included 203,000 ounces of gold in 1.1 million tonnes of ore at an average grade of 5.55 g/t gold.
“Open pit mining operations at the Otjikoto Mine are scheduled to ramp down throughout 2024 and conclude in 2025, while underground mining operations at Wolfshag are expected to continue through 2026,” he noted.
Processing operations will continue through 2031 when economically viable stockpiles are forecast to be exhausted.
On 31 January 2024, the company announced positive exploration drilling results from the Antelope deposit at the Otjikoto Mine.
The Antelope deposit, comprising the Springbok Zone, the Oryx Zone, and a possible third structure, Impala, subject to further confirmatory drilling, is located approximately 3km south of the Otjikoto Phase 5 open pit.
The Antelope deposit has the potential to be developed as an underground mining operation, which could complement the expected processing of low-grade stockpiles at the Otjikoto mill from 2026 through 2031.
The Otjikoto Mine’s cash operating costs for the year ended 31 December 2023, were US$585 per gold ounce produced (US$568 per gold ounce sold), within its revised guidance range of between US$545 and US$605 per gold ounce produced and below its original guidance range between US$590 and US$650 per gold ounce produced.
Cash operating costs per gold ounce produced for the year ended 31 December 2023, were lower than expectations as a result of higher than expected gold ounces produced and lower operating costs due to a weaker than anticipated Namibia Dollar.
