B2Gold is set to invest N$624 million in capital expenditure into the Otjikoto mine in 2024.
According to a release by the Canadian gold miner, within this financial framework, approximately N$605 million is designated for sustaining capital expenditures.
The release also states that sustaining capital expenditures are poised to cover crucial aspects such as capitalized stripping and deferred underground development, essential for sustaining and enhancing the mine’s operational efficiency.
Meanwhile, B2Gold has also earmarked a record N$170 million for exploration activities at its Otjikoto Mine in Namibia in 2024 with a primary focus on the recently unearthed Antelope deposit located approximately 3 kilometers south of the Otjikoto Mine Phase 5 open pit.
B2Gold said the focus of the exploration program will be to drill the recently discovered deposit, with 39,000 meters of drilling planned to uncover the full extent of the deposit’s potential.
Results from this drilling campaign according to the gold miner, could extend underground production at the Wolfshag mine, providing a significant boost to Otjikoto’s processing operations well beyond the currently projected timeline.
Similarly, B2Gold is confident in maintaining consistent gold production at Otjikoto throughout 2024, forecasting production levels ranging between 180,000 and 200,000 ounces, sourced from both the Otjikoto pit and the Wolfshag underground mine.
“Ore is expected to be mined from Phase 5 of the Otjikoto open pit and from the Wolfshag underground mine. Mill throughput, gold grade processed, and gold recoveries are all expected to be similar to 2024 levels,” the release states.
B2Gold notes that to complement its exploration and capital expenditure initiatives, the company has opted to strengthen its financial position through a forward-thinking N$9.46 billion gold prepayment arrangement.
“The Company will receive an upfront payment of N$9.46 billion ($500 million), based on gold forward curve prices averaging approximately N$41,000 ($2,191) per ounce, in exchange for equal monthly deliveries of gold from July 2025 to June 2026, totaling 264,775 ounces. This represents approximately 10% of expected annual gold production in each of 2025 and 2026 (subject to finalization of production guidance for 2025 and 2026),” the listed miner said.
The exploration program planned for Otjikoto mine will be the company’s largest since 2012.
