B2Gold’s capital expenditures for the first quarter of 2024 totaled N$ 260 million, while delivering 45,416 ounces of gold from its Otjikoto Mine in Namibia.
The expenditure was primarily focused on deferred stripping activities in the Otjikoto pit at a cost of N$106 million and N$55 million for the development of the Wolfshag underground mine.
The Canadian gold miner said exploration of the nearby Antelope deposit suggests potential for an underground mine, extending production beyond 2026.
“On 31 January 2024, the Company announced positive exploration drilling results from the Antelope deposit, located approximately three km south of the Otjikoto 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 miner said.
The gold mining company also reported that cash operating costs for Q1 2024 were lower than expected, attributed to increased gold production and a depreciation of the Namibia Dollar.
“Cash operating costs for the first quarter of 2024 were N$12,000 ($642) per gold ounce produced and N$10,000 ($561) per ounce gold sold. Cash operating costs per gold ounce produced for the first quarter of 2024 were lower than expected as a result of higher production and a weaker Namibia Dollar. It’s important to note that the cost per ounce sold is lower than the cost per ounce produced because they sold lower-cost gold stockpiled in the previous quarter dollar.”
The company maintains that this positive trend is expected to continue throughout 2024, with projections of 180,000 to 200,000 ounces of gold produced at a cash operating cost of N$13,000 (US$685) to N$14,000 (US$745) per ounce. All-in sustaining costs are forecasted to range between N$18,000 ($960) and N$19,000 ($1,020) per ounce.
Additionally, the report says the discovery of the Antelope deposit offers a boost to the mine’s long-term outlook. Located approximately three kilometres south of the Otjikoto open pit, the Antelope deposit exhibits high-grade gold mineralisation similar to the currently operational Wolfshag underground mine. While further exploration is needed to confirm the full potential of the deposit, early indications suggest the possibility of an additional underground mine complementing the processing of stockpiles at the Otjikoto mill from 2026 through 2031.
Total gold production in the first quarter of 2024 was 225,716 ounces, including 11,377 ounces of attributable production from Calibre Mining Corp, with all three B2Gold operations in-line with expectations and the Company is on track to meet its consolidated annual production guidance range.
B2Gold Namibia is a 90% owned subsidiary of B2Gold Corp, with the remaining 10% owned by EVI Mining Company Limited, a Namibian broad-based economic empowerment group.
