Canadian Mining Company B2Gold’s Otjikoto Mine exceeded expectations and produced 44,940 ounces of gold in the third quarter attributed to improved processed grades.
The improved grades were driven by high-grade ore extracted from the Wolfshag underground mine.
This brings the mine’s total output for the past nine months to 127,487 ounces, a significant increase from the 101,546 ounces reported last year during the same period.
“Gold recovery remained consistently high, averaging 98.4%. The heart of the production came from the Wolfshag underground mine, maintaining a consistent pace throughout Q3, with an average of 1,259 tonnes per day mined at an impressive average grade of 5.55 g/t,” the gold miner’s third quarter report read.
Capital expenditure for the third quarter of 2023 totalled N$256.9 million (US$13 million), of which N$177.8 million (US$9 million) was for deferred stripping in the Otjiwarongo pit and N$59,3 million (US$3 million) for Wolfshag underground mine development.
In terms of cost management, the Mine also performed well with cash operating costs per gold ounce produced being lower than expected at N$15,511 ($785) ($744 per ounce gold sold) attributed to higher production and a weaker Namibia Dollar.
“Moreover, lower diesel fuel costs played a role in reducing cash operating costs, much to the delight of stakeholders,” the report reads.
All-in-sustaining costs for the same quarter were at N$23,277 ($1,178) per gold ounce sold.
“This was largely due to lower cash operating costs, a higher number of gold ounces sold, and a reduction in sustaining capital expenditures linked to deferred stripping and underground development,” the miner said.
Cash operating costs at Otjikoto are expected to fall within the range of N$10,769 ($545) to N$11,954 ($605), compared to the original guidance of N$11,658 ($590) to N$12,844 ($650) per ounce.
“Likewise, all-in sustaining costs are projected to be between N$18,772 ($950) and N$19,957 ($1,010) per ounce, significantly lower than the initial estimate of N$21,340 ($1,080) to N$22,526 ($1,140) per ounce.”
Open pit mining operations at Otjikoto Mine are set to gradually wind down by 2025, while processing operations are expected to continue until 2031, with the potential for an extension if the ongoing underground exploration program identifies additional mineral deposits.B2Gold targets to produce between 190,000 and 210,000 ounces of gold in 2023.
