B2Gold, an intermediate gold producer, has provided an updated mineral resource estimate for the Otjikoto Project located in Namibia and the Jabali Project on La Libertad property located in Nicaragua.
B2Gold has reported an increase in mineral resources at the La Libertad property, based on the 2011 infill drilling and reconnaissance campaigns at the Jabali project. The indicated mineral resources have significantly increased because of the change of mineral resources from the inferred category caused by infill drilling.
The new mineral resource for the Central and Antenna zones at the Jabali deposit is reported within a $1,350 per oz gold optimized Whittle pit shell over 0.70 g/t gold cut-off grade. Consequently, the inferred mineral resource is 1.89 million t at 3.06 g/t gold comprising 186,610 oz gold, and the in pit indicated mineral resource is 4.19 million t at 3.39 g/t gold comprising 456,863 oz of gold.
Presently, an average ore grade of 1.77 g/t gold is being supplied to the La Libertad mill. Since the new Jabali resource grade is significantly higher, the company will process a part of the higher grade ore from the Jabali deposit. At the La Libertad property, B2Gold anticipates a yearly production increase of about 135,000 oz of gold in 2013 and 150,000 oz of gold by 2014, depending on the supply of higher grade ore from Jabali.
The company carried out a detailed work to offer a revised mineral resource approximation for the Otjikoto project. Pit optimization has resulted in a revised indicated mineral resource of 24.93 million t at a grade of 1.74 g/t gold comprising 1,392,690 oz of gold on a 100% basis utilizing a 0.4 g/t gold cut-off grade. When a 0.5 g/t gold cut-off grade was used, the Otjikoto project has a revised indicated mineral resource of 21.37 million t at a grade of 1.95 g/t gold comprising 1,340,385 oz of gold on a 100% basis inside the optimized pit shell.
A budget of $34.6 million has been sanctioned for a feasibility study in the Q4 of 2012. Feasibility work will comprise further metallurgical test work and drilling, geohydrology and power studies. Depending on present theories, B2Gold will begin commercial production at the Otjikoto project in early 2015.
Source: http://www.b2gold.com/