Canadian gold miner B2Gold plans to invest over N$1.3 billion (US$77 million) into its Otjikoto Mine as part of capital expenditure for 2023, The Brief has established.
“Capital expenditures in 2023 at Otjikoto are expected to total N$1.33 billion (US$77 million), of which approximately $74 million is classified as sustaining capital expenditures and N$52 million (US$3 million) is classified as growth capital expenditures. Sustaining capital expenditures are anticipated to include, amongst other items: N$1.23 billion (US$71 million) for capitalised stripping and capitalised development; and N$52 million (US$3 million) for mobile equipment rebuilds,” Clive Johnson President and Chief Executive Officer of the listed gold miner said.
B2Gold has allocated a total exploration budget of approximately N$53 million (US$3 million) for Namibia in 2023, of which approximately N$1.1 billion (US$64 million) has been budgeted by the mining group for the year.
“Exploration in 2023 will include 16,320 meters of diamond and reverse circulation drilling and 3,400 meters of RAB drilling at the Otjikoto Mine. Much of the diamond drilling will target the southern extension of the Otjikoto structure, as well as several regional targets,” he said.
The new development comes after the miner’s Otjikoto Mine in Namibia missed its revised production guidance for 2022 of 165,000 to 175,000 ounces after producing 161,614 ounces of gold for the full year.
“The Otjikoto Mine in Namibia produced 60,068 ounces of gold in the fourth quarter of 2022, which included a monthly production record of 30,493 ounces of gold in December 2022. Quarterly gold production was slightly lower than anticipated mainly due to the previously disclosed delayed ramp-up of ore production from the Wolfshag underground mine,” Johnson said.
“To start 2023, Wolfshag underground ore production rates are at expected levels, open pit high grade ore stockpile balances are well buffered, and mined ore tonnage and grade continue to reconcile well with Otjikoto’s resource model.”
The B2Gold board approved the Wolfshag underground mining project in December 2019 and is estimated to contain 210,000 ounces of gold in 1.2 million tonnes of ore, which will be extracted over four years and expected to realise N$5.9 billion (US$ 403.2 million) in revenue.
For the full year, the company achieved the upper end of its 2022 guidance with output of 1.03 million ounces.
The company is targeting gold production of 1-million to 1.08-million this year at a total cash operating cost guidance of $670/oz to $730/oz, slightly higher than the 2022 guidance range, owing to minor inflationary impacts from fuel, labour and other consumables.
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.
