Canadian gold miner B2Gold has invested N$617million (US$33 million) into its Otjikoto Mine in Namibia as part of capital expenditure in the six months to June 2023.
During the second quarter (Q2) of 2023, the gold miner pumped N$300 million (US$16 million) into the mine.
Out of the investment, N$243 million (US$13 million) was allocated for pre-stripping in the Otjikoto pit, while N$37.4 million (US$2 million) was directed towards the Wolfshag underground mine development.
In the six months to June 30, the listed miner spent N$27.8 million (US$1.5 million) on exploration activities, with N$18.6 million (US$996,000) in Q2.
During the reviewed period, Otjikoto Mine produced 44,056 ounces of gold, bringing the total production for the six months to 82,547 ounces.
The mine is expected to produce between 190,000 and 210,000 ounces of gold in 2023, with cash operating costs ranging from N$11,000 (US$590) to N$12,000 (US$650) per ounce and all-in sustaining costs ranging from N$20,200 (US$1,080) to N$21,300 (US$1,140) per ounce.
“As a result of the timing of higher-grade ore mining, Otjikoto’s annual gold production is expected to be 60% weighted to the second half of 2023 when mining is scheduled to reach the higher-grade portions of Phase 4 of the Otjikoto pit, coupled with higher production from the Wolfshag underground mine.”
For 2023, the Otjikoto Mine is expected to process a total of 3.4 million tonnes of ore at an average grade of 1.87 g/t gold, with a process gold recovery rate of 98.0%.
“Otjikoto’s gold production is still expected to be weighted 60% towards the second half of 2023 due to the timing of high-grade ore mining from the Otjikoto pit and increased ore volumes from the Wolfshag underground mine.”
According to the Canadian miner, production from the Wolfshag underground mine remained consistent during the second quarter of 2023, averaging over 1,000 tonnes per day at an average grade of 4.31 g/t.
“As of the beginning of 2023, the Probable Mineral Reserve estimate for the Wolfshag deposit includes 203,000 ounces of gold in 1.1 million tonnes of ore at an average grade of 5.55 g/t gold.”
B2Gold Namibia, which owns 90% of Otjikoto Mine, is a subsidiary of B2Gold Corp, with the remaining 10% owned by EVI Mining Company Limited, a Namibian broad-based economic empowerment group.