The Otjikoto Mine continued to outperform during the second quarter of 2024, producing 48,143 ounces of gold, which was above expectations due to the mill feed grade being higher than anticipated.
Capital expenditures for the second quarter of 2024 totalled US$12 million, consisting of US$9 million for deferred stripping in the Otjikoto pit, US$2 million for Wolfshag underground mine development, and US$1 million for mining equipment rebuilds.
The Otjikoto Mine is now expected to produce between 185,000 and 205,000 ounces of gold in 2024 (original guidance of between 180,000 and 200,000 ounces) at cash operating costs in the upper end of its guidance range of between $685 and $745 per ounce and all-in sustaining costs of between $960 and $1,020 per ounce.
Gold production at Otjikoto is expected to be relatively consistent throughout 2024. For 2024, Otjikoto is expected to process a total of 3.4 million tons of ore at an average grade of 1.77 g/t gold with a process gold recovery of 98.0%. Processed ore will be sourced from the Otjikoto pit and the Wolfshag underground mine, supplemented by medium- and high-grade stockpiles.
Open-pit mining operations at the Otjikoto Mine will continue to ramp down in 2024 and conclude in 2025, while processing operations are expected to continue until economically viable stockpiles are exhausted in 2031.
Ore production from the Wolfshag underground mine for the second quarter of 2024 averaged over 1,500 tons per day at an average grade of 4.69 g/t gold.
As of the beginning of 2024, the probable mineral reserve estimate for the Wolfshag deposit included 100,000 ounces of gold in 0.6 million tons of ore at an average grade of 5.02 g/t gold.
On January 31, 2024, B2Gold announced positive exploration drilling results from the Antelope deposit at the Otjikoto Mine.
The Antelope deposit, which comprises the Springbok Zone, the Oryx Zone, and a possible third structure, Impala, subject to further confirmatory drilling, is located approximately three kilometers south of the Otjikoto open pit.
On June 20, 2024, B2Gold announced an initial inferred mineral resource estimate for the Springbok Zone, the southernmost shoot of the recently discovered Antelope deposit.
Recent drilling at the Springbok Zone remains open southward, indicating additional exploration potential beyond the currently defined resource.
B2Gold determined that the initial inferred mineral resource estimate of 1.75 million tons grading 6.91 g/t gold for a total of 390,000 ounces of gold was sufficient to initiate a preliminary economic assessment.
Subject to receipt of a positive preliminary economic assessment and permit, mining of the Springbok Zone, coupled with the exploration potential of the greater Antelope deposit, could begin to contribute to gold production at Otjikoto in 2026.
Underground operations are projected to continue until 2026, potentially extending underground operations if the ongoing underground exploration program successfully identifies more underground mineral deposits.
B2Gold holds a 90% interest in the Otjikoto Gold Mine.
