B2Gold believes that the Antelope deposit has the potential to become a small-scale, low-cost, underground gold mine that can supplement the low-grade stockpile production from 2028 to 2032 and result in a meaningful production profile for Otjikoto into the next decade.
A preliminary economic assessment dated January 15, 2025, says the Antelope deposit’s inferred mineral resource estimate includes 1.75 million tons grading 6.91 g/t gold for 390,000 ounces.
The mineral resource estimate for the Antelope deposit has an effective date of June 14, 2024, and is reported using a gold price of US$1,850 per ounce.
The Antelope deposit, about 4km southwest of the existing Otjikoto open pit, comprises the Springbok Zone, the Oryx Zone, and a possible third structure, Impala, which is subject to confirmatory drilling.
The preliminary economic assessment says the Antelope deposit enhances the production profile at Otjikoto with continued strong exploration.
It says the underground gold mine has an initial life of mine of approximately 5 years and an average grade processed of 5.75 grams per ton of gold over the life of mine.
According to the preliminary economic assessment, gold production during the life of mine will be about 327,000 ounces with an average recovery of 95%.
Average annual gold production is expected to be approximately 65,000 ounces annually over the life of mine.
Combined with the processing of existing low-grade stockpiles, the average annual Otjikoto gold production is expected to be approximately 110,000 ounces annually from 2029 through 2032.
The projected all-in sustaining costs of approximately US$1,095 per gold ounce over the Life of Mine.
life of mine after-tax free cash flow of US$185 million at US$2,400 per ounce gold price.
Assuming a discount rate of 5%, net present value after-tax of US$131 million, generating an after-tax internal rate of return of 35%, with a project payback on pre-production capital of 1.3 years.
The estimated pre-production capital cost of US$129 million.
B2Gold has budgeted US$7 million for exploration at Otjikoto in 2025 to focus on expanding and refining the Antelope deposit with a total of 44,000 metres of drilling planned.
Drilling at the Antelope deposit in 2025 will include 2,500 metres of selective infill drilling down to 25 metre x 25-metre spacing to better assess the short-range continuity of high-grade mineralization in the Springbok Zone.
Other objectives of the 2025 campaign include extending the footprint of the Antelope deposit south of the Springbok Zone and to the north to establish links between the highly prospective Oryx Zone and high-grade mineralization intersected in drill holes approximately one km south of the Otjikoto Phase 5 open pit.
