B2Gold has budgeted US$9m for an exploration program at Otjikoto in 2024, targeting gold production of between 180,000 and 200,000 ounces in 2025.
Otjikoto Mine, where the company holds a 90% interest, produced 81,111 ounces of gold in the fourth quarter of 2023, a quarterly record, with production from the Wolfshag underground mine remaining consistent.
For 2023, the Otjikoto Mine produced 208,598 ounces of gold, near the upper end of its guidance range of 190,000 to 210,000 ounces.
For 2024, B2Gold wants to explore the recently discovered Antelope deposit, located approximately three km south of Phase 5 of the Otjikoto open pit.
The drilling campaign, the largest program since the definition of the Wolfshag discovery in 2012, targets 39,000m.
The company expects to mine ore from Phase 5 of the open pit, and the Wolfshag underground mine, with mill throughput, gold grade processed, and gold recoveries all expected to be similar to 2024 levels.
Otjikoto is expected to process 3.4 million tonnes of ore at an average grade of 1.77 g/t gold and a process gold recovery of 98.0%.
Processed ore will be sourced from the Otjikoto pit and the Wolfshag underground mine, supplemented by existing medium and high-grade ore stockpiles.
Open-pit mining operations are scheduled to ramp down throughout 2024 and conclude in 2025, while underground mining operations at Wolfshag will continue through 2026.
Exploration results indicate the potential to extend underground production at Wolfshag past 2026, supplementing the processing operations, which will continue until 2031, when economically viable stockpiles are forecast to be exhausted.
B2Gold says the capital expenditures at Otjikoto in 2024 are expected to total US$33 million, of which approximately US$32 million is classified as sustaining capital expenditures and US$1 million is classified as growth capital expenditures.
Sustaining capital expenditures are anticipated to include US$32 million for capitalized stripping and deferred underground development.