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B2Gold estimates 2009 gold production at Limon
2009-04-09 09:19 ET - News Release
Mr. Clive Johnson reports
B2GOLD CORP. CORPORATE UPDATE
B2Gold Corp. has provided a corporate update concerning the company's anticipated gold production, cash cost estimates and development programs for the remainder of 2009. The following corporate update also includes an updated mineral reserve and resource table, production and cash cost projections for 2010, and a general exploration update. B2Gold recently completed a business combination with Central Sun Mining Inc. in which B2Gold acquired all of the outstanding shares of Central Sun, the material assets of which include the Limon mine and the Orosi mine both located in Nicaragua. All dollar figures are in United States dollars unless otherwise indicated.
Remainder of 2009
Limon mine
B2Gold holds a 95-per-cent interest in the Limon mine, with the remaining 5 per cent being held by Inversiones Mineras S.A., a holding company representing unionized mine workers in Nicaragua. The Limon mine concession includes numerous epithermal gold-quartz veins and has been in operation as an underground and open pit gold mine since 1941. To date the Limon mine has produced approximately three million ounces of gold. The current operation is a 1,000-tonne-per-day underground and open pit mine. The Limon mine currently has a mine life of 3.5 years with projected production of approximately 43,000 ounces of gold annually at an estimated cash cost of approximately $550 per ounce. B2Gold has identified several exploration targets at the Limon mine site and the company expects to continue to add reserves to the Limon mine increasing the mine life.
For 2009 the Limon mine is projected to produce approximately 43,000 ounces of gold at an estimated cash cost of approximately $550 per ounce. The Limon mine is 100 per cent un-hedged and debt-free.
Orosi mine
B2Gold owns a 100-per-cent interest in the Orosi open pit gold mine, which commenced operating as a heap leach mine in 1996. Operations were suspended in the first quarter of 2007 after a re-evaluation of the project indicated that gold recoveries could be improved from approximately 40 per cent from heap leaching to over 90 per cent using a conventional milling operation. All equipment, with the exception of the second ball mill, is on site and the mill installation project and tailing pond construction project are well under way and expected to be completed in the fourth quarter of 2009. Commissioning of the process plant is expected to commence late in 2009 and, once in commercial production, the Orosi mine will have an initial eight-year mine life and is expected to produce approximately 80,000 to 90,000 ounces of gold annually at an estimated cash cost of approximately $450 per ounce. The Orosi mine has excellent exploration targets which could increase the reserves, resources and the mine life. The Orosi mine is 100 per cent un-hedged and debt-free.
2010 production projections
With both the Limon and Orosi mines operating in 2010, B2Gold's annual gold production is projected to be approximately 125,000 to 130,000 ounces at estimated cash costs of approximately $485 per ounce.
Reserves and resources
B2Gold currently has 683,600 ounces of proven and probable gold mineral reserves, 303,300 ounces of measured and indicated gold mineral resources and 2,019,270 ounces of inferred gold mineral resources.
Exploration
In 2009, B2Gold intends to initiate exploration programs on both the Limon and Orosi mine properties as well as the Mestiza property also located in Nicaragua. Large sections of both the Limon and Orosi mine concessions have not been explored in recent years and B2Gold's exploration team has identified several targets at both mines that the company believes have significant potential to increase mineral resources.
In Colombia, the company will continue to evaluate prospective mineral properties within and outside the area of interest of the AngloGold Ashanti Limited-B2Gold joint venture. At the Gramalote property, B2Gold will continue to evaluate additional targets, complete a scoping study and evaluate the extensions to the Gramalote Ridge deposit and the Trinidad zone. The company also intends to complete a resource study at the Quebradona property.
In Russia, drilling has commenced at Kupol East and West, in the Moroshka basin, which B2Gold considers to be one of the most prospective targets on the property.
2009 MINERAL RESERVE AND RESOURCE ESTIMATESMine Tonnes Grade (g/t) Contained gold (ounces)Mineral reservesLimon (2)Proven 68,600 5.38 11,900Probable 1,089,400 4.63 162,300Total 1,158,000 4.68 174,100Orosi(3)Probable 11,017,000 1.44 509,500Total 11,017,000 1.44 509,500Total proven and probable mineralreserves 12,175,000 1.75 683,600Measured and indicated mineral resourcesLimon (2)Measured 237,900 7.25 55,400Indicated 325,500 4.54 47,500Total 563,400 5.68 102,900Orosi (3)Indicated 4,126,000 1.51 200,400Total measured and indicatedmineral resources 4,689,400 2.01 303,300Inferred mineral resources (8)Limon (2)Total 2,441,000 5.34 419,300Orosi (3)Total 5,591,000 1.25 224,000Mestiza (4)Total 558,000 8.80 158,600Gramalote (5)(6)Total 37,931,250 1.00 1,217,370Total inferred 46,521,250 1.35 2,019,270Notes:(1) The mineral reserves and resources reported herein are based on the CIM Definition Standards for Mineral Resources and Mineral Reserves adopted by the CIM Council on Dec. 11, 2005. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resources are in addition to mineral reserves.
(2) Mineral reserve and mineral resource estimates for the Limon mine were prepared by Central Sun mine personnel under the supervision of Dr. William Pearson, PGeo, and Graham Speirs, PEng, both of whom were the qualified persons for Central Sun, as defined under National Instrument 43-101, at the time of Central Sun's published 2009 reserves and resources, as released in Stockwatch on March 4, 2009.
(3) The mineral reserve and resource estimate for the Orosi mine (formerly La Libertad) was prepared as of Jan. 31, 2008, by Scott Wilson Roscoe Postle & Associates Ltd. under the supervision of Dr. Pearson and Mr. Speirs, both of whom were the qualified persons for Central Sun, as defined under National Instrument 43-101, at the time of Central Sun's published 2009 reserves and resources, as released in Stockwatch on March 4, 2009.
(4) The inferred mineral resource for Mestiza was prepared by Central Sun exploration personnel under the supervision of Dr. Pearson, who was a qualified person for Central Sun, as defined under National Instrument 43-101, at the time of Central Sun's published 2009 reserves and resources as released in Stockwatch on March 4, 2009.
(5) The estimate is based on historical drilling and recent trench sampling and drilling by Central Sun.
(6) Reflects B2Gold's 51-per-cent interest in the Gramalote property.
(7) The inferred mineral resource for the Gramalote property was prepared by Susan M. Meister, a qualified person as defined in National Instrument 43-101.
(8) Totals may not add up due to rounding.
(9) Mineral resources that are not mineral reserves do not have a demonstrated economic viability. In addition, due to the uncertainty which may be attached to inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration.
We seek Safe Harbor.