otjikoto gold mine introduction and progress update
TRANSCRIPT
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OTJIKOTO GOLD MINE
INTRODUCTION AND PROGRESS UPDATE MAY 2014
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Who is B2Gold?
2
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Who is B2Gold Namibia?
B2Gold Namibia:
– 90% owned by B2Gold
– 10% owned by EVI Mining Company
• Ownership is a broad-based economic empowerment group made up of Namibian business men and women
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Location
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Otjikoto Exploration History
• Discovered by Anglovaal Mining (Avdale) in 1999 during a base metal exploration program
• ‘Blind’ deposit discovered under calcrete
• Exploration was predominantly geophysically driven (magnetics, EM, IP)
• B2Gold is the sixth company involved in the project
Calcrete covered area
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Construction Schedule Summary
PROJECT SCHEDULE SUMMARY
1 Merger with Auryx Gold Dec - 2011
2 Feasibility Completed Dec - 2012
3 EIA Completed Jul- 2012
4 Mining License Issued Dec - 2012
5 Mining Commenced May - 2013
6 Commencement of Tank Construction Oct - 2013
7 Process Plant Bulk Earthworks – Completed Nov - 2013
8 Tailings Storage Facility Earthworks - Completed Jan-2014
9 Structural Steelwork Erection - Commence Feb-2014
10 Crusher Installation - Commence Apr-2014
11 Grinding Mill Installation - Commence Apr-2014
12 Power House - Commissioning Sep-2014
13 Commissioning Nov-2014
14 First Gold Pour Dec-2014
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Reserves
Unit DFS Reserve
Total Ore tonnes 29,408,899
Total Waste tonnes 164,266,045
Stripping Ratio waste/ore 5.59
Ore Grade g/t 1.42
Metal Content ounces 1,341,292
Metal Produced ounces 1,281,013
Otjikoto Reserve SummaryJanuary 2013-0.4g/t cutoff
*DFS estimated a 12.5 year mine life LoM gold production = 112,000 ounces per year
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Mining
What we are doing • Conventional open
pit operations • 90t trucks and
backhoe excavators • Ultimate pit
dimensions: 2km x 600m x 250m
• Completely owner-operated
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To Date Production
Total Pit
• Project to date production is 2.5 million BCM
Fleet Production Capacity
• Total fleet capacity (2 excavators, 1 FEL, 10 90t trucks) is 75,000tpd
• Ore mining will start in
May and ramp up in June and July. Waste mining will not be impacted.
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Otjikoto – Processing Overview
• Processing, or beneficiation, includes all steps between haulage and doré production
• At Otjikoto B2Gold will use gravity circuits and leach/CIP processes to recover 95.5% of the Au
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Processing
May 2014 • All foundation earthwork
complete • Concrete poured: 14,443 m3 • All leach tanks erected • All CIP tanks erected • Structural and mechanical
shipments are underway • Crusher – almost complete • Reclaim stockpile – 90%
complete • Laboratory structure –
partially complete • Commissioning – Q4, 2014
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Mill Construction
• Top left – Primary crusher (putting in walkway) • Bottom left – Leach and CIP tanks (agitators
and piping) • Top right – Milling area (pouring concrete for
deck)
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Tailings Storage Facility
What have we built?
• Fully lined
• Underdrain system
• Monitoring wells
• 1.5 km2 of liner and surface area
• Liner 1.5 mm thick
• 20 km of piping
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Tailings Storage Facility
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Earthworks
B1 Highway Works: Cape Seal contractor brooming surface area
Grader working on the low grade stockpile
Toe drain filter sand placing along Wall 5, 13mm stone completely installed
Reclaim stockpile
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Power House
Powerhouse building, warehouse and control room
HFO and diesel tanks at powerhouse
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Ancillary buildings
• Top Left – Main administration building • Bottom left – Laboratory • Top right – High security area entrance
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Man Camps
• Camp is OPEN (capacity ~600)
• Approximately 135 in Senior
Camp (capacity ~210)
• Approximately 150 in Junior
Camp
• Camps are temporary and will
be either donated or used for
other purposes at end of
construction
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HR – Current Manpower*
* As at 30 April 2014
• Current human capital is 638:
• 7% corporate employees in Windhoek office
• 5% employees involved in Exploration
• 88% employees associated with / situated at
the mine site:
• 95% are historically disadvantaged
• 11% are female
• 63% are from Otjozondjupa Region
• 1% are non-construction expatriates
• Majority of current employees are employed in
the construction departments
• Construction scheduled to run until end 2014
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HR Projected Manpower*
* As at 30 April 2014
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CSR Guiding Instruments
Key Mandate Areas
• Education
• Public health
• Development of SMEs
• Environmental Conservation
Project Approval Flow Protocol
• Application
• Steering Committee
• CSR Board
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Farm and Education Centre
Three pillars:
SCIENCE
EDUCATION
CONSERVATION
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Education
Artisanal focus – demonstrations on site
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Education
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Education
Introduction to internet information and research
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Assisted Home Ownership
Objectives
• Make housing available
• Give employees a chance to own their own house
• Lasting (non-transient) development in Otavi
• Avoidance of informal settlements
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Assisted Home Ownership
• Semi-serviced land secured in Otavi (60 erven)
• Plots surveyed and staked
• Developing home ownership scheme with multiple banks
• MoU in final stages
• Working with builders to develop show homes
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Otjikoto Deposit & Wolfshag Zone
• Otjikoto deposit discovered in 1999
• Wolfshag zone discovered in late 2011
• Mine feasibility was based on the Otjikoto deposit alone
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Otjikoto 2013 Drilling
• 2013 drill program consisted of 139 holes totaling 23,602 metres
• 20,920 metres in 80 holes completed in Wolfshag zone in 2013
• Total drilling on Wolfshag zone to date is 38,072 metres in 141 holes, inclusive of deepened ‘historic’ holes
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Wolfshag Inferred Resource
Initial INFERRED Resource Estimation for Wolfshag Zone
6,800,000 tonnes grading 3.2 g/t gold for 703,000 contained ounces
Otjikoto reserve grade is 1.42 g/t gold
The new high grade resource for the Wolfshag zone indicates the potential for future expansion of gold production and/or increase in the mine life of the Otjikoto project
Potential positive impact on the overall economics of the project