AMN - MALI: Fekola production ahead of schedule

B2Gold Corp's Fekola Gold Project in southwest Mali is now expected to achieve commercial production by the end of November, about four months ahead of schedule. Processing of ore commenced more than three months ahead of schedule in September while the first gold pour took place on October 7.

In October, the mine produced 33,946 ounces of gold, significantly surpassing B2Gold’s budget of 15,100 ounces.

The Fekola mill started processing ore on September 24 and treated 57,695 tonnes of ore at a grade of 3.54 g/t over the remainder of the month of September with gold recovery of 96.6%, producing 6340 ounces of in-circuit gold inventory.

In October, the first full month of ramp-up and pre-commercial production, the mill treated 324,525 tonnes of ore (budgeted 225,804 tonnes) at an average grade of 3.40 g/t (budgeted 2.33 g/t) with gold recovery of 95.4% (budgeted 90.0%). Mill availability was 75% (budgeted 50%) and the mill was operating at design throughput of 607 tonnes per hour during the latter half of the month.

For 2017, the company is projecting gold production from Fekola to exceed its reforecast production guidance range of between 50,000 and 55,000 ounces at an expected cash operating cost of $580 to $620 per ounce.

2018 is scheduled to be the first full year of gold production at Fekola, yielding 400,000 to 410,000 ounces for the year at a cash operating cost of approximately $354 per ounce of gold and AISC of $609 per ounce of gold.

Based on the new LoM plan, the Fekola mine is projected to produce approximately 400,000 ounces of gold annually for the first three years at cash operating costs of $357 per ounce and AISC of $604 per ounce. For the first seven years, the mine is projected to produce approximately 374,000 ounces of gold annually with cash operating costs of $391 per ounce and AISC of $643 per ounce.

Over the initial 10-year LoM, Fekola is projected to produce an average of 345,000 ounces per annum at cash operating costs of $428 per ounce and AISC of $664 per ounce.

Fekola project capital expenditures for the three and nine months ended September 30 totalled $65.3 million and $208.1 million, respectively, versus a total budget of $64.7 million and $210.6 million, respectively.

Expenditures for the project to date were $579.2 million, including construction costs, Fekola mill expansion, Fadougou relocation, pre-stripping, additional mine fleet purchases and $41 million of preconstruction expenditures. The total Fekola project costs to date of $579.2 million are approximately $8 million less than the project budget to date of $587 million.

B2Gold has recently received positive drill results from the Fekola property and regional targets. New results in the upper portion of the Fekola North Extension (formerly Kiwi zone) indicate it is part of the Fekola zone and has significantly extended mineralisation to depth.

New results above the deeper portion of the Fekola North Extension (formerly Fekola Deeps) have intersected wide zones of good-grade mineralisation, closer to surface, and up to 600 metres north of the Fekola resource pit boundary.

These results, combined with the deeper, mineralised intercepts in the upper portion of the Fekola North Extension area indicate that these zones are one contiguous mineralised zone that could dramatically increase the extent of Fekola mineralisation. In addition, the mineralisation remains open to the north beyond the new drill results.

Results from the infill drilling program within the Fekola resource pit boundary continue to convert inferred resources to indicated, confirming the potential addition of 900,000 ounces of gold.

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