VANCOUVER, BC, February 2, 2022 /CNW/ - B2Gold Corp. (TSX: BTO)
(NYSE AMERICAN: BTG) (NSX: B2G) ("B2Gold" or the "Company") is
pleased to announce that the Government of Mali has recently granted B2Gold's Malian
subsidiary a new exploration permit covering the same perimeter as
the Menankoto permit (the "Menankoto Permit"), which together with
the Bantako North permit comprises the Anaconda area, located 20
kilometres from the Fekola Mine. The Company is also pleased to
announce an updated and significantly increased Mineral Resource
estimate for the Cardinal-FMZ deposits (the "Cardinal Zone"),
located approximately 500 metres from the Fekola resource pit.
Highlights
Receipt of New Menankoto Permit
- Exploration on the Menankoto Permit expected to commence by
February 15, 2022, initially with two
drill rigs and additional drill rigs to be deployed shortly
thereafter, with drilling continuing on the Bantako North permit
(which together with the Menankoto Permit comprise the Anaconda
area)
- In 2022, the Company will continue drilling to infill and
extend the saprolite resource area and to follow up on the sulphide
mineralization at the Anaconda area, including the Mamba, Adder and
several other targets below the saprolite mineralization in 2022.
The good grade and width combinations at the Anaconda area continue
to provide a strong indication of the potential for Fekola-style
south plunging bodies of sulphide mineralization, which remains
open down plunge below the saprolite
- Preliminary planning by the Company has demonstrated that a pit
situated on the Anaconda area could provide saprolite material to
be trucked to and fed into the Fekola mill commencing in late 2022,
subject to obtaining all necessary permits and completion of a
final mine plan
- The Company has budgeted $33
million in 2022 to facilitate Phase 1 saprolite mining at
the
Anaconda area
Cardinal Zone Mineral Resource Update
- Significantly increased updated Mineral Resource estimate for
Cardinal Zone (as at December 31,
2021) with an initial Indicated Mineral Resource estimate of
8,000,000 tonnes at 1.67 grams per tonne ("g/t") gold for
430,000 ounces of gold, and an updated Inferred Mineral Resource
estimate of 19,000,000 tonnes at 1.21 g/t gold for 740,000 ounces
of gold, constrained within a conceptual pit run at US$1,800 per ounce gold
- The oxide mineralization within the updated Indicated Mineral
Resource for the Cardinal Zone, which is currently being mined, is
a low-cost source of mill feed to the Fekola Mine, with
approximately 50,000 ounces budgeted to be produced from the
Cardinal Zone in 2022 (and has been included in the Fekola
Mine's 2022 annual production guidance), and has the potential to
add an average of approximately 60,000 ounces per year of sulphide
mineralization over the next 6 to 8 years to Fekola's annual gold
production
- Gold mineralization at the Cardinal Zone extends over
3.5 kilometres along strike and intersected up to 350 metres
vertically below surface, with mineralization remaining open at
depth and down-plunge
Receipt of New Menankoto Permit
In December 2021, B2Gold and the
Government of Mali were pleased to
reach an agreement in principle relating to the dispute on the
Menankoto Permit, where the Government of Mali agreed that it would grant a new
exploration permit covering the same perimeter as the Menankoto
Permit to a new Malian subsidiary of B2Gold, and B2Gold would
withdraw the international arbitration proceedings that its Malian
subsidiary commenced against the Republic of Mali. B2Gold's Malian subsidiary has now
received the new Menankoto Permit, issued by the Government of
Mali in compliance with the
procedures and requirements set out under the Malian 2019 Mining
Code (previous permit had been issued under the Malian 2012 Mining
Code), which provides for an initial term of three years and
renewable for 2 additional three year periods. B2Gold's Malian
subsidiary has now withdrawn the international arbitration
proceedings against the Republic of Mali.
Click here to view B2Gold's West Mali tenements map
With the receipt of the Menankoto Permit, exploration on the
Menankoto Permit is expected to commence by February 15, 2022, initially with two drill rigs
operating, which will build on the $27
million that the Company has spent to date on Menankoto
Permit, with additional drill rigs to be deployed shortly
thereafter. The Company plans to continue focusing on upgrading and
expanding the existing saprolite Mineral Resource estimate of 21.6
million tonnes at 1.11 g/t for 770,000 ounces for the Anaconda area
(originally released in June 2017).
An updated Mineral Resource estimate based on the results from the
extensive 2020 and 2021 infill and exploration drill program is
expected in the first quarter of 2022 and will feed into
engineering studies currently underway. This updated Mineral
Resource estimate will also include an initial Mineral Resource
estimate for the sulphide material below the saprolite.
Additionally, the Company has completed environmental and social
studies to support permitting efforts.
In 2022, the Company will continue drilling to infill and extend
the saprolite resource area and to follow up on the sulphide
mineralization at the Anaconda area, including the Mamba, Adder and
several other targets below the saprolite mineralization. The good
grade and width combinations at the Anaconda area continue to
provide a strong indication of the potential for Fekola-style south
plunging bodies of sulphide mineralization, which remains open down
plunge.
The potential to truck material from the nearby Anaconda area in
late 2022 (comprised of the Menankoto Permit and the Bantako North
permit) is currently being developed and is not included in
Fekola's production guidance. The Fekola Mine has not included the
Mineral Resources from the Anaconda area in the current Fekola life
of mine plan. Preliminary planning by the Company has demonstrated
that a pit situated on the Anaconda area could provide saprolite
material to be trucked to and fed into the Fekola mill commencing
in late 2022, increasing the ore processed and annual gold
production from the Fekola mill, subject to obtaining all necessary
permits and completion of a final mine plan, with the potential to
add an average of approximately 80,000 to 100,000 ounces per year
to Fekola's annual gold production. In 2022, a total of
$33 million has been budgeted to
facilitate Phase 1 saprolite mining at the Anaconda area. The
Company plans on commencing a Phase II study when the updated
Mineral Resource estimate on the sulphide material becomes
available and based on 2022 exploration drilling results to
review the project economics of trucking sulphide material to the
Fekola mill as compared to constructing another stand-alone mill
near the Anaconda area.
This additional feed from the Anaconda area to the Fekola Mine
has the potential to provide immediate value to B2Gold and the
State of Mali, B2Gold's 20%
partner at the Fekola Mine, and communities near the project, and
create significant long-term benefits for the Government of
Mali as well as employment
opportunities and value generation for the communities located both
near the Menankoto deposit, regionally and nationally.
Since the Company commenced its investment in Mali, B2Gold has enjoyed a positive and
mutually beneficial relationship with the Government of
Mali. Most recently, B2Gold
partnered with the Government of Mali to assist the people of Mali facing challenges created by the COVID-19
pandemic, as well as its impact on the mining sector. B2Gold
continues to explore additional ways in which it might help both
B2Gold's stakeholders and the Government deal with the ongoing
impact of the pandemic.
Updated Cardinal Zone Mineral Resource Estimate
(at December 31, 2021, reported
on a 100% basis)
Indicated Mineral Resource Estimate (including $1,500/oz Au sensitivity case)
|
At US$1,800/oz
Au
|
At US$1,500/oz
Au
|
Domain
|
Tonnes
|
Gold
Grade
(g/t
Au)
|
Contained
Gold
Ounces
|
Tonnes
|
Gold
Grade
(g/t
Au)
|
Contained
Gold
Ounces
|
Oxide (Saprolite and
Saprock)
|
1,000,000
|
1.45
|
50,000
|
1,000,000
|
1.46
|
50,000
|
Sulphide
|
7,000,000
|
1.70
|
380,000
|
4,900,000
|
1.80
|
290,000
|
Total Indicated
Mineral Resources
|
8,000,000
|
1.67
|
430,000
|
6,000,000
|
1.75
|
330,000
|
Inferred Mineral Resource Estimate (including $1,500/oz Au sensitivity case)
|
At US$1,800/oz
Au
|
At US$1,500/oz
Au
|
Domain
|
Tonnes
|
Gold
Grade
(g/t
Au)
|
Contained Gold
Ounces
|
Tonnes
|
Gold
Grade
(g/t
Au)
|
Contained
Gold Ounces
|
Oxide (Saprolite and
Saprock)
|
1,900,000
|
0.75
|
50,000
|
1,600,000
|
0.80
|
40,000
|
Sulphide
|
17,100,000
|
1.26
|
690,000
|
4,100,000
|
1.45
|
190,000
|
Total Inferred
Mineral Resources
|
19,000,000
|
1.21
|
740,000
|
5,700,000
|
1.27
|
230,000
|
Notes:
- Mineral Resources have been classified using CIM Standards.
Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
- All tonnage, grade and contained metal content estimates have
been rounded; rounding may result in apparent summation differences
between tonnes, grade, and contained metal content.
- Mineral Resources are reported on a 100% project basis. The
State of Mali hold a 20% interest
in the Fekola Mine, which is located on the same mining permit as
the Cardinal Zone.
- The Qualified Person for the resource estimate is Tom Garagan, P.Geo., B2Gold's Senior Vice
President, Exploration.
- The Mineral Resource estimates for Cardinal Zone assumes an
open pit mining method.
- Mineral Resources are reported within conceptual pit shells run
with a gold price of $1,800/oz, a
metallurgical recovery of 94%, and operating cost estimates of
US$1.50-US$2.00/t mined (mining), US$7.26–US$12.00/t processed (processing),
US$0.50/t processed (haulage), and
US$0.33/t processed (general and
administrative).
- Mineral Resources are reported at a cut-off grade of 0.25 g/t
gold for oxide material, and a cut-off grade of 0.40 g/t gold for
sulphide material.
Sensitivity to Mineral Resources
The Mineral Resource estimate for oxide mineralization is
resilient to a lower gold price as the sensitivity case shows. The
sensitivity case is reported within a pit shell run with a gold
price of US$1,500 per ounce (as
compared to the base case at US$1,800
per ounce gold), and the same operating costs and cut-off grades as
the base case.
Cardinal Operations
Initial open pit mining operations at the Cardinal Zone have
commenced and will continue to ramp up. To December 31, 2021, 164,340 tonnes at an average
grade of 1.66 g/t have been mined at the Cardinal Zone. The oxide
mineralization within the updated Indicated Mineral Resource for
the Cardinal Zone, which is currently in production, is expected to
be a low-cost source of mill feed to the Fekola Mine, with
approximately 50,000 ounces budgeted to be produced from the
Cardinal Zone in 2022 (and has been included in the Fekola Mine's
2022 annual production guidance), and has the potential to add an
average of approximately 60,000 ounces per year from the sulphide
mineralization over the next 6 to 8 years to Fekola's annual gold
production.
Cardinal Exploration Program
In 2021, B2Gold continued exploration of the Cardinal Zone as
part of its $27 million exploration
program in Mali. Concurrent drilling programs by the Fekola
exploration and mine geology teams completed more than 50,000
metres of RC and diamond drilling towards the conversion of
Inferred Mineral Resources to the Indicated category, for input to
mine planning and the expansion of the known resource area, which
remains open at depth.
The updated Mineral Resource estimate upgraded 430,000 ounces
from Inferred to an Indicated category (initial Inferred Resource
estimate was 640,000 ounces of gold in 13.0 million tonnes of ore
at 1.54 g/t gold), which provides a more robust model for mine
planning, while at the same time increasing the total Inferred
Mineral Resource estimate to 740,000 ounces (an increase of 100,000
ounces to the initial Inferred Mineral Resource estimate).
The Cardinal Zone comprises multiple, sub-parallel, west-dipping
shear zones with an average width of approximately 10 metres for
the main Cardinal zone. The 2021 exploration program has shown that
the Cardinal/FMZ system persists at depth, with holes such as
FKD_610 (2.69 g/t gold over 21.40 m,
from 253.80 m, including 5.31 g/t
gold over 9.50 m) and FKD_594 (3.96
g/t gold over 20.50 m) returning
excellent grade-width intersections below the reported resource and
indicating further potential, down dip of recent drilling.
Select results from the 2021 Cardinal Zone drill program
include:
Target
|
Hole
ID
|
From
|
To
|
Metres
|
Au
(g/t)
|
Cardinal
|
FKD_521
|
231.30
|
242.20
|
10.90
|
3.78
|
Cardinal
|
FKD_558
|
268.20
|
292.30
|
24.10
|
2.39
|
Cardinal
|
FKD_565
|
270.00
|
295.70
|
25.70
|
2.02
|
Cardinal
|
Incl
|
274.50
|
285.00
|
10.50
|
3.51
|
Cardinal
|
FKD_570
|
286.10
|
311.40
|
25.30
|
2.08
|
Cardinal
|
Incl
|
288.00
|
300.60
|
12.60
|
3.44
|
Cardinal
|
FKD_572
|
269.30
|
291.60
|
22.30
|
2.90
|
Cardinal
|
Incl
|
276.10
|
280.00
|
3.90
|
6.91
|
Cardinal
|
Incl
|
285.00
|
291.60
|
6.60
|
4.83
|
Cardinal
|
FKD_594
|
330.80
|
351.30
|
20.50
|
3.96
|
Cardinal
|
FKD_598
|
221.30
|
251.72
|
30.42
|
2.12
|
Cardinal
|
Incl
|
236.00
|
251.72
|
15.72
|
3.49
|
Cardinal
|
FKD_610
|
253.80
|
275.20
|
21.40
|
2.70
|
Cardinal
|
Incl
|
258.60
|
268.10
|
9.50
|
5.31
|
Composites are reported above 0.6 g/t gold cut-off, including
intervals, above 1 g/t gold.
Metallurgical test work completed at SGS Lakefield confirmed the
metallurgical response is aligned with previous test work and plant
results confirming that the Cardinal zone mineralization is
amenable to the Fekola plant operating conditions.
2022 Exploration Program
The 2022 Cardinal Zone exploration campaign will focus on
expanding the known resource down dip and down plunge to the north,
where the Cardinal/FMZ system intersects the Fekola Mine trend. In
2022, approximately $27 million is
budgeted to be spent on exploration in Mali, focusing on the Anaconda area,
Cardinal/FMZ, Fekola Deeps and Fekola North, with a total of
112,500 metres of diamond and RC drilling planned.
Resource Model Methodology
The updated Cardinal Zone Mineral Resource model was prepared
in-house by B2Gold personnel. Lithology in the Cardinal Zone
area is dominantly interbedded mudstones, siltstones and diorite
intrusions, with bedding dipping 35-50° to the west. Shear
zones associated with mineralization at the main Cardinal deposit
are oriented NNE, dipping moderately to the west; shear zones
associated with FMZ structures are oriented NNE, with most dipping
steeply to the west. Three-dimensional mineralization domain
models, which are used to control gold grade estimates, are
supported by pyrite content, alteration, stratigraphy, and shear
zone structures. There are 23 mineralization domains modeled.
The exploration drill data cut-off for the Cardinal Zone Mineral
Resource estimate was December 31,
2021 and the drill data cut-off for RC drilled by the Fekola
Mine was December 18, 2021. A total
of 1,193 drill holes (130,794 metres) were used in the estimate
including 146 core holes (37,577 metres), 415 exploration RC holes
(49,988 metres), 33 holes (10,074 metres) that are pre-collared
with RC and completed with core, and 599 RC holes (33,155 metres)
drilled by the Fekola Mine geology department. Assays were capped
by mineralization domain, or groups of domains, ranging from a cap
level of 3 g/t in the low grade (waste) domain to 5 to 30 g/t in
the high-grade domains. Gold assays were capped prior to
compositing to 2 metres. Grades were estimated into the block model
using Ordinary Kriging with searches dynamically controlled along
mineralization zone directions.
The block model estimates were validated by visual comparison to
composite grades, comparison of global block statistics to
declustered composites, swath plots by domain to check for local
bias and comparison to change of support distributions. More than
10,000 bulk density measurements using the water-displacement
method on air-dried core samples were used to assign density in the
Cardinal Zone area. Density was assigned to the block model based
on averages by mineralization domain and regolith. Nominal
targeted drill hole spacing for Indicated Mineral Resources is 40
by 40 metres, and 80 by 80 metres for Inferred Mineral
Resources.
QA/QC on Sample Collection and Assaying
The primary assay laboratories for exploration samples are SGS
Laboratories in Bamako, Mali, and
the Fekola Mine laboratory. Bureau Veritas Laboratories in
Abidjan, Cote d'Ivoire was used as
an alternate lab for a short period in 2020. Samples from RC
drilling completed by the Fekola Mine geology department are
assayed at the Fekola Mine laboratory. At each laboratory samples
are prepared and analyzed using 50-gram fire assay with atomic
absorption and/or gravimetric finish. Umpire assaying of
exploration samples is conducted on a quarterly basis.
Quality assurance and quality control procedures include the
systematic insertion of blanks, standards and duplicates into the
sample sequences. The results of the control samples are evaluated
on a regular basis with partial batches re-analyzed and/or
resubmitted on exploration samples, as needed. All results stated
in this announcement have passed B2Gold's quality assurance and
quality control protocols.
Qualified Person
Tom Garagan, Senior Vice
President of Exploration at B2Gold, a qualified person under
National Instrument 43-101, has reviewed and approved the
information contained in this news release.
About B2Gold Corp.
B2Gold is a low-cost international senior gold producer
headquartered in Vancouver,
Canada. Founded in 2007, today, B2Gold has operating gold
mines in Mali, Namibia and the
Philippines and numerous exploration and development
projects in various countries including Mali, Colombia, Finland and Uzbekistan. B2Gold forecasts total
consolidated gold production of between 990,000 and 1,050,000
ounces in 2022.
On Behalf of B2GOLD CORP.
"Clive T. Johnson"
President & Chief Executive Officer
For more information on B2Gold, please visit the Company website
at www.b2gold.com or contact:
Ian MacLean
|
Katie
Bromley
|
Vice President,
Investor
Relations
|
Manager, Investor
Relations & Public Relations
|
+1
604-681-8371
|
+1
604-681-8371
|
imaclean@b2gold.com
|
kbromley@b2gold.com
|
The Toronto Stock Exchange and NYSE American LLC neither
approve nor disapprove the information contained in this news
release.
Production guidance presented in this news release reflect
total production at the mines B2Gold operates on a 100% project
basis. Please see our Annual Information Form dated March 30, 2021 for a discussion of our ownership
interest in the mines B2Gold operates.
This news release includes certain "forward-looking
information" and "forward-looking statements" (collectively
forward-looking statements") within the meaning of applicable
Canadian and United States
securities legislation, including: projections; outlook; guidance;
forecasts; estimates; and other statements regarding future or
estimated financial and operational performance, gold production
and sales, revenues and cash flows, and capital costs (sustaining
and non-sustaining) and operating costs, and including, without
limitation: total consolidated gold production of between 990,000
and 1,050,000 ounces in 2022 the potential upside to increase
Fekola's gold production in 2022 by trucking material from the
Anaconda area, including the potential to add approximately 80,000
to 100,000 per year to Fekola's annual production profile, and for
the Anaconda area to provide saprolite material to feed the Fekola
mill starting in late 2022; the potential for production from the
Cardinal zone to add approximately 50,000 ounces in 2022 to the
Company's production profile and approximately 60,000 per year over
the next 6 to 8 years; and the completion of an updated mineral
resource estimate for the Anaconda area in the first quarter of
2022. All statements in this news release that address events or
developments that we expect to occur in the future are
forward-looking statements. Forward-looking statements are
statements that are not historical facts and are generally,
although not always, identified by words such as "expect", "plan",
"anticipate", "project", "target", "potential", "schedule",
"forecast", "budget", "estimate", "intend" or "believe" and similar
expressions or their negative connotations, or that events or
conditions "will", "would", "may", "could", "should" or "might"
occur. All such forward-looking statements are based on the
opinions and estimates of management as of the date such statements
are made.
Forward-looking statements necessarily involve assumptions,
risks and uncertainties, certain of which are beyond B2Gold's
control, including risks associated with or related to: the
duration and extent of the COVID-19 pandemic, the effectiveness of
preventative measures and contingency plans put in place by the
Company to respond to the COVID-19 pandemic, including, but not
limited to, social distancing, a non-essential travel ban, business
continuity plans, and efforts to mitigate supply chain disruptions;
escalation of travel restrictions on people or products and
reductions in the ability of the Company to transport and refine
doré; the volatility of metal prices and B2Gold's common shares;
changes in tax laws; the dangers inherent in exploration,
development and mining activities; the uncertainty of reserve and
resource estimates; not achieving production, cost or other
estimates; actual production, development plans and costs differing
materially from the estimates in B2Gold's feasibility and other
studies; the ability to obtain and maintain any necessary permits,
consents or authorizations required for mining activities;
environmental regulations or hazards and compliance with complex
regulations associated with mining activities; climate change and
climate change regulations; the ability to replace mineral reserves
and identify acquisition opportunities; the unknown liabilities of
companies acquired by B2Gold; the ability to successfully integrate
new acquisitions; fluctuations in exchange rates; the availability
of financing; financing and debt activities, including potential
restrictions imposed on B2Gold's operations as a result thereof and
the ability to generate sufficient cash flows; operations in
foreign and developing countries and the compliance with foreign
laws, including those associated with operations in Mali, Namibia, the Philippine and Colombia and including risks related to
changes in foreign laws and changing policies related to mining and
local ownership requirements or resource nationalization generally,
including in response to the COVID-19 outbreak; remote operations
and the availability of adequate infrastructure; fluctuations in
price and availability of energy and other inputs necessary for
mining operations; shortages or cost increases in necessary
equipment, supplies and labour; regulatory, political and country
risks, including local instability or acts of terrorism and the
effects thereof; the reliance upon contractors, third parties and
joint venture partners; the lack of sole decision-making authority
related to Filminera Resources Corporation, which owns the Masbate
Project; challenges to title or surface rights; the dependence on
key personnel and the ability to attract and retain skilled
personnel; the risk of an uninsurable or uninsured loss; adverse
climate and weather conditions; litigation risk; competition with
other mining companies; community support for B2Gold's operations,
including risks related to strikes and the halting of such
operations from time to time; conflicts with small scale miners;
failures of information systems or information security threats;
the ability to maintain adequate internal controls over financial
reporting as required by law, including Section 404 of the
Sarbanes-Oxley Act; compliance with anti-corruption laws, and
sanctions or other similar measures; social media and B2Gold's
reputation; risks affecting Calibre having an impact on the value
of the Company's investment in Calibre, and potential dilution of
our equity interest in Calibre; as well as other factors identified
and as described in more detail under the heading "Risk Factors" in
B2Gold's most recent Annual Information Form, B2Gold's current Form
40-F Annual Report and B2Gold's other filings with Canadian
securities regulators and the U.S. Securities and Exchange
Commission (the "SEC"), which may be viewed at www.sedar.com and
www.sec.gov, respectively (the "Websites"). The list is not
exhaustive of the factors that may affect B2Gold's forward-looking
statements
B2Gold's forward-looking statements are based on the
applicable assumptions and factors management considers reasonable
as of the date hereof, based on the information available to
management at such time. These assumptions and factors include, but
are not limited to, assumptions and factors related to B2Gold's
ability to carry on current and future operations, including: the
duration and effects of COVID-19 on our operations and
workforce; development and exploration activities; the timing,
extent, duration and economic viability of such operations,
including any mineral resources or reserves identified thereby; the
accuracy and reliability of estimates, projections, forecasts,
studies and assessments; B2Gold's ability to meet or achieve
estimates, projections and forecasts; the availability and cost of
inputs; the price and market for outputs, including gold; foreign
exchange rates; taxation levels; the timely receipt of necessary
approvals or permits; the ability to meet current and future
obligations; the ability to obtain timely financing on reasonable
terms when required; the current and future social, economic and
political conditions; and other assumptions and factors generally
associated with the mining industry.
B2Gold's forward-looking statements are based on the opinions
and estimates of management and reflect their current expectations
regarding future events and operating performance and speak only as
of the date hereof. B2Gold does not assume any obligation to update
forward-looking statements if circumstances or management's
beliefs, expectations or opinions should change other than as
required by applicable law. There can be no assurance that
forward-looking statements will prove to be accurate, and actual
results, performance or achievements could differ materially from
those expressed in, or implied by, these forward-looking
statements. Accordingly, no assurance can be given that any events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do, what benefits or liabilities B2Gold
will derive therefrom. For the reasons set forth above, undue
reliance should not be placed on forward-looking
statements.
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