Mining News - TSX-listed B2Gold has increased the exploration budget for the Fekola North Extension zone, in Mali, based on positive exploration drill results, by $3.9-million, to accelerate the current programme, which is extending and infilling mineral resources to the north of the main Fekola deposit.
Mining News - TSX-listed B2Gold has increased the exploration budget for the Fekola North Extension zone, in Mali, based on positive exploration drill results, by $3.9-million, to accelerate the current programme, which is extending and infilling mineral resources to the north of the main Fekola deposit.
The number of diamond drills are also being increased from five to eight rigs, as well as one reverse circulation and one air core rig, respectively.
While only 39 000 m have been drilled this year at Fekola, an additional 16 000 m are now planned for the remainder of the year.
Drilling, to date, has indicated that the high-grade mineralised shoot in the Fekola reserve deposit not only continues to be well mineralised, but that the shoot has now been intersected higher up.
These and previous results, the company said on Friday, indicate that the potential exists, subject to further drilling, to significantly increase openpit resources and reserves, north of the current Fekola openpit reserve.
Owing to the increasing size of the mineralised area, B2Gold now intends to release a new mineral resource for the Fekola deposit, including a portion of the Fekola North Extension, early in the fourth quarter of this year.
In addition, based on the positive exploration results to date, the company`s in-house technical team is conducting engineering and other technical studies to ascertain the potential to expand the current Fekola mine and mill facilities, and increase tonnage throughput, thereby increasing yearly gold production, if, as expected, a larger openpit resource is confirmed by the current exploration and infill drilling.
Results of these studies are projected to be available by the end of this year.
Meanwhile, operations continue at the company’s El Limon and La Libertad mines, in Nicaragua, with some work interruptions and delays in consumable deliveries owing, in part, to the current political upheaval in that country.
Based on the company`s original guidance, El Limon mine was projected to produce between 55 000 oz and 60 000 oz of gold, thereby representing about 6% of B2Gold`s projected consolidated gold production in 2018, at cash operating costs of between $700/oz and $750/oz and all-in sustaining costs (AISC) of between $1 135 /oz and $1 185 /oz.
La Libertad maintained continuous production during the current political unrest, however, in June, restrictions to the supply of key consumables, such as fuel and lime, impacted on the budgeted production of gold for the month.
This, the company said, was the result of temporarily replacing higher-grade openpit material with lower-grade spent ore to reduce lime and fuel consumption.
Based on the company`s original guidance, La Libertad mine was projected to produce between 115 000 oz and 120 000 oz in 2018, representing 13% of B2Gold`s projected 2018 consolidated gold production, at cash operating costs of between $745/oz and $790/oz and an AISC of between $1 050/oz and $1 100/oz.
Through the end of May, La Libertad was on track for yearly gold production and cost guidance for the year.
However, based on the restricted production for the month of June, La Libertad is now projecting to produce between 110 000 oz and 115 000 oz in 2018.
Despite the reduction in projected production at El Limon and La Libertad mines, B2Gold is not reforecasting its overall consolidated gold production range of between 910 000 oz to 950 000 oz for this year.
This is largely owing to the out performance of the Masbate mine, in the Philippines, the Fekola mine and the continued, strong operational performance of the Otjikoto mine, in Namibia, B2Gold pointed out.
These operations are currently projected to be at, or above, the company`s projected 2018 guidance.