Otjikoto’s golden glow grows
Production records smashed for 2016 and looking to be surpassed again this year as equipment investments increase.
STAFF REPORTER - The Canadian B2Gold Corporation owns the second and largest gold mine in Namibia; the Otjikoto gold mine near Lake Otjikoto. It is located about 70km northwest of Otjiwarongo in the Otjozondjupa Region.
B2Gold acquired the Otjikoto Gold Project through its acquisition of Auryx Gold in 2011. The company began construction soon after and the Otjikoto Mine poured its first gold on 11 December 2014, one week ahead of schedule. Since then the company has not rested on its laurels and recent successes point to a golden future for the milestone development in the Namibian mining sector.
Based on the performance of the mill, and the fact that the company met commercial production criteria for 30 consecutive days of mill throughput of 65% of faceplate capacity by 28 February 2015, the Otjikoto Mine declared commercial production on that date. Since then there has been no stopping this team.
The Otjikoto Mine had a record year in 2016, producing an annual record 166 285 ounces of gold, above the mid-point of its production guidance range (of 160 000 to 170 000 ounces) and 14% (or 20 562 ounces) higher than in 2015 (including 18 815 ounces of pre-commercial production from Otjikoto).
Otjikoto’s 2016 production benefitted from higher throughput due to the successful completion of its mill expansion project in September 2015, which increased plant capacity from 2.5 million tonnes per annum to 3 million tonnes, and also due to overall process optimisations. In the fourth quarter of 2016, the Otjikoto Mine produced a quarterly record 46 846 ounces of gold, slightly above budget and 19% (or 7 472 ounces) higher than the fourth quarter of 2015.
For B2Gold, Otjikoto is just one of its gold-producing mines, which include the Masbate Mine in the Philippines as well as the La Libertad mine and the El Limon mine, both in Nicaragua. Together these mines delivered 550 423 ounces of gold for which the world markets were very generous in terms of compensation.
For the full-year 2016, consolidated gold revenue was a record US$683.3 million on record sales of 548 281 ounces at an average price of US$1 246 per ounce. Consolidated gold revenue in the fourth quarter of 2016 was US$181.2 million on record sales of 151 524 ounces at an average price of US$1 196 per ounce. The 30% (or US$42.2 million) increase in gold revenue compared to the same period in 2015 was mainly attributable to a 19% increase in gold sales volume and a 10% increase in the average realised gold price, according to the miner.
For 2017, B2Gold is projecting another solid year, and Otjikoto looks set to play its part in that success. This despite higher anticipated cash operating costs per ounce, higher operating strip ratios and higher projected fuel prices. The Otjikoto Mine is forecast to produce between 165 000 and 175 000 ounces of gold in 2017, compared to 166 285 ounces produced in 2016. Cash operating costs are expected to be between US$510 and US$550 per ounce. The expected cost increase over 2016 is mainly due to higher projected strip ratios at the new Otjikoto Phase 2 pit and Wolfshag Phase 1 pit, the company said recently.
The Otjikoto Mine is projected to process 3.3 million tonnes of ore in 2017, with an average grade of 1.59 gold per tonne and recovery of 98%. Mill feed is expected to consist of high-grade ore from the Otjikoto Phase 2 pit (35%) and Wolfshag Phase 1 pit (25%). High- and medium-grade stockpile ore is expected to account for the remainder of the mill feed (40%), as the Otjikoto Phase 2 pit is developed.
Life-of-mine production plans for the Otjikoto Mine, incorporating preliminary projections for the Wolfshag open pit and underground mines, have been completed for various options and will be further refined as the detailed geotechnical, hydrogeological, and design studies are completed this year. Continuing studies are leading the company to re-evaluate the open pit and underground interface, it has announced.
For 2017, sustaining capital costs at the Otjikoto Mine are estimated to be US$37.1 million, including US$15 million for capitalised pre-stripping costs, US$10.4 million for mine fleet additions, and US$6 million for major equipment rebuilds. B2Gold expects US$10 million of the Otjikoto mine fleet expansion purchases to be lease financed.
To advance stripping at both the Otjikoto and Wolfshag pits the mining fleet will be increased by an additional 250-tonne excavator along with additional haul trucks and support equipment.
Non-sustaining capital costs are budgeted to be US$12.7 million, which includes US$8.5 million for phase one of the construction of a solar power plant. The solar power plant is expected to reduce fuel consumption and protect against rising oil prices.
The Canadian gold miner’s total exploration budget for Namibia in 2017 is US$5.1 million, mainly for 5 000 metres of diamond drilling on the Otjikoto licence area; and 12 000 metres of diamond drilling and 5 000 metres of RAB drilling on the Ondundu joint-venture project. Drilling at Ondundu in 2016 has defined a distinct north-south zone of mineralisation. An additional 5 000 metres of diamond and RC drilling are committed to new targets in and around the Otjikoto area, the company has announced.
B2Gold acquired the Otjikoto Gold Project through its acquisition of Auryx Gold in 2011. The company began construction soon after and the Otjikoto Mine poured its first gold on 11 December 2014, one week ahead of schedule. Since then the company has not rested on its laurels and recent successes point to a golden future for the milestone development in the Namibian mining sector.
Based on the performance of the mill, and the fact that the company met commercial production criteria for 30 consecutive days of mill throughput of 65% of faceplate capacity by 28 February 2015, the Otjikoto Mine declared commercial production on that date. Since then there has been no stopping this team.
The Otjikoto Mine had a record year in 2016, producing an annual record 166 285 ounces of gold, above the mid-point of its production guidance range (of 160 000 to 170 000 ounces) and 14% (or 20 562 ounces) higher than in 2015 (including 18 815 ounces of pre-commercial production from Otjikoto).
Otjikoto’s 2016 production benefitted from higher throughput due to the successful completion of its mill expansion project in September 2015, which increased plant capacity from 2.5 million tonnes per annum to 3 million tonnes, and also due to overall process optimisations. In the fourth quarter of 2016, the Otjikoto Mine produced a quarterly record 46 846 ounces of gold, slightly above budget and 19% (or 7 472 ounces) higher than the fourth quarter of 2015.
For B2Gold, Otjikoto is just one of its gold-producing mines, which include the Masbate Mine in the Philippines as well as the La Libertad mine and the El Limon mine, both in Nicaragua. Together these mines delivered 550 423 ounces of gold for which the world markets were very generous in terms of compensation.
For the full-year 2016, consolidated gold revenue was a record US$683.3 million on record sales of 548 281 ounces at an average price of US$1 246 per ounce. Consolidated gold revenue in the fourth quarter of 2016 was US$181.2 million on record sales of 151 524 ounces at an average price of US$1 196 per ounce. The 30% (or US$42.2 million) increase in gold revenue compared to the same period in 2015 was mainly attributable to a 19% increase in gold sales volume and a 10% increase in the average realised gold price, according to the miner.
For 2017, B2Gold is projecting another solid year, and Otjikoto looks set to play its part in that success. This despite higher anticipated cash operating costs per ounce, higher operating strip ratios and higher projected fuel prices. The Otjikoto Mine is forecast to produce between 165 000 and 175 000 ounces of gold in 2017, compared to 166 285 ounces produced in 2016. Cash operating costs are expected to be between US$510 and US$550 per ounce. The expected cost increase over 2016 is mainly due to higher projected strip ratios at the new Otjikoto Phase 2 pit and Wolfshag Phase 1 pit, the company said recently.
The Otjikoto Mine is projected to process 3.3 million tonnes of ore in 2017, with an average grade of 1.59 gold per tonne and recovery of 98%. Mill feed is expected to consist of high-grade ore from the Otjikoto Phase 2 pit (35%) and Wolfshag Phase 1 pit (25%). High- and medium-grade stockpile ore is expected to account for the remainder of the mill feed (40%), as the Otjikoto Phase 2 pit is developed.
Life-of-mine production plans for the Otjikoto Mine, incorporating preliminary projections for the Wolfshag open pit and underground mines, have been completed for various options and will be further refined as the detailed geotechnical, hydrogeological, and design studies are completed this year. Continuing studies are leading the company to re-evaluate the open pit and underground interface, it has announced.
For 2017, sustaining capital costs at the Otjikoto Mine are estimated to be US$37.1 million, including US$15 million for capitalised pre-stripping costs, US$10.4 million for mine fleet additions, and US$6 million for major equipment rebuilds. B2Gold expects US$10 million of the Otjikoto mine fleet expansion purchases to be lease financed.
To advance stripping at both the Otjikoto and Wolfshag pits the mining fleet will be increased by an additional 250-tonne excavator along with additional haul trucks and support equipment.
Non-sustaining capital costs are budgeted to be US$12.7 million, which includes US$8.5 million for phase one of the construction of a solar power plant. The solar power plant is expected to reduce fuel consumption and protect against rising oil prices.
The Canadian gold miner’s total exploration budget for Namibia in 2017 is US$5.1 million, mainly for 5 000 metres of diamond drilling on the Otjikoto licence area; and 12 000 metres of diamond drilling and 5 000 metres of RAB drilling on the Ondundu joint-venture project. Drilling at Ondundu in 2016 has defined a distinct north-south zone of mineralisation. An additional 5 000 metres of diamond and RC drilling are committed to new targets in and around the Otjikoto area, the company has announced.
Kommentaar
Republikein
Geen kommentaar is op hierdie artikel gelaat nie