B2Gold Announces a Substantial Increase in the Gold Mineral Resource Estimate for the Fekola Mine and Positive Results from the Ongoing Fekola Mill Expansion Study (Fekola Mine Ownership: 80% B2Gold, 20% State of Mali)
News Release
B2Gold Announces a Substantial Increase in the Gold Mineral Resource Estimate for the Fekola
Mine and Positive Results from the Ongoing Fekola Mill Expansion Study
(Fekola Mine Ownership: 80% B2Gold, 20% State of Mali)
Vancouver, October 25, 201 8 – B2Gold Corp. (TSX: BTO , NYSE AMERICAN: BTG , NSX: B2G)
("B2Gold" or the "Company") announces a substantial increase in the Mineral Resource estimate for the
Fekola Mine and positive results from the ongoing Fekola mill expansion study. The new increased Mineral
Resource and the positive results, to date, from the Fekola mill expansion study indicate the potential to
increase mill throughput tonnage and increase annual gold production from Fekola with moderate capital
expenditure.
Based on approximately 192,000 metres of exploration drilling in 928 drill holes (including 70,877 metres
in 294 holes drilled by B2Gold since June 2014), B2Gold is pleased to report an updated Indicated Mineral
Resource estimate of 92,810,000 tonnes at 1.92 grams per tonne ("g/t") gold, for a total of 5,730,000 ounces
of gold, and an Inferred Mineral Resource estimate of 26,500,000 tonnes at 1.61 g/t gold, for a total of
1,370,000 ounces of gold, for the Fekola Mine located in southwestern Mali . Mineral Resources are
reported within a pit shell using a $1 ,400/ounce gold price and above a cutoff of 0.6 g/t gold. Probable
Reserves at the start of production at Fekola were 49.2 million tonnes at 2.35 g/t gold containing 3.7 million
ounces. These initial reserves (less material mined to December 31, 2017) are contained within the updated
resource (see table and longitudinal section below).
In addition, pit shells were run using a gold price of $1 ,250/ounce and demonstrate Fekola’s resiliency to
lower gold prices. The Indicated Mineral Resource contains 90,670,000 tonnes at 1.94 g/t gold for a tot al
of 5,667,000 ounces of gold, and Inferred Mineral Resources of 16,620,000 tonnes at 1.58 g/t gold
containing 844,000 ounces of gold (see table and longitudinal section below).
The new Mineral Resource is contiguous to the north of the current Fekola reserve pit boundary and extends
the resource pit boundary 1.2 km to the north (see attached longitudinal section). Exploration drill results
further north of the new resource pit boundary demonstrate that gold mineralization continues to the north,
and remains open, indicating the potential to further expand Mineral Resources with additional drilling.
Fekola Expanded Mine Plan and Mill Expansion Study
The B2Gold operations team is currently designing a new mine plan based on the new Fekola Mineral
Resource estimate, to establish new Probable Mineral Reserves. In conjunction, an engineering study is
underway to evaluate the Fekola mill expansion potential along with the evaluation of larger mining fleet
options. Current mill production rates have been averaging approximately 5.5 million tonnes per annum
("Mtpa") during 2018. The expansion study is focused on expanding mill throughput to 7.5 Mtpa. The
economics of this case will be compared to a baseline throughput of 5.5 Mtpa to 6.0 Mtpa. Given the
2
capacity of the Fekola primary crusher, SAG mill and ball mill, and engineering work to date, the 7.5 Mtpa
throughput can be achieved with an upgrade of the existing ball mill circuit. Additional process equipment
upgrades will be required, which are being determined in the expansion study along with capital and
operating cost estimates.
The expansion study is being carried out by the same Lycopodium -Brisbane and B2Gold technical team
which performed the prior engineering/desi gn work for the current Fekola mill and infrastructure. The
study is expected to be completed by year -end 2018 and the results will feed into the overall mine/mill
expansion evaluation to optimize the economics of the significantly larger, new Fekola Mineral Resource.
A technical report will be written once the expansion study is completed.
As part of the expansion study, t he Fekola mill ran a 5-day campaign of 1.1 g/t gold ore in early October
to evaluate gold recovery on low-grade material for long-term planning purposes. The recovery for the 5 -
day period was 92.7% which was 1.4% higher than the model predicted recovery from feasibility
metallurgical test work. The gold recovery for the low -grade ore was very encouraging, especially with
the very high mill throughput over the test period, which was significantly above design throughput.
Mineral Resources
Mineral Resources within a pit shell run at a gold price of $1 ,400/ounce, gold grade cutoff of 0.6 g/t.
Deposit Resource Class Tonnes
(t)
Gold Grade
(g/t gold)
Contained Gold
Ounces (oz)
Fekola
Indicated 89,620,000 1.89 5,444,000
Indicated-ROM Stockpiles 3,190,000 2.79 287,000
Total Indicated 92,810,000 1.92 5,730,000
Fekola Inferred 26,500,000 1.61 1,370,000
Sensitivity Case to Mineral Resources within a pit shell run at a gold price of $1 ,250/ounce, gold grade
cutoff of 0.6 g/t.
Deposit Resource Class Tonnes
(t)
Gold Grade
(g/t)
Contained Gold
Ounces (oz)
Fekola
Indicated 87,480,000 1.91 5,381,000
Indicated- ROM Stockpiles 3,190,000 2.79 287,000
Total Indicated 90,670,000 1.94 5,667,000
Fekola Inferred 16,620,000 1.58 844,000
3
Mineral Resource and sensitivity case Table Notes:
1. Fekola Mineral Resources and Fekola Mineral Resource s ensitivity case are reported inclusive of Mineral
Reserves, within a pit shell generated at a gold price of $1 ,400/ounce and $1,250/ounce, respectively , above a
cutoff grade of 0.6 g/t gold and below topography dated December 31, 2017. An average gold recovery of 94.5%,
pit slope parameters of 41 degrees in fresh material and 34 degrees in weathered material were used. Costs used
for pit generation include a mining cost of US$2.00/tonne mined, processing cost of US$14.50/ore tonne, and
G&A cost of US$4.50/ ore tonne. The updated Mineral Resource model has an effective date of September 1,
2018, and is current as of December 31, 2017.
2. The Mineral Resource and sensitivity case are inclusive of Fekola Mine production of 333,788 ounces of gold
between December 31, 2017, and September 30, 2018.
3. Resources reported here are at 100% ownership basis, the Company has an 80% attributable ownership. B2Gold
owns 80% of Fekola SA while the State of Mali owns 20%.
4. The Mineral Resource and sensitivity case update were prepared in -house by B2Gold. Three-dimensional
mineralization domain models were built, the geometries of which are strongly supported by models of
stratigraphy and high strain zones which are derived from oriented drill core logging. Tight, asymmetric fol ds
and shear zones are the primary controls on mineralization.
5. Assays were capped differently for each of the three mineralization domains, capping thresholds used are 1.5 g/t,
5 g/t and 30 g/t. Gold assays were capped prior to compositing to 2 metres. Grades were estimated into the block
model using Ordinary Kriging (OK) with searches dynamically controlled along mineralization zone directions.
All tonnage, grade and contained metal content estimates have been rounded; rounding may result in ap parent
summation differences between tonnes, grade, and contained metal content. Indicated resources approximate
50x50 metre drill centers and Inferred Resources were drilled at approximately 80x100 metre centers.
6. A total of 14,266 bulk density measurements using the water-displacement method on air-dried fresh core samples
were completed at the project site. Density variability for unweathered rock is very low, so for tonnage and metal
estimates, densities were assigned based on averages by mineralization domain, waste and regolith.
7. Mineral Resources have been classified using the CIM Standards. Mineral Resources are reported inclusive of
those Mineral Resources that have been modified to Mineral Reserves. Mineral Resources that are not Mineral
Reserves do not have demonstrated economic viability.
Ongoing Exploration
For the remainder of 2018, exploration drilling will continue to the immediate north and west of Fekola,
and at the Anaconda zones approximately 20 km from Fekola. In 2019, the Company plans to continue its
successful drilling to convert Fekola’s Inferred Resources to Reserves, further explore through drilling the
potential to the north and west of Fekola, and continue drilling at and beneath the Anaconda saprolite zone.
In June 2017, the Company previously released an Inferred Mineral Resource estimate containing 767,000
ounces of gold at 1.1 g/t at Anaconda in near-surface mineralization. Additional metallurgical testwork and
engineering studies are being carried out on Anaconda towards evaluating the potential for a standalone
oxide mine.
4
The Company will release more 2018 exploration results from these zones in November, in conjunction
with the third quarter financial results.
B2Gold’s in-house construction team completed construction of the Fekola Mine in September 2017 and
the Company declared commercial production in December 2017, four months ahead of schedule. In 2018,
the Fekola Mine is projected to produce between 420,000 and 430,000 ounces of gold with cash operating
costs (see Non -IFRS Measures ) estimated between $345 and $390 /ounce and all -in sustaining costs
("AISC") (see Non-IFRS Measures) estimated between $575 and $625/ounce.
QA/QC on Sample Collection and Assaying
The primary laboratories for Fekola are SGS Laboratories in Bamako, Mali , and Bureau Veritas
Laboratories in Abidjan, Cote d'Ivoire. Periodically, exploration samples will be analyzed at the Fekola
Mine Lab. At ea ch lab, samples are prepared and analyzed using 50g fire assay with atomic absorption
finish and/or gravimetric finish. Umpire assays are used to monitor lab performance monthly.
Quality assurance and quality control ("QA/QC") procedures include the syste matic insertion of blanks,
standards and duplicates into the core, reverse circulation and aircore drilling sample strings. The results of
the control samples are evaluated on a regular basis with batches re-analyzed and/or resubmitted as needed.
All resul ts stated in this announcement have passed B2Gold's quality assurance and quality control
protocols.
About B2Gold Corp.
5
Headquartered in Vancouver, Canada, B2Gold Corp. is the world’s new senior gold producer. Founded in
2007, today, B2Gold has five operating gold mines, and numerous exploration and development projects
in various countries including Nicaragua, the Philippines, Namibia, Mali, Burkina Faso, Colombia and
Finland.
With the first full year of production from the large, new Fekola Mine, B 2Gold is achieving
transformational growth in 2018. Consolidated gold production is forecast to be between 920,000 and
960,000 ounces, representing an increase in annual consolidated gold production of approximately 300,000
ounces in 2018 versus 2017. Based on current assumptions, in 2018, consolidated cash operating costs are
projected to be between $505 and $550/ounce, and consolidated AISC are projected to be
between $780 and $830/ounce.
Qualified Persons
John Rajala, Vice President of Metallurgy at B2Gold, a qualified person under NI 43 -101, has approved
the scientific and technical information regarding engineering matters contained in this news release.
Tom Garagan, Senior Vice President of Exploration at B2Gold, a qualified person under NI 43 -101, has
approved the exploration information contained in this news release.
ON BEHALF OF B2GOLD CORP.
"Clive Johnson" "Tom Garagan"
President & Chief Executive Officer Senior Vice President, Exploration
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
604-681-8371 604-681-8371
[email protected] [email protected]
The Toronto Stock Exchange and the NYSE American LLC neither approve nor disapprove the information contained
in this news release.
All amounts in this news release are expressed in United States dollars, unless otherwise stated.
This news release includes certain "forward -looking information" and "forward -looking statements" (collecti vely
"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 operati onal performance events, gold production and sales , revenues and cash flows, capital and
operating costs, including projected cash operating costs and AISC, and budgets; statements regarding future or
estimated mine life, metal price assumptions, ore grades and sources, stripping ratios, throughput, ore processing ;
statements regarding anticipated exploration, drilling, development, construction, permitting and other activities or
achievements of B2Gold ; and including, without limitation: B2Gold continuing infill drilling to convert inferred
resources to indicated and the timing thereof; the release of more 2018 exploration results from drilling to the north
and the west of Fekola and the Anaconda Zones, and the timing thereof; the economics of expanding the Fekola Mine
6
mill throughput of 7.5 Mtpa being compared to a baseline throughput of 6.0 Mtpa; the 7.5 Mtpa throughput being
achievable with an upgrade of the existing ball mill circuit given the overcapacity of the Fekola primary crusher, sag
mill and ball mill and engineering work to date; additional process equipment upgrades being required and such
upgrades being determined in the expansion study along with capital and operating cost estimates; the timing of
completion of the expansion study; the results of the expansion study feeding into the overall mine/mill expansion
evaluation to exploit the significantly larger new Fekola gold resource; and exploration samples being periodically
analyzed at the Fekola Mine Lab. Estimates of mineral resources and re serves, including the new mineral resource
estimate at Fekola, are also forward-looking statements because they constitute projections regarding the amount of
minerals that may be encountered in the future and/or the anticipated economics of production, sh ould a production
decision be made. 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 t hat 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 volatility of metal prices and B2Gold’s common
shares; the dangers inherent in exploration, development and mini ng 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 studies; the ability to obtain and maintain any necessary
permits, consents or authorizations required for mining activities; the current ongoing instability in Nicaragua; the
uncertainty about; environmental regulations or hazards and compliance with complex regulations associated w ith
mining activities; 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 compliance with foreign laws, including those associated with operations in Mali, Namibia, the
Philippines, Nicaragua and Burkina Faso and including risks related to changes in foreign laws and changing policies
related to mining and local ownership requirements; remote o perations 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; changes in tax laws; 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 final outcome of the audit
by the Philippines Department of Environment and Natural Resources in relation to the Masbate Project; the ability
to maintain adequate internal controls over financial reporting as requ ired by law, including Section 404 of the
Sarbanes-Oxley Act; compliance with anti -corruption laws; 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
Annual Report on Form 40-F 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.
7
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: development and exploration activities; the timing, extent, duration and economic
viability of such operations, including any mineral res ources 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; 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 app licable 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.
Non-IFRS Measures
This news release includes certain terms or performance measures commonly used in the mining industry that are not
defined under International Financial Reporting Standards ("IFRS"), including "cas h operating costs" and "all-in
sustaining costs" (or "AISC"). Non -IFRS measures do not have any standardized meaning prescribed under IFRS,
and therefore they may not be comparable to similar measures employed by other companies. The data presented is
intended to provide additional information and should not be considered in isolation or as a substitute for measures
of performance prepared in accordance with IFRS and should be read in conjunction with B2Gold’s consolidated
financial statements. Readers shou ld refer to B2Gold’s Management Discussion and Analysis, available on the
Websites, under the heading "Non -IFRS Measures" for a more detailed discussion of how B2Gold calculates such
measures and a reconciliation of certain measures to IFRS terms.
Cautionary Note to United States Investors
The disclosure in this news release was prepared in accordance with Canadian National Instrument 43 -101 ("NI 43-
101"), which differs significantly from the requirements of the SEC set out in Industry Guide 7. Acco rdingly, such
disclosure may not be comparable to similar information made public by companies that report in accordance with
U.S. standards. In particular, this news release may refer to "mineral resources ," "indicated mineral resources" or
"inferred mine ral resources". While these categories of mineralization are recognized and required by Canadian
securities laws, they are not recognized by the SEC and are not normally permitted to be disclosed in SEC filings by
U.S. companies. U.S. investors are cautioned not to assume that any part of a "mineral resource," "indicated mineral
resource" or "inferred mineral resource" will ever be converted into a "reserve." In addition, this news release uses
the terms "reserves" and "probable mineral reserves" which are reported by the Company under Canadian standards
and may not qualify as reserves under SEC standards. Under SEC standards, mineralization may not be classified as
a "reserve" unless the mineralization can be economically and legally extracted or produced at the time the "reserve"
determination is made. Accordingly, information contained or referenced in this news release containing descriptions
of the Company’s mineral deposits may not be compatible to similar information made public by U.S. companies
subject to the reporting and disclosure requirements of U.S. federal securities laws, rules and regulations. "Inferred
mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic
and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded
8
to a higher category. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian reporting
standards; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves"
by SEC standards as in-place tonnage and grade without reference to unit measures. Historical results or feasibility
models presented herein are not guarantees or expectations of future performance.