B2Gold Corp. Announces Very Positive Results from the Expansion Study Preliminary Economic Analysis for the Fekola Mine in Mali (owned 80% B2Gold: 20% State of Mali) B2Gold’s Directors have approved the Expansion
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News Release
B2Gold Corp. Announces Very Positive Results from the
Expansion Study Preliminary Economic Analysis for the Fekola Mine in Mali (owned 80% B2Gold:
20% State of Mali)
B2Gold’s Directors have approved the Expansion
Vancouver, March 26, 2019 – B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G) ("B2Gold"
or the "Company") is pleased to announce very positive results from the Expansion Study Preliminary
Economic Assessment (“PEA”) for the Fekola Mine located in Mali and that the Company is proceeding with
an expansion project to increase processing throughput by 1.5 million tonnes per annum (“Mtpa”) to 7.5 Mtpa
from the current base rate of 6 Mtpa. All dollar figures are in United States dollars unless otherwise indicated.
The Expansion Study PEA was conducted to evaluate the life-of-mine ("LoM") options for expanded mining
and processing to maximize the value of the substantially increased Indicated and Inferred Mineral Resource
at the Fekola Mine (see news release dated October 25, 2018) (see also the Company’s current AIF, filed on
SEDAR on March 20, 2019 , which reflects 2018 gold production ). Results of this study recommend an
expansion of the existing plant to process an additional 1.5 Mtpa, resulting in a baseline capacity of 7.5 Mtpa
without requiring an additional ball mill or additional power generation capacity. Based on the new optimized
mine plan, the mining rate at Fekola will also be increased, along with additional mining equipment to
accelerate the supply of higher-grade ore to the expanded processing facilities. As a result of the proje ct and
Mineral Resource expansion, the Fekola Mine will produce more gold over a longer life, with more robust
economics and higher average annual gold production, revenues and cash flows than the previous LoM.
Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The
Expansion Study PEA is preliminary in nature and includes Indicated and Inferred Mineral Resources. Inferred
Mineral Resources are considered too speculative geologically to have economic co nsiderations applied to
them that would enable them to be categorized as Mineral Reserves. Consequently, there is no certainty that
the Expansion Study Preliminary Economic Assessment will be realized.
Highlights of Fekola Expansion Study PEA
• Assuming an effective date of January 1, 2019, a gold price of $1,300 per ounce and a discount rate
of 5%, Project Economics highlights from the Expansion Study PEA include:
o Estimated optimized LoM extended into 2030, including significant estimated increases in
average annual gold production to over 550,000 ounces per year dur ing the five-year period
2020-2024 and over 400,000 ounces per year over the LoM (2019-2030).
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o Projected gold production of approximately five million ounces over the new mine life of 12
years of mining and processing (including 2019). Prior to 2019, the Fekola Mine produced
more than 550,000 ounces. The Fekola Mineral Resource remains open to the north.
o An increase in project NPV of approximately $500 million versus the comparable amounts in
the Company’s latest AIF Mineral Reserve LoM model (filed on SEDAR on March 20, 2019).
o Forecast LoM pre-tax net cash flow of approximately $2.8 billion.
o Forecast LoM pre-tax net present value of over $2.2 billion.
o Revised projected LoM cash operating cash costs (see Non -IFRS Measures ) and all-in-
sustaining-costs (“AISC”) (see Non-IFRS Measures) remain low, below $500 and $700 per
ounce respectively despite mining a larger open pit at slightly lower gold grade. This is due to
economies of scale arising from increased mining and processing rates and the new optimized
mining schedule . Duri ng the five-year period 2020 -2024 under the new optimized LoM,
AISC are expected to average approximately $630 per ounce.
o Forecast expansion capital payback period of less than one year.
o Estimated processing plant expansion capital cost of approximately $50 million over a period
of approximately 18 months for processing expansion and upgrades (through Q3 2020). Half
of this capital is expected to be spent in 2019 with the remaining half in 2020. It is anticipated
that this will be financed from existing Fekola Mine cash flows.
.
o Projected annual mining rate increased to a baseline of approximately 54 Mtpa and
subsequently stepped up to approximately 76 Mtpa to support the increased processing and
stockpiling necessary to maintain plant feed grade.
o Staged mining fleet additions totalling approximately $56 million over the LoM are expected
to be equipment loans/lease financed over respective 5-year periods, on terms similar to the
existing Fekola fleet loan/lease terms.
• Projected annual processing rate increased to a baseline of 7.5 Mtpa (current capacity of 6 Mtpa plus
1.5 Mtpa).
• Ongoing drilling continues to infill the existing Inferred Mineral Resources to Indicated Mineral
Resources. Mineralization remains open to the north and down plunge, indicating the potential to
further increase Fekola Mineral Resources and Reserves. A large e xploration drilling program will
commence in Q3 2019 to further test the Fekola North, Cardinal and Anaconda zones.
During the expansion study other upside opportunities were identified and are currently under review. These
will be incorporated into an updated Fekola LoM plan when related studies are complete and if they show an
increase in overall project value. Upside opportunities identified to date include renewable energy (focused on
a solar plant), alternative tailings storage (co-disposal, paste, dry stack, and others), waste mining (various fleet
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options vs. in -pit crushing and conveying) and the potential incorporation of material from the Anaconda
Mineral Resource.
Basis of the Study
On October 25, 2018, the Company announced a substantial increase in the Mineral Resource for the Fekola
Mine, and positive results from the conceptual stage of the expansion study. B2Gold reported an Indicated
Mineral Resource of 92.8 million tonnes at a grade of 1.92 grams per tonne (“g/t”) containing 5.73 million
ounces and an Inferred Mineral Resource of 26.5 million tonnes at a grade of 1.61 g/t containing 1.37 million
ounces (see news release dated 10/25/2018) (see also the Company’s current AIF, filed on SEDAR on March
20, 2019, which reflects 2018 gold production ). This expanded resource, coupled with positive results of an
internal conceptual study, formed the basis of , and motivation for , the Expansion Study PEA. Mineral
Resources that are not Mineral Reserves do not have demonstrated economic viability.
Based on positive results of the conceptual Fekola expansion study the Company continued testing and design
with the same Lycopodium -Brisbane team which performed engineering and design work for the current
Fekola mill and infrastructure, and contracted Whittle Consulting (“Whittle”) to work together with the
Company's technical team to conduct a n Enterprise Optimization study of the Fekola Project. Results have
confirmed the value of the processing expansion and recommend a corresponding increase in mining capacity.
Whittle evaluated mining production rates, pit and phase scheduling, dynamic cut-off grades, ore stockpiling,
blending, and dynamic processing throughput and recovery to maximize project NPV. These parameters will
continue to be optimized during the next phases of project design and implementation. In the meantime, the
Company is nearing completion on Front-End Engineering and Design ( “FEED”) for the expansion with a
focus on long lead items. The project schedule indicates that the processing expansion will be fully operational
by Q4 2020. B2Gold is currently investigating the potential to accelerate this schedule based on the availability
of long lead items.
As currently envisioned, the processing upgrade will focus on increased ball mill power, with upgrades to other
components including a new cyclone classification system, pebble crushers, and additional leach capacity to
support the higher throughput and increase operability. The capital costs of this mill expansion are estimated
to be less than $50 million, with spending evenly split between 2019 and 2020. Critical path items include ball
mill motors and the lime slaker, both of which will be commissioned in Q3 2020. In parallel with the expansion,
B2Gold is studying the addition of a solar power plant, which would reduce operating costs and greenhouse
gas emissions. The current on -site power plant has sufficient capacity to support the expanded processing
throughput, with or without the solar plant.
The current mining fleet consist s of four Cate rpillar 6020B excavators with haul trucks, drill s, and support
equipment to match, and mines an average of 36 Mtpa. The Whittle results currently indicate that mining
production rates ranging from 54 Mtpa to 76 Mtpa are optimal to support the expanded processing rates over
the LoM and optimize head grade during the period 2020 -2024. Increased production will be achieved with
the addition of two to four excavators with corresponding trucks, drills, and support equipment. Large front-
end loaders would also be included to maintain fleet flexibility. Mine fleet expansion timing and scale will be
optimized during Q2 2019 and will generally be equipment loan/lease financed over a five-year period. The
study has included $28 million for exp ansion to 54 Mtpa and an additional $28 million (for a total of $56
million) to go to 76 Mtpa. In parallel with the Whittle study, B2Gold is reviewing in-pit crushing and conveying
as a means to reduce operating costs and potentially implement tailings and waste co -disposal at the Fekola
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Mine. B2Gold is also considering the option of transporting the nearby Anaconda saprolite material to Fekola
for processing (see news release dated 06/15/2017).
With the combination of the increased Indicated and Inferred Mineral Resource, and implementation of the
processing expansion and mining expansion , the Fekola Mine will see a substantial increase in annual and
LoM gold production and revenues. Revised LoM cash operating cash costs and AISC are estimated at below
$500 and $700 per ounce respectively despite mining a larger open pit at slightly lower gold grade. Under the
PEA, low costs are forecast to be maintained through the new extended Fekola mine life due to economies of
scale arising from increased mining and processing rates, and the optimized mining schedule. During the five-
year period 2020-2024 under the new optimized LoM, AISC are expected to average approximately $630 per
ounce.
Current PEA expansion estimates indicate approximate annual gold production averaging over 400,000 ounces
per year over the new LoM (including 2019) with over 550,000 ounces per year over the five-year period 2020-
2024. Total processed tonnage currently included in the Expansion Study PEA consists of approximately 84
million tonnes processed over the LoM period 2019-2030 at a grade of 1.9 g/t, producing approximately 5.0
million ounces (prior to 2019, the Fekola Mine produced more than 550,000 ounces from its operations since
inception. The Fekola Resources remain open to the north and down plunge). Head grade may be optimized to
an average of up to 2.3 g/t over the period 2020-2024 with an increased mining rate and ore stockpiling. Under
the current Expansion Study PEA assumptions, mine life extends to 12 years including 2019 (into 2030) even
with the increased processing rate of 7.5 Mtpa. Mineral Resources which are not Mineral Reserves do not have
demonstrated economic viability.
Upside Potential
B2Gold’s technical team , along with Lycopodium, Whittle Consulting, and others, continues to study and
optimize several components of the Fekola Mine. Ongoing studies include optimizing the mine production
schedule and stockpile strategy, adding solar power, reviewing various tailings and waste disposal strategies
and the potential to process material from the Anaconda Project, located to the north, through the Fekola plant.
These studies will continue through Q2 2019 and will be incorporated into a revised Fekola LoM plan which
is expected to be available by the end of Q1 2020.
Since January 2019, up to seven drill rigs have completed 27 drill holes focussed on infill drilling the inferred
portion of the new Fekola Mineral Resource (21%) to Indicated so that an updated geologic and grade model
can be completed in late 2019. This will allow the engineering group to complete an updated design pit and
new Mineral Reserves, along with an updated Fekola LoM plan by the end of Q1 2020.
Once infill drilling is completed at the end of Q2 2019, B2Gold plans to immediately dedicate exploration drill
rigs to test several targets with the potential to expand the Mineral Resources. These targets include the Fekola
North area beyond the current resource boundary that remains open along strike and down plunge, the Cardinal
structures west of the operating mine and the Fekola South area where previous wide spaced drilling has shown
potential for additional mineralization below the main Fekola orebody.
In addition, in early Q3, drill rigs will be mobilized to the Anaconda region to continue efforts to expand the
previously announced shallow saprolite resource as well as further tests for hard rock mineralization targets
below the saprolite resource.
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About B2Gold Corp.
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 and Colombia.
B2Gold will maintain a strong and profitable produ ction profile in 2019 with consolidated gold production
forecast to be between 935,000 and 975,000 ounces . Based on current assumptions, consolidated cash
operating costs are projected to be between $520 and $560 per ounce and consolidated AISC are projected to
be between $835 and $875 per ounce . The Company continues to maximize cash flows by optimizing its
impressive operational and financial performance from existing mines. In addition, the Company will balance
its ongoing program of debt reduction wi th pursuing expansion opportunities at existing operations. Also,
B2Gold will remain focussed on adding shareholder value through growth driven by the exploration,
development and expansion of its impressive pipeline of existing projects. Potential acquisitions will focus on
exploration opportunities.
Qualified Persons
Tom Garagan, Senior Vice President of Exploration at B2Gold, a qualified person under NI 43 -101, has
approved the scientific and technical information regarding exploration matters and the Mineral Resource
estimate contained in this news release. Mr Garagan has visited the Fekola mine site a number of times since
2015 and has reviewed and approved the exploration practices that B2Gold conducts on site.
John Rajala P.E., Vice President of Metallurgy at B2Gold, a qualified person under NI 43 -101, has approved
the scientific and technical information regarding mineral processing related to Fekola expansion studies. Mr
Rajala has visited the Fekola mine site multiple times since 2017 and has reviewed the technical aspects of the
Expansion Study that form the basis for this release.
Peter D. Montano P.E., Project Director at B2Gold, a qualified person under NI 43 -101, has approved the
scientific and technical information related to operations matters contained in this news release. Mr Montano
has visited the Fekola mine site several times since 2015 and has reviewed the mining operations and has
reviewed the technical aspects of the Expansion Study that form the basis for this release.
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
604-681-8371 604-681-8371
[email protected] [email protected]
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The Toronto Stock Exchange and NYSE American LLC neither approve nor disapprove the information contained in this
news release.
Production results and production guidance presented in this news release reflect the total production at the mines
B2Gold operates on a 100% basis. Please see our Annual Information Form dated March 2 0, 2019 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 state ments”) 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 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 or 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: the Expansion PEA, the timing and effects thereof; mining production being expanded,
along with associated mining fleet increases, to accelerate the supply of high grade ore at the Fekola Mine; the Fekola
Mine producing more gold over a longer life, with greatly improved annual gold production, revenu es and cash flows;
an increase in project net present value being approximately $500 million; forecast pre -tax net cash flow being
approximately $2.8 billion; forecast pre-tax net present value being over $2.2 billion; forecast expansion capital payback
period being less than one year; estimated processing plant expansion capital costs and the timing thereof; the source of
financing of capital to satisfy such capital costs; projected annual mining and processing rate increases; low costs being
forecast to be maintained through the new extended Fekola Mine life; staged mining fleet additions being expected to be
lease financed over respective 5 year periods and the projected cost thereof; estimated LoM being extended into 2030;
exploration drilling commencing in Q3/2019 to test the Fekola North, Cardinal and Anaconda zones; upside opportunities
identified during the expansion study being incorporated into an updated Fekola LoM when related studies are complete
and if they show and increase in overall project value; the timing of availability of such studies; the processing expansion
being fully operational by Q4 2020; the processing upgrade focusing on increased ball mill power; the timing of
commissioning of the ball mill motors and the lime slaker; increased production being achieved with the addition of two
to four excavators with corresponding trucks, drills, and support equipment; large front-end loaders also being included
to maintain fleet flexibility; mine fleet expansion timing and scale being optimized during Q2 2019; an updated geologic
and grade model of the new Fekola Mineral Resource being able to be completed in late 2019; such allowing the B2Gold
engineering group to complete an updated design pit and new Mineral Reserves, along with an updated Fekola LoM plan
by the end of Q1 2020; once infill drilling is completed at the end of Q2 2019, B2Gold planning to immediately dedicate
exploration rigs to test several targets with the potential to expand the Mineral Resource; drill rigs being mobilized to
the Anaconda region and the timing thereof; B2Gold maintaining a strong and profitable production profile in 2019;
B2Gold remaining focused on adding shareholder value through growth driven by the exploration, development and
expansion of its impressive pipeline of existing projects; and potential acquisition being focu ssed on exploration
opportunities. Estimates of mineral resources and reserves 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 o f
production, should 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 co nnotations, 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 statem ents 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; 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
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and costs differing materially from the estimates in B2Gold’s fea sibility studies; the ability to obtain and maintain any
necessary permits, consents or authorizations required for mining activities; the current ongoing instability in Nicaragua
and the ramifications thereof; 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 a bility 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 Philippines, Nicaragua and Burkina Faso and including risks related to changes in
foreign laws and changing policies related to mining and local ownership requirements or resource nationalization
generally; remote operations and the availability of adequate infrastructure; fluctuations in price and availability of
energy and other input s 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 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 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; 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: development and exploration activities; the timing, extent, duration and economic viability of such
operations, includi ng 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 inpu ts; 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 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 reli ance should not be placed on forward -looking
statements.
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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 “cash 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 should 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 certain of 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 current requirements of the SEC set out in Industry Guide 7. Accordingly, such
disclosure may not be comparable to similar information made public by companies that report in accordance with
Industry Guide 7. In particular, this news release may refer to "mineral resources," "indicated mineral resources" or
"inferred mineral resources". While these categories of mineralization are recognized and required by Canadian
securities laws, they are not recognized by Industry Guide 7 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 "mineral reserves" which are reported by the Company under Canadian standards and may not
qualify as reserves under Industry Guide 7. Under Industry Guide 7, 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 Industry Guide 7. "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 assume d that all or any part
of an inferred mineral resource will ever be upgraded to a higher category. Further, while NI 43-101 permits companies
to disclose economic projections contained in preliminary economic assessments and pre -feasibility studies, which are
not based on "reserves", U.S. companies have not generally been permitted to disclose economic projections for a mineral
property in their SEC filings prior to the establishment of "reserves." Disclosure of "contained ounces" in a resource is
permitted disclosure under Canadian reporting standards; however, Industry Guide 7 normally only permits issuers to
report mineralization that does not constitute "reserves" by Industry Guide 7 standards as in -place tonnage and grade
without reference to unit meas ures. Historical results or feasibility models presented herein are not guarantees or
expectations of future performance.