B2Gold Corp. Completes Mill Construction More Than Three Months Ahead of Schedule and Announces an Expanded and Updated Mine Plan for the Fekola Mine Located in Southwestern Mali
News Release
B2Gold Corp. Completes Mill Construction More Than Three Months Ahead of Schedule and
Announces an Expanded and Updated Mine Plan for the Fekola Mine Located in Southwestern
Mali
Vancouver, September 25, 2017 – B2Gold Corp. (TSX: BTO) (NYSE AMERICAN: BTG) (NSX: B2G)
(“B2Gold” or the “Company”) is pleased to announ ce that the Company has completed construction of
the Fekola mill and commenced ore processing, more than three months ahead of schedule and on budget,
at the Fekola Mine. Gold is now in the circuit and the first gold pour is anticipated by mid-October 2017.
The Company expects to achieve commercial produc tion and produce between 50,000 to 55,000 ounces
of gold by the end of 2017. In addition, the Comp any announces it has completed a new Life of Mine
(“LoM”) plan for the Fekola deposit that projects hi gher mill throughput and annual gold production, and
lower projected operating costs per ounce and all-in su staining costs (“AISC”) per ounce of gold than the
original (4 million tonnes per annum (“MTPA”)) plan in the Optimized Feasibility Study (“OFS”). The
new LoM plan was completed based on the expanded 5 MTPA mill throughput and takes into account an
early start-up, increased processing throughput, and improved open-pit design and scheduling versus the
OFS (see table below).
New Fekola LoM Plan Highlights:
A comparison of the OFS and LoM is as follows:
Parameters1 OFS – 4 MTPA
(June 2015)
New LoM – 5 MTPA
(September 2017)
LoM Gold Production (million ounces) 3.45 3.45
LoM (years) 12.5 10
Gold Production: LoM (‘000 ounces) 276 345
Gold Production: Years 1-3 (‘000 ounces) 333 400
Gold Production: Years 1-7 (‘000 ounces) 350 374
Operating Cash Cost: LoM (US$/oz) 552 428
Operating Cash Cost: Years 1-3 (US$/oz) 464 357
Operating Cash Cost: Years 1-7 (US$/oz) 418 391
AISC: LoM (US$/oz) 752 664
AISC: Years 1-3 (US$/oz) 717 604
AISC: Years 1-7 (US$/oz) 661 643
No material change to Feasibility Mineral Reserves with the new resource model, pit and phase
designs, and production plan. The contained Mineral Reserve remains 3.34 million ounces2
contained in 43.8 million tonnes at an average grade of 2.37g/t
No material change to mining production or fleet size
Processing throughput increased to 5 Mtpa vs. 4 Mtpa in the OFS
Significant upside in mine life and ounces produced exists within current resource, with further
potential as adjacent and other targets are developed
1Gold production, cash operating costs and AISC are presented on an average annual basis
2Mineral Reserves are reported on a 90% attributable basis
The Fekola Project has been built using the same cons truction team that had previously completed four
gold mines, on schedule and on budget, for B2Gold ’s predecessor company (Bema Gold Corporation)
and B2Gold. Prior to construction, the Company rec ognized the exploration potential beyond the initial
reserves and decided to build the Fekola mill with a 25 % design capacity to allow for future expansion of
the mill throughput from 4 MTPA to 5 MTPA for an additional expenditure of approximately $18
million. Due to the success of the Fekola Mine cons truction (more than three months ahead of schedule
and on budget) and further exploration success at Fekola, the Company decided to expedite the expansion
and complete it during the construction phase rather th an post construction. The Fekola Project remains
on budget; total cumulative forecast construction co sts for the project (from inception to completion)
include pre-construction sunk costs of approximately $41 million, feasibility study construction costs of
$462 million and $18 million additional costs for the m ill expansion to 5 MTPA. Additionally, another
$20 million is expected to be spent on relocating the village of Fadougou.
In 2018, the Fekola Mine is now projected to produce between 400,000 and 410,000 ounces of gold at an
operating cost of approximately $354 and AISC of $609 per ounce of gold.
Exploration
B2Gold’s exploration team believes the expansive Fekola property has the potential to host additional
large Fekola-style gold deposits. Surface exploration, regional drilling and geophysics to date have
identified numerous targets.
The Company has drilled approximately 2,800 airc ore, reverse circulation and diamond drill holes
totalling 180,000 metres. Approximately 75% of the dr illing has focused on exploration drilling with the
remainder on in-fill drilling. Based on the successful results to date, the Fekola Mine and regional
exploration budgets for 2017 have been increased by $3.8 million to $15.4 million
The resource identified to date from drilling belo w and to the north of the Fekola reserve boundary
combined with the near-pit portion of the Kiwi zone (to the north) could add 900,000 ounces (2/3 in the
indicated category) and is being further drilled to potentially move resources from the inferred category
into the measured and indicated categories. Drilling further to the north of the reserve pit boundary has
identified additional gold mineralization near surf ace and in some deeper holes. This indicates the
potential to increase the gold resources and ultimately expand the planned Fekola reserves further to the
north.
Deeper below the Kiwi zone is the down-plunge exte nsion of the main Fekola ore body. Drilling in this
zone (Fekola Deeps) has intercepted Fekola-type gold grades over large intervals. If the on-going drilling
between the near surface Kiwi zone and Fekol a Deeps continues to encounter good grade gold
mineralization, there is the potential for the Fekola p it to ultimately become much larger to exploit both
the Kiwi zone and a portion of Fekola Deeps by open p it. The Fekola Deeps zone remains open further to
the north further down dip and has the potential to be exploited by underground mining.
The Company anticipates another large exploration budget (approximately $15 million) for Fekola in
2018, for in-fill drilling, further exploration drilling at the Kiwi and Fekola Deeps zones and regional
exploration. The Company anticipates announcing r esults from the 2017 drilling program in November
2017.
Update on the Fekola Shareholder Agreement and Mining Convention
In 2016, pursuant to applicable mining law, the Company formed a new 100% owned subsidiary
company, Fekola SA, which now holds the Company’s interest in the Fekola Project. Upon signing of a
shareholder’s agreement between the Company a nd the State of Mali (the “Fekola Shareholder
Agreement”), the Company will contribute a 10% free ca rried interest in Fekola SA to the State of Mali.
The State of Mali also has the option to purchase an additional 10% of Fekola SA which it has confirmed
its intent to exercise. The Company has signed a mining convention in the form required under the 2012
Mining Code (the “Fekola Conventio n”) that relates to, among other th ings, the ownership, permitting,
reclamation bond requirements, development, operation and taxation applicable to the Fekola Project with
the State of Mali. The Company recently finalized ce rtain additional agreements with the State of Mali
including the Fekola Shareholders Agreement and an amendment to the Fekola Mining convention to
address and clarify certain issues under the 2012 Mi ning Code. The Fekola Mining Convention, as
amended, will govern the procedur al and economic parameters pursuant to which the Company will
operate the Fekola Project.
About B2Gold Corp.
Headquartered in Vancouver, Canada, B2Gold Corp . is one of the fastest-growing intermediate gold
producers in the world. Founded in 2007, today, B2Gold has five operating mines (four in production and
one in pre-production), and numerous exploration and development projects in various countries
including Finland, Nicaragua, the Philippines, Namibia, Mali and Burkina Faso.
Based on current assumptions and updates to B2Gold’s current year guidance and long-term mine plans,
the Company is projecting consolidated gold pr oduction in 2017 of between 530,000 and 570,000 ounces
(including estimated pre-commercial production fro m the Fekola Mine of between 50,000 and 55,000
ounces); and in 2018, significantly increasing to be tween 925,000 and 975,000 ounces, with the inclusion
of the anticipated first full-year of commercial production at Fekola.
ON BEHALF OF B2GOLD CORP.
“Clive T. Johnson”
President and Chief Executive Officer
Qualified Person
Tom Garagan, Senior Vice President of Exploration for B2Gold, a qualified person under NI 43-101, has
approved the exploration information contained in this news release.
Peter D. Montano, P.E., the Project Director of B2Gold, a qualified person under NI 43-101, has
approved the scientific and technical information contained in this news release.
For more information on B2Gold please visit the Company website at www.b2gold.com or contact:
Ian MacLean Katie Bromley
Vice President, Investor Relations Manage r, Investor Relations & Public Relations
604-681-8371 604-681-8371
[email protected] [email protected]
This news release includes certain “forward-looking information” and “forward-looking statements” (collectively
“forward-looking statements”) within the meaning of applicable securities legislation, including projections of
future financial and operational perform ance; statements with respect to fu ture events or future performance;
production estimates and guidance, including the Company’s projected gold production of between 530,000 to
570,000 ounces in 2017 (including pre-commercial production from Fekola of between 50,000 and 55,000 ounces)
and projected gold production of between 925,000 and 975,000 ounces in 2018; projected operating and production
costs and guidance; estimates of ca pital expenditures and pl anned investments and budgets; and statements
regarding anticipated exploration, development, construction, production, permitting an d other activities of the
Company, including: the Fekola Project being approximately three months ahead of schedule and beginning
production in October 2017; the first gold pour at Fekola being by or about mid-October 2017; Fekola achieving
commercial production and producing 50,000 to 55,000 ounces of gold by the end of 2017; Fekola producing
between 400,000 and 410,000 ounces of gold at an operating cost of approximately $354 and AISC of $609 per
ounce of gold in 2018; the estimates, projections and anticipated results in the OFS LoM plan and the new LoM
plan, including the projection in the new LoM plan of higher mill throughput and annual gold production, lower
operating costs per ounce and AISC per ounce compared to the OFS; the Fekola Project being on budget; the
estimated pre-construction and construction costs at Fekola and the cost to relocate the village of Fadougou; the
State of Mali exercising its option to ac quire an additional 10% interest in th e Fekola Project, for an aggregate
20% interest; the results of future exploration; the potential to identify additional mineral resources and to convert
existing and new mineral resources into mineral reserves and to extend anticipated mine life; the potential to extend
the current Fekola LoM by 3 years and 900,000 ounces; the potential for mineralization to extend north of the
current Fekola resource and for exploration to expand the resource at Fekola; the potential to extend the Fekola pit
to the north and mine a portion of Kiwi and Fekola Deeps zones by open pit or underground; exploration plans
including future drilling; future cash flows; the amendment of the Fekola Mining Convention; expectations of future
growth and profitability and the adequacy of capital for continued operations. Estimates of mineral resources and
reserves are also forward-looking statements because th ey constitute projections, based on certain estimates and
assumptions, regarding the amount of minerals that may be encountered in the future and/or the anticipated
economics of 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 forwar d-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”, “t arget”, “potential”, “schedule”, “forecast”, “budget”,
“estimate”, “intend” or “believe” an d similar expressions or their negati ve connotations, or that events or
conditions “will”, “would”, “may”, “c ould”, “should” or “might” occur.
Forward-looking statements necessarily involve assumptio ns, risks and uncertainties, certain of which are beyond
B2Gold’s control, including risks associated with the volatility of metal prices and the Company’s common shares;
risks and dangers inherent in exploratio n, development and mining activities; uncertainty of reserve and resource
estimates; risk of not achieving production, cost or other estimates; risk that actual production, development plans
and costs differ materially from the estimates in the Company’s feasibility studies; risks related to ore purchase
commitments; the ability to obtain and maintain any nece ssary permits, consents or authorizations required for
mining activities; risks related to environmental regulations or hazards and compliance with complex regulations
associated with mining activities; the ability to replace mineral reserves and identify acquisition opportunities;
availability of financing and financing risks; risks relate d to operations in foreign and developing countries and
compliance with foreign laws; risks related to remote operations and the availability adequate infrastructure,
fluctuations in price and availability of energy and other inputs necessary for mining operations; regulatory,
political and country risks; the final outcome of the Depa rtment of Environment and Natural Resources audit; as
well as other factors identified and as described in more detail under the heading “Risk Factors” in B2Gold’s most
recent Annual Informa tion Form and B2Gold’s other f ilings with Canadian securiti es 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 list is not exhaustive of the factors that may affect the Company’s forward-looking statements.
There can be no assurance that such statements will pro ve to be accurate, and actual results, performance or
achievements could differ materially from those expresse d 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. The Company’s forward-lo oking statements reflect current exp ectations regarding future events and
operating performance and speak only as of the date hereof and the Company 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. 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 “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 sh ould 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
under B2Gold’s corporate profile at www.sedar.com and at www.sec.gov or on its website at www.b2gold.com,
under the heading “Non-IFRS Measures” for a more detailed discussion of how B2Gold calculates such measures.
National Instrument 43-101
Cautionary Note to United States Investors:
The Company has prepared its public disclosures in accordance with Canadian securities laws, which differ in
certain respects from U.S. securities laws. In particular, this news release refers to “mineral resources”, “indicated
mineral resources” and “inferred mineral resources”. While these categories of mineralization are recognized and
required by Canadian securities laws, they are not recogn ized by the SEC and are not normally permitted to be
disclosed in SEC filings by U.S. companie s. U.S. investors are cautioned not to assume that any part of a “mineral
resource”, “indicated mineral resource” or an “inferred mineral resource” will ever be converted into a “reserve.”
In addition, “reserves” reported by the Company under Canadian standards 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 th e time the “reserve” determina tion 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 to a higher category.
Historical results or feasibility models presented herein are not guarantees or expectations of future performance.
Currency: All amounts in this news release are expressed in United States dollars, unless otherwise stated.
The Toronto Stock Exchange and the NYSE American LLC have not reviewed and do not accept responsibility for
the accuracy or adequacy of this news release, which has been prepared by the Company.