B2Gold’s Otjikoto Mine near Otjiwarongo produced a quarterly record of 55,151 ounces of gold in the third quarter of 2017,
14 percent (or 6,793 ounces) above both (original) budget and reforecast production, and 16 percent (or 7,587 ounces) higher than the third quarter of 2016, latest production figures show.
The company said as mining advances into the consolidated rock in the Wolfshag Phase 1 Pit, the amount of high-grade ore tonnage mined from Wolfshag continues to be significantly higher than modelled.
“Analysis of the Wolfshag model is ongoing to determine whether this positive variance in the amount of high-grade ore tonnage continues throughout the entire Wolfshag ore body,” the company said in a statement.
B2Gold said grade exceeded budget due to the higher amount of high-grade ore being sourced from Wolfshag , which increased the overall average mill feed grade at Otjikoto.
Mill throughput for the quarter was 873,516 tons compared to the budgeted 832,784 tons and 910,036 tons in the third quarter of 2016.
Otjikoto’s third quarter cash operating costs were US$447 per ounce, slightly better than budget, but US$103 per ounce higher compared to the same period last year as the prior-year quarter had benefited from a weaker Namibian dollar and lower fuel prices.
During the first nine months of 2017, the Otjikoto Mine produced a record 139,088 ounces of gold, 16 percent (or 19,148 ounces) above (original) budget and five percent (or 6,793 ounces) more than reforecast production, and 16 percent (or 19,649 ounces) higher compared to the same period last year.
“For full-year 2017, the Otjikoto Mine remains well on track to meet or exceed the high end of its previously increased production guidance range of between 170, 000 to 180,000 ounces of gold (original forecast was 165,000 to 175,000 ounces).
According to the Bank of Namibia 2016 Annual Report, gold production increased during 2016, compared to production levels in 2015.
The rise in production could largely be ascribed to better ore grades mined.
Furthermore, international gold prices rose to an average of US$1,248 per ounce in 2016, up from the average price of US$1,160 per ounce in 2015.
“The increase, which was based principally on investors seeking less risky assets, stemmed from negative interest rates in advanced economies and uncertainty in the global market.”
According to the Chamber of Mines of Namibia 2017 Annual Report, B2Gold produced 4,714 kg in 2016, 12,3 percent up from the 2015 figures, resulting from increased throughput owing to the completion of the mill expansion project which was successfully completed in September 2015. The chamber said production from Navachab remained stable in 2016, amounting to 1,878 kg of gold bullion.