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April 2015
MODERN MINING
17
MINING News
Canada’s B2Gold Corp has announced that
its new Otjikoto gold mine in Namibia
achieved commercial production, ahead of
schedule, on 28 February 2015. The ramp
up of production continues well ahead of
budget.
The open-pit mine poured its first gold
on 11 December 2014, one week ahead
of schedule. In January 2015, the project
continued its strong ramp up to commer-
cial production ahead of schedule and
produced 8 587 ounces against a budget
of 8 267 ounces. Better than budgeted
performance was attributed to additional
mill availability (89,6 % versus budget of
70 %) and better than anticipated through-
put (34 % above budget). February 2015
also saw gold production ahead of target
(10 228 ounces produced versus 8 863
ounces budgeted).
Operating cash costs for the month of
January were US$612 per ounce versus a
budget of US$705 ounce.
For 2015, Otjikoto is expected to pro-
duce between 140 000 and 150 000 ounces
of gold at a cash operating cost of approxi-
mately US$500-525 per ounce and all in
sustaining costs of approximately US$700
per ounce. The company expects annual
gold production to increase to approxi-
mately 200 000 ounces in 2016 and 2017.
New Namibian mine achieves commercial production
The Otjikoto mine poured its first gold on 11 December 2014, one week ahead of schedule (photo: B2Gold Corp).
Expansion of the Otjikoto mill from
2,5 Mt/a to 3,0 Mt/a continues on schedule
with the installation of the first additional
leach tank to be completed during the first
quarter of 2015. Major additional work
that must be completed includes installa-
tion of a second leach tank, construction
of a pebble crusher and associated piping
and pumping components. It is antici-
pated that this work will be completed
by August 31, 2015. This will support
additional throughput initially from the
Otjikoto mine and subsequently from the
fully permitted Wolfshag deposit that is
located immediately adjacent to the main
Otjikoto deposit.
Ferrum Crescent, the direct reduction
iron (DRI) pellet project developer, says it
has determined the final location for infill
drilling and ore reserve development over
Zones A, B and C of the Moonlight deposit,
located in Limpopo Province, South Africa.
These zones have now been selected for
the primary development model over the
first 10 years of mine life.
Drilling over Zone D was the final phase
of comprehensive area drilling undertaken
to identifywhere the next stage of the bank-
able feasibility study (BFS) will be focused.
Zone D drilling confirmed comparable
grades to those previously identified within
the inferred resource, and consequently
the adjacent zones with shallower intersec-
tions, higher grades and better stripping
economics will progress first into develop-
ment. A new mineralised zone outside the
limits of the current JORC (2012) mineral
Mine location identified after drilling
resource was also identified in Zone E.
The drilling programme was a compo-
nent part in the mine design, location and
costing element of the Moonlight BFS. The
BFS was recommenced in Q4 2014 with the
detailed mine plan identified as being the
next core element scheduled for comple-
tion. Following analysis of the 10 RC drill
holes, the first 10-year development model
will be based on Zones A, B and C and fur-
ther infill drilling will commence next to
establish a JORC (2012) ore reserve and
for advanced beneficiation work to be
undertaken as part of the DRI plant design
process. The success of infill drilling will
also determine whether bulk sampling is
necessary to complete the full mine design
and plant costings.
Commenting recently Tom Revy, CEO of
Ferrum Crescent, said: “Following comple-
tion of this phase of mine design drilling,
we have now selected the key zones for
first mine development. Ferrum will work
to establish a full ore reserve and com-
plete advanced metallurgical test work
at Moonlight. Because we are looking to
establish a mining/beneficiation-DRI pellet
manufacturing operation to supply a pre-
mium, high-grade iron product, the current
design phase is especially important as we
progress talks with a number of parties. As
we continue to de-risk Moonlight, by nar-
rowing development parameters, I believe
that the company is well positioned to take
advantage of the significant changes now
occurring within the iron supply market.
“Given the positive advancement of the
BFS and the advanced discussions we have
entered into with three separate parties,
the market looks positive for us to achieve
cash flow by 2019/20.”
Ferrum Crescent is an Australian com-
pany listed on the ASX, London’s AIM and
the JSE.