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September 2015

MODERN MINING

35

feature

COUNTRY FOCUS –

NAMIBIA

and dilution and contin-

ues to fine tune the new

on-site assay lab. This

improvement is expected

to continue as the mine

gets below the complex

upper oxide portion of

the orebody and reaches

primary ore.

The DFS on Otjikoto –

which was based on the

Otjikoto deposit alone

and its probable mineral

reserves of 29,4 million

tonnes at a grade of 1,42 g/t

– estimated a mine life of

12,5 years with an aver-

age annual production of

112 000 ounces. While the

mine life is still estimated

at 12,5 years, annual pro-

duction is likely to be

much higher but the exact

figures will only be known once an updated

mine plan is completed by the end of this year.

B2Gold, however, has already said that annual

gold production will be approximately 200 000

ounces per annum in 2016 and 2017.

The increased production (which is catered

for by the mill expansion) reflects the growing

potential of the Wolfshag zone, located directly

adjacent to the east and north-east of Otjikoto,

which was discovered in late 2011. In January

this year B2Gold announced a significantly

higher grade updated gold mineral resource

estimate for Wolfshag. The updated inferred

mineral resource contains 675 000 ounces of

gold within 2,58 Mt grading 8,14 g/t utilising

a 3 g/t cut-off. This inferred resource is below

a pit shell containing an additional 1,03 Mt at

2,81 g/t gold (93 000 ounces gold) in the indi-

cated category. The previously released initial

inferred resource estimate for the Wolfshag

zone was 6,8 Mt at 3,2 g/t gold containing

703 000 ounces of gold.

B2Gold Namibia currently plans to com-

mence open-pit mining at Wolfshag in 2016.

The conceptual plan would be to blend higher

grade material fromWolfshag with ore from the

Otjikoto pit resulting in an increase in annual

gold production at Otjikoto and improved proj-

ect economics.

The updated mine plan will further evalu-

ate open-pit and underground mining at

Wolfshag. The Wolfshag zone remains open

down plunge to the south-west. In addition,

historic Otjikoto deposit holes such as OT98,

with 16,0 m at 5,07 g/t gold, and OT126, with

3,0 m at 45,84 g/t gold and 26 m at 3,74 g/t gold

including 7,0 m at 11,15 g/t gold (true width

unknown), indicate the exploration potential

of the main Otjikoto high grade shoots below

the existing pit. These shoots could possibly

be mined by underground methods in conjunc-

tion with the Wolfshag resource reported above

a cut-off grade of 3,0 g/t gold.

Otjikoto, of course, has been a major boost

for employment in the Otjiwarongo-Otavi area.

As of the end of July this year, B2Gold Namibia

had 685 employees, of whom 462 were on a

permanent employment contract. Some 97 %

were classed as historically disadvantaged,

17 % were female and less than 1 % were

non-Namibian.

Thus far, according to B2Gold Namibia,

labour relations have been positive. On

27 July this year, B2Gold Namibia and the

Mineworkers’ Union of Namibia (MUN) signed

a Recognition and Procedural Agreement after

the trade union met the required provision of

the 50 % + 1 member representation.

“I am delighted that the MUN and the com-

pany have solidified these structures that will

pave the way towards an honest and mutually

beneficial dialogue,” Mark Dawe said recently,

commenting on the agreement. “Realising the

importance of the Recognition and Procedural

Agreement, both parties went to great lengths to

ensure that it is a fair and comprehensive doc-

ument that will govern and guide this crucial

relationship for the life of Namibia’s newest

mine – the Otjikoto gold mine.”

Photos courtesy of B2Gold Namibia

Otjikoto poured its first

gold in December last year.

Members of the project

team are seen here with the

first gold bar.

The updated mine

plan will further

evaluate open-pit

and underground

mining at

Wolfshag.