B2GOLD extended its indicated mineral resource estimate for its Fekola mine in south-western Mali to some 5.7 million ounces of gold following exploration of the property’s northern pit boundary.
The company was also contemplating increased the production rate of Fekola’s mill to 7.5 million tonnes annually (Mt/y) from a current run rate of 5.5Mt/y. The expansion of the mill could be done at “moderate” cost, the company said in an announcement.
Following exploration work, an indicated mineral resource estimate of 92,810,000 tonnes of gold-bearing more at a grade of 1.92 grams per tonne (g/t) gold. This translated into a total of 5,730,000 oz of gold. Probable reserves at the start of production at Fekola were 49.2 million tonnes at 2.35 g/t gold containing 3.7 million oz.
Since it was commissioned ahead of schedule in September last year, Fekola has been transformative for B2Gold. The mine’s 107,002 oz of gold production in the third quarter of this took total production for the three months to 242,040 oz, an increase of 78% of the third quarter of the 2017 financial year.
On a year-to-date, nine month basis, record consolidated production of 721,817 oz was registered – 5% above the original budget, and 85% higher than the 332,005 oz produced in the first nine months of the previous financial year.
B2Gold posted net income of $70m for the first half of its 2018 financial year – a significant increase over the $15m it reported for the corresponding six months in the previous financial year. At June 30, the company had cash and cash equivalents of $107m compared to cash and cash equivalents of $147m at December 31, 2017.
