During 2015, B2Gold expects Otjikoto to produce 140,000 to 150,000 oz of gold at cash operating costs of about $500/oz and all-in sustaining costs of about $700/oz. Predevelopment cost estimates of $244 million and deferred stripping estimates of $33 million have remained in line with original prefeasibility study estimates.

After a planned mill expansion is completed in the third quarter of 2015, B2Gold expects Otjikoto gold production to increase to approximately 200,000 oz/y in 2016 and 2017.

Otjikoto gold production also will be enhanced by development of the Wolfshag zone, located adjacent to the main Otjikoto pit. B2Gold plans to complete an updated indicated resource study in the first quarter of 2015 and an updated mine plan by the end of 2015 to evaluate open-pit and underground mining at Wolfshag.

Otjikoto was developed on the basis of a feasibility study that called for initial mine life of 12 years, based on a probable mineral reserve of 29.4 million mt grading 1.42 g/mt gold and containing 1.34 million oz of gold.

The first gold pour at Otjikoto occurred ahead of schedule, following a fast-moving construction project. B2Gold received the Otjikoto Mining Licence in December 2012, and bush-clearing started in January 2013. Through mid-December 2014, the construction crew had placed more than 1.3 million m3 of earth fill and more than 20,000 m3 of concrete.

Namibian workers and artisans brought concrete, welding, brick-laying, pipefitting, electrical, carpentry, surveying, and plumbing skills, among others, to the project. Nations represented in the construction crew included Namibia, South Africa, Canada, United States, Russia, Ghana, Italy, Portugal, Mexico, Peru, Chile, Philippines, Nicaragua and others.

A number of significant safety achievements were recorded during construction of the project. There were no fatal incidents, and more than 2 million man hours were worked without a lost-time injury prior to June 29, 2014.

The Otjikoto mine is located approximately 300 km north of Namibia’s capital city of Windhoek. The project benefits from well-established infrastructure, with paved highways, a railway, power grids and process water all close by.