For the year of 2012, the Limon Mine generated gold revenue of $79.5 million from the sale of 47,610 ounces at an average price of $1,670 per ounce. The operating cash cost per ounce was $715 compared to budget of $701 per ounce.
The Limon Mine is projected to produce approximately 54,000 to 58,000 ounces of gold in 2013 at an operating cash cost of approximately $715 to $745 per ounce. Gold production for the first half of 2013 is estimated to total approximately 26,000 to 28,000 ounces of gold at a cash operating cost of approximately $710 to $740 per ounce and for the second half of 2013 approximately 28,000 to 30,000 ounces of gold at a cash operating cost of approximately $720 to $750 per ounce.
Masbate Mine, Philippines
B2Gold and CGA have recently announced the successful completion of the scheme of arrangement ("Merger") by which B2Gold has acquired all of the issued ordinary shares of CGA and as such CGA is now a wholly-owned subsidiary of B2Gold (see news release dated January 31, 2013). The merger has received strong endorsement from both B2Gold and CGA shareholders. Management believes the acquisition is accretive to the B2Gold shareholders.
The primary asset acquired was the Masbate gold mine (the "Masbate Mine") located in the Philippines. The Masbate Mine, based on CGA's guidance, is projected to produce approximately 200,000 ounces of gold annually over the current mine life of 15 years with the potential to extend beyond current projections given the significant large reserves and exploration upside. B2Gold is well positioned to operate and progress further development at the Masbate Mine given its strong funding capacity and a management team with significant exploration, mine development and operating experience.
B2Gold plans to release its own guidance on the Masbate Mine near mid-year of 2013 once it has had additional time to review the mine plan and costs, and the reserve estimate.
Otjikoto Property, Namibia
(B2Gold 90% / EVI Gold 8%)
The Company recently announced robust results from the Feasibility Study and the commencement of construction at the Otjikoto gold project in Namibia, located 300 kilometres north of Namibia's capital city of Windhoek (see news release dated January 10, 2013).
Construction is scheduled for completion in the fourth quarter of 2014 when mill production is expected to begin and the first gold production from the Otjikoto gold project is scheduled. The current mine plan is based on probable mineral reserves of 29.4 million tonnes at a grade of 1.42 g/t gold containing 1.341 million ounces of gold at a stripping ratio of 5.59:1 to be mined over an initial 12 year period.
The current average annual production for the first five years is estimated to be approximately 141,000 ounces of gold per year at an average operating cash cost of $524 per ounce and for the life of mine approximately 112,000 ounces of gold per year at an average operating cash cost of $689 per ounce.
The Otjikoto gold project has excellent exploration potential. Recent exploration drilling has discovered a new high grade zone called Wolfshag near the current planned Otjikoto open pit (see news release dated December 11, 2012). An $8 million exploration drilling program is underway carrying out step out and infill drilling on the Wolfshag zone and initial drilling of parallel targets.
These positive drill results to date from the Wolfshag zone indicate the potential to outline additional resources that could lead to the expansion of production at the Otjikoto gold project.
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