Another Gold Mine for Namibia
Windhoek – Namibia will soon have a second gold mine following an announcement this month by the Canadian-based company, B2Gold Corporation that it will begin constructing the Otjikoto gold mine this year.
AngloGold Ashanti operate the only gold mine in Namibia, Navachab near Karibib.
Results of the latest feasibility study shows that the company will commence the construction of the Otjikoto project this year.
The company has obtained a loan facility worth US$150 million for the construction of the project.
“The mine plan is based on probable mineral reserves of 29.4 million tonnes.
“All necessary government permits and licences have been received.
“Construction has commenced and is scheduled for completion in the fourth quarter of 2014 when mill production will begin,” B2Gold said.
The Otjikoto gold project is located approximately 300 kilometres north of Windhoek, and is owned 92 percent by B2Gold and 8 percent by EVI Gold (Pty) Ltd, a Namibian black empowerment group.
EVI shareholders include local businessmen Leake Hangala and Sidney Martin.
The Otjikoto project will be developed as an open pit mine, where run-of-mine ore will be trucked to the plant, crushed, and then treated.
The current average annual production for the first five years is approximately 141 000 ounces of gold per year at an average operating cash cost of US$525 per ounce.
The total pre-production capital costs are estimated to be US$244.2 million.
The plant facility and support infrastructure will be built to support a plant expansion from the initial processing capability of 2.5 million tonnes per annum to 3 million tonnes with minimal additional capital expenditure.
B2Gold said it has accepted a committed letter of offer from Macquarie Bank for a fully underwritten US$150 million loan.
B2Gold listed on the Namibian Stock Exchange (NSX) last year becoming the 64th company to list on the local bourse.
The company dual listed 100 percent of its share capital ‑ 384.7 million common shares.
It is also listed on the Toronto Stock Exchange in Canada.
B2Gold is a Vancouver-based gold producer with two mines in Nicaragua and strong portfolio of development and exploration projects in Nicaragua, Namibia, Colombia and Uruguay.
During the listing of B2Gold, Namibia’s Mining Commissioner in the Ministry of Mines and Energy, Erasmus Shivolo, said the government was not happy with previous owners of the project who he said for over 10 years had failed to develop the project.
He challenged B2Gold to develop the project.