B2Gold Corp. (TSX: BTO) (NYSE American: BTG) (NSX: B2G) will be slowly phasing out its Otjikoto gold mine in Namibia due to depleted resources at the project.
The Vancouver miner said on Tuesday that open-pit operations at the site would cease by the end of next year and that Otjikoto would be completely shut down by 2031. It is expected that gold output from the mine will drop to 50 per cent of its production capacity next year.
“B2Gold Namibia has commenced with the implementation of its Phased Mine Closure Plan at the Otjikoto mine. Phased downscaling of operations, in line with the closure plan, are only scheduled to commence during the first quarter of 2024,” said a company spokesperson to Reuters on April 18.
In 2022, Otjikoto produced 161,614 ounces of gold and the company anticipates to produce 190-210 kilo ounces there this year.
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Otjikoto commenced commercial production in 2015 and was acquired from Auryx Gold by the company in 2011. B2Gold says the mine has a gold recovery rate of approximately 98 per cent.
In the southwest African country, the company has been involved with an initiative called the Namibian Rhino Gold Bar Campaign which has generated $1.7 million to date to help protect endangered black rhinos in Africa.
B2Gold has invested significantly in Canada’s north
B2Gold also announced on Wednesday that it had finalized its acquisition of Sabina Gold & Silver Corp. (TSX: SBB) (OTC: SGSVF). With the acquisition, B2Gold now owns the Back River Gold District in Nunavut, Canada.
“We aim to further define the Back River Gold District’s untapped potential and unlock the significant value we see and opportunities for growth,” said B2Gold’s CEO Clive Johnson.
B2Gold has a keen interest in the mining potential of Canada’s north. Last month, the company invested significantly in the Yukon Territory-focused mining company Snowline Gold Corp. (CSE: SGD) (OTCQB: SNWGF) by purchasing nearly four million flow-through common shares from the Yukon miner for $4.86 a piece.
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The company has a 25 per cent interest in Calibre Mining (TSX: CXB) (OTCQX: CXBMF), another Vancouver-based gold producer with international operations that has seen its share price rise significantly in recent days.
B2Gold’s shares rose by 1.65 per cent on Thursday to $5.55 on the Toronto Stock Exchange.
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