Vancouver-based B2Gold Corp. (TSX: BTO) (NYSE AMERICAN: BTG) has increased its indicated gold in an area near its Mali mining operation by 900,000 ounces.
The company announced the 80 per cent increase from its 2022 estimate on Wednesday at the Anaconda Area 20 kilometres north of the Fekola Mine. The area has 57.1 million ounces of indicated mineral resources with a grade of 1.11 grams per tonne gold and 2 million inferred ounces as well.
The area’s newly updated oxide mineral resources will help to form the basis of an engineering study for the feasibility of Phase II development at the Fekola Complex and construction of a stand-alone oxide mill and facilities that could potentially process over 800,000 ounces per year. Results from that engineering study are expected in Q4 this year.
The Anaconda Area is comprised of the Bantako North, Menankoto and Bakolobi permits.
2023 and 2022 indicated resource estimates. Table via B2Gold
Read more: Calibre Mining’s Nicaragua operations to accelerate 2023 gold and cash flow: Scotiabank report
Read more: Calibre Mining’s Q1/23 financials show promising growth in gold mining sector: BMO
A significant total of 6,669 drill holes over 579,333 metres were drilled for the new estimate, comprised of diamond, reverse circulation and aircore holes.
B2Gold is conducting a $35 million, 178,000-metre exploration program at the Fekola Complex this year with the initial focus being the Anaconda Area. The company’s highest grade intercept ever drilled in the area yielded 8.6 g/t over 46 metres and the company recently intercepted 5.53 g/t over 12 metres there.
B2Gold has also budgeted $63 million for Fekola’s regional development and says the construction of haul roads, a warehouse, a workshop, offices and a fuel depot is on schedule to support saprolite production from Anaconda’s Bantako North permit area as early as Q3 this year. Initial saprolite production from Bantako is expected to contribute 18,000 ounces of gold to the company’s reserves during 2023.
Preliminary results from a recent optimization study at Fekola along with the new resource estimate indicate that there is significant potential to substantially increase gold production at the Fekola Complex.
Fekola Complex. Map via B2Gold
B2Gold has a 25 per cent interest in Calibre Mining (TSX: CXB) (OTCQX: CXBMF), another Vancouver-based gold producer with promising resources and growth potential. Recent reports from the Bank of Nova Scotia (TSX: BNS) and Bank of Montreal Financial Group (TSX: BMO) indicated that the company’s open-pit operations in Nicaragua would substantially accelerate its gold production and revenue for the remainder of this year.
Scotiabank’s report gave Calibre an overall positive analysis and the company generated record revenue and gold sales during Q1 this year, generating cash flow of US$26.7 million during the quarter and selling 65,770 ounces.
Calibre shares rose by 0.72 per cent Wednesday to $1.39 on the Toronto Stock Exchange where they have been on a steady incline for the past six months, rising by 71.6 per cent.
A report released on Wednesday from the French market researcher ReportLinker said that the international market for gold ore grew by approximately US$1.8 billion between 2022-2023.
B2Gold shares stayed flat Wednesday at $4.64 on the TSX.
Calibre Mining is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
