Name of the Project
Fekola gold mine expansion project.

Location
Mali.

Project Owner/s
B2Gold.

Project Description
As at October 25, 2018, the Fekola mine had an indicated mineral resource of 92.8-million tonnes at a grade of 1.92 g/t containing 5.73-million ounces of gold and an inferred mineral resource of 26.5-million tonnes at a grade of 1.61 g/t containing 1.37-million ounces of gold.

The mineral resource has since been updated to 87.1-million tonnes grading 1.87 g/t, containing 5.24-million ounces of gold.

An expansion study preliminary economic assessment (PEA) for the Fekola mine has presented positive results.

The results of the study recommend an expansion of the existing plant to process an additional 1.5-million tonnes a year, resulting in a baseline capacity of 7.5-million tonnes a year without requiring an additional ball mill or additional power-generation capacity.

The processing upgrade will focus on increased ball mill power, with upgrades to other components, including a new cyclone classification system, pebble crushers, and additional leach capacity to support the higher throughput and increase operability.

Based on the new optimised mine plan, the mining rate at Fekola will be increased, along with using additional mining equipment, to accelerate the supply of higher-grade ore to the expanded processing facilities.

As a result of the project and mineral resource expansion, the Fekola mine will produce more gold over a longer life, with more robust economics and higher average yearly gold production, revenues and cash flows than the previous life-of-mine (LoM).

The LoM has been extended to about 12 years to 2030 and includes significant estimated increases in average gold production to more than 550 000 oz/y from f2020 to 2024, and to more than 400 000 oz/y over the LoM from 2019 to 2030.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a forecast LoM pretax net present value of more than $2.2-billion, with a forecast expansion capital payback of less than one year.

Capital Expenditure
The estimated cost for the expansion and upgrade of the processing plant is estimated at $50-million.

The expansion PEA has included $28-million for expansion of the mining rate to 54-million tonnes a year and an additional $28-million, for a total of $56-million, to increase the mining rate to 76-million tonnes a year to support the increased processing and stockpiling necessary to maintain plant feed grade.

Planned Start/End Date
The project schedule indicates that the processing expansion will be fully operational by the fourth quarter of 2020.

B2Gold is investigating the potential to accelerate this schedule based on the availability of long-lead items.

Latest Developments
During the expansion study, other upside opportunities were identified and are under review. These will be incorporated into an updated Fekola LoM plan when related studies are complete and if they show an increase in overall project value. 

Upside opportunities identified to date include renewable energy (focused on a solar plant), alternative tailings storage (co-disposal, paste and dry stack), waste mining (various fleet options versus in-pit crushing and conveying) and the potential incorporation of material from the Anaconda mineral resource.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
B2Gold, tel +1 604 681 8371 or email investor@b2gold.com.