B2 Gold Namibia has now received its mining license from the Ministry of Mines and energy. The mining license, the company says, will boost its chances of commencing production soon at the mine which has been idle for the past ten years after changing hands three times.
The company, which also trades on the Namibian stock Exchange, recorded a resounding set of financial results for the year under review.
According to the latest results released by B2 Gold on their Namibian operations, exploration, feasibility and development expenditures for Otjikoto were $15 million for the first nine months of 2012 compared to the full year’s budget of $43.5 million.
The company’s CEO, Clive Johnson said, “Although the timing of payments has lagged the original budget, the project remains on schedule. The feasibility study is anticipated to be completed in the fourth quarter.”
The Company recently received approval of the Environmental Impact Assessment from the Government of Namibia and expects to receive the final mining license from the Government by the end of 2012.
“Mining construction will commence in the first quarter of 2013. Site preparation has already commenced as bush clearing is currently underway. Orders for equipment with a long lead time will be placed shortly and well within the time frame required for full scale production in January 2015. It is likely, however, that expenditures will be less than budget for 2012 and approximately $10 million will be deferred to the first quarter of 2013,” Johnson added.
The Otjikoto gold project has forecast average annual production of over 100,000 ounces of gold over a ten year mine life based on a Preliminary Economic Assessment released by Auryx Gold Corp.
“Feasibility and exploration drilling is underway on the Otjikoto project which includes 16,150 meters of feasibility study drilling and a further 2,500 metres of exploration drilling to explore beyond the current resource at the Otjikoto project. Regional exploration work will also be conducted on the surrounding area,” he said.