Thursday 8th December 2016

Resource Clips


Posts tagged ‘B2Gold Corp (BTO)’

Geeks, diggers, geos and techies flock to Val-d’Or with Integra’s online gold rush

September 30th, 2015

by Greg Klein | September 30, 2015

Over 740 virtual prospectors from 65 countries have joined a search for Quebec gold, but from the comfort of their homes and offices. That was the tally by September 30, when Integra Gold TSXV:ICG announced the six Gold Rush Challenge judges who’ll assess submissions for a potential deposit on the company’s Abitibi region properties. The winner of the online exploration contest gets $500,000, while runners-up will share another half-million.

Geeks, diggers, geos and techies flock to Val-d’Or with Integra’s online gold rush

Integra acquired the Sigma/Lamaque mines and mill
adjacent to the company’s Lamaque South project last year.

Not limited to professionals, the contest grants competitors access to 25 gigabytes of data derived from a six-terabyte library representing 75 years of mining and exploration from Integra’s past-producing Sigma/Lamaque mines.

Sigma produced 4.45 million gold ounces from 1937 to 1997. Lamaque gave up another 4.58 million ounces between 1935 and 1985.

Saying he expects “a plethora of innovative and creative ideas from within and outside of the geoscientific community,” Integra president/CEO Stephen de Jong added, “We are convinced that the very best idea for the next discovery in the Sigma/Lamaque area is still in the hands of a researcher somewhere in the world.”

A “phenomenal team of world-renowned judges” consists of Neil Adshead, a geologist and investment strategist at Sprott Asset Management, Andrew Brown, western Africa chief geologist for B2Gold TSX:BTO, Benoit Dubé, senior research scientist with the Geological Survey of Canada, James Franklin, a retired chief scientist with the GSC, David Rhys, consulting geologist with Panterra Geoservices and Brian Skanderberg, a geologist and president/CEO of Claude Resources TSX:CRJ.

They’ll assess 20 semi-finalists chosen by WSP Group, Integra’s geoscience partner for the contest. Five finalists will present their findings to the judges and a panel of industry veterans at what the company calls a “Shark-Tank-style” charity event at PDAC next March.

Sign up for the contest here. December 1’s the deadline for submissions.

Athabasca Basin and beyond

November 23rd, 2013

Uranium news from Saskatchewan and elsewhere for November 16 to 22, 2013

by Greg Klein

Next Page 1 | 2

Azincourt to acquire Peruvian company from Cameco and Vena for $2 million

So far best known for its 50% interest in the Patterson Lake North joint venture with Fission Uranium TSXV:FCU, Azincourt Uranium TSXV:AAZ plans to acquire an advanced-stage uranium project in Peru. Under definitive share purchase agreements announced November 22, the $8.1-million market cap Athabasca Basin junior proposes to buy Minergia S.A.C. from 50/50 co-owners Cameco Corp TSX:CCO and Vena Resources TSX:VEM. As well as the 4,900-hectare Macusani project, Minergia comes with its younger sister, 9,600-hectare Muñani, both in southeastern Peru.

Subject to approvals, the deal would have Azincourt give Cameco and Vena $750,000 worth of shares and $250,000 each. Vena chairman/CEO Juan Vegarra would join Azincourt as an independent director. Azincourt would spend between $1.5 million and $2 million on the projects annually.

The deal would also allow Vena to buy Cameco’s portion of Azincourt shares for the purchase price plus 50% of any increase in the market price.

In a statement accompanying Vena’s announcement, Vegarra noted that Azincourt president/CEO Ted O’Connor is “the former director of Cameco’s corporate development group who was responsible for overseeing Cameco’s significant investment in Minergia.”

With over $12 million of work between 2007 and 2011, Macusani comes with an historic resource that was released in September 2011. Using a 0.009% cutoff, five of the property’s nine areas show:

  • measured: 10.39 million short tons averaging 0.025% for 5.69 million pounds uranium oxide (U3O8)

  • indicated: 34.16 million tons averaging 0.018% for 12.52 million pounds

  • inferred: 37.79 million tons averaging 0.02% for 17.42 million pounds

The project could offer low-cost open pit, acid heap leach potential, according to Azincourt.

As for Muñani, it shows uranium mineralization in sandstone and outcrops, has undergone airborne geophysics and ground prospecting, and has drill targets ready, Azincourt stated.

Although two years of depressed prices have pushed the projects into dormancy, Azincourt plans to complete community agreements and permitting prior to another drill program.

Vena also announced that Silvia Dedios has been named general manager following David Bent’s resignation. Walter Cuba becomes project manager to work with Azincourt on Minergia’s uranium assets.

Last June Vena dropped out of negotiations with a private Peruvian company to create a JV for three other Vena projects. In August the company settled $150,350 of debt for 1.64 million shares.

Azincourt and Fission update winter plans for Patterson Lake North

Back in the Basin, Azincourt and Fission updated their previously announced winter plans for Patterson Lake North on November 18. The program now includes a radon survey at Hodge Lake as well as further electromagnetic work and eight to 10 holes totalling 2,500 to 3,000 metres.

Initial results from a five-kilometre ground magnetotelluric survey over the northern part of an eight-kilometre VTEM conductive trend suggest it comprises a series of parallel west-dipping basement EM conductors, the JV stated. Further EM work will increase resolution and orient a resistivity survey scheduled for next summer. “Many structurally controlled high-grade uranium occurrences in the Athabasca Basin are related to hydrothermal alteration systems associated with basement EM conductors,” the companies emphasized. Drill targets will be refined by identifying an EM basement conductor with a resistivity low signature, especially when associated with a cross-cutting interpreted structural feature, the partners explained.

Diamond drilling is slated to begin in January, after the holes have been pre-collared with RC rigs.

Azincourt is earning a 50% interest in the 27,408-hectare project adjacent to Fission’s better-known project, the Patterson Lake South JV with Alpha Minerals TSXV:AMW. Fission acts as operator on both projects.

Denison considers compulsory acquisition as Rockgate takeover now 86% complete

Delighted with “such overwhelming enthusiasm,” Denison Mines TSX:DML president/CEO Ron Hochstein announced on November 18 his company has so far nabbed 100.54 million shares for 86% control of Rockgate Capital TSX:RGT. In another extension to the offer—the final one, this time—Denison now says Rockgate laggards have until November 29 to throw in their lot with the victor.

If the company can get just 4% more of Rockgate’s total shares, Denison intends to acquire the rest through a compulsory acquisition. Otherwise the aggressive uranium miner/explorer will try an “amalgamation or other corporate reorganization” to part the hold-outs from their holdings. On October 30 Denison stated it was lowering the minimum tender condition from 90% to two-thirds of outstanding shares.

At that time directors of the two companies softened their positions considerably. Rockgate president/CEO Karl Kottmeier initially denounced the Denison offer as an “unsolicited opportunistic hostile takeover bid” which scuttled Rockgate’s proposed merger with Mega Uranium TSX:MGA. Rockgate’s board did, however, reluctantly recommend shareholder acceptance.

Read more here and here.

Read more about uranium merger-and-acquisition activity.

Read about Denison’s Q3 report.

Denison moves its people into Rockgate management/board positions

Rockgate’s changing of the guard, meanwhile, presages its takeover. The company announced five departures from its seven-person board on November 22. Gone are Doug Ford, Edward Ford, Allen Ambrose, Gord Neal and Phil Williams. Replacing them are Denison directors Ron Hochstein, Robert Dengler and Catherine Stefan, with William Rand becoming chairperson.

Rockgate’s Karl Kottmeier, Doug Ford and Kirk Gamely step down from management, although Kottmeier and Bryan Hyde will remain on Rockgate’s board to smooth the transition of its flagship Falea project in southwestern Mali, which was scheduled for pre-feasibility in early 2014. Denison’s Hochstein now becomes Rockgate president/CEO, David Cates CFO and Sheila Colman corporate secretary.

Denison has said that on acquiring Rockgate it will spin out its African assets to concentrate on the Athabasca Basin.

Mega Uranium closes Australian sale, gains 28% of Toro Energy

Undeterred by its Rockgate failure, Mega has now picked up 28% of an ASX-listed company with “one of the larger pre-development uranium projects worldwide.” That results from the completed sale of Mega’s Lake Maitland property in Western Australia to Toro Energy. In a deal valued at about AU$37 million last August, Mega gets about 28% of Toro shares and fills Toro board positions with Mega executive VP of corporate affairs Richard Patricio and executive VP for Australia Richard Homsany, the Toronto-listed company announced November 19.

Blue Sky drills Ivana project in Argentina, offers $500,000 private placement

Uranium news from Saskatchewan and elsewhere for November 16 to 22, 2013

Located in Argentina’s Rio Negro province, Blue Sky’s
Ivana project currently undergoes a 2,000-metre drill program.

Now underway at Blue Sky Uranium’s TSXV:BSK Ivana project in Argentina, a nine-hole, 2,000-metre drill campaign targets shallow, roll-front uranium mineralization to 400 metres in depth. Announced November 18, Phase I work also includes ground geophysics. The 71,300-hectare property has previously undergone airborne radiometrics, sampling, prospecting, mapping and trenching.

AREVA funds the work under an option to spend $2 million by December 31 on Blue Sky’s Argentinian properties. On completion, AREVA may fund an additional $3 million on one project, or $4 million combined on two projects, to earn a 51% interest by the end of 2017. In addition to the project in Rio Negro province, Blue Sky currently focuses on its Sierra Colonia property in central Chubut province.

The company also announced a private placement of 10 million units at $0.05 for $500,000. Each unit consists of one share and one transferable warrant exercisable at $0.10 for two years.

Ground gravity survey underway on Aldrin Resource’s Triple M

Announced by Aldrin Resource TSXV:ALN on November 20, a ground gravity survey on the PLS-vicinity Triple M property intends to find extensively altered basement rocks associated with two bedrock conductive anomalies shown in last summer’s VTEM survey. Identified by anomalous gravity lows, extensively altered rocks are associated with strong uranium mineralization elsewhere in the region, the company stated. Triple M’s schedule calls for completion of the gravity survey by year-end.

The previous week Aldrin released initial radon results from 527 sample sites. The company also plans to buy the 49,275-hectare Virgin property around the Basin’s south-central edge.

Zadar Ventures acquires two more properties from Canterra Minerals

With two new acquisitions just south of the Basin’s southeastern rim, Zadar Ventures TSXV:ZAD has signed another definitive purchase agreement. The deal, announced November 20, has Zadar issuing 160,000 shares to Canterra Minerals TSXV:CTM and 170,000 to African Oil Corp in return for the 5,831-hectare Highrock and the 5,583-hectare Riverlake projects. Canterra retains a 2% NSR on both properties, of which Zadar may buy half for $1 million.

Both properties have seen historic EM surveys, soil sampling and drilling. Radioactive pitchblende pebbles found immediately west of Highrock might have originated on the property, Zadar stated. Highrock sits eight kilometres from Cameco’s former Key Lake mine.

Riverlake features a 1,200-metre by 600-metre soil anomaly with uranium values up to 0.0374% over three EM conductors with a combined strike of five kilometres, Zadar added. A hole drilled in 2008 found 63 metres of radioactivity five to 10 times the background level.

In September the company announced its acquisition of the 37,445-hectare Pasfield Lake property, also from Canterra. Earlier that month Zadar reported finding radioactive boulders on its PLS-vicinity PNE project.

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Canada to boost support for mining, but faces challenges

September 18th, 2013

by Cecilia Jamasmie | September 18, 2013 | Reprinted by permission of Mining.com

Canada’s Prime Minister Stephen Harper is ready to launch an aggressive campaign to promote the country’s mining sector abroad, in an effort to redirect trade spending and foreign affairs to core economic interests.

Canada to boost support for mining, but faces challenges

Prime Minister Stephen Harper announces support
for Northern Innovation in Mining, August 2013.
(Photo: PMO)

Ed Fast, the international trade minister, began Wednesday a cross-country campaign to get feedback from experts and actors on what kind of support they think the government should offer mining companies.

According to the Globe and Mail, the move comes as the Harper administration starts warming up its campaign machine for the 2015 elections.

But Harper faces a challenging scenario. As a result of the global mining slowdown, Canada’s mining sector has been hit hard by weak commodity prices and lack of interest from foreign and local investors.

For the first time in a decade, Canada’s normally bustling resource industry failed to book a single initial public offering (IPO) on either the Toronto Stock Exchange or the TSX Venture Exchange in the first quarter of the year, a PwC survey revealed.

Tarnished name

While Canada remains the world’s top destination for mining investments, the sector has built a less-than-popular reputation abroad. Local miners have faced domestic opposition to their projects in all parts of the globe, including Greece, Colombia, Nicaragua, Peru, Bolivia, the Dominican Republic, Slovakia, Romania and Israel.

In January, for example, hundreds of Greeks protested in Thessaloniki against several gold mining projects owned by Vancouver-based Eldorado Gold TSX:ELD.

The following month, Catholic priests and small-scale miners marched with 5,000 locals in Matagalpa, Nicaragua, against a project owned by Vancouver-based B2Gold TSX:BTO.

In April tens of thousands of Colombians took to the streets of Bucaramanga, the country’s sixth-largest city, to defend their water supply from Vancouver-based Eco Oro Minerals’ TSX:EOM gold project.

Recently, Toronto-based Barrick Gold TSX:ABX admitted before a Chilean judge it had committed several violations in regards to its touted $8.5-billion Pascua Lama gold and silver project, straddling the border of Chile and Argentina.

And the most fresh example is the renewed opposition Gabriel Resources TSX:GBU faces in Romania because of its Rosia Montana gold project. Only yesterday the country’s president, Traian Basescu, asked Parliament to withdraw a bill that would allow the London-based Canadian miner to move forward.

However the future looks auspicious. Canada is among the top five producers of potash, uranium, nickel, platinum, aluminum, diamonds and steel-making coal. And global demand for commodities is expected to grow by up to 75% over the next 15 years, according to the world’s No. 1 miner, BHP Billiton NYE:BHP.

Reprinted by permission of Mining.com

B2Gold, Calibre report Nicaragua Assays including 0.48 g/t Gold over 172.4m

April 16th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningB2Gold Corp TSX:BTO in joint venture with Calibre Mining Corp TSXV:CXB announced results from their Primavera Gold and Copper Porphyry Project in northern Nicaragua. Highlights include

0.48 g/t gold over 172.4 metres
(including 0.32 g/t over 23.9 metres)
0.22 g/t over 247.3 metres
(including 0.34 g/t over 41 metres)
0.31 g/t over 165 metres
(including 0.48 g/t over 46 metres)
0.41 g/t over 93 metres
0.67 g/t over 55.5 metres

B2Gold may earn a 51% interest in Primavera and other concessions by spending $8 million by June 2014. Once the earn-in is complete, B2Gold may elect to carry an individual prospect within the concession area through to a prefeasibility study within two years for an additional 14% interest in the prospect.

View Company Profile

Contact:
B2Gold Corp
Ian MacLean
VP of Investor Relations
or Kerry Suffolk
Manager of Investor Relations
604.681.8371

Calibre Mining Corp
Mark Carruthers
Manager of Investor Relations
604.681.9944

by Greg Klein

Cash-Cow Potential

March 13th, 2012

Golden Reign Advances Low-Cost, High-Grade Nicaragua Gold and Silver

By Ted Niles

Nicaragua has had a stable democracy for 20 years, but the Communist mayhem that saw its gold mines nationalized in 1979 was long remembered by the industry. Free elections in 1990 removed the Sandinistas from power, but a weak gold price kept the industry in eclipse. Now that the gold price has surged, Nicaragua promises an almost singular potential. It is “virtually untapped because of its history of conflict,” says Kim Evans, President and CEO of Golden Reign Resources TSXV:GRR.

Evans reports, “Nicaragua’s just starting to emerge as a major area for mining exploration and development.” Indeed, 2011 gold exports from Nicaragua were up 60% from 2010. Gold is now its third-leading export, and the country’s largest producer, B2Gold Corp TSX:BTO, has committed $100 million for further development of its La Libertad and Limon mines.

Golden Reign Advances Low-Cost, High-Grade Nicaragua Gold and Silver

“It is considered a developing Third World nation, and so there is a wide pool of available talent,” Evans says. “We’ve had nothing but great experiences and work very closely with the mining ministry and all the different mining groups. It is a very pro-mining country and a very good place to be doing business.” She adds, “It is the safest country by far in Central America. It is actually ranked as being much safer than a number of the big US cities, such as New York and Boston.”

Golden Reign‘s 8,700-hectare San Albino-Murra gold property is located in the Nueva Segovia Department. Its ongoing 25,000-metre drill program has focused on a two-square-kilometre area of the property, including the San Albino and Arras zones. February 22 results from the Las Conchitas area, located just south of the historic San Albino Mine, include

  • 62.96 grams per tonne gold and 61.7 g/t silver over 3 metres
  • 12.01 g/t gold and 13.1 g/t silver over 3 metres
  • 14.96 g/t gold and 25.4 g/t silver over 2.5 metres
  • 9.44 g/t gold and 17.3 g/t silver over 1.5 metres
  • 8.63 g/t gold over 5 metres

February 15 results from the San Albino Mine area include

  • 85.86 g/t gold and 35.1 g/t silver over 2 metres
  • 4.48 g/t gold and 12.3 g/t silver over 4 metres
  • 4.22 g/t gold and 9.1 g/t silver over 1 metre

“The [assays] are quite spectacular, as you can tell,” Evans comments. “It is rare nowadays for projects to see multi-ounce material as prevalent as this. It’s open in all directions and at depth at this point, and our program will finish likely with it open in all directions and at depth.”

The [assays] are quite spectacular, as you can tell. It is rare nowadays for projects to see multi-ounce material as prevalent as this —Kim Evans

The company expects San Albino-Murra’s maiden resource estimate in July 2012. “What I would like to do [after that],” Evans says, “is start spacing the drill holes tighter so we can take it from what will likely be an inferred category—with the possibility of some indicated—to more of a reserve level. Then we’ll start stepping out as well to try to define the outer boundaries of the San Albino area.”

Evans doesn’t think Golden Reign likely to take the project to production but notes that the probable capital expenditure (which she estimates at $50 million to $100 million) wouldn’t require the financial resources of a major. “This isn’t elephant country, where you’re going to see one big deposit of five million ounces. What we think we have the potential for is a number of small, one million (give or take) ounce deposits. It has very nice little cash-cow potential.”

The project is accessible by all-weather roads and has power and water, so the company’s biggest expense is drilling. “Everything else is very inexpensive to run,” Evans says. “Working in a country that is a developing nation, your costs are considerably lower.” Golden Reign has $3 million cash on hand.

“We’re a very aggressive company, so in the last year we’ve progressed significantly,” Evans concludes. “I think we’re going to see another big step up this year with the initial resource and then with opening up other areas. We believe we can replicate what we’re seeing in each of the [three] blocks we have within the property boundary and also with the new property [the El Jicaro Concession] that I’ve just added south of us. We think there is huge potential.”

At press time, Golden Reign had 59.1 million shares trading at $0.99 for a market cap of $58.5 million.

B2Gold reports Nicaragua Results of 26.87 g/t Gold, 9.72 g/t Silver over 8.4m

December 1st, 2011

Resource Clips - essential news on junior gold mining and junior silver miningB2Gold Corp TSX:BTO announced assays from La Libertad Mine in Nicaragua. Results include

26.87 g/t gold and 9.72 g/t silver over 8.4 metres
3.45 g/t gold and 12.68 g/t silver over 19.9 metres
2.98 g/t gold and 34.22 g/t silver over 20.7 metres
(including 5.36 g/t gold and 68.17 g/t silver over 5 metres)
4.43 g/t gold and 39.58 g/t silver over 13.9 metres
4.86 g/t gold and 26.02 g/t silver over 12.2 metres
2.69 g/t gold and 25.78 g/t silver over 20.6 metres
5.14 g/t gold and 35.32 g/t silver over 10 metres
16.11 g/t gold and 17.64 g/t silver over 2.9 metres

A new resource estimate for the Jabali Central and Antenna deposits is planned for release in March 2012. The company began mining Jabali on November 14, delivering higher-grade colluvial material to La Libertad mill. B2Gold is projected to produce 93,000 to 99,000 ounces gold from La Libertad open pit mine in 2011.

View Company Profile

Contact:
Ian MacLean
VP of Investor Relations
604.681.8371

or Kerry Suffolk
IR Manager
604.681.8371

by Greg Klein

Calibre, B2Gold report Nicaragua Trench Results of 0.7 g/t Gold over 58m

November 14th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningCalibre Mining Corp TSXV:CXB in joint venture with B2Gold Corp TSX:BTO announced trench results from their Primavera Gold-Copper Prospect on the Borosi Project in northeastern Nicaragua. Assays include

0.7 g/t gold over 58 metres
(including 1.02 g/t over 24 metres)
0.25 g/t over 49.5 metres
(including 4.18 g/t over 1.5 metres)

B2Gold may earn up to a 51% interest in specific concessions within the Borosi area by funding $8 million by June 2014. Once the earn-in is complete, B2Gold may elect to carry an individual prospect within the concession through to a preliminary feasibility study for an additional 14% interest in the prospect. Calibre acts as operator.

View Company Profile

Contact:
Calibre Mining Corp
Mark Carruthers
604.681.9944

B2Gold Corp
Ian MacLean
VP of Investor Relations
604.681.8371
Kerry Suffolk
IR/Finance Manager
604.681.8371

by Greg Klein

A Healthy Hybrid

October 17th, 2011

B2Gold Grows With Auryx Buy

By Ted Niles

It is a rare company that hasn’t seen its share price take a beating this year. Rarer still, one that has seen the steady growth that B2Gold Corp TSX:BTO has. President and CEO Clive Johnson puts it down to strength of management, “beating your projections” and growth through exploration and acquisition. He adds, “Most explorers don’t produce; and most producers don’t find a lot. In our case, we’re a bit of a hybrid company. We’re producers, but we’re also very good at exploration. We always have been.”

True enough, as anyone familiar with B2Gold and its predecessor, Bema Gold, will attest. When Bema—a company which began as a grassroots explorer—was acquired by Kinross Gold Corporation TSX:K in 2006 for $3.1 billion, it had nine mines in five countries with reserves and resources of 50 million ounces gold, 80 million ounces silver and 2.9 billion ounces copper. Founded in 2007 (and retaining Bema’s executive and management team), B2Gold now has two producing mines in Nicaragua—La Libertad and Limon, with combined production in 2010 of 108,700 ounces gold—as well as other properties in Latin American and now, after its October 11 acquisition of Auryx Gold Corp TSX:AYX, Namibia.

B2Gold Grows With Auryx Buy

“Some people ask if we can handle all these projects in all these different locations, but I think you have to look at our history,” Johnson remarks. “All of us together in B2Gold built Bema Gold—so we’ve done it before in Russia, in South Africa, in Chile and now in Nicaragua. We have an unusually strong team from exploration all the way through construction and production. We didn’t go to Namibia saying we have to have something in Namibia—we’ve been looking at lots of projects. The [Otjikoto] project itself was the first thing that attracted us. We’re definitely ready to build another mine, and we have the team to do it. We’ve shown we can do it anywhere in the world.”

B2Gold acquired Auryx and its flagship Otjikoto gold project last week in a friendly-merger deal for $160 million. Otjikoto is located on the Damara Belt Formation—which also hosts AngloGold Ashanti’s Navachab Mine—and has a December 2010 NI 43-101 resource estimate of 1.16 million ounces gold indicated and 660,000 ounces inferred. In September 2011 Auryx released a positive preliminary economic assessment showing a pre-tax net present value of $301 million, and an internal rate of return of 42% (with gold at $1,300 per ounce).

“[Otjikoto] is a robust project economically,” Johnson continues. “We think there’s a lot of upside, and we think there’s a lot of optimization that can be done in a number of areas to make an already good project even better. It’s got a minimum 10-year mine life with, by 2015, [production of] 100,000 ounces per year. We think there’s upside on that, but that’s a long mine life. And Namibia is a very good jurisdiction. The logistics are fantastic; the tax regime is fair; and the mining law works. We think it’s a good acquisition for us, and it can have a significant impact on our production. By 2015, we’re looking at getting up over 300,000 ounces.”

B2Gold will visit the project this week. Auryx anticipated the completion of a definitive feasibility study by 2Q 2013, and while B2Gold will be conducting a detailed review, Johnson expects to follow the same timeline.

Meanwhile, B2Gold’s La Libertad and Limon mines in Nicaragua proceed apace. The company had gold revenues totalling $127.5 million in 2010—an increase of 517% from 2009—and expects to increase 2011 production to approximately 135,000 ounces. Also, exploration drilling at La Libertad in 2010 yielded the discovery of the high-grade Jabali target, which already has an inferred mineral resource of 522,000 ounces gold, increasing La Libertad’s total inferred resources by 180%.

We’re definitely ready to build another mine, and we have the team to do it. We’ve shown we can do it anywhere in the world —Clive Johnson

Johnson notes that the company’s Gramalote property in Colombia is becoming an important asset. It is a joint venture with AngloGold Ashanti (B2Gold holds 49%, AngloGold Ashanti 51%), with AngloGold as the project operator. “The 2.4 million ounces we started with there is definitely getting a lot bigger, and everything is looking very positive,” Johnson says. “Anglo is talking 250,000 to 300,000 ounces a year, and we think it might be larger than that.” Johnson expects an updated resource at Gramalote by the end of year.

The combination of good management, year-over-year production increases and aggressive exploration and acquisition have granted B2Gold a degree of financial independence unusual in the junior mining sector. Johnson reports, “We’re generating from the Nicaragua mines right now about $118 million of cash from operations. So we can do all of our capital spends at the mine and all of our exploration—our budget this year totalled $53 million—and we can take on [Otjikoto] as well and still maintain a really strong cash balance going well into the future. With [Auryx's] cash and our cash we’ll have about $100 million in cash and no debt or hedging.”

He concludes, “We’re looking at production growing from about 145,000 ounces this year to, within two years, over 200,000 ounces. Then up to 320,000 ounces or thereabouts by bringing the [Otjikoto] project on. Then there’s the Colombian project. So we see a path to approaching a half-million ounces a year from existing ounces. This puts us in a very unusual place in the sector right now. And there are more acquisitions to be done.”

At press time, B2Gold had 344 million shares trading at $3.36, for a market cap of $1.16 billion. Its other exploration projects in Nicaragua are the Trebol, Pavon and San Pedro properties, which it holds in joint venture with Radius Gold Inc TSXV:RDU; and the Borosi prospect, also a joint venture with Calibre Mining Corp TSXV:CXB. It also has the Bellavista property in Costa Rica, the Mocoa property in Colombia and the Cebollati property in Uruguay.

B2Gold President Clive Johnson on $160M acquisition of Auryx Gold

October 12th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningB2Gold Corp TSX:BTO announced that it has signed an agreement to acquire Auryx Gold Corp TSX:AYX at a purchase price of approximately $0.88 per share of Auryx for a total equity value of $160 million. The merged companies will hold a 92% interest in Otjikoto gold project in Namibia as well as a 100% interest in two other Namibia projects.

B2Gold President/CEO Clive Johnson tells ResourceClips.com, “This is a friendly-merger deal—a plan of arrangement to combine the two companies. It’s valued at around $160 million in B2 shares. We’ve been aware of the Otjikoto project for a couple of years, and we thought it looked interesting. Our acquisition policy is to look for projects where we can come in and help a good technical group—which Auryx has—and bring our financial strength to bear on the project as well as our own exploration, mine-building and production experience. So we’ll be working with Auryx, and they’ll end up getting B2Gold shares.

We’re definitely ready to build another mine, and we have the team to do it. We’ve shown we can do it anywhere in the world, and we see this project in Namibia as being a very robust project in a good country—Clive Johnson

“We liked Otjikoto because it came out with a PEA that looked attractive,” Johnson continues. “It is a robust project economically. We think there’s a lot of upside, and we think there’s a lot of optimization that can be done in a number of areas to make an already good project even better. It’s got a minimum 10-year mine life with, by 2015, [production of] 100,000 ounces per year. We think there’s upside on that, but that’s a long mine life—at least 10 years. And Namibia is a very good jurisdiction. The project is in a good location. The logistics are fantastic in terms of it not being close to a population but with power and highways. The tax regime is fair, and the mining law works. We think it’s a good acquisition for us, and it can have a significant impact on our production. By 2015, we’re looking at getting up over 300,000 ounces of production. Beyond that, if we build the Gramalote project [in Colombia] with AngloGold Ashanti that could take us up to over 450,000 ounces a year. So there’s a lot of growth built into what we’re doing. Otjikoto will become an important part of our growth profile, and we look forward to finding out more about it.

“We tend to look at opportunities. We didn’t go to Namibia saying we have to have something in Namibia—we’ve been looking at lots of projects. The project itself was the first thing that attracted us. The fact that it’s in a good jurisdiction helps. Some people ask if we can handle all these projects in all these different locations, but I think you have to look at our history. The team, all of us together in B2Gold, built Bema Gold—so we’ve done it before in Russia, in South Africa, in Chile and now in Nicaragua. We’ve have an unusually strong team from exploration all the way through construction and production. We’re definitely ready to build another mine, and we have the team to do it. We’ve shown we can do it anywhere in the world, and we see this project in Namibia as being a very robust project in a good country.

“A number of us are going to visit the project next week, and we’ll come out with a more detailed plan going forward. But [Auryx] was talking about having a definitive feasibility study completed by 2Q 2013, with a budget—between now and next July—of around $20 million. So a lot of drilling and a lot of feasibility work. We have not reviewed that in detail yet, but we don’t see any reason to disagree with it, so we’re just going to go down to firm up the budget.”

Johnson adds, “Another important point here is the financial strength we bring. With [Auryx's] cash and our cash we’ll have about $100 million in cash and no debt or hedging. And we’re generating from the Nicaragua mines right now about $118 million of cash from operations. So we can do all of our capital spends at the mine and all of our exploration—our budget this year totalled $53 million—and we can take on this project as well and still maintain a really strong cash balance going well into the future.”

View Company Profile

Contact:
B2Gold Corp
Ian MacLean
VP Investor Relations
604.681.8371

or Auryx Gold Corp
Tim Searcy
CEO
416.361.5996

by Ted Niles

B2Gold to buy Auryx Gold for $160M Cash and Shares

October 11th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningB2Gold Corp TSX:BTO announced that it has signed an agreement to acquire Auryx Gold Corp TSX:AYX at a purchase price of approximately $0.88 per share of Auryx for a total equity value of $160 million. The merged companies will hold a 92% interest in Otjikoto gold project in Namibia as well as a 100% interest in two other Namibia projects.

B2Gold President/CEO Clive Johnson tells ResourceClips.com, “This is a friendly-merger deal—a plan of arrangement to combine the two companies. It’s valued at around $160 million in B2 shares. We’ve been aware of the Otjikoto project for a couple of years, and we thought it looked interesting. Our acquisition policy is to look for projects where we can come in and help a good technical group—which Auryx has—and bring our financial strength to bear on the project as well as our own exploration, mine-building and production experience. So we’ll be working with Auryx, and they’ll end up getting B2Gold shares.

We’re definitely ready to build another mine, and we have the team to do it. We’ve shown we can do it anywhere in the world, and we see this project in Namibia as being a very robust project in a good country—Clive Johnson

“We liked Otjikoto because it came out with a PEA that looked attractive,” Johnson continues. “It is a robust project economically. We think there’s a lot of upside, and we think there’s a lot of optimization that can be done in a number of areas to make an already good project even better. It’s got a minimum 10-year mine life with, by 2015, [production of] 100,000 ounces per year. We think there’s upside on that, but that’s a long mine life—at least 10 years. And Namibia is a very good jurisdiction. The project is in a good location. The logistics are fantastic in terms of it not being close to a population but with power and highways. The tax regime is fair, and the mining law works. We think it’s a good acquisition for us, and it can have a significant impact on our production. By 2015, we’re looking at getting up over 300,000 ounces of production. Beyond that, if we build the Gramalote project [in Colombia] with AngloGold Ashanti that could take us up to over 450,000 ounces a year. So there’s a lot of growth built into what we’re doing. Otjikoto will become an important part of our growth profile, and we look forward to finding out more about it.

“We tend to look at opportunities. We didn’t go to Namibia saying we have to have something in Namibia—we’ve been looking at lots of projects. The project itself was the first thing that attracted us. The fact that it’s in a good jurisdiction helps. Some people ask if we can handle all these projects in all these different locations, but I think you have to look at our history. The team, all of us together in B2Gold, built Bema Gold—so we’ve done it before in Russia, in South Africa, in Chile and now in Nicaragua. We’ve have an unusually strong team from exploration all the way through construction and production. We’re definitely ready to build another mine, and we have the team to do it. We’ve shown we can do it anywhere in the world, and we see this project in Namibia as being a very robust project in a good country.

“A number of us are going to visit the project next week, and we’ll come out with a more detailed plan going forward. But [Auryx] was talking about having a definitive feasibility study completed by 2Q 2013, with a budget—between now and next July—of around $20 million. So a lot of drilling and a lot of feasibility work. We have not reviewed that in detail yet, but we don’t see any reason to disagree with it, so we’re just going to go down to firm up the budget.”

Johnson adds, “Another important point here is the financial strength we bring. With [Auryx's] cash and our cash we’ll have about $100 million in cash and no debt or hedging. And we’re generating from the Nicaragua mines right now about $118 million of cash from operations. So we can do all of our capital spends at the mine and all of our exploration—our budget this year totalled $53 million—and we can take on this project as well and still maintain a really strong cash balance going well into the future.”

View Company Profile

Contact:
B2Gold Corp
Ian MacLean
VP Investor Relations
604.681.8371

or Auryx Gold Corp
Tim Searcy
CEO
416.361.5996

by Ted Niles