B2Gold (TSX: BTO; NYSE-MKT: BTG) has kicked off construction at the Fekola open pit gold mine in southwestern Mali, following the release of an optimized feasibility study and the closing of the previously announced US$350 million revolving credit facility.
Fekola, acquired through the US$570-million takeover of Papillon Resources in October 2014, sits in the regional province of Kayes, about 365 km west of the capital Bamako. The company currently owns 90% of the 74 km2 mining license, with the Malian government holding the rest, and looking to push its interest to 20%.
Highlights of the optimized study, prepared by Lycopodium Minerals, indicate Fekola has a 12.5-year life based on a June 2015 reserve estimate. Using a US$1,300 per oz gold price and an elevated cut-off grade of 0.8 g/t Au, Fekola contains 3.72 million oz of gold in reserves from 4.92 million tonnes at a diluted grade of 2.35 g/t Au.
Average annual production is 350,000 oz over the first seven years and 276,000 oz over the full mine life. …
Read the complete article at NorthernMiner.com/news/b2gold