B2Gold reports gold, silver output at second Nicaragua mine

TORONTO – TSX-listed B2Gold has started gold and silver production at its Orosi openpit mine, Nicaragua, the firm announced on Tuesday.
Ore processing started on December 15 and the first dore bar was produced on January 5.
The Orosi mine, which B2Gold acquired last year when it bought Central Sun Mining, is expected to produce between 80 000 and 90 000 oz/y for an initial seven-year mine life.
Cash costs are forecast at $465/oz, B2Gold said.
Operations were suspended at Orosi in the first quarter of 2007, after a re-evaluation of the project indicated that gold recoveries could be improved from around 40% by heap leaching to more than 90% by using a conventional milling operation.
The project has since been completed and the mill is scheduled to ramp up to 3 500 t/d over the next few months.
A second ball mill has been fabricated in China and is scheduled to arrive on site at the end of the first quarter 2010, and be commissioned by the end of the second quarter 2010.
After installation of the second ball mill, throughput will rise to about 5,500 t/d.
B2Gold is already producing gold from the Limon mine, in Nicaragua, which was also acquired in the Central Sun transaction.
Limon is expected to produce about 40 000 oz/y of gold.
Overall, the company expects output at between 120 000 and 130 000 oz this year, at average operating cash costs of between $500/oz and $525/oz.
Both operations are debt free and unhedged.
B2Gold is also exploring for gold in Colombia and Russia