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B2Gold Corp. Reports Record Fourth Quarter and Full Year 2012

B2Gold Corp. Reports Record Fourth Quarter and Full Year 2012 Gold
Production 2013 Production Guidance and an Update on the B2Gold and
CGA Mining Limited Merger 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/18/13 -- B2Gold
Corp. (TSX:BTO)(OTCQX:BGLPF)(NAMIBIAN:B2G) ("B2Gold" or the
"Company"), is pleased to announce gold production results for the
fourth quarter and full year of 2012, guidance for 2013 production,
and an update on the B2Gold and CGA Mining Limited ("CGA") merger
transaction ("Transaction"). All dollar figures are in United States
dollars unless otherwise indicated. 
2012 Fourth Quarter Highlights 


 
--  Record gold revenue for the quarter of $70.8 million 
--  Record gold production for the quarter of 44,324 ounces 
--  Record gold sales for the quarter of 41,627 ounces

 
2012 Full Year Highlights 


 
--  Record gold revenue of $259.1 million 
--  Record gold production of 157,885 ounces, within guidance

 
Production - 2012 
B2Gold achieved record consolidated gold production for La Libertad
and Limon mines in Nicaragua in the fourth quarter of 2012, producing
44,324 ounces of gold. Total gold production for 2012 was
approximately 157,885 ounces, within the Company's revised guidance. 
Total production for 2012 from La Libertad was a record 108,935
ounces of gold, within 2012 guidance. Fourth quarter gold production
was also a record, producing 30,113 ounces of gold. The main reasons
for the improved production at La Libertad Mine in 2012 were improved
gold grades of 1.80 grams per tonne ("g/t") gold versus budget of
1.77 g/t and higher gold recoveries of 92.5% compared to budget of
90.4%. 
The Limon open pit and underground mine recorded its most successful
year in the past nine years, producing 48,950 ounces of gold, within
2012 guidance. Fourth quarter gold production was 14,211 ounces of
gold, the best quarter in nine years. Gold recoveries improved in
2012 to 91.06% compared to budget of 90.06%.  
Production Guidance 2013 
B2Gold is projecting another record year for gold production in 2013,
with consolidated production from La Libertad and Limon Mines in
Nicaragua estimated to total approximately 185,000 to 195,000 ounces
of gold at a cash operating cost of approximately $605 to $635 per
ounce. Gold production for the first half of 2013 from the two mines
is estimated to total approximately 82,000 to 87,000 ounces of gold
at a cash operating cost of approximately $650 to $680 per ounce and
for the second half approximately 103,000 to 108,000 ounces of gold
at a cash operating cost of approximately $570 to $600 per ounce.  
The Libertad and Limon Mines are projecting a total of approximately
$175 million in cash from mining operations (1) based on a gold price
of $1,600 per ounce. Average operating cash costs per ounce have been
budgeted to be approximately 4% higher in 2013 compared to the 2012
budget mainly due to higher contract mining costs, a higher strip
ratio at La Libertad and higher consumables and power costs at both
operations, offset by improved production. 


 
1.  Cash from mining operations is a non GAAP measure and consists of gold
    revenue less production costs less royalties and production taxes.

 
La Libertad Mine, Nicaragua (B2Gold 100%) 
La Libertad Mine is projected to produce approximately 131,000 to
137,000 ounces of gold in 2013 at an operating cash cost of
approximately $560 to $590 per ounce. Gold production for the first
half of 2013 is estimated to total approximately 56,000 to 59,000
ounces of gold at a cash operating cost of approximately $620 to $650
per ounce and for the second half approximately 75,000 to 78,000
ounces of gold at a cash operating cost of approximately $515 to $545
per ounce. Cash from mining operations at La Libertad Mine is
projected at approximately $135 million (at $1,600 per ounce gold
price).  
Gold production in 2013 at La Libertad is budgeted to be
approximately 30% higher in the second half of 2013 due to increased
mill through-put as a result of expanding the mill capacity by 10%,
and higher grade ore from the Santa Maria and Jabali open pits, and
higher gold recoveries. The Libertad Mine is budgeted to process an
average of 5,743 tonnes of ore per day for a total of approximately
2.1 million tonnes of ore for the year at an average grade of 2.19
g/t gold.  
Operating cash costs for 2013 are budgeted to increase over 2012
budget due to higher strip ratios, higher energy, consumables, and
contractor costs. Offsetting these costs is the significant ounce
increase from the mill expansion and higher budgeted gold grade of
2.19 g/t and gold recoveries of 92%. 
The Company has budgeted capital costs at La Libertad in 2013,
totaling approximately $31.4 million. The majority of this capital
cost will be expended on preparation and equipment for surface mining
of the Jabali Central pit, pre-stripping at the Santa Maria, Mojon
and Jabali pits, and a mill expansion that will increase mill
through-put by 10%. 
Limon Mine, Nicaragua (B2Gold 95%) 
The Limon Mine is projected to produce approximately 54,000 to 58,000
ounces of gold in 2013 at an operating cash cost of approximately
$715 to $745 per ounce. Gold production for the first half of 2013 is
estimated to total approximately 26,000 to 28,000 ounces of gold at a
cash operating cost of approximately $710 to $740 per ounce and for
the second half approximately 28,000 to 30,000 ounces of gold at a
cash operating cost of approximately $720 to $750 per ounce. 
The increase in budgeted gold production in 2013 over 2012 is the
result of delivering higher grade ore primarily from the Santa Pancha
underground and Veta Nueva open pit to the mill and improved
through-put and recovery at the process plant by expanding the leach
tank capacity. In 2013 the Limon mine is budgeted to process
approximately 0.4 million tonnes of ore at an average grade of 4.30
g/t gold. Average gold recoveries are budgeted to increase to 91.81%
owing to a plant leach area expansion.  
Operating cash costs for 2013 have increased over 2012 due to
increasing costs for energy and consumables. This is partially offset
by delivering higher grade ore to the mill and improving process
facilities performance.  
In 2013, the Limon Mine is projected to generate approximately $40
million in cash from mining operations (assuming a gold price of
$1,600 per ounce). 
The Company plans to undertake capital expenditures at the Limon Mine
in 2013 totaling approximately $21.7 million. The majority of this
capital expenditure will fund underground mine development, mill
upgrades, plant expansion and development work on the Santa Pancha
and Pavon projects. 
B2Gold and CGA Merger Transaction Update 
On September 19, 2012, B2Gold announced that the Company and CGA had
entered into a definitive Merger Implementation Agreement to combine
the two companies at the agreed exchange ratio of 0.74 B2Gold common
shares for each CGA share held. The transaction was valued at
approximately C$1.1 billion at the time of the announcement.  
The B2Gold / CGA Transaction was approved by an overwhelming majority
of both B2Gold and CGA shareholders on December 20, 2012 and December
24, 2012 respectively, pursuant to which B2Gold will acquire all of
the issued and outstanding shares of CGA. On January 16, 2013, final
approval of the Supreme Court of Western Australia was received. The
record date for determining the holders of CGA shares entitled to
receive B2Gold common shares under the scheme of arrangement is
January 23, 2013. The Transaction will be fully implemented on
January 31, 2013, including the issuance of B2Gold common shares to
former CGA shareholders. 
Upon completion of the transaction, B2Gold will operate the Masbate
gold mine in in the Philippines, in addition to B2Gold's existing
Limon and La Libertad gold mines in Nicaragua. B2Gold becomes a new
intermediate gold producer, achieving geographic and operational
diversity while contributing significant cash and future cash flow
towards the Company's exciting development projects.  
The Masbate gold mine is projected to produce approximately 200,000
ounces of gold annually over the current mine life of 15 years with
the potential to extend beyond current projections given the
significant exploration upside. B2Gold's management and technical
teams look forward to working with the highly experienced Masbate
management team and employees to continue to optimize mine operations
and unlock the ultimate potential of the property. 
The Masbate deposit has measured and indicated mineral reserves of
204.3 million tonnes at 0.76 g/t gold containing 5.1 million ounces
of gold and an inferred mineral resource of 102.8 million tonnes at
0.86 g/t gold containing 2.8 million ounces of gold (based on the NI
43-101 Technical Report filed on sedar by CGA on June 21, 2012). 
The Masbate gold mine disclosure in this news release was provided by
CGA and is consistent with the Scheme of Arrangement document
released by CGA on November 23, 2012 pertaining to the B2Gold / CGA
transaction. B2Gold intends, subject to the closing of the
Transaction on January 31, 2013, to release updated reserves and
resources and production guidance for the Masbate gold mine in the
next few months.  
With the completion of the B2Gold / CGA Transaction, B2Gold is
projecting gold production in 2013 of approximately 385,000 ounces
and approximately 400,000 ounces in 2014 from La Libertad, Limon and
Masbate Mines. With the first full year of gold production from the
Otjikoto project in Namibia scheduled for 2015, and increased
production projected from La Libertad Mine, the Company is projecting
2015 gold production of 550,000 ounces, based on current assumptions.
Finally, with the successful completion of the Gramalote project
(B2Gold 49% / AngloGold Ashanti Limited 51%) in Colombia(2), gold
production could increase to approximately 750,000 ounces in 2017. 


 
2.  Subject to the completion of a feasibility study, permitting and
    financing

 
B2Gold's strong financial position and anticipated future operating
cash flows, combined with the recently signed $150 million committed
Facility term sheet, are expected to provide the Company with
sufficient financial resources to continue to advance its development
and exploration projects and fund all capital requirements in 2013,
while retaining a strong cash position. 
With our proven technical team, strong operational performance,
financial strength and high quality development and exploration
projects, B2Gold is well positioned to continue our rapid growth as
an intermediate gold producer. 
B2Gold will announce an update on exploration results and 2013
exploration and development programs and budgets in the next few
weeks.  
Tom Garagan, Senior Vice President of Exploration, is a Qualified
Person for B2Gold Corp. as defined by National Instrument 43-101. 
ON BEHALF OF B2GOLD CORP. 
Clive T. Johnson, President and Chief Executive Officer 
For more information on B2Gold please visit the Company web site at
www.b2gold.com. 
Cautionary Statements on Forward-Looking Information: Statements in
this news release are forward-looking statements within the meaning
of the United States Private Securities Litigation Reform Act of 1995
and forward-looking information within the meaning of Canadian
securities laws (collectively "forward-looking statements"). All
statements, other than statements of historical fact, are
forward-looking statements. Generally, forward-looking statements can
be identified by the use of words or phrases such as; "expects",
"anticipates", "plans", projects", "estimates", "assumes", "intends",
" "objectives", "potential" or variations thereof, or stating that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved, or the negative of any of
these terms or similar expressions. These forward-looking statements
are subject to a variety of known and unknown risks, uncertainties
and other factors that could cause actual events or results to differ
from those expressed or implied, including, without limitation, risks
relating to: changes in economic conditions or financial markets;
changes in prices for the Company's mineral products or increases in
input costs; uncertainty of production and cost estimates for the
Otjikoto Project; risks and uncertainties associated with new mining
operations including start-up delays and operational issues;
litigation, legislative, tax (including employee profit sharing
arrangements), environmental and other judicial, regulatory,
political and competitive developments in Canada, Namibia and other
jurisdictions in which the Company may carry on business; labour
relations matters; and foreign exchange rate fluctuations, as well as
other factors described in the Company's most recent annual
information form filed with Canadian regulatory authorities. 
This list is not exhaustive of the factors that may affect any of the
Company's forward-looking statements. The Company's forward-looking
statements are based on what the Company's management considers to be
reasonable assumptions, beliefs, expectations and opinions based on
information currently available to management. We cannot assure you
that actual events, performance or results will be consistent with
these forward looking statements, and management's assumptions may
prove to be incorrect. You are cautioned that the foregoing list is
not exhaustive of all factors and assumptions which may have been
used. The Company's forward looking statements reflect current
expectations regarding future events and operating performance and
speak only as of the date hereof and the Company does not assume any
obligation to update forward-looking statements if circumstances or
management's beliefs, expectations or opinions should change other
than as required by applicable law. For the reasons set forth above,
you should not place undue reliance on forward-looking statements. 
The Toronto Stock Exchange neither approves nor disapproves the
information contained in this News Release. 
Contacts:
B2Gold Corp.
Ian MacLean
Vice President, Investor Relations
604-681-8371 
B2Gold Corp.
Kerry Suffolk
Manager, Investor Relations
604-681-8371
www.b2gold.com.
 
 
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