Canaccord Morning Coffee (12/2/11)
"B2Gold reported more positive drill results from its Jabali zone
at its La Libertad mine in Nicaragua.
Highlighted holes include 6.9 m at 26.87 g/t drilled within the
eastern end of Jabali zone and 11.4 m of 13.52 g/t drilled in
western part of the Antenna zone. Step-out drilling as far as 100 m
west of Jabali returned 9.0 m of 2.99 g/t while west of the
Antenna zone returned 6.9 m of 3.54 g/t, 1.5 m of 13.8 g/t and 3.5
m of 5.23 g/t. Mineralization also hit as much as 250.0 m
beyond the western extent of current main Mojon vein pit, including
5.5 m of 10 g/t. Based on these positive results from Jabali
to date, the company has commenced full permitting, environmental
studies and metallurgical test work. Due to the increasing
size of the Jabali Zones, a new resource estimate for the Jabali
Central and Antenna deposits will now be completed by March
2012. B2Gold is projected to produce 93,000-99,000 ounces of gold
from La Libertad open-pit mine in 2011. The company also
noted that their Auryx Gold (AYX) transaction is proceeding well
with 13.5% of outstanding shares having been locked up thus
far with the Board recommending that shareholders approve the
transaction. The combination of B2Gold and Auryx will result
in B2Gold acquiring a 92% interest in the Otjikoto gold project in
Namibia and a 100% interest in two additional exploration
projects in Namibia. The Otjikoto gold project has forecast life of
mine annual production of approximately 100,000 ounces of
gold based on a Preliminary Economic Assessment released by Auryx
in September 2011 with significant exploration
upside. The vote is set for December 15, 2011."
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