B2Gold restarts Masbate after 17-day shutdown

2013-06-24 08:13 ET - News Release

Mr. Clive Johnson reports

UPDATE ON MASBATE GOLD MINE PRODUCTION B2GOLD SHARES LISTED ON THE NYSE MKT

On June 5, 2013, B2Gold Corp.'s Masbate operations in the Philippines suspended processing after observing minor leaks in the process plant tailings line. Subsequent wear measurement resulted in the decision to replace the steel line, which has been completed. Production recommenced on June 22, 2013.

Prior to this unforeseen event, Masbate mine gold production was 1,800 ounces ahead of B2Gold forecasts for the quarter. Due to the suspension of operations, production for the second quarter is estimated to be approximately 7,000 ounces of gold less than forecast. This production loss will be offset with a modification of the mining sequence that had been in development prior to this event, centred on the Colorado pit. Therefore, B2Gold guidance for the year, which is 175,000 to 185,000 ounces of gold, is unaffected.

Tailings line discharge was minimal, estimated to total less than 100 cubic metres of slurry and the leakage were contained within a designed emergency pond and ditch adjacent to the line. The emergency pond is specifically designed to contain tailings material in the event of a pipe rupture. Repairs to this section of pipe were immediately conducted and cleanup activities were undertaken. Extensive environmental monitoring of all potential areas of impact from these incidents was conducted during and after the incident, with no impacts detected. Monitoring will continue as the plant is restarted to confirm no additional impacts from this event.

The Department of Environment and Natural Resources, including the offices of the Mines and Geosciences Bureau and Environmental Management Bureau, was informed of the incident, with both offices subsequently visiting the operation. From these visits, no significant variation to works already completed or scheduled by the operation were required. Officials and nearby residents of the adjacent Barangay were also notified of the incident and were made aware of all remedial actions that were to be taken.

Investigations into the cause of these leaks, including ultrasonic testing, indicated premature internal wear of the tailings pipeline. Therefore, to eliminate the potential for similar events, the entire tailings pipeline was replaced. Replacement work proceeded 24 hours a day and is now complete. Before the recommencement of processing operations, the pipeline was hydrostatically tested for a period of 24 hours to ensure the integrity of the system. No other lines are impacted.

Inclusion to NYSE Arca Gold indexes

On June 7, 2013, B2Gold listed the company's shares on the NYSE MKT under the symbol BTG. Subsequent to the listing, B2Gold was added to the NYSE Arca Gold Miners Index (GDM) and the NYSE Arca Gold BUGS Index (HUI) effective Monday, June 24, 2013.