B2Gold expects to produce 120,000 to 130,000 gold ounces by 2010

It says both its mines in Nicaragua will be in operation by next year

(Reuters) - 

Canada's mid-tier gold explorer B2Gold Corp (BTO.TO: Quote) sees production of 120,000 ounces to 130,000 ounces in 2010, with both its mines in Nicaragua in operation.

Construction at B2Gold's Orosi mine was 95 percent complete and it expects to start production later this month, the company said in a statement.

It said the construction cost at Orosi mine, expected to produce an average of 80,000 ounces to 90,000 ounces a year on its commercial start, has gone up by 13% to $62 million.

B2Gold said its Limon mine in Nicaragua, where work was halted due to a labor dispute, was currently producing about 1,000 ounces a day and it was hopeful to resolve the issue.

Two of the workers' unions, are ready to return to work, representing about 46% of mine's work force, the company said in a statement.

In October, Nicaragua's ministry of labor had declared the strike at Limon mine to be illegal.

Shares of the company were up 4 Canadian cents at 79 Canadian cents Wednesday morning on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Unnikrishnan Nair)

© Thomson Reuters 2009 All rights reserved

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