B2Gold's Gramalote Project: Transforming Feasibility Insights

B2Gold's Groundbreaking Feasibility Study for Gramalote

With an impressive after-tax Net Present Value (NPV) of $941 million at a gold price of $2,500 per ounce, B2Gold Corp. (NYSE: BTG, TSX: BTO, Namibian: B2G) has revealed promising results from its Feasibility Study (FS) on the Gramalote project. The study indicates a bright future for this gold mining endeavor, with the potential to significantly impact the company's overall production and profitability.

Key Highlights of the Feasibility Study

The Gramalote project boasts a compelling gold production profile supported by favorable metallurgical characteristics:

Gold Production Profile

• Open-pit design with an initial operational lifespan of 11 years, along with a mill processing schedule extending through 13 years.
• A remarkably high average grade of 1.23 grams per tonne (g/t) in the initial five years, tapering to 0.96 g/t over the project's life.
• Estimated total gold production of about 2.3 million ounces over the project's lifespan, coupled with an admirable recovery rate of 95.7% through conventional milling processes.
• On average, the project expects to yield around 227,000 ounces annually in the early years, tapering to approximately 177,000 ounces per year over its lifetime.
• The all-in sustaining costs remain manageable at $985 per gold ounce throughout the project's life.

Strong Project Economics

Financial feasibility remains robust, with projected after-tax free cash flow of $1.67 billion assuming a $2,500 gold price, and an impressive $2.81 billion with spot gold at approximately $3,300 per ounce. The Feasibility Study indicates a strong economic outlook:

• The after-tax NPV at a 5% discount stands at $941 million, contributing to an Internal Rate of Return (IRR) of 22.4% with a payback period of 3.4 years.
• When considering the spot gold price, the NPV skyrockets to $1.716 billion with an IRR of 33.5%, reducing the payback period to 2.4 years.

Operational Insights from Extensive Studies

B2Gold has conducted extensive drilling and engineering studies amounting to over 270,000 meters. This significant effort substantially de-risks the Gramalote project and establishes confidence in its viability:

• The project has a long history of studies, leading to the acquisition of necessary mining permits.
• Thorough metallurgical tests indicate robust recoveries, supporting the environmental and operational pillars essential for project approval.

Community and Government Support

Strong support from the local community and the government enhances the project's credibility:

• Current mine plans and permits are in place for an expanded scale project, with modifications anticipated to account for the FS's recommendations.
• B2Gold expects a timeline for these modifications to be completed within 12 to 18 months.

Looking Forward: The Gramalote Project’s Potential

The Gramalote Project, located strategically in central Colombia, has undergone a meticulous evaluation that considers various operational and community aspects. Following B2Gold's consolidation of this project, critical insights have emerged about the optimal scale for processing and resource recovery.

Next Steps for the Gramalote Project

B2Gold plans to progress with vital community programs and enhancements in health, safety, and environment. Steps moving forward involve modifying the existing Environmental Impact Study and Work Plan, expected to be submitted by late 2025 and early 2026.

Conclusion

As a responsible senior gold producer, B2Gold stands poised to leverage the positive results from the Gramalote Feasibility Study, incorporating feedback from both stakeholders and the community. With a clear vision for sustainable mining, this project represents a promising opportunity for growth and impact in the gold production landscape.

Frequently Asked Questions

What is the Gramalote project?

The Gramalote project is a gold mining venture owned entirely by B2Gold located in Colombia, focusing on sustainable mining practices.

What were the key findings of the Feasibility Study?

The study revealed a solid after-tax NPV of $941 million, strong annual gold production estimates, and encouraging economic metrics such as cash flow and IRR.

How does B2Gold plan to engage with the local community?

B2Gold aims to enhance health, safety, and environmental standards while actively working on social programs in collaboration with local communities.

What are the expected timelines for project modifications?

The revised Environmental Impact Study and Work Plan are anticipated to be submitted by late 2025 and early 2026.

What does the future hold for B2Gold?

B2Gold forecasts production of between 970,000 to 1,075,000 ounces of gold in the upcoming years, focusing on sustainable practices across its operations.

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Hello, I'm 30-year-old financial writer and expert Addison Perry, and I love to simplify the intricacies of the financial industry. I've committed myself over the years to deciphering the subtleties of investing techniques and economic trends and converting them into doable guidance that anybody can use. My goal with writings and books is to make money interesting and approachable so that readers may take charge of their financial futures.

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