Vancouver-based B2Gold has released a positive feasibility study for its 100%-owned Gramalote gold project in Antioquia, Colombia, projecting strong returns at both current and higher gold prices.
At a gold price of US$2,500 per oz., the project has an after-tax net present value (NPV) of US$941 million and an internal rate of return (IRR) of 22.4%. At spot prices of US$3,300 per oz., the after-tax NPV rises to US$1.72 billion, with an IRR of 33.5%.
The open-pit mine is expected to produce 2.3 million oz. over 13 years, with annual output averaging 227,000 oz. in the first five years. All-in sustaining costs are estimated at US$985 per oz. The study also estimates a construction capital cost of US$740 million.
B2Gold completed more than 270,000 metres of drilling and plans to update existing environmental permits to reflect the medium-scale project. The company expects this process to take 12 to 18 months.
The company expects to file a technical report relating to the FS, prepared in accordance with National Instrument 43-101 (NI 43-101), within 45 days.
