B2Gold Announces Positive Preliminary Economic Assessment Results for the Gramalote Project; After-Tax NPV (5%) of $778 Million with an After-Tax IRR of 20.6%
News Release
B2Gold Announces Positive Preliminary Economic Assessment Results for the Gramalote Project; After-Tax
NPV (5%) of $778 Million with an After-Tax IRR of 20.6%
Vancouver, BC, June 18, 2024 – B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G)
(“B2Gold” or the “Company”) is pleased to announce the results of a positive Preliminary Economic
Assessment (“PEA”) prepared in accordance with National Instrument 43-101 (“NI 43-101”) on its 100%
owned Gramalote gold project located in the Department of Antioquia, Colombia (the “Gramalote
Project”). All dollar figures are in United States dollars unless otherwise indicated.
Highlights
• Significant gold production profile with low -cost structure and favorable metallurgical
characteristics
o Open pit gold mine with an initial life of mine of 10 years, with mill processing over 12.5
years (“Life of Project”)
o Average grade processed of 1.2 6 grams per tonne (“ g/t”) gold over the first five years,
benefitting from the processing of the higher-grade core at the Gramalote Project; Life of
Project average grade processed of 1.00 g/t gold
o Life of Project gold production of approximately 2.3 million ounces with an average gold
recovery of 95.9% from conventional milling, flotation and cyanide leach of the flotation
concentrate
o Average annual gold production of approximately 234,000 ounces per year for the first five
years of production
▪ Average annual gold production of approximately 185,000 ounces per year over
the Life of Project
o Projected lowest quartile all-in sustaining costs (“AISC”) of $886 per gold ounce over the
Life of Project
o Annual processing rate of 6.0 million tonnes per annum (“Mtpa”)
• Strong project economics
o Life of Project after-tax free cash flow of $1.38 billion
o Assuming a discount rate of 5.0%, net present value (“NPV”) after -tax of $778 million,
generating an after-tax internal rate of return (“IRR”) of 20.6%, with a project payback on
pre-production capital of 3.1 years
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o Estimated pre-production capital cost of $807 million (includes approximately $93 million
for mining equipment and $63 million for contingency)
• Robust amount of historical drilling and engineering studies have been completed on
Gramalote, which significantly de-risks future project development
o Over 270,000 meters of historical drilling, providing B2Gold with a robust mineral
resource model
o Gramalote has a long history of studies and technical reports which supported the existing
mining permit that is currently in place
o As well, specific mining, processing, infrastructure, environmental, and social studies have
been historically completed. Extensive metallurgical test work has demonstrated high gold
recoveries (approximately 96%) at a coarse grind size for the selected processing flow
sheet. This provides a high level of confidence in the engineering, production and operating
cost estimates contained in the PEA
• Gramalote benefits from strong local community and government support
o An existing mining permit is currently in place on a larger-scale project; this permit will
require modification to reflect the new medium-scale project contemplated in the PEA
o B2Gold anticipates the permit modification time frame will be between 12 and 18 months
from submission to the permit authorities
• B2Gold to commence feasibility work with the goal of completing a feasibility study by mid-
2025
PEA Overview
The Gramalote Project is located in central Colombia, approximately 230 kilometers (“km”) northwest of
Bogota and 1 00 km northeast of Medellin, in the Province of Antioquia , which has expressed a positive
attitude towards the development of responsible mining projects in the region. Based on the preliminary
results completed in 2022 of the contemplated large -scale project with AngloGold Ashanti Limited
(“AngloGold”), the project did not meet the combined investment return thresholds for development by
both 50% ownership partners , B2Gold and AngloGold. As a result, B2Gold and AngloGold explored
alternatives for the project which resulted in B2Gold acquiring AngloGold’s 50% interest in the Gramalote
Project, resulting in a sole owner of the Gramalote Project for the first time in recent history . Post
consolidation, B2Gold completed a detailed review of the Gramalote Project, including the higher-grade
core of the resource, facility size and location, power supply, mining and processing options, tailings design,
resettlement, potential construction sequenci ng and camp design to identify potential cost savings to
develop a medium-scale project. The results of the review allowed the Company to determine the optimal
parameters and assumptions for the PEA.
The PEA, with an effective date of April 1, 2024, was prepared by B2Gold and evaluates recovery of gold
from an open pit mining operation that will move up to approximately 97,000 tonnes per day (“tpd”) (35.3
Mtpa), with a n approximately 16,500 tpd (6.0 Mtpa) processing plant that includes crushing, grinding,
flotation, with fine grinding of the flotation concentrate and agitated leaching of the flotation concentrate
followed by a carbon-in-pulp recovery process to process doré bullion. The Mineral Resource estimate for
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the Gramalote Project that forms the basis for the PEA includes Indicated Mineral Resources of 192.2
million tonnes grading 0.68 g/t gold for a total of 4,210,000 ounces of gold and Inferred Mineral Resources
of 85.4 million tonnes grading 0.54 g/t gold for a total of 1,480,000 ounces of gold.
The PEA assumptions include revenues using a gold price of $2,200 per ounce for the first three years of
production and $2,000 per ounce over the remaining Life of Project, a fuel price between the current prices
and the expected post-subsidy price, and current prices for reagents, labour, power and other consumables.
The key parameters of the PEA are presented in the following tables:
Table 1 - Key Parameters of the PEA
First Five Years Life of Project
Production Profile
Years 5.0 12.5
Ore tonnes processed (Mt) 30.0 75.0
Average gold grade processed (g/t) 1.26 1.00
Gold recovery (%) 96.2 95.9
Gold ounces produced (oz) 1,169,000 2,309,000
Average annual gold production (oz) 234,000 185,000
Operating Costs
Cash operating costs1 ($/oz gold) 510 622
All-In Sustaining Costs2 ($/oz gold) 822 886
Mining cost ($/t mined) 2.25 2.40
Processing cost ($/t processed) 7.76 7.82
General & administration ($/t processed) 3.03 3.49
Capital Costs
Pre-production capital ($M) 807
Sustaining capital ($M) 364
Notes:
1. Cash operating costs consist of mining costs, processing costs and site G&A.
2. AISC consist of cash operating costs , royalties, corporate G&A, selling costs and silver credits and excluding pre -
production capital costs.
Table 2 – Pre-Production Capital Estimate
($M)
Mining pre-strip 19
Tailings storage facility 28
Process plant 263
Mining equipment 93
Infrastructure (roads, platform, river diversion, camp, etc.) 177
Owners / management cost 103
Other (resettlement, general, light vehicles) 62
Subtotal 745
Contingency 63
Total 807
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Table 3 – Project Economics Summary
$2,200/oz (First Three Years), $2,000/oz Long-Term Gold Price
After-Tax
NPV5.0% ($M) 778
IRR (%) 20.6%
Payback (years) 3.1
Free cash flow ($M) 1,376
Note:
1. NPV5.0% is calculated as of the start of construction expenditure.
Chart 1 – Production and Cost Profile by Year
Chart 2 – Free Cash Flow by Year
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
0
50,000
100,000
150,000
200,000
250,000
300,000
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13
AISC (US$/oz)
Gold Production (oz)
Gold Production (oz) AISC (US$/oz)
($400)
($300)
($200)
($100)
$0
$100
$200
$300
$400
Year -2 Year -1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13
Free Cash Flow (US$M)
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Based on the positive results from the PEA, B2Gold believes that the Gramalote Project has the potential
to become a medium-scale, low -cost, open pit gold mine. The Gramalote Project has several key
infrastructure advantages, including:
• Reliable water supply – high rainfall region and located next to the Nus River
• Adjacent to a national highway, which connects directly to Medellin and to a major river with
port facilities, capable of bringing supplies by barge to within 70 km of the site
• Skilled labour workforce within Colombia
In addition, B2Gold expects the Gramalote Project to benefit from several key operational advantages,
including:
• Excellent metallurgical characteristics of the ore, which results in high recovery rates at low
processing costs
• Relatively low strip ratio (3.3:1 strip ratio over the Life of Project)
• Ability to mine and process higher-grade ore in the initial years of the mine life resulting in
improved project economics
The PEA is subject to a number of assumptions and risks, including among others that a Modified
Environmental Impact Study will be approved, all required permits , permit amendments and other rights
will be obtained in a timely manner, the Gramalote Project will have the support of the local government
and community, the regulatory environment will remain consistent , that Gramalote can operate under a
single company free trade zone in Colombia, and no material increase will have occurred to the estimated
costs.
The PEA is preliminary in nature and includes a small amount of Inferred Mineral Resources that are
considered too speculative geologically to have the economic considerations applied to them that would
enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA based on these
Mineral Resources will be realized. Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
Economic Sensitivities
Gramalote is a medium-scale, low operating cost project and sensitive to the gold price, as demonstrated
in the following table:
Table 4 – Economic Sensitivity to Long-Term Gold Price
Long-Term
Gold Price
($/oz)
After-Tax NPV5.0%
($M)
After-Tax IRR
(%)
$1,600 310 12.0
$1,800 544 16.5
$2,000 778 20.6
$2,200 1,012 24.4
$2,400 1,246 27.9
Note:
1. Gold price used in the first three years of production is $200 per ounce higher than long -term gold price in economic
sensitivity analysis.
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Gramalote Project Mineral Resource Estimate
The Mineral Resource estimate for the Gramalote Project has an effective date of December 31, 2023, and
is reported using a gold price of $1,850.
Indicated Mineral Resource Estimate
Category Tonnes Gold Grade
(g/t)
Contained Gold
Ounces
Total Indicated Resources 192,220 0.68 4,210,000
Inferred Mineral Resource Estimate
Category Tonnes Gold Grade
(g/t)
Contained Gold
Ounces
Total Inferred Resources 85,370 0.54 1,480,000
Notes:
1. Mineral Resources have been classified using the CIM standards.
2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There is no guarantee
that all or any part of the Mineral Resource will be converted into a Mineral Reserve. Inferred Resources are considered
too geologically speculative to have mining and economic considerations applied to them that would enable them t o be
categorized as Mineral Reserves.
3. All tonnage, grade and contained metal content estimates have been rounded; rounding may result in apparent summation
difference between tonnes, grade and contained metal content.
4. The Qualified Person for the Mineral Resource estimate is Andrew Brown, P .Geo., B2Gold’ s Vice President, Exploration.
5. Mineral Resources assume an open pit mining method and are reported within a conceptual pit based on a gold price of
US$1,850/oz, metallurgical recovery of 81.7–84% for oxide and 90.9– 97.6% for sulphide, selling costs of US$62.04/oz
including royalties an d levies, and operating cost estimates of US$2.36 –US$2.61/t mined (average mining cost),
US$5.39–US$5.47 for oxide, US$8.39–US$8.49/t for sulphide processed (processing) and US$2.10/t processed (general
and administrative).
6. Mineral Resources are reported at cut-off grades of 0.16 g/t Au for oxide and 0.19 g/t Au for sulphide.
Gramalote Project Next Steps
B2Gold plans to commence feasibility work with the goal of completing a feasibility study by mid-2025.
Due to the work completed for previous studies, the work remaining to finalize a feasibility study for the
updated medium-scale project is not extensive. The main work programs for the feasibility study include
geotechnical and environmental site investigations for the processing plant and waste dump footprints, as
well as capital and operating cost estimates.
The Gramalote Project will continue to advance resettlement programs, establish coexistence programs for
small miners, work on health, safety and environmental projects and continue to work with the government
and local communities on social programs.
Due to the desired modifications to the processing plant and infrastructure locations , a Modified
Environment Impact Study is required. B2Gold has commenced work on the modifications to the
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Environment Impact Study and expect it to be completed and submitted shortly following the completion
of the feasibility study. If the final economics of the feasibility study are positive and B2Gold makes the
decision to develop the Gramalote Project as an open pit gold mine, B2Gold would utilize its proven internal
mine construction team to build the mine and mill facilities.
About B2Gold
B2Gold is a low-cost international senior gold producer headquartered in Vancouver, Canada. Founded in
2007, today, B2Gold has operating gold mines in Mali, Namibia and the Philippines, the Goose Project
under construction in northern Canada and numerous development and exploration projects in various
countries including Mali, Colombia and Finland. B2Gold forecasts total consolidated gold production of
between 860,000 and 940,000 ounces in 2024.
Qualified Persons
Bill Lytle, Senior Vice President and Chief Operating Officer, a qualified person under NI 43 -101, has
approved the scientific and technical information related to operations matters contained in this news
release.
Andrew Brown, P. Geo., Vice President, Exploration, a qualified person under NI 43-101, has approved the
scientific and technical information related to exploration and mineral resource matters contained in this
news release.
ON BEHALF OF B2GOLD CORP.
“Clive T. Johnson”
President and Chief Executive Officer
For more information on B2Gold please visit the Company website at www.b2gold.com or contact:
Michael McDonald Cherry DeGeer
VP, Investor Relations & Corporate Development Director, Corporate Communications
+1 604-681-8371 +1 604-681-8371
[email protected] [email protected]
The Toronto Stock Exchange and NYSE American LLC neither approve nor disapprove the information contained in
this news release.
Production results and production guidance presented in this news release reflect total production at the mines B2Gold
operates on a 100% project basis. Please see our Annual Information Form dated March 14, 2024, for a discussion
of our ownership interest in the mines B2Gold operates.
This news release includes certain "forward -looking information" and "forward -looking statements" (collectively
forward-looking statements") within the meaning of applicable Canadian and United States securities legislation,
including: projections; outlook ; guidance; forecasts; estimates; and other statements regarding future or estimated
financial and operational performance, gold production and sales, revenues and cash flows, and capital costs
8
(sustaining and non-sustaining) and operating costs, including projected cash operating costs and AISC, and budgets
on a consolidated and mine by mine basis; future or estimated mine life, metal price assumptions, ore grades or
sources, gold recovery rates , stripping ratios, throughput, ore processing; statements regarding anticipated
exploration, drilling, development, construction, permitting and other activities or achievements of B2Gold; and
including, without limitation: remaining well positioned for c ontinued strong operational and financial performance
in 2024; projected gold production, cash operating costs and AISC on a consolidated and mine by mine basis in 2024;
total consolidated gold production of between 860,000 and 940,000 ounces (including 40 ,000 to 50,000 attributable
ounces from Calibre Mining Corp. (“Calibre”)) in 2024; the results and estimates in the Gramalote PEA, including
the project life, average annual gold production, total gold production, processing rate, capital cost, net present value,
after-tax net cash flow and payback; the potential to convert existing inferred resources to the indicated category; the
timing to complete a feasibility study on the Gramalote Project; the completion and results of a feasibility study on
the Gramalote Project; receipt of a final approved Modified Environment Impact Study; the potential to develop the
Gramalote Project as an open pit gold mine; and B2Gold's attributable share of Calibre's production. All statements
in this news release that address events or developments that we expect to occur in the future are forward -looking
statements. Forward-looking statements are statements that are not hi storical facts and are generally, although not
always, identified by words such as "expect", "plan", "anticipate", "project", "target", "potential", "schedule",
"forecast", "budget", "estimate", "intend" or "believe" and similar expressions or their negative connotations, or that
events or conditions "will", "would", "may", "could", "should" or "might" occur. All such forward-looking statements
are based on the opinions and estimates of management as of the date such statements are made.
Forward-looking statements necessarily involve assumptions, risks and uncertainties, certain of which are beyond
B2Gold's control, including risks associated with or related to: the volatility of metal prices and B2Gold's common
shares; changes in tax laws; the dangers inherent in exploration, development and mining activities; the uncertainty
of reserve and resource estimates; not achieving production, cost or other estimates; actual production, development
plans and costs differing materially from the est imates in B2Gold's feasibility and other studies; the ability to obtain
and maintain any necessary permits, consents or authorizations required for mining activities; environmental
regulations or hazards and compliance with complex regulations associated w ith mining activities; climate change
and climate change regulations; the ability to replace mineral reserves and identify acquisition opportunities; the
unknown liabilities of companies acquired by B2Gold; the ability to successfully integrate new acquisi tions;
fluctuations in exchange rates; the availability of financing; financing and debt activities, including potential
restrictions imposed on B2Gold's operations as a result thereof and the ability to generate sufficient cash flows;
operations in foreign and developing countries and the compliance with foreign laws, including those associated with
operations in Mali, Namibia, the Philippines and Colombia and including risks related to changes in foreign laws and
changing policies related to mining and lo cal ownership requirements or resource nationalization generally; remote
operations and the availability of adequate infrastructure; fluctuations in price and availability of energy and other
inputs necessary for mining operations; shortages or cost increa ses in necessary equipment, supplies and labour;
regulatory, political and country risks, including local instability or acts of terrorism and the effects thereof; the
reliance upon contractors, third parties and joint venture partners; the lack of sole decision-making authority related
to Filminera Resources Corporation, which owns the Masbate Project; challenges to title or surface rights; the
dependence on key personnel and the ability to attract and retain skilled personnel; the risk of an uninsurable o r
uninsured loss; adverse climate and weather conditions; litigation risk; competition with other mining companies;
community support for B2Gold's operations, including risks related to strikes and the halting of such operations from
time to time; conflict s with small scale miners; failures of information systems or information security threats; the
ability to maintain adequate internal controls over financial reporting as required by law, including Section 404 of
the Sarbanes-Oxley Act; compliance with anti-corruption laws, and sanctions or other similar measures; social media
and B2Gold's reputation; risks affecting Calibre having an impact on the value of the Company's investment in
Calibre, and potential dilution of our equity interest in Calibre; as well as other factors identified and as described in
more detail under the heading "Risk Factors" in B2Gold's most recent Annual Information Form, B2Gold's current
Form 40-F Annual Report and B2Gold's other filings with Canadian securities regulators and the U.S. Securities and