B2Gold Corp. Announces Positive Results from the Updated Preliminary Economic Assessment for the Gramalote Project in Colombia and Assumes Role of Manager of the Gramalote Joint Venture
News Release
B2Gold Corp. Announces Positive Results from the
Updated Preliminary Economic Assessment for the Gramalote Project in Colombia and
Assumes Role of Manager of the Gramalote Joint Venture
Vancouver, Canada, January 21, 2020 – B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX:
B2G) (“B2Gold” or the “Company”) is pleased to announce positive results from the Updated Preliminary
Economic Assessment (“PEA”) for the Gramalote Ridge deposit (“Gramalote Ridge”) at the Gramalote
gold project in Colombia (the “Gramalote Project ”), a joint venture between B2Gold and AngloGold
Ashanti Ltd (“AGA”). B2Gold assumed the role of manager of the Gramalote joint venture on January 1,
2020. All dollar figures are in United States dollars unless otherwise stated.
Highlights
• Assuming an effective date of January 1, 2020, and a gold price of $1,350 per ounce, Gramalote
Ridge project economic highlights from the PEA (100% basis) include:
o Open-pit gold mine with an initial life of mine (“LoM”) of 13.6 years based on current
Indicated and Inferred Mineral Resources (for Gramalote Ridge only)
o LoM gold production of 3.85 million ounces
o Average annual gold production of 416,600 ounces per year for the first five full years of
production
o Average annual gold production LoM of 283,990 ounces per year at cash operating costs of
$544 per ounce of gold
o Average LoM all-in sustaining costs (“AISC”) of $648 per ounce of gold, and average
LoM all-in costs (including pre-production capital costs) of $882 per ounce of gold
o Annual processing rate of 11.0 million tonnes per annum (“Mtpa”)
o Average LoM gold recovery of 94.3% from conventional milling, flotation and cyanide
leach of the flotation concentrate
o Estimated pre-production capital cost of $901 million (includes approximately $160
million for mining equipment)
o LoM pre-tax net cash flow of $1,827 million, and after-tax net cash flow of $1,283 million
o Assuming a discount rate of 5%, net present value (“NPV”) pre-tax of $1,027 million and
NPV after-tax of $671 million, generating an after-tax internal rate of return (“IRR”) of
18.1% at the project construction decision date (estimated to be January 1, 2021), with a
project payback (including construction capital) of 3.6 years
o Assuming a gold price of $1,500 per ounce and a discount rate of 5%, NPV pre-tax
increases to $1,394 million and NPV after-tax increases to $928 million, generating an
after-tax IRR of 21.9% at the project construction decision date (estimated to be January 1,
2021) and reducing the project payback (including construction capital) to 3.2 years
• Continue ongoing feasibility work to optimize the PEA results and a final feasibility study
expected to be completed by December 31, 2020
• Amended and restated shareholders agreement signed by B2Gold and AGA on December 23,
2019, under which B2Gold agreed to sole fund the next $13.9 million of expenditures on the
Gramalote Project, following which B2Gold and AGA will each hold a 50% ownership interest in
the joint venture (currently 48.3% B2Gold and 51.7% AGA)
• Exploration drilling is ongoing at the Trinidad deposit, with additional drilling at the Monjas zone
to commence later in 2020
The PEA is preliminary in nature and includes 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 econ omic
viability.
B2Gold is currently completing approximately 42,500 metres of infill drilling at Gramalote Ridge to
convert existing Inferred Mineral Resources to an Indicated category, and 7,645 metres of geotechnical
drilling for site infrastructure.
Gramalote Project Mineral Resource Estimate
The Mineral Resource e stimate for the overall Gramalote Project (100% basis), effective December 31,
2019, within a pit shell run at a gold price of $1,500 per ounce includes:
Indicated Mineral Resource Estimate
Area Tonnes
Gold Grade
(g/t)
Contained Gold
Ounces
Gramalote Sulphide 78,200,000 0.85 2,140,000
Total Indicated Resources 78,200,000 0.85 2,140,000
Inferred Mineral Resource Estimate
Area Tonnes
Gold Grade
(g/t)
Contained Gold
Ounces
Gramalote Oxide 6,000,000 0.61 120,000
Trinidad Oxide 3,100,000 0.55 50,000
Subtotal Oxide Inferred 9,100,000 0.59 170,000
Area Tonnes
Gold Grade
(g/t)
Contained Gold
Ounces
Gramalote Sulphide 105,600,000 0.70 2,370,000
Trinidad Sulphide 14,400,000 0.62 290,000
Subtotal Sulphide Inferred 120,100,000 0.69 2,660,000
Total Inferred Resources 129,200,000 0.68 2,830,000
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.
3. The Qualified Person for the Mineral Resource estimate is Tom Garagan, P.Geo., B2Gold’s Senior Vice President,
Exploration.
4. Mineral Resources are reported on a 100% project basis (B2Gold currently holds a 48.3% attributable interest with the
remaining 51.7% interest held by AGA).
5. Mineral Resources for Gramalote assume metallurgical re coveries of 83.9% for oxide and 95% for sulphide, and operating
cost estimates of an average mining cost of $2.13/t mined, processing cost of $3.35/t processed for oxide and $6.58/t process ed
for sulphide, general and administrative cost of $1.89/t process ed and selling cost of $50.52/oz produced.
6. Mineral Resources for Trinidad assume metallurgical recoveries of 81.7% for oxide and 90.9% for sulphide, and operating
cost estimates of an average mining cost of $1.82/t mined, processing cost of $3.35/t processed for oxide and $6.58/t process ed
for sulphide, general and administrative cost of $1.89/t processed and selling cost of $50.52/oz produced.
7. Mineral Resources for Gramalote and Trinidad are reported at cut -offs of 0.15 g/t gold for oxide and 0.20 g/t gold for
sulphide.
8. All tonnage, grade and contained metal content estimates have been rounded; rounding may result in apparent summation
differences between tonnes, grade and contained metal content.
PEA Overview
The Gramalote Project is located in central Colombia, approximately 230 kilometres (“km”) northwest of
Bogota and 120 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. The PEA was prepared by
B2Gold and evaluates recovery of gold from a an open-pit mining operation that will move up to 143,000
tonnes per day (“tpd”) (50.0 Mtpa), with a 30,137 tpd (11.0 Mtpa) processing plant that includes crushing,
grinding, flotation, with fine grinding of the flotation concentrate and agitated leaching of both the flotation
concentrate and the flotation tails, followed by a carbon-in-pulp recovery process to produce doré bullion.
The PEA is based solely on production from the Gramalote Ridge deposit and does not include potential
production from the nearby Trinidad deposit, which has a current Inferred Mineral Resource e stimate (see
above), and the Monjas West zone . The Mineral Resource estimate for Gramalote Ridge that forms the
basis for the PEA includes Indicated Mineral Resources of 7 0,110,000 tonnes grading 0.92 g/t gold for a
total of 2,070,000 ounces of gold and Inferred Mineral Resources of 79,030,000 tonnes grad ing 0.79 g/t
gold for a total of 2,010,000 ounces of gold.
The PEA updates and enhances the previous studies on the Gramalote Project in several areas, including:
• For Gramalote Ridge, additional drilling has been completed and a new Mineral Resource model
has been developed
• The PEA is based solely on Gramalote Ridge Mineral Resources, where previous studies included
mining and processing ore from the Trinidad deposit and the Monjas West zone
• Recent metallurgical test work has resulted in slightly lower processing costs and improved
economics
• The new Mineral Resource model for Gramalote Ridge includes new interpretations of higher
grade ore zones and has allowed more efficient mine optimization, which has resulted in higher
grade ore being fed to the plant during the first years of production, significantly improving project
economics
• Due to better defined high-grade zones in Gramalote Ridge in the block model, the overall gold
grade for the PEA is 0.85 g/t, which is significantly higher than previous studies
Accelerated mining is planned in the early years of production to provide higher grade feed to the plant
while stockpiling lower grade material. The final four years of plant feed are from low-grade stockpiles and
oxide ore. Oxide ore, which only makes up about 3% of the plant feed, will be stockpiled and processed at
the very end of the project life as blending this material with the fresh ore does not yield optimal gold
recoveries.
The PEA assumptions include revenues using a gold price of $1,350 per ounce and current prices for fuel,
reagents, labo ur, power and other consumables. The key parameters of the PEA are presented in the
following table (100% basis):
Production Profile
Contained gold ounces processed (Moz) 4.082
Gold recovery (%) 94.3
Average gold grade (g/t) 0.85
Gold ounces produced (Moz) 3.85
Average gold production for the first five years (oz) 416,600
Average annual gold production (oz) 283,990
Mine life (years) 13.6
Ore tonnes processed (Mt) 149
Waste material mined (Mt) 288
Waste to ore strip ratio 1.93
Project Economics - $1,350 /oz gold price
Construction capital ($M) 901
Sustaining capital ($M) 103
Gross gold revenue ($M) 5,198
Net cash flow (pre-tax) ($M) 1,827
Net cash flow (after tax) ($M) 1,283
NPV5.0% (pre-tax) ($M) 1,027
NPV5.0% (after tax) ($M) 671
IRR (after tax) (%) 18.1
Payback (years) 3.6
Unit Operating Costs
LoM cash operating costs (mining, processing and site G&A) ($/oz gold) 544
LoM AISC (cash operating costs + royalties, corporate G&A, selling costs and
silver credits and excluding pre-production capital costs) ($/oz gold)
648
LoM all-in costs (AISC and pre-production capital costs) ($/oz gold) 882
Average LoM mining cost ($/t mined) 2.16
Average LoM processing cost ($/t processed) 5.61
Based on the positive results from the PEA, B2Gold believes that the Gramalote Project has the potential
to become a large, low-cost open-pit gold mine, subject to completion of ongoing infill drilling and the
results of a final feasibility study expected by the end of 2020. The Gramalote Project has several key
infrastructure advantages, including:
• Reliable water supply – high rainfall region and located next to the Nus River
• Adjacent to a national highway, which connects directly to Medellin and to a major river with port
facilities, capable of bringing supplies by barge to within 70 km of the site
• Proximity to the national electricity grid with ample low-cost power and a stable record of
hydroelectric power
• Skilled labour workforce within Colombia
In addition, B2Gold expects the Gr amalote Project to benefit from several key operational advantages,
including:
• Excellent metallurgical characteristics of the ore, which results in high recovery rates at low
processing costs
• Relatively low strip ratio in the mine (1.9:1)
• Ability to mine and process higher grade ore in the initial years of the mine life resulting in
improved project economics
The PEA is subject to a number of assumptions and risks , including among others, that a Modified
Environment Impact Study and a Modified Project Implementation plan will be approved within the
required timeline, all required permits and other rights will be obtained in a timely manner, the Gramalote
Project will have the support of the local government and community, the regulatory environment will
remain consistent and no material increase will have occurred to the estimated costs.
Economic Sensitivities
Gramalote is a large, low- grade, low-cost project and sensitive to the gold price , as demonstrated in the
following table:
Gold Price
($/oz)
NPV5%
($M)
After Tax IRR
(%)
Pre-tax Post tax
$1,250 $783 $497 15.2%
$1,300 $905 $585 16.7%
$1,350 $1,027 $671 18.1%
$1,400 $1,150 $757 19.4%
$1,450 $1,272 $842 20.7%
$1,500 $1,394 $928 21.9%
$1,550 $1,516 $1,014 23.2%
$1,600 $1,638 $1,099 24.3%
$1,650 $1,761 $1,185 25.5%
Project Next Steps
B2Gold and AGA have agreed on a budget for the feasibility study on the Gramalote Project of
approximately $37 million through the end of 2020. This budget will fund 42,500 metres of infill drilling
to convert existing Inferred Mineral Resources to the Indicated category, and 7,645 metres of geotechnical
drilling for site infrastructure. The Company currently expe cts to complete all drilling by the end of May
2020. In addition, the budget will fund feasibility work including an updated Mineral Resource estimate,
detailed mine planning, ongoing environmental studies, additional metallurgical test work, engineering and
detailed economic analysis.
The Gramalote joint venture will continue to advance resettlement programs, establish coexistence
programs for small miners, work on health, safety and environmental projects and c ontinue to work with
government and local communities on social programs. B2Gold, as manager, plans to continue the
feasibility work with the goal of B2Gold completing a final feasibility study by December 31, 2020. Due
to the amount of work completed by AGA over the past several years, including extensive testing programs,
the work with local communities and small miners, and the high level of engineering performed in 2017
for an internal study, the work remaining to reach final feasibility is not extensive. The main work program
for feasibility is infill drilling to confirm and upgrade the Inferred Mineral Resources to the Indicated
category.
The Environmental Impact Study and Project Implementation Plans for the Gramalote Project have been
fully approved by the National Authority of Environmental Licenses of Colombia. Due to the desired
modifications to the processing plant and infrastructure locations, a Modified Environment Impact Study
and a Modified Project Implementation plan were submitted and are currently in the final approval process.
If the final economics of the feasibility study are positive and the joint venture makes the decision to develop
Gramalote as an open -pit gold mine, B2Gold would utilize its proven internal mine construction team to
build the mine and mill facilities and operate the mine on behalf of the joint venture.
Qualified Persons
Tom Garagan, Senior Vice President , Exploration at B2Gold, a qualified person under NI 43-101, has
approved the scientific and technical information regarding exploration matters and the Mineral Resource
estimate contained in this news release.
Bill Lytle, Senior Vice President, Operations at B2Gold, a qualified person under NI 43-101, has approved
the scientific and technical information related to operations matters contained in this news release. Mr.
Lytle has visited the Gramalote Project several times since 2009 and has reviewed the mining operations
and has reviewed the technical aspects of the PEA that form the basis for this news release.
About B2Gold Corp.
B2Gold is a low-cost senior gold producer headquartered in Vancouver, Canada. Founded in 2007, today,
B2Gold has three operating gold mines and numerous exploration and development projects in various
countries including the Philippines, Namibia, Mali and Colombia. In 2020, B2Gold forecasts consolidated
gold production of between 1,000,000 and 1,055,000 ounces.
ON BEHALF OF B2GOLD CORP.
"Clive T. Johnson"
President & Chief Executive Officer
For more information on B2Gold, please visit the Company website at www.b2gold.com or contact:
Ian MacLean Katie Bromley
Vice President, Investor Relations Manager, Investor Relations & Public Relations
+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 guidance presented in this news release reflects the total production at the mines B2Gold operates on a
100% basis. Please see our Annual Information Form, dated March 19, 2019 for a discussion of our ownership interest
in the mines B2Gold operates. In respect of La Libertad and El Limon, production guid ance is on a 34% attributed
basis (to reflect B2Gold’s approximate current ownership interest in Calibre).
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 sal es, revenues and cash flows, and capital costs
(sustaining and non-sustaining) and operating costs, including projected cash operating costs and AISC, and budgets;
statements regarding future or estimated mine life, metal price assumptions, ore grades or s ources, 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: consolidated gold production of between 1,000,000 and 1,055,000 ounces in 2020; the results of and
estimates in the Gramalote PEA, including the mine life, average annual gold production, total gold production,
processing rate, capital cost, net present value, pre-tax and 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 at Gramalote;
the completion and results of a feasibility study at Gramalote; receipt of the final approval of the Modified
Environment Impact Study and the Modified Project Implementation plan from all regulatory authorities, including
the National Authority of Environmental Licenses of Colombia; the potential to develop Gramalote as an open- pit
gold mine and any decision from the joint venture in respect thereof. Estimates of mineral resources and reserves are
also forward-looking statements because they constitute projections regarding the amount of minerals that may be
encountered in the future and/or the anticipated economics of production, should a production decision be made. All
statements in this news release that address events or developments that we expect to occur in the future are forward-
looking statements. F orward-looking statements are statements that are not historical facts and are generally,
although not always, identified by words such as “expect”, “plan”, “anticipate”, “project”, “target”, “potential”,
“schedule”, “forecast”, “budget”, “estimate”, “inte nd” 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 and uncertainties identified in the Gramalote PEA and 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
estimates 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 with mining activities; climate change and climate change regulations; the ability to replace
mineral reserves and identify acquisition opportunitie s; the unknown liabilities of companies acquired by B2Gold;
the ability to successfully integrate new acquisitions; 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 Colombia and including risks related to changes in foreign
laws and changing policies related to mining and local 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 increases 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; 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 or
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; conflicts with small scale miners; failures of inform ation systems or information security threats; the
outcome of the ongoing tax assessment by the Colombian Tax Office (DIAN) in respect of the Gramalote property;
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; 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 Exchange Commission (the
“SEC”), which may be viewed at www.se dar.com and www.sec.gov, respectively (the “Websites”). The list is not
exhaustive of the factors that may affect B2Gold’s forward-looking statements.
B2Gold’s forward-looking statements are based on the applicable assumptions and factors management consi ders
reasonable as of the date hereof, based on the information available to management at such time. These assumptions
and factors include, but are not limited to, assumptions contained in the Gramalote PEA and assumptions and factors
related to B2Gold’s ability to carry on current and future operations, including: development and exploration
activities; the timing, extent, duration and economic viability of such operations, including any mineral resources or
reserves identified thereby; the accuracy and reliability of estimates, projections, forecasts, studies and assessments;
B2Gold’s ability to meet or achieve estimates, projections and forecasts; the availability and cost of inputs; the price
and market for outputs, including gold; the timely receipt of necessary approvals or permits; the ability to meet current
and future obligations; the ability to obtain timely financing on reasonable terms when required; the current and
future social, economic and political conditions; and other assumptions and factors generally associated with the