The updated PEA outlines an openpit gold mine with an initial 13.6-year mine life based on current indicated and inferred resources for average gold production of 416,600oz/year for the first five full years of production and 283,990oz/y overall from an operation processing a 30,137 tonnes per day (11 million tonnes per year), with 94.3% gold recovery expected from a conventional milling, flotation and cyanide leach process.
The mine would have an estimated all-in sustaining cost of US$648/oz at a gold price of $1,350/oz, following an initial capital expenditure of $901 million, yielding after-tax net present value of $671 million at a 55% discount rate and an internal rate of return of 18.1%.
The new PEA features accelerated mining during the early years of production to provide higher-grade feed to the plant while stockpiling lower grade material. B2Gold plans to continue ongoing feasibility work to optimise the PEA results with a feasibility study expected in December.
B2Gold has agreed to sole fund the next $13.9 million of expenditures on Gramalote, following which B2Gold and AngloGold will each hold a 50% ownership interest. B2Gold currently has a 48.3% interest.
Exploration drilling is ongoing at the Trinidad deposit, with additional drilling at the Monjas zone to commence later in 2020. B2Gold is completing about 42,500m of infill drilling at Gramalote Ridge to convert inferred resources to the indicated category, and 7,645m of geotechnical drilling for site infrastructure.
Shares in B2Gold are trading at C$5.35, valuing the company at $5.6 billion.
Shares in AngloGold Ashanti are trading at US$20.35, valuing the company at $8.5 billion.