The feasibility study for the Colombian gold project has been completed and both mining companies agreed that it does not meet their investment thresholds for the development of the mine at this time
Gramalote gold project to be divested by AngloGold and B2Gold. (Credit: AnglogoldAshanti)
Canadian mining company B2Gold and South African gold miner AngloGold Ashanti have decided to initiate a joint sales process for their co-owned Gramalote gold project in Colombia.
The companies plan to begin a joint sales process for the Colombian gold project in Q4 2022.
The Gramalote gold project is located about 230km northwest of Bogota and 120km northeast of Medellin in central Colombia. It is operated by B2Gold with a 50% interest, while the remaining 50% is held by AngloGold Ashanti.
Following the completion of a comprehensive review of the alternatives for the Gramalote gold project, the joint venture partners concluded that it would be in the best interest of all the stakeholders to find a buyer.
The feasibility study for the gold project has been completed and both mining companies agreed that it does not meet their investment thresholds for the development of the mine at this time.
The decision was made on the basis of the preliminary results of an optimised feasibility study for the Gramalote gold project.
The results of detailed resource modelling by the miners indicated that the grade-tonnage characteristics of the ore body will yield lower-than-expected processing head grade and annual ounce production. This is particularly expected within the first five years of production, which includes the payback period, stated B2Gold.
The Canadian miner stated: “The Gramalote Project continues to benefit from government support as well as continuing support from local communities.”
Earlier this year, the Vancouver-based mining company entered into a binding scheme implementation deed (SID) to acquire Australia-based Oklo Resources in a deal worth around $56m.