B2Gold has announced that its 100% owned Gramalote gold project in Antioquia, Colombia, will require an estimated construction capital expenditure (capex) of $740m.
This figure, based on the results of a feasibility study, includes approximately $73m earmarked for mining equipment and $81m set aside as a contingency. The open-pit mine is projected to operate for 11 years initially, with mill processing planned over a span of 13 years.
The feasibility study indicates an average processing grade of 1.23g per tonne of gold during the first five years, and an overall average of 0.96g per tonne throughout the project’s life.
The expected gold production over the lifetime of the project is approximately 2.3 million ounces, with an average recovery rate of 95.7% achieved through conventional processes including milling, flotation, and cyanide leaching.
Annual production at the Gramalote gold project is forecasted at around 227,000 ounces for the initial five years, reducing to about 177,000 ounces annually thereafter.
Projected all-in sustaining costs stand at $985 per ounce over the project’s duration.
The feasibility study also highlights the strong economic potential of the project, estimating an after-tax net present value (NPV) of $941m with a gold price of $2,500 per ounce and a discount rate of 5%. This projects an internal rate of return (IRR) of 22.4% and a payback period on pre-production capital of 3.4 years.
At a spot gold price of approximately $3,300 per ounce, the NPV could increase to $1.7bn with an IRR of 33.5%, shortening the payback period to 2.4 years.
Extensive drilling and engineering studies have significantly reduced risks associated with future development phases at Gramalote. More than 270,000m of drilling have been completed, providing B2Gold with a detailed mineral resource model.
Previous studies support the current mining permit for a larger-scale operation, though modifications will be required to accommodate the medium-scale project outlined in the feasibility study.
B2Gold anticipates that permit modifications will take approximately 12 to 18 months to secure. Following B2Gold’s consolidation of Gramalote in October 2023, further reviews identified cost-saving opportunities in developing a medium-scale operation.
Situated about 230km northwest of Bogota and roughly 100km northeast of Medellin, the Gramalote project’s feasibility study was finalised with an effective date of 1 April 2025.
The study assesses potential gold recovery from an open-pit mining operation designed to process up to approximately 97,000 tonnes per day through various methods including crushing, grinding, flotation and leaching processes.
