Name of the Project
Gramalote gold project.

Location
In the province of Antioquia, in Colombia.

Project Owner/s
The project is a joint venture between B2Gold and AngloGold Ashanti.

Project Description
B2Gold believes that the project has the potential to become a large, low-cost openpit gold mine.

An initial life-of-mine (LoM) of 10.6 years is envisaged.

Production is based solely on the indicated resource estimate of the Gramalote Ridge deposit of 173.4-million tonnes grading 0.73 g/t gold for 4.06-million ounces of gold.

The openpit operation will move up to 50-million tonnes a year, with an 11-million-tonne-a-year processing plant that includes crushing, grinding and flotation, with fine grinding of the flotation concentrate and agitated leaching of the flotation concentrate and the flotation tails, followed by a carbon-in-pulp recovery process to produce doré bullion.

LoM production is estimated at 2.97-million ounces. Average gold production of 347 000 oz/y is estimated for the first five full years of production.

Potential Job Creation
Not stated.

All-in Sustaining Cost
The project has an average LoM all-in sustaining cost of $648/oz gold, and average LoM all-in cost, including preproduction capital costs, of $882/oz gold.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $483-million and internal rate of return of 15% at the project construction decision date, with a project payback, including construction capital, of 3.5 years.

Capital Expenditure
Preproduction capital costs are estimated at $925-million, including about $160-million for mining equipment.

Planned Start/End Date
Not stated.

Latest Developments
The delivery of the feasibility study for the Gramalote project has been delayed to the second quarter of next year because of an increase in planned drilling and the impact of ongoing Covid-19 restrictions.

This is about a year later than what B2Gold initially planned for the Gramalote feasibility study, having said earlier that it would announce the results in April 2021, with a construction decision expected to be made shortly thereafter. A decision is now expected in mid-2022.

The 2021 feasibility study budget has also been revised to $69-million and an additional budget of $17-million is under consideration for the first quarter of 2022 to complete the final feasibility study and updated mineral resource estimate.

The revised 2021 budget is a $17-million increase over the initial 2021 Gramalote budget of $52-million.

B2Gold has said that a review of Gramalote’s feasibility study work to date has showed that there is potential to improve the economics of the project.

If the final economics of the feasibility study are positive, and B2Gold and AngloGold decide to develop Gramalote as an openpit gold mine, for which a decision is expected in mid-2022, B2Gold will use its proven in-house mine construction team to build the mine and mill facilities, and operate the mine on behalf of the Gramalote project.

A review of the updated Gramalote Ridge mineral resource has also showed that further value could be created through additional drilling of the inferred portions of the mineral resource area, within and adjacent to the designed pit, with at least 25 000 m of drilling planned and progressing in 2021, and a mineral resource update expected in early 2022.

In addition, drilling is being undertaken in the Trinidad deposit and drilling is planned in the Monjas West zone later in 2021.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
B2Gold investor and public relations manager Katie Bromley, tel +1604681 8371 or email kbromley@b2gold.com.
AngloGold Ashanti, Sabrina Brockman, tel +1 646 880 4526 or email sbrockman@anglogoldashanti.com.