B2Gold Corp. (TSE: BTO) (NYSE AMERICAN: BTG) preliminary economic assessment (PEA) for the Antelope Pit, which includes the Otjikoto open pit and underground gold mine in Namibia, shows approximately 65,000 ounces per year over the life of mine.
The company released the results from the assessment on Tuesday, showcasing the Springbok Zone, Oryx Zone and the Impala, which is still subject to confirmatory drilling.
The Antelope deposit enhances Otjikoto’s production profile, with strong exploration potential. The underground gold mine has an initial five-year mine life, processing ore at an average grade of 5.75 grams per tonne gold. Over its lifespan, the mine is expected to produce approximately 327,000 ounces of gold. The company anticipates an average recovery rate of 95 per cent.
By integrating low-grade stockpile processing, Otjikoto’s annual gold production is projected to reach approximately 110,000 ounces from 2029 to 2032. The company estimates its all-in sustaining costs at USD$1,095 per ounce over the mine’s life.
The project demonstrates strong economics, with a Life of Mine after-tax free cash flow of USD$185 million at a gold price of USD$2,400 per ounce.
Furthermore, using a 5.0 per cent discount rate, the after-tax net present value (NPV) stands at USD$131 million. It generates an after-tax internal rate of return (IRR) of 35 per cent. B2Gold expects to achieve payback on pre-production capital in 1.3 years, with an estimated pre-production capital cost of USD$129 million.
The team has a strong understanding of permitting and environmental requirements. The Wolfshag underground mining team will manage the development and operation of the Antelope underground mine.
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2025 campaign aims to extend Antelope
The company also established relationships with suppliers, contractors, regulators, and consultants. These enhance confidence in the PEA while reducing costs and execution risks. Surface infrastructure, including the camp, workshops, offices, and power facilities, is already in place and fully operational.
The 2025 exploration budget allocates USD$7 million for a 44,000-meter drilling program at Otjikoto, focused on expanding and refining the Antelope deposit. Plans include 2,500 meters of selective infill drilling at 25-meter by 25-meter spacing to improve the assessment of high-grade mineralization continuity in the Springbok Zone.
The campaign will also aim to extend the Antelope deposit footprint both north and south of the Springbok Zone. The focus will be on establishing links between the highly prospective Oryx Zone and high-grade mineralization intersected in drill holes approximately one kilometer south of the Otjikoto Phase 5 open pit.
B2Gold prepared the PEA to evaluate gold recovery from an underground mining operation located approximately four kilometers southwest of the existing Otjikoto open pit. The plan includes three years of initial mine development. These plans involve portal excavation, the construction of approximately 3.5 kilometers of primary decline development, and the installation of ventilation and other services.
The underground operation will move up to 1,400 tonnes per day using development-based mining methods. It also assumes a 3.0 grams per tonne cutoff grade and a minimum mining thickness of four meters. The company will use haul trucks to transport the ore to Otjikoto’s existing processing plant.
The company expects the mine to increase gold production by an average of 65,000 ounces per year. It will accomplish this by blending underground gold production and Otjikoto’s low grade stockpile feed.
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B2Gold PEA still subject to several assumptions and risks
The Inferred Mineral Resource estimate for Antelope makes up most of the PEA. It includes 1.75 million tonnes grading 6.91 grams per tonne gold, totalling 390,000 ounces. The majority of this resource is in the Springbok Zone. The deposit remains open along strike in both directions, offering strong potential for future expansion.
The PEA also assumes a gold price of USD$2,400 per ounce over the mine’s lifespan and incorporates current costs for fuel, reagents, labour, power, and other consumables.
Based on the positive results, B2Gold believes Antelope could be a small-scale, low-cost underground gold mine that can supplement low-grade stockpile production from 2028 to 2032. This would extend Otjikoto’s production profile into the next decade.
The PEA remains subject to several assumptions and risks. These include obtaining all required permits and approvals in a timely manner, as well as securing government support for development. Additionally, it means confirming geotechnical, hydrogeological, and metallurgical assumptions, and verifying the continuity of high-grade material in the Springbok Zone through selective infill drilling. Furthermore, actual costs must align with PEA estimates for the project to proceed as planned.
In Q4, the company sold 187,793 ounces of gold at record prices of USD$2,661 per ounce, generating an impressive USD$500 million in revenue.
The company produced a total of 186,001 ounces of gold during the quarter, including 19,644 ounces from its stake in Calibre Mining Corp. (TSE: CXB) (OTMRKTS: CXBMF). Looking ahead, the Goose project remains on track to produce between 120,000 and 150,000 ounces of gold in 2025 and sustain an annual output of approximately 310,000 ounces from 2026 to 2031.
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joseph@mugglehead.com
