B2Gold (TSX: BTO) has released a preliminary economic assessment for its Antelope deposit, which is part of the Otjikoto open pit and underground gold mine in Namibia. The deposit is said to have an after-tax net present value of $131 million and an IRR of 35% at $2,400 an ounce gold using a 5% discount rate.
The estimate is based on an underground mine that is estimated to operate for an initial five years, with annual production of 65,000 gold ounces at a grade of 5.75 g/t. Life of mine gold production is estimated at 327,000 ounces with recovery rates of 95%.
From a financial perspective, the PEA outlines projected all in sustaining costs of $1,095 per gold ounce over the life of mine, with life of mine after-tax free cash flows pegged at $185 million. Estimated pre-production capital costs are $129 million, with the project having a payback period of 1.3 years.
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The Antelope deposit, which consists of two zones and a possible third structure, is found four kilometre to the southwest of the existing open pit at Otjikoto. A key aspect here is that the deposit is located within the existing mining license area, reducing permitting requirements, while the existing underground mining team is capable of managing and operating the Antelope underground mine.
Mine development here is expected to take approximately three years, after which ore will be hauled to the existing processing plant at Otjikoto. This ore will be blended with low grade ore from Otjikoto, boosting average annual production from the complex to 110,000 ounces from 2029 through to 2032.
The PEA is based on an inferred mineral resource estimate that amounts to 390,000 ounces of gold at a grade of 6.91 g/t, with most of those resources contained within the Springbok zone. The deposit is said to remain open along strike in both directions, with $7.0 million in exploration budgeted for 2025, with 44,000 metres of drilling currently planned.
B2Gold last traded at $3.52 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
