B2Gold plans to invest $129 million in an underground mine at the Antelope deposit in Namibia, targeting 65,000 ounces of annual production from 2029 to 2032. With projected after-tax cash flows of $185 million and a strong internal rate of return, B2Gold is also investing in exploration in Mali, showcasing its growth strategy amid regulatory challenges.
Canadian gold miner B2Gold is set to develop a $129 million underground gold mine at the Antelope deposit near its Otjikoto mine in Namibia, aiming for an annual production of 65,000 ounces. The project will utilize low-grade stockpiles from Otjikoto to boost production from 2029 to 2032, with all-in sustaining costs projected at $1,095 per ounce.
This year, B2Gold has allocated $10 million for derisking the Antelope deposit, focusing on early project planning, obtaining necessary permits, and processing long-lead orders. Technical assessments will continue, and cost estimates will be updated as the project progresses. The deposit lies within the established Otjikoto mining lease, facilitating regulatory procedures.
The economics of the Antelope project appear robust, projecting an after-tax cash flow of $185 million based on a gold price assumption of $2,400 per ounce, conservative compared to the current market price of $2,854 per ounce. The project boasts a net present value of $131 million, a 35% internal rate of return, and a payback period of 1.3 years.
There is also potential for resource expansion as the Antelope deposit remains open along strike, indicating further exploration opportunities. Additionally, B2Gold is investing $10 million in its Mali operations, particularly the Fekola mine, amidst ongoing conflicts regarding mining regulations in the country.
CEO Clive Johnson noted reduced risk post-settlement with Mali regarding the new Mining Code, positioning the company favorably amidst regulatory changes. B2Gold’s proactive approach and investments underpin its commitment to growth in both Namibia and Mali.
B2Gold is a Canadian gold mining company with a significant focus on operations in Namibia, particularly through its Otjikoto project. The company is now looking to enhance its production capabilities by developing the Antelope deposit, which is situated close to the existing Otjikoto mine. The potential economic benefits and exploration opportunities highlight B2Gold’s strategic direction. Additionally, B2Gold is navigating regulatory challenges in Mali, demonstrating its approach to managing operations in varying political climates.
B2Gold’s planned development of the Antelope underground mine in Namibia illustrates its commitment to expanding production and capitalizing on favorable market conditions. With robust economic projections and a strategy to reduce risks, the company is positioning itself for future growth while balancing operations in Mali against regulatory challenges. The ongoing exploration also hints at opportunities for additional resource discoveries, further enhancing investment viability.
Original Source: www.miningmx.com
