07:21 AM EDT, 06/19/2024 (MT Newswires) -- B2Gold ( BTG ) late on Tuesday released results of a positive preliminary economic assessment (PEA) on the Gramalote gold project in Colombia.

Assuming a discount rate of 5%, the mine has a net present value after-tax of $778 million, generating an after-tax internal rate of return of 21%, B2Gold ( BTG ) said.

The mine has an initial life of mine of 10 years, with mill processing over 12.5 years. It has an average grade processed of 1.26 grams per tonne (g/t) gold over the first five years and a life of project gold production of about 2.3 million ounces, with an average gold recovery of 96%.

Average annual gold production is about 234,000 ounces per year for the first five years of production and 185,000 ounces per year over the life of project. The mine has projected lowest quartile all-in sustaining costs of $886 per gold ounce of the life of project.

An existing mine permit will require modification to reflect the new medium-scale project contemplated in the PEA. The time frame for the permit modification is expected to be between 12 and 18 months from submission to authorities.

B2Gold ( BTG ) intends to commence feasibility work with the goal of completing a feasibility study by mid-2025.