The Gramalote property consists of 23 contiguous claims totaling 39,469 hectares located in the Department of Antioquia, 230 km northwest of the Colombian capital of Bogota and 80 km northeast of Medellin in central Colombia. Gramalote is a 51/49 B2Gold/AngloGold Ashanti joint venture with B2Gold the operator.

The Gramalote property is contained within and underlain by medium- to coarse-grained tonalite and granodiorite of the Cretaceous Antioquian Batholith. Gold mining in the Gramalote area has been carried out since Pre-Colombian times to the present.

A 25,000 m diamond drill program is planned for 2008 following up previous drilling at the Gramalote property (12,312 m in 43 holes) by AngloGold Ashanti that outlined widespread structurally-controlled, intrusion-hosted gold mineralization over a one square km area (Gramalote Ridge) that returned up to 172 m at 3.509 ppb Au. The 2008 program will consist of infill drilling of the main Gramalote zone, satellite drilling of the prospective outlying targets over a 5 by 5 km area, detailed metallurgical and geotechnical studies and resource modeling.

The 2008 pre-feasibility program will consist of 15,000 m infill drilling of the main Gramalote zone to confirm and potentially expand AngloGold’s resource, 10,000 m satellite drilling of the prospective outlying targets (including the La Trinidad and Felipe zones) over a 5 by 5 km area, detailed metallurgical and geotechnical studies and resource modeling. A resource estimate from Gramalote Ridge is expected by the end of 2008.

The La Trinidad zone has geological and geochemical characteristics very similar to Gramalote Ridge located 4.5 km to the east. Follow-up trenching and vein / fracture sampling on soil geochemical anomalies over a 1,200 by 500 m area has shown potassic and quartz-sericite alteration with quartz veining similar to Gramalote Ridge. Assays have been received for 179 of 422 samples with 89 samples returning greater than 1 g/t Au including eight greater than 10 g/t Au. Channel sampling averaged 1.6 m @ 0.90 g/t Au in 32 samples with a high of 6.7 g/t Au over 1.3 m. Drill testing of the La Trinidad gold-bearing alteration zones has commenced.

The Felipe zone is located immediately west and on strike from Gramalote Ridge. Infill soil sampling has outlined an anomalous gold zone over a 700 by 700 m area that has returned up to 2,400 ppb Au. Mapping, sampling and trenching is currently underway at the Felipe zone and diamond drill testing is expected to commence in May 2008.

Management believes Gramalote is a structurally controlled porphyry system with the potential to host a large open pittable gold deposit.

B2Gold, as manager and operator of the Gramalote property, will fund project exploration expenditures to complete a feasibility study of the project. Thereafter, expenditures will be funded pro rata between B2Gold (51%) and AngloGold Ashanti (49%).

For a map of the Gramalote property click here