Gramalote JV Project – Colombia

The Gramalote Project is located approximately 230 km northwest of the Colombian capital of Bogota and approximately 120 km northeast of Medellin, the regional capital of the Department of Antioquia.

B2Gold has a 50% interest in the Gramalote Project (Anglo Gold Ashanti -50%), and on January 1, 2020 became the operator of the Project.

Based on the positive results from Gramalote’s updated Preliminary Economic Assessment (PEA) released on January 21, 2020 (available at, B2Gold believes that the Gramalote Project has the potential to become a large, low-cost open-pit gold mine, subject to the results of a final feasibility study.

Highlights from the Gramalote PEA include:

  • An open-pit gold mine with an initial life of mine (“LoM”) of 13.6 years (based on current Indicated and Inferred Mineral Resources)
  • Average annual gold production for the LoM of 283,990 oz/y at cash operating costs of $544 /oz and AISC of $648 /oz
  • Average annual gold production of 416,600 oz/y for the first 5 full years of production
  • Annual processing rate of 11 Mtpa
  • Average LoM gold recovery of 94.3% from conventional milling, flotation and cyanide leach of the flotation concentrate
  • Estimated pre-production capital cost of $901 M (includes approx. $160 M for fleet equipment)
  • LoM pre-tax net cash flow of $1,827 M and after-tax net cash flow of $1,283 M
  • Pre-tax net present value (“NPV”) (5% discount) of $1,027 M and after-tax NPV of $671 M generates an aftertax internal rate of return (“IRR”) of 18.1% at the project construction decision date (expected to be Q2 2021) and a project payback of 3.6 years (includes construction capital)
  • Assuming a gold price of $1,500 /oz, pre-tax NPV (5% discount) increases to $1,394 M and after-tax NPV increases to $928 M, which generates an after-tax IRR of 21.9% at the project construction decision date and reduces the project payback to 3.2 years

During 2020, Gramalote successfully completed an extensive infill drill program of 42,500 meters in August 2020. The purpose of the infill drilling was to confirm and upgrade the Inferred Mineral Resources to Indicated status to provide the basis for Gramalote’s Feasibility Study. During the fourth quarter of 2020, an updated resource model for Gramalote was completed, providing the information necessary to advance pit design and mining engineering studies. Feasibility stage metallurgical studies and process plant design were completed by year-end and infrastructure design work continues.

Key social initiatives, including resettlement work and artisanal miner formalization/relocation, continued to advance in 2020. Gramalote has also requested that the terms of its Environmental Assessment (EIA) be modified to allow the resettlement process to occur as construction proceeds, which will assist in accelerating the construction sequence. 

Exploration and Development 2021

The initial 2021 budget for the Gramalote Project is $52 million (B2Gold’s 50% share is $26 million) for the continued development of the project, along with continued environmental and social activities supporting local communities. The Gramalote budget also includes $9 million for exploration in 2021. A total of 18,000 metres of diamond drilling is planned in 2021. This includes 8,000 metres for further drilling at Gramalote Ridge and 10,000 metres at two satellite deposits (Trinidad and Monjas West), which are proximal to the planned infrastructure.

Gramalote’s 2021 budget includes project development up to the feasibility completion (expected in April 2021) and construction decision point in the second quarter of 2021, and therefore does not include early works or construction costs, such as mobilization and pioneering. A separate construction budget is expected to be developed for the second half of 2021, based on a positive Gramalote Feasibility Study and construction decision.

For the most recent company information: 

Click here for B2Gold’s Q4 & FY Financial Results news release (dated February 23, 2021)

  • Click here for B2Gold's Q4 2020 Management Discussion & Analysis ("MD&A") (dated December 31, 2020)
  • Click here for B2Gold's Q4 2020 Financial Statements (dated December 31, 2020)
  • Click here for B2Gold's Q3 2020 MD&A (dated September 30, 2020)
  • Click here for B2Gold's Q3 2020 Financial Statements (dated September 30, 2020)
  • Click here for B2Gold's Q2 2020 MD&A (dated June 30, 2020)
  • Click here for B2Gold's Q2 2020 Financial Statements (dated June 30, 2020)
  • Click here for B2Gold's 2020 Annual Information Form ("AIF") (dated March 20, 2020)


Stay Connected

Stay connected with B2Gold by signing up for email updates