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    Omanyano ovanhu koikundaneki yomalungula kashili paveta, Commisiner Sakaria takunghilile Veronika Haulenga

Business / Economics

B2Gold plans $7 million exploration to expand Antelope Deposit

todayFebruary 5, 2025 24

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B2Gold Corp. has announced a positive preliminary economic assessment (PEA) for the Antelope deposit at its Otjikoto Mine in Namibia, forecasting an after-tax net present value of $131 million and an internal rate of return of 35%.

The Antelope deposit, located approximately four kilometers southwest of the existing Otjikoto open pit, comprises the Springbok and Oryx Zones, with a potential third structure, Impala, pending further drilling confirmation. B2Gold’s assessment indicates that the underground mine will have an initial five-year lifespan, with an average annual gold production of approximately 65,000 ounces. The mine is expected to yield around 327,000 ounces over its lifetime, with an average gold grade of 5.75 grams per tonne and a 95% recovery rate.

 

 

Strong Economic Prospects

The PEA outlines an estimated pre-production capital investment of $129 million, with an expected payback period of 1.3 years. The anticipated all-in sustaining costs (AISC) stands at $1,095 per ounce of gold. At a projected gold price of $2,400 per ounce, the mine is expected to generate an after-tax free cash flow of $185 million.

B2Gold plans to integrate the Antelope underground mine with its existing operations at Otjikoto, utilizing established infrastructure and experienced personnel. The company will also leverage the expertise it has gained from developing and managing the Wolfshag underground mine. The mining license area already includes necessary surface infrastructure, such as power, workshops, and administrative offices, which B2Gold believes will streamline development and reduce costs.

 

 

Exploration and Expansion Potential

B2Gold is investing $7 million in exploration at Otjikoto in 2025, with a 44,000-meter drilling program to refine and expand the Antelope deposit. The campaign will include infill drilling at the Springbok Zone to improve confidence in the continuity of high-grade mineralization, as well as exploratory drilling to assess potential extensions to the south and north of the deposit.

The PEA remains subject to various assumptions, including securing necessary permits, government approvals, and validation of geotechnical and metallurgical projections. While preliminary in nature, the findings suggest that the Antelope deposit could serve as a cost-effective underground mining operation that supplements Otjikoto’s low-grade stockpile processing, potentially extending the mine’s production profile beyond 2032.

 

 

Market Sensitivity and Future Prospects

The assessment indicates that the project is sensitive to gold price fluctuations. At a gold price of $2,000 per ounce, the after-tax NPV would be $69 million, while a price of $2,800 per ounce would increase it to $193 million.

B2Gold remains optimistic about the economic potential of the Antelope deposit and its role in sustaining long-term production at Otjikoto. Further technical evaluations and additional drilling in 2025 will refine resource estimates and guide future development decisions.

Written by: Tonata Kadhila

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