SEATTLE (Scrap Monster): B2Gold Corporation and AngloGold Ashanti announced their decision to put on hold the joint venture Gramalote gold project in Colombia until further notice.
The news release stated that the preliminary results from the optimized feasibility study for Gramalote indicate that the joint venture project failed to meet their investment thresholds for developing the project. A joint decision has been made by both the companies to review the alternatives for the Gramalote project over the coming months, it said.
According to B2Gold, the decision to halt the project comes after a revisit of Gramalote’s original project design parameters and further optimized design, a review of drilling of the mineral resource area, and updated capital and operating costs. The updated information pushed the project’s net present value (NPV) and internal rate of return (IRR) below the companies’ investment thresholds, it added.
It must be noted that both B2Gold and AngloGold Ashanti have 50% interest each in the open pit mine project, located around 230 kilometres northwest of Bogota and 120 km northeast of Medellin, the regional capital of the Department of Antioquia situated in central Colombia. B2Gold had become the operator of the project in January 2020.