The study evaluated the life-of-mine options for combining the remaining underground inferred mineral resources with the new El Limon central zone openpit inferred mineral resource, the Vancouver-based company said.
The results of the study recommend the expansion of the existing plant from 485,000 tonnes per annum to 600,000tpa and the addition of a third stage of milling to achieve a fine grind.
"The result would be a much longer mine life with significantly higher gold production and lower cash operating costs and all-in sustaining costs. The third stage of milling also allows for the reprocessing of old tailings at the end of the mine life," the company said.
B2Gold estimated an increase in average annual gold production to about 75,000oz over the extended mining period.
A bonus was that production would continue to average more than 18,000oz/y for another 11 years after mining had ceased by processing tailings.
B2Gold expected the mine to produce about 985,000oz of gold over a total mine life of 21-plus years.
The expansion would cost only $35 million over a 16-month construction and plant expansion period, and would deliver after-tax net present value, at a 5% discount rate, of $135 million based on a gold price of $1,300/oz. The internal rate of return would be 28%.
Meanwhile, B2Gold also said it had reached agreement with El Limon labour unions to renew the existing collective agreement for two years.
B2Gold's equity reacted positively to the news, closing 3.76% higher Tuesday at C$3.59 a share, adding to the senior miner's near 11% gain over the past 12-months.