B2Gold moves ahead with Gramalote project

Now that B2Gold (BTO-T) has had a look at more than 30,000 metres worth of drill core assays from its Gramalote gold property in Colombia, the company is anticipating a resource estimate.

B2Gold is the operator of the project, holding a 51% interest alongside joint venture partner AngloGold Ashanti (AU-N).

Most of the 90 drill holes were done on the Gramalote Ridge zone with the about 4,200 meters drilled on other targets including the Felipe, Balzal/Reina, San Antonio, and the Concha Sur zones.

The company plans to continue exploring the newly-found zones on the Gramalote property in 2009 while working on scoping study for the Gramalote Ridge zone. The resource estimate, which focuses on the Gramalote Ridge zone, is expected in the next few weeks.

Highlights from the Gramalote Ridge zone include 165 metres grading 1.6 grams gold per tonne, 115 metres grading 2 grams gold per tonne and 172 metres grading 1.1 grams gold per tonne.

B2Gold says these drill results confirm the solid grades and consistency of gold mineralization in drilling done earlier in the year. The results are also similar to the grades AngloGold had previously reported.

The Felipe zone is located about 130 metres west of the Gramalote Ridge zone and has so far been tested over a 280-metre by 340-metre area with five holes totaling 1,400 metres. Alteration and mineralization have been similar to the Gramalote Ridge zone.

Highlights from Felipe include 15 metres grading 1.5 grams gold per tonne and 16.2 metres grading 1.2 grams gold per tonne.

The Balzal/Reina zone, 180 metres south of the Gramalote Ridge zone, was also similar in alteration and mineralization. Highlights include a 46.5-metre intercept grading 2 grams gold per tonne for the Balzal area and 26.1 metres grading 2.2 grams gold per tonne.

B2Gold also detected a new zone, named Trinidad, about 5 km west of the Gramalote Ridge zone. The company has drilled about 20 holes totaling 7,000 metres over a 1,100 metre by 500 metre area. Highlights from the most recent eight holes include 102 metres grading 0.83 gram gold per tonne and 51.8 metres grading 0.96 gram gold per tonne.

An even newer zone was detected recently 150 metres southeast of the Trinidad zone. One drill intercept returned 62.4 metres grading 0.64 gram gold per tonne. The company plans to follow up on this discovery in 2009.

Another 1,000 metres have been completed on the Cristales zone, which is about 3 km south of the Gramalote Ridge zone, and has shown wide zones of alteration and veining similar to the Gramalote Ridge zone but assays results have not yet been sent back from the lab.

The Gramalote project is one of four that the company is working on in Colombia in addition to two projects in western Russia.