PDAC-B2Gold to complete Anglo talks on Colombia project

Mon Mar 8, 2010 12:53pm EST

* Talks to be completed in next quarter or so

* Sees 2010 production at up to 130,000 oz gold

TORONTO, March 8 (Reuters) - B2Gold Corp (BTO.TO), a Canadian gold miner, will complete talks with joint venture partner AngloGold Ashanti (ANGJ.J) in the next quarter on further exploration of the Gramalote project in Colombia.

B2Gold is in discussions to see exactly what Anglo want to do with the project, the company said on Monday at the PDAC Prospectors and Developers Association mining convention in Toronto. It expects to complete the discussion within the next quarter.

Vancouver-based B2Gold said talks are regarding exploration plans and the shape of the joint venture agreement with Anglo, the world's No.3 gold producer.

The so-called PDAC convention is the largest mining convention of its kind, drawing more than 20,000 participants this year as global metals demand promises to hold steady and the world emerges from economic crisis.

Toronto-based B2Gold is a small gold producer with operating mines in Nicaragua and exploration properties in Colombia and Russia.

The company aims to produce as much as 130,000 ounces of gold in 2010, with most of that coming from the La Libertad mine, its largest.

La Libertad would produce between 80,000- and 90,000 ounces of gold this year at cash costs of some $500/ounce.

The company said in a presentation the mine may have great undiscovered potential. "There has been some substantial exploration that was never followed up," he said

The Limon mine, also in Nicaragua, would produce some 40,000 ounces in 2010 and that output there might be improved under an ongoing program to improve ore grades.

(Reporting by Pav Jordan; Editing by Frank McGurty)

(pav.jordan@reuters.com; Reuters Messaging: pawel.jordan.reuters.com@reuters.net; 416 301 8153))

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