(Adds National Bank commentary in the eight paragraph)

B2Gold (BTO.TO, BTG) was edging lower Tuesday after it released a "positive" preliminary economic assessment of the Antelope deposit at the Otjikoto gold mine in Namibia.

The underground gold mine has an initial life of mine of about 5 years, with average grade processed of 5.75 grams per tonne (g/t) gold over the life of mine.

Life of mine gold production is about 327,000 ounces with an average gold recovery of 95%. Average annual gold production is estimated at about 65,000 ounces per year over the life of mine.

Projected all-in sustaining costs are about US$1,095 per gold ounce over the life of mine.

After-tax net present value at a discount rate of 5% is US$131 million, generating an after-tax internal rate of return of 35%.

The company has budgeted $7 million for exploration at Otjikoto in 2025 to focus on expanding and refining the Antelope deposit, with 44,000 meters of drilling planned.

Based on the PEA results, the company believes the Antelope deposit has the potential to become a small-scale, low-cost, underground gold mine that can supplement the low-grade stockpile production from 2028 to 2032.

B2Gold kept its Outperform rating and C$6.25 price target at National Bank of Canada following the update.

The price target was based on 4.5x EV/EBITDA NTM.

National Bank expects sentiment for B2Gold to be constructive as it approaches finishing the Goose project early this year.

"Our thesis considers BTO's next leg of growth on the order of 600,000 oz/year via regional Goose ramp-up, regional production of Fekola, potential development of Gramalote, NAV-accretive exploration opportunities, strong balance sheet and peer-leading dividend yield, tempered by de-risking Goose in the development home stretch," the bank said.

"We expect sentiment to be constructive as it approaches finishing Goose early this year."