* La Libertad mine shows potential to increase production * Begins drilling in Cebollati project in Uruguay
Dec 14 (Reuters) - Gold producer B2Gold Corp (BTO.TO) said drill results from its La Libertad mine in Nicaragua showed the potential to increase projected mine life and gold production at the project.
The company also said it began drilling at its Cebollati project in Uruguay and Trebol project in northeastern Nicaragua.
B2Gold is currently producing 80,000-90,000 ounces of gold annually from La Libertad, which currently has a projected mine life of seven years.
The company, which has a budget of $4.6 million for exploration at the La Libertad project in 2010, said an aggressive program of exploration and drilling will continue on the property in 2011.
Vancouver, British Columbia-based B2Gold's shares, which have more than doubled in value in the past one year, closed at C$2.81 on Monday on the Toronto Stock Exchange. (Reporting by Arnika Thakur in Bangalore; Editing by Anne Pallivathuckal)