Caledonia targets to ramp up gold production to 250 000 ounces annually

One of the largest mining firms in Zimbabwe, Caledonia Mining Corporation, is eyeing to produce 250 000 ounces of gold per year, pivoting on the multi-assets thrust it has undertaken in the local yellow metal landscape, it has been learnt.

Using it flagship, Blanket Mine in Matabeleland South Province, the group last year produced a record high 75 416oz and this was in line with the annual target of between 75 000oz and 80 000oz.

Caledonia targets between 74 000oz and 78 000oz this year and such a similar projection will be maintained in 2025.

The group’s chief executive officer, Mark Learmonth, last week in a statement said: “Caledonia’s vision has evolved over the last couple of years from being a relatively small operator of a single asset towards a strategy focused on becoming a multi-asset, Zimbabwe focused gold producer with an ambition to produce over 250 000oz of gold per annum.”

According to Learmonth, the acquisition of Bilboes Gold Limited in Bubi District, Matabeleland North Province in January last year, builds on the earlier acquisitions of Motapa and Maligreen to create a portfolio of high-quality exploration and development assets in Zimbabwe.

The Bilboes project was acquired for US$53,3 million while in 2021 Caledonia paid US$4 million to acquire the Maligreen asset in Gweru from Pan African Mining.

Prior to this, in 2020 the Zimbabwe-focused gold producer bought a US$2,5 million option over an exploration prospect, Glen Hulme also in Gweru.

Currently, Learmonth said, the operating and financial performance at Blanket has been in line with management expectations in the first quarter of this year.

Caledonia is evaluating the initial results of the ongoing work on revised feasibility studies for Bilboes with a specific focus on reducing the initial capital expenditure profile, thereby enhancing the project economics.

So far, the mining group is working on completing a revised resource statement thereby extending the life of mine at Blanket.

“We are highly encouraged by the results from the underground exploration programme at Blanket which we restarted during the year; in general, the drilling results, which we announced in July 2023 and January 2024, indicated significantly better widths and grades than previously modelled and we expect to publish a revised resource statement in the second quarter of 2024 which should incorporate an increase in Blanket’s life of mine,” he said.

The mining concern anticipates to announce the results of the updated feasibility study for the Bilboes sulphide project soon and the future inclusion of the asset in the group’s production file is expected to deliver greater shareholder value.-businesweekly