Bilboes Gold to return to care and maintenance

CALEDONIA Mining Corporation’s new acquisition, Bilboes Gold Project which recently commenced production ramping up 1,076 ounces of gold in the second quarter up from 105 ounces produced in the first quarter of the year will be placed under care and maintenance in October.

The Victoria Falls Stock Exchange (VFEX)-listed group announced the completion of the acquisition of Bilboes in January this year as a critical cornerstone in its aggressive drive to develop a mid-tier, multi-asset Zimbabwe-focused gold production business.

Bilboes Gold is a gold mining entity that owns three major gold mines in Matabeleland North, 75km north of Bulawayo, and was once ranked among the country’s 10 biggest gold producers.

Mr Mark Learmonth

It has produced approximately 288 000 ounces of gold since 1989.
Now under the giant VFEX listed group, Bilboes is projected to produce an average of 168 000 ounces per year over a 10-year lifespan of the mine.

According to Caledonia, Bilboes Oxides was intended as a small-scale, low-margin, short-term project which was primarily justified by the benefits of pre-stripping in anticipation of the development of the larger sulphide project situated in Matabeleland North province.

In the latest production update issued yesterday, Caledonia Corporation chief executive, Mr Mark Learmonth said the outlook for the Bilboes Oxides is insufficiently certain unless it is done in conjunction with the waste stripping for the sulphide project.

“Accordingly, we have decided to return this project to care and maintenance until the work commences on the larger sulphide project when the remaining oxide material will be mined and processed alongside the sulphide ore. This outcome has no bearing on the quality of the much larger sulphide project which was the sole reason for acquiring Bilboes,” he noted.

Mr Learmonth added that the mining entity has previously withdrawn guidance for the Bilboes Oxides and in the absence of a reasonable prospect of it making an overall cash contribution, the project will be returned to care and maintenance with effect from October 1, 2023.

“Mining and metallurgical processing will continue at Bilboes Oxides until the end of September; thereafter leaching of material that has already been deposited on the leach pad will continue. Oxide mining and processing will resume when the stripping of the waste for the sulphide project commences.”

According to the update, the acquisition had 1,076 ounces of gold produced from the Bilboes Oxides in the period under review showing an increase from the 105 ounces produced in the first quarter of 2023.-chronicle