Caledonia Mining says Bilboes is the immediate priority for growth
HARARE – Caledonia Mining Corporation said its immediate strategic focus is to maintain production at Blanket Mine at the targeted range of 74 000 to 78 000 ounces for 2024 while its immediate priority for growth is the Bilboes sulphide project.
The company aims to complete the Caledonia feasibility study on the Bilboes sulphide project, evaluate funding solutions and commence development of the sulphide project; and continue with exploration activities at Motapa.
In emailed responses, chief executive Mark Learmonth said the group remains on track to meet its production target and that the immediate priority for growth is the Bilboes sulphide project.
“At Blanket we remain on track to achieve production guidance for 2024 and at similar levels for 2025. In the first half of 2024 we produced nearly over 38,000 ounces of gold. In May we published a substantial upgrade to the resource base at Blanket Mine, which means that Blanket’s mine life now extends to 2041.
“Our immediate priority for growth is the Bilboes sulphide project. Longer term (i.e. five years) we are optimistic that the Motapa project will provide additional growth.”
According to the company, the main objective at Bilboes is to construct a large, multiple open-pit operation to extract sulphide mineralisation.
The Bilboes gold project is expected to yield approximately 1.5 million ounces of gold (based on measured and indicated mineral resources) over a 10-year life of mine at an all-in sustaining cost of US$968 per ounce and has an estimated payback period of 1.9 years at a gold price of US$1 884 per ounce
Total peak funding is estimated at US$309 million.
When asked about the company’s outlook against Zimbabwe’s challenging economic environment, Learmonth said, “We are planning to invest over US$300m in Zimbabwe. We need policy stability and consistency: particularly in respect of exchange rates, taxation and exchange control/RBZ regulations. We can deal with operational challenges, which are a normal part of mining investment.” -Finx
