Caledonia says Bilboes gold project in Zimbabwe to anchor 300,000 oz output target

By Agencies

Caledonia Mining Corporation, the owner of Zimbabwe’s Blanket mine, has confirmed that the Bilboes gold project north of Bulawayo will be the cornerstone of its plan to raise annual group output to 300,000 oz over the medium term.

The Bilboes open-pit asset, acquired from Bilboes Gold Limited in early 2023, holds proven and probable reserves of 1.96mn oz at an average grade of 2.29 g/t, with measured and indicated resources totalling 2.56mn oz.

A Preliminary Economic Assessment (PEA) published June 2024 outlines a single-phase development producing about 1.5mn oz over ten years.

Caledonia said the PEA indicates an all-in sustaining cost (AISC) of roughly $968/oz and a post-tax IRR of about 23%, assuming a gold price of $1,884/oz.

Construction is targeted to start in 2026, with first production expected in 2028, depending on financing and permitting. The project’s modular plant and tailings design is expected to reduce upfront capital exposure and allow staged expansion.

CEO Mark Learmonth said Caledonia is evaluating a phased development strategy that could limit equity dilution while maintaining long-term production goals.

“Bilboes will transform Caledonia into a multi-asset gold producer with meaningful scale,” he told investors, noting that project execution would be matched to market conditions and funding availability.

The company currently produces about 80,000 oz/year from the Blanket mine in Gwanda. Once Bilboes is operational, Caledonia expects combined Zimbabwean output to exceed 250,000–300,000 oz, roughly three to four times current production.

Bilboes lies roughly 75 km north of Bulawayo and includes three previously mined pits with existing infrastructure, allowing faster ramp-up.

The company said environmental and social impact assessments have been completed and that engagement with national regulators and local stakeholders is underway ahead of a definitive feasibility study.

Caledonia plans to finance Bilboes through a mix of internal cash flow, debt, and possible strategic partnerships.