Caledonia Mining Advances Bilboes Gold Project in Zimbabwe

Full Development of Bilboes Project

Caledonia Mining approved full development of its Bilboes gold project in Matabeleland North, Zimbabwe. The project spans 2,731.6 hectares, about 80km north of Bulawayo. Feasibility studies indicate Bilboes could become Zimbabwe’s largest gold mine, producing 1.55 million ounces over 11 years at $1,061 per ounce all-in sustaining costs. The company will finance construction mainly through debt and profits from its Blanket gold mine.

The project contains proven and probable reserves of 1.75 million ounces at 2.26g/t. Measured and indicated resources contribute an additional 532,000 ounces at 1.37g/t. Inferred resources total approximately 984,000 ounces at 1.62g/t. Consequently, Caledonia expects mining operations to begin in late 2028, ramping up to roughly 200,000 ounces in 2029.

Bilboes Technology and Production Outlook

Bilboes will use Metso’s BIOX technology to process refractory ore, oxidizing sulphide minerals and enhancing gold recovery. The plant will process 240,000 tonnes monthly for the first six years, then 180,000 tonnes per month for the remainder of the mine’s life. Metallurgical recovery rates should reach 83.6%–88.9%.

Chief executive Mark Learmonth emphasized that Bilboes marks a milestone for Zimbabwe and could restore the nation’s top gold producer status. Additionally, Caledonia plans phased financing with support from investors including Allan Gray and BlackRock. This strategy accelerates development while protecting shareholder value through limited equity issuance.

SuperMetalPrice Commentary:

Caledonia Mining’s Bilboes project demonstrates Zimbabwe’s growing potential in gold production. Rising reserves, high recovery rates, and phased financing enhance project viability. Furthermore, Bilboes sets new benchmarks for cost-efficient gold output and sustainable mining practices in Southern Africa.