Caledonia Mining is moving ahead with the development of the Bilboes gold project in Zimbabwe following the completion and release of its feasibility study, which confirms that a single-phase development approach offers the strongest economic return.
The project covers 2,731.60ha in Matabeleland North, around 80km north of Bulawayo. According to the study, Bilboes hosts proven and probable reserves of 1.75Moz of gold at 2.26g/t, along with 532,000oz of measured and indicated resources at 1.37g/t (excluding reserves) and 984,000oz of inferred resources at 1.62g/t.
Caledonia plans to use Metso’s BIOX technology to treat refractory ores, enhancing recovery by oxidising sulphide minerals prior to cyanidation. The process plant is expected to operate at 240,000t/month for the first six years before reducing to 180,000t/month. Recovery rates are forecast between 83.6% and 88.9%.
First full-year gold output—scheduled for 2029—is targeted at 200,000oz. Over an estimated 10.8-year mine life, total production is projected at 1.55Moz, with an all-in sustaining cost of $1,061/oz.
Peak funding requirements are estimated at $484m, with an additional $100m for interest and working capital and $50m to meet lender-mandated cost overrun provisions. Caledonia intends to adopt a phased financing strategy to accelerate early development while minimising equity dilution and maximising value per share.
Caledonia completed its full acquisition of Bilboes in January 2023 for $65m, paid through the issuance of approximately 5.1 million shares plus a 1% net smelter return to a previous owner.
