Caledonia Mining Seeks US$300 Million Investment f...

Caledonia Mining Seeks US$300 Million Investment for Bilboes Gold Project

Oscar J. Jeke- Zim Now Reporter

Caledonia Mining Corporation is seeking an estimated US$309 million in funding to develop its Bilboes gold project, a move that could position the site as Zimbabwe’s largest gold-producing mine. Located 75 km north of Bulawayo, the Bilboes project is set to significantly increase the company’s gold output, with projections indicating an additional 200,000 ounces of gold annually—nearly tripling its current production levels.

A preliminary economic assessment suggests that, at a gold price of $1,884 per ounce, the mine could yield 1.5 million ounces over a 10-year lifespan, with a payback period of just 1.9 years.

To finance this ambitious venture, Caledonia plans to raise funds through debt financing, having already engaged potential lenders. The company is also preparing a new feasibility study, which is expected to be completed in the first half of 2025, to further refine its financial and operational strategy.

This move comes after a strong finish for Caledonia’s Blanket Gold Mine in 2024, which produced 76,656 ounces of gold, slightly exceeding the 75,416 ounces achieved in 2023. The company’s performance was bolstered by record-breaking milling activity, processing 797,000 tonnes of ore for the year.

A notable milestone was reached in December, when 89,727 tonnes of ore were hoisted, surpassing the mine’s milling capacity. CEO Mark Learmonth commented, “As a result of the strong mine production, we closed the year with a stockpile of 8,400 tonnes, positioning us well for a strong start to 2025.”

With an estimated capital expenditure of US$403 million, the Bilboes project represents a significant investment in Zimbabwe’s mining sector. If successful, it could cement Caledonia’s position as a leading gold producer in the country.