Victoria Falls Stock Exchange-listed, gold-focused miner Caledonia Mining Corporation Plc is poised for transformative growth with its Bilboes project, which is projected to triple the company’s gold production once fully operational, Mining Zimbabwe can report.
By Rudairo Mapuranga
Supported by DRA Projects (Pty) Ltd and other technical consultants, the company has made substantial progress on the Feasibility Study (FS), initially slated for completion in Q1 2025. However, the FS timeline has been extended to explore multiple optimization opportunities that could significantly enhance project economics.
The Bilboes project, once it commences production, is expected to contribute approximately 168,000 ounces (5,225 kg) of gold annually. This would elevate Caledonia’s total gold output to over 240,000 ounces (7,460 kg) per year, positioning the company as a key intermediate gold producer. These projections are based on the Preliminary Economic Assessment (PEA) released in June 2024, which outlined strong project fundamentals, attractive economics, and substantial production potential.
While the focus remains on the future impact of Bilboes, Caledonia continues to demonstrate consistent growth at its flagship Blanket Mine. The mine achieved a total gold production of 76,656 ounces (2,384 kg) in 2024, a 1.6% increase from the previous year’s 75,416 ounces (2,346 kg), exceeding the company’s guidance of 74,000 to 78,000 ounces (2,300 to 2,425 kg).
“Achieving our production guidance at Blanket Mine reinforces our capability to deliver strong, consistent results. This lays a solid foundation as we look ahead to the transformative impact of Bilboes,” said Mark Learmonth, CEO of Caledonia.
The decision to extend the FS timeline is driven by several key optimization opportunities, including:
Concentrate Sales: Engaging with authorities to potentially sell concentrate, which could reduce upfront capital expenditures by deferring the cost of building a BIOX processing circuit during the first years of production.
Tailings Storage Facility (TSF) Relocation: Exploring relocation of the TSF to Caledonia’s adjacent Motapa property, where advantageous topography could lower initial construction costs.
Motapa Exploration: Integrating the positive exploration results at Motapa into the Bilboes FS. Recent exploration has revealed new mineralized zones near the proposed Bilboes processing plant, presenting an opportunity for further resource growth.
Exploration at Motapa, located directly adjacent to Bilboes, has been promising, indicating the potential for resource additions that could improve the long-term economics of the combined Bilboes-Motapa project.
Looking ahead to 2025, Caledonia has allocated a capital expenditure budget of $41.8 million. Of this, $34.9 million will be directed toward Blanket Mine, which has a production guidance of 73,500 to 77,500 ounces (2,286 to 2,411 kg) for the year. Significant investments will go toward:
Development and Efficiency: $6.6 million for further underground development and $3.4 million for energy-saving initiatives aimed at reducing operational costs.
Operational Resilience: $4.8 million to complete the Tailings Storage Facility, ensuring environmental compliance and operational safety.
With the ongoing expansion at Bilboes and steady production from Blanket, Caledonia expects on-mine costs for 2025 to range between $1,050 and $1,150 per ounce. All-in sustaining costs (AISC) are forecasted to be between $1,690 and $1,790 per ounce, driven by higher labor, IT, and ESG-related expenses.
