.png)
In a move set to transform its future, multi-listed gold-focused miner Caledonia Mining Corporation Plc has officially sanctioned the development of the giant Bilboes Gold Project, following the completion of a highly positive Feasibility Study, Mining Zimbabwe can report.
By Rudairo Mapuranga
The project, which boasts a robust Proven and Probable mineral reserve of 1.749 million ounces of gold, is positioned to become a cornerstone asset for Caledonia, catapulting it into the ranks of mid-tier gold producers.
“The finalisation of the Feasibility Study and the decision to implement the project is a defining moment for Caledonia in our journey to become a mid-tier gold producer,” said Mark Learmonth, Caledonia’s Chief Executive Officer. “We believe Bilboes will transform Caledonia and significantly change our production profile.”
The economic picture for Bilboes is compelling. Using a conservative gold price of $2,548 per ounce, the project projects a post-tax Net Present Value (NPV) of $582 million and an Internal Rate of Return (IRR) of 32.5%. Perhaps most strikingly, the mine is expected to pay back its initial investment in just 1.7 years from the start of production.
Over its initial 10.8-year life of mine, Bilboes is forecast to produce 1.55 million ounces of gold at an all-in sustaining cost (AISC) of $1,061 per ounce, ensuring healthy operating margins.
The scale of the undertaking is significant, with a peak funding requirement of $484 million. Caledonia has outlined a sophisticated funding strategy designed to minimise equity dilution and protect its shareholder dividend. The majority of the capital is expected to come from non-recourse senior debt, supplemented by internal cash flow from the existing Blanket Mine and other flexible instruments.
First production is targeted for late 2028, with the project ramping up to steady-state operations in 2029. In its first full year, Bilboes is anticipated to produce approximately 200,000 ounces of gold, dramatically boosting Caledonia’s overall output.
Fully permitted and located 80 km north of Bulawayo, the Bilboes project is a major vote of confidence in Zimbabwe’s mining sector. Learmonth emphasised that a project of this scale “should help Zimbabwe to reclaim its position as a major ‘gold destination’ in the eyes of the international investment community,” bringing substantial foreign exchange earnings and tax receipts.
The project also benefits from its proximity to Caledonia’s adjacent Motapa property, a large brownfield exploration site, offering potential for future resource expansion and operational synergies.
With the Front-End Engineering Design (FEED) phase commencing immediately, Caledonia is now full steam ahead on developing what promises to be one of Zimbabwe’s most important gold mines in recent years.
