Exploration at the strategically positioned asset adjacent to Bilboes progresses toward a maiden resource estimate, as Zimbabwe’s largest gold mine takes shape
Gold-focused miner Caledonia Mining Corporation Plc has allocated US$3.8 million to accelerate exploration at its Motapa gold project this year, as part of a broader US$162.5 million capital expenditure programme that also supports the development of the Bilboes project, which, once operational, will become Zimbabwe’s largest gold mine, Mining Zimbabwe can report.
By Rudairo Mapuranga
The exploration investment forms part of the company’s strategy to expand its resource base and unlock synergies between Motapa and Bilboes, which are located directly adjacent to one another in southern Zimbabwe. Initial exploration results from Motapa, acquired in November 2022, have already demonstrated widespread gold mineralisation over a combined strike length of more than nine kilometres, with significant high-grade intersections including 12 metres at 6.36 grams per tonne and 13 metres at 5.17 grams per tonne.
Caledonia plans to integrate exploration results into an updated mineral resource and mineral reserve statement during 2026. A maiden mineral resource estimate for the sulphide mineralisation at Motapa North remains on track for completion this year, while ongoing exploration is also evaluating near-surface oxide potential at Mpudzi and further drilling of the Motapa South sulphide mineralisation below historical open pits.
Beyond Motapa, Caledonia’s flagship Bilboes project is advancing rapidly through a four-part funding strategy designed to manage risk while preserving shareholder value. The company commissioned a Preliminary Economic Assessment in June 2024 that indicated an approximate annual production of 168,000 ounces once operational, significantly boosting the group’s gold output.
In January 2026, Caledonia successfully raised US$150 million through a seven-year convertible senior notes offering, marking the largest international capital raise for Zimbabwe in over a decade. Investor demand from US institutional investors exceeded US$600 million, more than four times the initial offering size, underscoring growing confidence in Zimbabwe’s mining investment landscape.
Mark Learmonth, Chief Executive Officer of Caledonia, commented on the fundraising success: “Receiving more than US$600 million of demand from high-quality North American investors is a tremendous endorsement of our strategy, the quality of our assets, our operational track record and the long-term prospects of the company.”
Construction at Bilboes is expected to begin following the development of production shafts, with the first gold targeted for early 2029. The project has a forecast annual output of 200,000 ounces over an initial 10-year period and an estimated total capital cost of US$584 million. Importantly, Caledonia owns 100 percent of Bilboes, unlike its 64 percent stake in the producing Blanket Mine, allowing a greater share of future cash flows to accrue directly to shareholders.
The proximity of Motapa to Bilboes presents significant operational synergies that could fundamentally reshape Caledonia’s production footprint in Zimbabwe. Early exploration results have already indicated new mineralised zones near the proposed Bilboes processing plant site, raising the possibility that Motapa ore could feed directly into Bilboes’ planned processing facilities, reducing standalone capital expenditure and extending mine life beyond initial projections.
Furthermore, the relocation of the Bilboes tailings storage facility to the Motapa property is under review, a move that could leverage favourable topography to cut initial construction costs. These optimisation opportunities demonstrate how Motapa is not merely an adjunct exploration licence but a calculated strategic asset in Caledonia’s growth portfolio.
When combined with Blanket’s existing output of approximately 76,213 ounces, the development of Bilboes and eventual contributions from Motapa could propel Caledonia’s total annual gold production beyond 240,000 ounces, positioning the company as a heavyweight among African gold producers.
To support the development timetable, Caledonia has appointed Stanbic Bank Zimbabwe and CBZ Bank Limited as co-lead arrangers for an interim funding facility of up to US$150 million, which is expected to be in place by mid 2026. The company is also engaging regional and global financial institutions for broader project finance, with a formal process expected to commence in the coming months.
“Our FY 2026 budget reflects our commitment to sustained investment in both our core operations and future growth,” Learmonth said earlier this year. “The planned capital expenditure will support ongoing production at Blanket and advance the development of the Bilboes project and exploration at Motapa, where we see long-term, value-enhancing synergies with Bilboes.”
Caledonia’s substantial investment in Motapa and Bilboes arrives at a pivotal moment for Zimbabwe’s gold mining sector, which faces both significant opportunities and emerging policy headwinds. The country’s gold production hit an all-time high of 47 metric tonnes in 2025, having more than doubled over the past decade from the crisis-era lows of 3 metric tonnes in 2008.
Artisanal and small-scale miners now account for approximately 60 percent of total national gold deliveries, providing a foundation upon which formal sector consolidation could be built. However, the sector is navigating a complex regulatory environment. Zimbabwe recently adopted a new gold royalty framework that includes a tiered royalty structure of 3 percent for gold prices at or below US$1,200 per ounce, increasing to 5 percent for prices between US$1,201 and US$2,499 per ounce, and 10 percent for prices at or above US$2,500 per ounce.
Despite these adjustments, Zimbabwe continues to offer mining investors a range of attractive incentives, including full deductibility of capital expenditure, indefinite carry forward of mining losses, accelerated capital allowances, preferential corporate tax rates for strategic projects, VAT deferment on imported mining equipment, customs duty exemptions, and equal treatment for resident and non-resident investors. The government reversed proposed increases to gold royalty rates and preserved capital expenditure tax treatment after industry consultation, moves welcomed as evidence of a more consultative investment environment.
Recent policy signals indicate that Zimbabwe is positioning itself as a stable and predictable mining destination in a continent where resource nationalism is gaining ground elsewhere. With its US dollar-denominated gold trade providing insulation from domestic currency volatility, and with formal sector players like Caledonia demonstrating that international capital can access Zimbabwe for the right projects, the conditions appear to be aligning for a new phase of large-scale gold investment.
The Bilboes project alone is expected to create substantial local employment, generate significant foreign exchange earnings, and demonstrate that world-class mining projects can be successfully financed, developed, and operated in Zimbabwe to international standards, a narrative with the potential to transform perceptions of the country’s mining investment landscape.
With Motapa exploration progressing toward a maiden resource estimate, Bilboes financing advancing through its structured four-part plan, and Blanket Mine continuing to generate reliable cash flow, Caledonia is executing a clear and disciplined strategy to become a multi-asset gold producer of scale in Zimbabwe. The company’s ability to attract oversubscribed international capital, secure local banking partnerships, and advance exploration simultaneously demonstrates that Zimbabwe remains open for responsible, long-term mining investment when projects are properly structured and managed.
