Caledonia Mining Corporation is quietly shaping one of Zimbabwe’s most compelling gold stories. From the historic Blanket Mine, once nearing closure, to the Bilboes project, the company is positioning itself as a future mid-tier producer, with a stated target of reaching 300,000 ounces of gold annually within the next decade, Mining Zimbabwe reports.
By Ryan Chigoche
Speaking at a recent media briefing, Chief Executive Officer Mark Learmonth said the next chapter in Caledonia’s evolution rests on a “platform for growth” extending far beyond Blanket’s current production life.
“When we invested heavily in the Central Shaft, we weren’t just extending Blanket’s life; we were securing the foundation for our future operations, including Bilboes,” he said.
Over the past decade, Caledonia transformed Blanket from an ageing, near-exhausted mine into a modern underground operation producing between 75,000 and 80,000 ounces of gold annually.
The US$67 million Central Shaft project, completed in 2021, extended the mine’s life by more than a decade and reinforced the company’s commitment to long-term investment in Zimbabwe.
“Today, we’re around US$700 million, up from a capitalisation of just US$3 million in 2008. Over the next ten years, I’d be disappointed if we don’t grow production from 80,000 to 300,000 ounces,” Learmonth said.
The statement signals the company’s ambition and sets the stage for Bilboes, a large-scale development expected to transform Caledonia’s production profile.
Acquired in 2023 for about US$65 million, Bilboes represents a defining step in Caledonia’s evolution, with measured and indicated resources of about 2.5 million ounces at an average grade of 2.2 grams per tonne.
Learmonth described it as “big and high grade” and stressed its strategic importance: “Bilboes is exactly the kind of development project that anywhere else in the world everybody would be wanting to develop. For us, doing it here in Zimbabwe, in a new Zimbabwe, is an absolutely fantastic story and an exciting opportunity for all.”
The project, located north of Bulawayo, is expected to become Caledonia’s flagship asset.
The company envisions it as the key to achieving multi-asset, mid-tier producer status, with production potentially exceeding 200,000 ounces per year across its portfolio.
This aligns with Caledonia’s strategy of expanding organically while maintaining operational control and disciplined capital deployment.
Chief Operating Officer James Mufara, who previously worked with Harmony Gold in South Africa, said his experience managing large, power-intensive operations gave him confidence in addressing Zimbabwe’s infrastructural challenges.
“There are clear similarities between the Free State and Zimbabwe, especially when it comes to electricity supply,” he said. “But these are challenges I’ve dealt with before. For me, this is a natural, seamless transition.”
Between 2015 and 2020, Caledonia was focused solely on Blanket. By 2021, the company had begun assembling a pipeline that now includes Bilboes, Maligreen, and early-stage exploration prospects such as Motapa.
Each stage of expansion has been financed through a combination of retained earnings and shareholder value creation, rewarding investors handsomely.
According to Learmonth, Caledonia has delivered a 1,000 per cent total shareholder return over the past decade—tenfold growth that far outpaces both the gold price and comparable junior producer indices.
“When I joined in 2008, Caledonia was capitalised at about US$3 million. Today, we’re around US$700 million. Over the next ten years, I’d be disappointed if we don’t grow production from 80,000 to 300,000 ounces,” he said.
As Caledonia prepares to enter its next phase, its story illustrates more than corporate ambition—it signals the maturation of Zimbabwe’s gold industry.
The company’s disciplined strategy, infrastructure investments, and ability to attract experienced professionals suggest a model for how mining companies can thrive despite the country’s historic challenges.
For Caledonia, the journey from Blanket to Bilboes is not just about ounces or output—it’s about endurance, reinvention, and redefining what’s possible in Zimbabwe’s gold sector.
