Caledonia Mining Corp (CALq.L) said on Tuesday that it will proceed with its Bilboes gold project in Zimbabwe after a feasibility study forecast strong returns, with the site expected to become the country’s largest gold mine.
Buying Bilboes in 2023, the company estimates peak funding needs at $484 million and total capital costs at $584 million.
It plans to finance the investment primarily through debt and equity, drawing on resources from its existing Blanket mine in Matabeleland South province, according to Reuters.
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Bilboes is forecast to yield 1.55 million ounces of gold over approximately 11 years, with mining scheduled to begin in late 2028 and production ramping up to about 200,000 ounces by 2029.
“This project has been decades in the making,” Chief Executive Mark Learmonth said of Bilboes, adding that it should help Zimbabwe to regain its status as a leading gold producer.
Backed by investors including Allan Gray and BlackRock, Caledonia is pressing ahead despite broader challenges in Zimbabwe such as power shortages, dollar scarcity and high inflation.
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Image Credit: Mining Technology
