A recent Preliminary Economic Assessment (PEA) reveals that Caledonia Mining’s Bilboes project in Zimbabwe is projected to produce 150,000 ounces of gold annually, a substantial output for the region. In an interview with senior executives, CEO Mark Learmonth indicated that, under optimal conditions, Bilboes could start gold production by 2028.
Caledonia, already a key player in Zimbabwe’s gold sector with its Blanket mine producing over 75,000 ounces in 2023, aims to diversify its portfolio. The Bilboes project, acquired from Anglo American Zimbabwe, is the most advanced among its new assets and is set to be developed first.
The PEA confirms findings from a previous Feasibility Study, projecting a total production of 1.52 million ounces over a ten-year mine life at an average All-In Sustaining Cost (AISC) of $968 per ounce. The net present value (NPV) is estimated at $309 million, with a 34% internal rate of return (IRR) and a capital requirement of $403 million.
Learmonth highlighted a revised approach to the Tailings Storage Facility (TSF) design, which will now be constructed modularly to improve economic returns. This strategy marks a shift from a phased development to a more streamlined single-phase approach.
Historically, the Bilboes area has seen past mining activity, yielding 294,000 ounces of gold since operations began in 1989. Currently, production is minimal, around 4 to 5 kg per month, primarily to maintain operations.
Key personnel involved include Victor Gapare, a long-time director, who has been integral to the project’s development since its management buyout in 2003. The resource is notable for its grade, making Bilboes competitive against other major African gold projects.
The proposed processing facility will utilize proven BIOX technology, which has been successfully piloted at the site, achieving high gold recovery rates. The mine will employ conventional open-pit mining methods, expanding existing pits to reach deeper ore deposits.
Caledonia aims to collaborate with local contractors for the mining operations, emphasizing the capability of Zimbabwean firms while remaining open to external bids. This approach highlights the company’s commitment to local economic involvement as it advances the Bilboes project.