The inferred resources for the Bilboes project are estimated at 984,000oz of gold at 1.62g/t.
The project covers 2,731.60 hectares in Matabeleland North province, about 80 km north of Bulawayo. The study reports proven and probable mineral reserves of 1.75 million ounces of gold at an average grade of 2.26 g/t. Measured and indicated resources (excluding reserves) stand at 532,000 ounces at 1.37 g/t, while inferred resources are estimated at 984,000 ounces at 1.62 g/t.
Processing will use Metso's BIOX technology to treat refractory ore, breaking down sulphide minerals to achieve gold recovery rates between 83.6% and 88.9% through subsequent cyanidation.
The plant is designed for an initial throughput of 240,000 tonnes per month during the first six years, then 180,000 tonnes per month for the remaining period. First full-year production is planned for 2029, targeting around 200,000 ounces. Over the projected 10.8-year mine life, total output is expected to reach 1.55 million ounces at an all-in sustaining cost of $1,061 per ounce.
Peak funding requirement for the project is estimated at $484 million. Additional financing of approximately $100 million is anticipated for interest and working capital, plus a further $50 million contingency facility typically required by lenders.
Caledonia Mining intends to adopt a phased funding strategy aimed at providing early cash flow, shortening the development timeline, and maximising net present value per share while limiting new equity issuance.
The company acquired full ownership of Bilboes in January 2023 for $65 million, paid through the issuance of about 5.1 million Caledonia shares and a 1% net smelter return royalty to the previous owner.
With the feasibility study now complete, Caledonia Mining is moving forward with detailed planning and financing arrangements to bring the Bilboes gold project into production.
