Online Reporter
Michael Tome
Business Reporter
CALEDONIA Mining Corporation is strengthening its position as one of the biggest gold producers in Zimbabwe, targeting production of 300 000 ounces over the medium term, anchored by the Bilboes project.
In 2023, the Victoria Falls Stock Exchange-listed mining group spent US$65,7 million to buy the Bilboes gold project, which is situated in Bubi District, Matabeleland North Province.
Completion of the transaction marked a significant milestone for Caledonia’s growth strategy.
A feasibility study conducted at the time projected annual production of between 250 000oz and 300 000oz from the open-pit mine, which would catapult Caledonia into the ranks of emerging Tier 1 African gold producers.
Presently, Caledonia, whose flagship is Blanket Mine in Gwanda, Matabeleland South Province, and also owns the Maligreen Goldfields and Glen Hulme projects in Gweru, Midlands Province, seeks to become a multi-asset gold producer in Zimbabwe. The mining group is currently producing at least 75 000 oz of gold per annum from Blanket Mine.
Speaking at a press conference in Harare on Tuesday, Caledonia executive director Mr Victor Gapare said the group was now in the final stages of reassessing the Bilboes project with a view to scaling it to be profitable under the Zimbabwean operating environment.
The original capital requirements were considered high for the local context, prompting a rigorous re-evaluation process over the past two years. “We are actually at the end of that process. We should be going to our board in November and expect to decide on the final project design by the end of this year or early 2026.
“Once we have this project, Caledonia is a group that will be producing probably an average of 250 000 and 300 000 oz per year. So, that is what we are really looking at. It will be an open-pit operation, but in terms of cost, it will be a low-cost gold producer,” said Mr Gapare.
If approved, construction at Bilboes is expected to begin next year, with the project’s first gold production anticipated by the end of 2028.
The development timeline suggests Caledonia plans to undertake detailed engineering design and procurement next year.
So far, the mining group is benefiting from a consistent cash-flow base, primarily from the Blanket Mine. “The strategy was always to combine cash-generating assets with a big resource like Bilboes. That way, when we go to raise capital, we are not starting from zero — we have a strong operational foundation,” said Mr Gapare.
Gold is Zimbabwe’s largest single export commodity, whose output reached a record high of 36,4 tonnes last year, reflecting a 21,2 percent increase from 30,1 tonnes in 2023.
Last year, the artisanal and small-scale mining sector delivered 23,7 tonnes while primary producers produced 12,7 tonnes.
This year, the Government is targeting to achieve 40 tonnes of gold.
