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.
