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Enacy Mapakame
Caledonia Mining plans to invest US$31 million this year on expansion projects, with the bulk of the funds targeted for its flagship Blanket Mine in southern Zimbabwe.
The group, listed on the Victoria Falls Stocks Exchange (VFSE) said about US$28,8 million would be spent on its Gwanda-based Blanket gold mine “for various capacity expansion and efficiency initiatives,” while the remainder will be deployed on a feasibility study on the Bilboes sulphides project and exploration at Maligreen.
“Capital expenditure at Blanket in 2023 includes approximately US$9,6 million in respect of a new tailings facility (reflecting tightened regulatory requirements) and a further US$9,8 million of deep-level capital development so that operations can be maintained in future years,” said Caledonia in its latest production guidance.
About US$2 million would be spent on its Bilboes mining project, the company said.
“It is anticipated that the cost of the projected capital expenditure for the group will be met from operating cashflows and in-country borrowings,” said Caledonia.
In 2022, Zimbabwe’s gold output reached a record 35,38 tonnes, a 19 percent increase from 2021, according to statistics from Fidelity Gold Refiners, a subsidiary of the Reserve Bank of Zimbabwe which buys all the country’s gold output. This was largely due to a combination of monetary incentives and new mining projects in the sector.
In 2014, Caledonia announced a plan to sink a new shaft (Central Shaft) to 1 200 metres from surface, all funded through internal cash flow, with a long-term target of achieving an annual 80 000 ounces production rate. Last year, Blanket mine marginally surpassed production target with output reaching 80 775 ounces against a set target of 80 000 ounces. Caledonia has set an overall production of 87 500 ounces to 97 000n ounces for 2023. Of this target, its recently acquired Bilboes mine is targeted to produce between 12 500 oz to 17 000 oz.
“Production guidance for 2023 assumes that Blanket (mine) will broadly maintain the production rate achieved in 2022. (The) 2023 guidance also includes the estimated production from the small oxides project at Bilboes where mining activity is expected to commence in February, and we expect to extract gold from the heap leach process in March,” said Caledonia chief executive Mr Mark Learmonth.
Online Reporter