Online Reporter
Nqobile Bhebhe, [email protected]
EXPLORATION is delivering results for Caledonia Mining Corporation after the company announced a maiden mineral resource estimate (MRE) of 379 000 ounces of measured and indicated gold resources at its Motapa project in Zimbabwe, achieved at a combined exploration discovery and acquisition cost of US$40,45 per ounce.
The resource, comprising 7,8 million tonnes grading 1,51 grammes per tonne (g/t) of gold, was established following three years of exploration work costing US$7,084 million. This builds on Caledonia’s acquisition of the Motapa property for US$8,25 million in November 2022.
At a cut-off grade of 0,5g/t, the maiden MRE contains 379 000 ounces in the measured and indicated categories, with an additional 131 000 ounces classified as inferred resources, highlighting the project’s potential to contribute to Caledonia’s long-term production strategy.
The latest resource estimate reflects the value generated from the company’s investment in exploration, with the combined acquisition and exploration expenditure of approximately US$15,334 million equating to around US$40,45 per measured and indicated ounce.
The result is particularly significant given Motapa’s proximity to Caledonia’s flagship Bilboes Gold Project, which is under development and is expected to pour first gold in late 2028.
Caledonia chief executive officer Mr Mark Learmonth said the achievement demonstrated the value of the company’s exploration programme.
“The maiden MRE at Motapa is a significant milestone for Caledonia and demonstrates the value created through our exploration activities over the past two years. The acquisition of Motapa was a highly strategic move and should be viewed in the context of our ownership of the adjacent Bilboes Gold Project,” he said. “Bilboes is currently in development, with first gold production expected at the end of 2028, and already hosts substantial mineral resources.”
He said the new resource had strengthened the argument for viewing Motapa and Bilboes as components of a larger integrated mining operation.
“The identification of 379 000 ounces in the measured and indicated mineral resource categories, together with a further 131 000 ounces in the inferred mineral resource category, demonstrates the value created by the exploration work completed to date. Achieving this at an estimated combined exploration discovery and acquisition cost of approximately US$40,45 per measured and indicated ounce is particularly pleasing,” he said.
Mr Learmonth said the Motapa discovery could ultimately enhance the scale and lifespan of the Bilboes operation.
“This maiden mineral resource estimate supports our view that the combined Bilboes and Motapa properties may ultimately support a larger operation and/or extend the current planned production profile for Bilboes of 1,5 million ounces over a 10,8 year life of mine,” he said.
Motapa’s maiden MRE is based on exploration undertaken between 2023 and 2025, with work focused primarily on sulphide mineralisation beneath the historic open pits at Motapa North.
The property comprises three principal shear zones, namely Motapa North, Motapa Central and Motapa South, which provide additional exploration targets.
Importantly, the current MRE does not include results from the 2026 exploration campaign, which remains ongoing at Motapa North and has since been extended to Motapa South and Motapa Central.
This leaves significant scope for further resource growth as Caledonia continues drilling and geological evaluation across the property.
Mr Learmonth said the company remained focused on bringing Bilboes into production while continuing to unlock value at Motapa.
“Our immediate priority remains bringing Bilboes into production on schedule, with first gold expected in late 2028.
“At the same time, we expect to continue exploration at Motapa during the Bilboes construction period,” he said.
Caledonia said Motapa’s close proximity to Bilboes could create operational synergies and enable the two assets to contribute to the long-term development of a broader mining complex.
However, further exploration, metallurgical testing, technical studies and economic assessments will be required before any development decision can be taken.
The acquisition of Motapa and the subsequent exploration programme have provided Caledonia with a potentially valuable growth asset as the company continues advancing Bilboes, which is projected to produce 1,5 million ounces of gold over a 10,8-year mine life.
