Staff Reporter

Caledonia Mining is poised to triple its gold output through the development of Bilboes, a gold asset acquired last year, the Harare post can report.

Chief Executive Officer (CEO), Mark Learmonth stated that the preliminary economic assessment confirms Bilboes’ potential to boost Caledonia’s production capacity to over 200 000 ounces annually, in conjunction with output from the Blanket mine in Gwanda.

“The preliminary economic assessment also confirms that Bilboes has an attractive production profile with a potential to almost triple Caledonia’s production capacity to over 200 000 ounces per annum in combination with production from Blanket Mine,” he said.

Blanket Mine produced 75 416 ounces in 2023, with a projection of 78 000 ounces for this year.

Learmonth described the board’s decision to proceed with the single-phase development as a crucial step in Caledonia’s growth towards becoming a mid-tier gold producer with multiple assets.

“The Board’s decision to proceed with the single-phase development option for Bilboes represents a key strategic milestone in our journey to becoming a multi-asset, mid-tier gold producer,” he noted.

According to Learmonth, to develop Bilboes, Caledonia will need to raise up to US$309 million. He further stated that a “sizable” portion of the amount would come from debt.

“We estimate Bilboes will be able to support approximately $200m in debt and Caledonia will need to finance an additional $100m through equity, either at the project level or Caledonia level, when the risk factor on Bilboes is reduced,” according to London-based investment advisory, Cavendish.

Furthermore, Economic analysts commended the mining project as it promises to transform the lives of the local communities, as well as  add new impetus to the ongoing revitalization of Bulawayo industries.

“The opening of these mines is an important aspect in the development of Bulawayo apart from job creation it also feeds into the economic ecosystem,” Mr Mpala a businessman and economist noted.