Name of the Project
Bilboes gold project.

Location
Matabeleland North province, 80 km north of Bulawayo, Zimbabwe.

Project Owner/s
Gold producer Caledonia Mining Corporation.

Project Description
Bilboes has proven and probable mineral reserves of 1.75-million ounces of gold contained in 24.1-million tonnes of ore at a grade of 2.26 g/t.

Measured and indicated mineral resources (exclusive of mineral reserves) total 532 000 oz of gold contained in 12.1-million tonnes of ore at a grade of 1.37 g/t, while inferred mineral resources total 984 000 oz contained in 18.9-million tonnes at a grade of 1.62 g/t.

A feasibility study has confirmed a single-phase development as the most economic development approach for the project. BIOX technology has been selected for refractory ore.

The Bilboes processing plant will have a throughput of 240 000 t a month for the first six years of production, then 180 000 t a month for the remainder of the project. In the first full year (2029) the project is expected to produce an estimated 200 000 oz of gold. Over the project’s 10.8-year life-of-mine it will produce 1.55-million ounces of gold. Significant exploration potential also exists within Bilboes and on the adjacent Motapa properties.

Potential Job Creation
Caledonia plans to introduce employee and community participation schemes following consultation with relevant authorities.

Net Present Value/Internal Rate of Return
At a consensus price of $2 548/oz, the project has an estimated after-tax net present value of $582-million and an internal rate of return of 32.5%, with a payback of 1.7 years.

Capital Expenditure
The project will require peak funding of $484-million.

Planned Start/End Date
First production is expected in late 2028 and steady-state production in 2029.

Latest Developments
None disclosed.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Caledonia Mining Corporation, tel +44 1534 679800 or email info@caledoniamining.com.