Name of the Project
Bilboes sulphide gold project.

Location
About 75 km north of Bulawayo, in Zimbabwe.

Project Owner/s
Caledonia Mining Corporation.

Project Description
A preliminary economic assessment (PEA) has reconfirmed that Bilboes is a high-quality midscale asset that can generate attractive economic returns. 

The assessment of the project, completed in May 2024, is a culmination of optimised studies having been done on the project since January 2023, when Caledonia acquired Bilboes. 

The PEA has determined that a single-phase development will provide improved cash generation, allowing for a lower cost of capital, owing to enhanced debt financing capacity, compared with phased development alternatives.  The PEA envisages total production of 1.52-million ounces over a ten-year mine life.

The main change to the project development plan pertains to the proposed construction of the tailings storage facility (TSF), which will now be built on a modular basis to reduce the initial capital expenditure and, therefore, improve the economic returns. The revised approach to the TSF constitutes a “significant change” to the project and requires the preparation of an entirely new technical and economic study. 

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The PEA estimates a net present value, at a 10% discount rate, of $309-million and an internal rate of return of 34%, with a payback of 1.9 years.

Capital Expenditure
$403-million.

Planned Start/End Date
Not stated.

Latest Developments
Further work is required on the selected single-phase development option to elevate the confidence level of the PEA towards a new feasibility study. This work is expected to be completed in the first half of 2025. The focus of this work pertains to the TSF, which is a new undertaking because of the modular construction approach.

Key Contracts, Suppliers and Consultants
DRA Projects (PEA).

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