In a significant development for Zimbabwe’s gold mining industry, Caledonia Mining Corporation has announced ambitious plans to significantly increase its annual gold output. The company, already one of the country’s largest miners, is targeting a massive ramp-up to 250,000 ounces of gold production per year, according to CEO Mark Learmonth.
As reported by ebusiness Weekly, this growth strategy hinges on Caledonia’s recent acquisition spree. Learmonth highlighted the company’s shift “from being a relatively small operator of a single asset towards a multi-asset, Zimbabwe-focused gold producer”.
Key acquisitions include Bilboes Gold Limited in early 2023 and prior purchases of Motapa and Maligreen assets. These additions bolster Caledonia’s portfolio with high-potential exploration and development opportunities.
Caledonia’s existing flagship mine, Blanket Mine, located in Matabeleland South Province, achieved a record-breaking 75,416 ounces of gold in 2023, exceeding its annual target of 75,000-80,000 ounces.
While projections for 2024 and 2025 remain within a similar range of 74,000-78,000 ounces for Blanket, the future looks bright with the Bilboes project integration and ongoing exploration efforts at Blanket itself
Learmonth expressed optimism regarding Blanket’s performance, stating that “the operating and financial performance… has been in line with management expectations” for the first quarter of 2024. Furthermore, Caledonia is appraising initial results from Bilboes’ feasibility studies, aiming to streamline initial investment costs and optimize project economics.
Exciting developments are also underway at Blanket Mine. Exploration activities have recommenced, yielding positive results. Drilling conducted in 2023 and early 2024 revealed “significantly better widths and grades than previously modelled”. These findings are expected to culminate in a revised resource statement in Q2 of 2024, potentially extending Blanket’s lifespan
With the Bilboes project nearing completion of its updated feasibility study and Blanket Mine’s promising exploration outcomes, Caledonia appears well-positioned to achieve its ambitious production goals. This expansion is poised to deliver substantial value for Caledonia’s shareholders and solidify its position as a major player in Zimbabwe’s gold mining sector.