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
The revised feasibility study for the Bilboes sulphide project continues to progress, with a focus on capital allocation, and is expected to be completed in the first quarter of 2025.

Caledonia is also progressing towards identifying and implementing a funding structure for Bilboes to minimise equity dilution and optimise the uplift in net present value per Caledonia share. 

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

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