Caledonia to spend US$34.4m in Capex
CLOUDINE MATOLA
The Victoria Falls Stock Exchange listed resources concern, Caledonia Mining Corporation, is planning to spend US$34.4m in capital expenditure (capex) this year for its gold mines in Zimbabwe, Business Times can report.
Caledonia, owns Blanket Mine in Gwanda and recently completed the acquisition of Bilboes, located approximately 75 kilometres north of Bulawayo.
The capex plan was revealed by the Group CEO, Mark Learmonth last week.
“…Of the US$34.4m, approximately US$20m will go towards sustaining investment. This is included in all-in sustaining cost guidance.
“Also, US$14.4m of expansion expenditure, which includes investment in a new tailings storage facility with a life of approximately 12 years and further underground development.
“The expansion expenditure also includes US$2m on preliminary exploration at Motapa and $3.5m on further work on the Bilboes feasibility studies,” Learmonth said.
According to him, Caledonia is still working on the feasibility studies related to the Bilboes sulfuride project in order to identify the best course of action for its realization.
The work includes updating the existing feasibility study for a project producing approximately 170,000oz of gold per annum and work on an alternative phased approach to the project.
Learmonth said the 2024 gold production guidance at Blanket is set at 74,000 to 78,000oz.
On-mine cost guidance at Blanket, he said its between US$870/oz and US$970/oz.
All-in sustaining cost guidance is between US$1,370 /oz and US$1,470/oz.
Business Times can report that in line with the 2023 guidance, annual gold production at Blanket Mine was 75 416 oz.
Learmonth said despite a challenging first half of 2023 the company managed to meet its 2023 guidance on production.
“I am pleased that, after a challenging first half, we successfully met production guidance for the year, producing 75,416 gold ounces, said Learmonth.
Learmonth also said 2024 guidance of 74,000 to 78,000 ounces assumes that Blanket will broadly maintain the production rate achieved in 2023 and reflects the prudent decision to suspend mining in lower margin areas which include lower grades and volumes, and higher costs.
“Our significant investment in Blanket over the past seven years and completion of the Central Shaft has nearly doubled production, extended the mine life and allowed the restart of underground exploration in 2023; in July we announced that the Eroica zone persists to depth and grades are significantly higher than previously thought. “
Learmonth added that the company continues to progress with the underground exploration programme and we expect to publish further exploration results in the first quarter of 2024 and a revised resource statement in the following quarter.
