Caledonia to undertake feasibility study

BUSINESS REPORTER

Victoria Falls Stock Exchange listed Caledonia Mining Corporation will undertake a fresh feasibility study for its latest acquisition, Bilboes Mine, a move which will allow the company to identify ‘appropriate ways of commercialising the asset’, CEO Mark Learmonth has said.

It comes after Caledonia, which also owns Blanket Mine in Gwanda, this month completed the acquisition of Bilboes for about US$65.7m, Learmonth said the acquisition of Bilboes was critical in Caledonia’s strategy to create a mid-tier, multi-asset gold producer focused on Zimbabwe.

An initial feasibility study on the project, which was done by Bilboes vendors, foresees a production of about 168 000 ounces a year over a 10-year life.

Now that the acquisition of Bilboes, formerly owned by Anglo American Corporation, was completed, Learmonth revealed that Caledonia will conduct its own feasibility study, which will take up to 14 months to complete.

“Now that the transaction has completed, Caledonia will commission its own feasibility study to identify the most appropriate way to commercialise this asset having regard to the availability of funding with the objective of maximising Caledonia’s net present value per share. I anticipate the feasibility study will take 12 to 14 months to complete,” Caledonia CEO, Mark Learmonth, said.

He added: “In the short term, I expect ore production from the Bilboes oxides will commence in early February and we anticipate beginning to recover gold from the heap leach from March.

“The acquisition of Bilboes should be seen in the context of the successful implementation of the Central Shaft project at Blanket Mine, which is now producing at its target production rate of 80,000 ounces per annum, and the acquisitions of the exploration projects at Maligeen and Motapa.”

Following the conclusion of the transaction, Victor Gapare, was appointed an executive director of

Caledonia.

Gapare was the CEO of Bilboes Holdings since the management buyout of Bilboes from Anglo American Corporation Zimbabwe Limited in 2003.

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