Caledonia Mining acquires new gold mining project in Zimbabwe

Caledonia Mining has entered into an agreement to acquire the mining claims over the Maligreen project, a property situated in the Gweru mining district in Zimbabwe from Pan African Mining for $4 million. 
The property is estimated to contain a NI 43-101 compliant inferred mineral resource of around 940,000 ounces of gold.
“Initial evaluation of the inferred mineral resource by our own team and by independent consultants indicates the potential for a significant mining operation with a NI 43-101 compliant inferred mineral resource of almost one million ounces at a grade of 1.88g/t, an acceptable open pit grade,” said Caledonia chief executive Steve Curtis.
He said their understanding of the grade tonnage curve indicates that the deposit is likely to offer a high level of mining flexibility although much more work is needed in this area. 
The total land area of Maligreen is approximately 550 hectares comprising two historic open-pit mining operations which produced approximately 20,000 oz of gold mined from oxides between 2000 and 2002 after which the operation was closed. 
Caledonia expects to drill an initial 4,800 meters at an estimated cost of US$1.6 million over a period of 18 to 24 months to improve its understanding of the existing resource and assess the potential for a mining operation. 
Caledonia is currently mining gold at Blanket mine in Gwanda and the latest acquisition is putting the company on track to become a multi-asset gold producer in Zimbabwe.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished