Caledonia acquires Bilboes gold project in Zim

Caledonia Mining has expanded its operations in Zimbabwe following the acquisition of the Bilboes gold project, a high-grade gold deposit located 75 km north of Bulawayo. 
The project has produced approximately 288,000 ounces of gold since 1989.
A feasibility study prepared by the vendors indicates the potential for an open-pit gold mine producing an average of 168,000 ounces per year over a 10-year life of mine.
Caledonia will conduct its feasibility study to identify the most judicious way to commercialise the project to optimise shareholder returns.  
The feasibility study will take 12 to 14 months to complete, according to Caledonia chief executive Mark Learmonth.
He said the company expects ore production from the Bilboes oxides to commence in early February and 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 Maligreen and Motapa,” said Learmonth.
“We recently announced an upgrade to the existing mineral resource base at Maligreen. Motapa is at a much earlier stage but, given its large size, its attractive geological prospectivity and its contiguity with Bilboes we believe it is a highly attractive addition to our portfolio.”

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