• Caledonia Mining must raise up to $484 million to build the Bilboes gold mine, with a payback period of 1.7 years.
• The project is expected to produce 1.55 million ounces of gold over 10.8 years, including 200,000 ounces in 2029.
• Caledonia plans to commission the mine by late 2028 using a mix of senior non-recourse debt, internal cash flow from Blanket, and third-party funding.

Caledonia Mining Corp. aims to expand its Zimbabwean portfolio by developing the Bilboes project into its second producing gold mine. The company already operates the Blanket mine and expects Bilboes to complement its existing output. Available data indicate the project hosts 1.74 million ounces of mineral reserves.

Caledonia said on November 25 that it must raise up to $484 million to build the open-pit operation, according to the feasibility study released the same day. The company said the investment carries a 1.7-year payback period, which strengthens its case for rapid development.

Caledonia plans to bring the new asset online by late 2028, which would establish its second operating mine in Zimbabwe.

The study shows that Bilboes should deliver 1.55 million ounces of gold over a 10.8-year mine life. Caledonia expects the mine to produce 200,000 ounces in its first full year of commercial output in 2029.

To maintain its commissioning target, Caledonia plans to use a diverse financing structure. The company intends to raise senior non-recourse debt, deploy internal cash flow from the Blanket mine, and leverage third-party funding sources.

Caledonia plans to continue development work while advancing additional fund-raising initiatives. The company will launch engineering studies on the site ahead of the construction phase.

Management expects the project to expand the company’s gold production profile while supporting Zimbabwe’s mining-sector revenue.

“Bilboes should deliver substantial benefits to Zimbabwe. A project of this scale should help the country regain its position as a significant gold destination for international investors. The project should also generate important economic returns through foreign-currency earnings and tax revenues,” Chief Executive Mark Learmonth said.

Caledonia confirmed that the Zimbabwean state does not hold any direct equity in the Bilboes project. The company said it has secured all required approvals and continues to own 100% of Bilboes.

For comparison, Caledonia holds 64% of the Blanket mine, while Zimbabwean shareholders own the remaining 36%.

This article was initially published in French by Aurel Sèdjro Houenou

Adapted in English by Ange Jason Quenum