Jersey-based Caledonia Mining just dropped a feasibility study showing their Bilboes Gold Project in Zimbabwe is sitting on 1.75 million ounces of proven and probable reserves, which translates to around 7 billion bucks at current gold rates. The project sits about 80 kilometers north of Bulawayo and needs 584 million in development cash to get rolling. They picked up full ownership back in January 2023 for 65 million. Stock jumped nearly 5 percent after the announcement.
The company plans to shift focus from its current Blanket Mine to make Bilboes the main operation within three years, targeting five tonnes of annual gold production starting in late 2028. They're looking at non-recourse senior debt for most of the financing while trying to keep shareholder dilution minimal. The mine has an expected lifespan of 11 years with a post-tax return rate of 32.5 percent and a payback timeline under two years.
The company plans to shift focus from its current Blanket Mine to make Bilboes the main operation within three years, targeting five tonnes of annual gold production starting in late 2028. They're looking at non-recourse senior debt for most of the financing while trying to keep shareholder dilution minimal. The mine has an expected lifespan of 11 years with a post-tax return rate of 32.5 percent and a payback timeline under two years.
