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Nokuthaba Brita Ncube, ncubenokuthababrita@gmail.com
LISTED gold mining entity, Caledonia Mining Corporation Plc has earmarked US$41,8 million for its 2025 capital expenditure (capex) programme, with US$34,9 million designated for the Blanket Mine and US$5,8 million for the Bilboes and Motapa projects.
This follows the company’s production of 76 656 ounces in 2024, surpassing its guidance of 74 000 to 78 000 ounces and slightly exceeding the 2023 production of 75 416 ounces.
The mining house has it on record that it is eyeing consolidating its strategy of becoming a multi-asset gold producer by acquiring several lucrative mining assets.
Fourth quarter production at Blanket Mine stood at 19 841oz, a strong mining activity resulting in a record 797 000 tonnes milled for the year, with 89 727 tonnes hoisted in December, exceeding milling capacity.
The firm said the Blanket production for 2024 excludes an estimated 700 oz of unrecovered gold contained in an 8 400-tonne stockpile, which provides a strong start for 2025.
In its 2024 fourth quarter update, Caledonia said the investments are geared at modernising operations and improving mining efficiency at Blanket.
It notes that while there will be short-term cost pressures, the long-term goal is to reduce costs, improve profitability, and ensure the continued success of the mine.
All expenditures will be funded from cash generation and cash reserves with no anticipated impact on the dividend.
According to the firm, key projects include Blanket development, with US$ 6,6 million allocated to carry out planned development of 4 663 m including an additional 590 meters to improve flexibility, access higher grade areas and efficiency improvements of US$3,4 million for energy-saving initiatives at the mine.
Additionally, US$5,8 million has been set aside for exploration and project development at Motapa, building on promising 2024 results and to complete the feasibility study at Bilboes.
Chief executive officer Mr Mark Learmonth expressed enthusiasm about the achievement.
“I am pleased to report that we achieved our production guidance for the year, producing 76 656 ounces of gold. In 2024, we achieved a new record for tonnes milled of 797 000 tonnes, and in December we also set a record for hoisting 89 727 tonnes of ore, exceeding our milling capacity,” he said.
“As a result of the strong mine production, we closed the year with a stockpile of 8 400 tonnes which puts us in a good position to start 2025,” he added.
Mr Learmonth said over the past seven years, investing in Blanket has nearly doubled production and has substantially increased the resource base following which Blanket’s Mine life now extends to 2034 based on reserves.
He also pointed out that the firm continues to progress with the revised feasibility study for the Bilboes sulphide project, which is scheduled to be completed later in the first quarter of this year.
“At Bilboes, we continue to progress the revised feasibility study for the Bilboes sulphide project, which is scheduled to complete later in the first quarter of this year.
“Following the publication, in November 2024, of encouraging exploration results at Motapa, the 2025 capital budget includes provision for further exploration on targeted sites with the most geological potential and the opportunity for early synergies with the Bilboes project,” said Mr Learmonth.
“We are systematically building a mid-tier Zimbabwe focussed gold producer with multi-asset profitable production, while doing so with a focus on capital allocation and building per share value.”
Bilboes Gold is a gold mining entity that owns three major gold mines in Matabeleland North and was once ranked among the country’s 10 biggest gold producers.
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