Caledonia Mining Corporation Plc: Bilboes Optimisation Update
Caledonia Mining (NYSE AMERICAN: CMCL) announces an extension to the completion timeline of the Bilboes Feasibility Study (FS) beyond Q1 2025 to explore optimization opportunities. The project, which could potentially triple Caledonia's gold production, is undergoing several key optimizations:
- Exploring potential concentrate sales to reduce initial capital expenditure by deferring BIOX processing circuit
- Evaluating relocation of Tailings Storage Facility to Motapa property for cost efficiency
- Incorporating promising Motapa exploration results, showing new mineralized zones near the proposed Bilboes plant
Additionally, high-grade mineralization discovered at the Blanket Mine could contribute to Bilboes' initial capital requirements. The company remains confident in the project's potential to reshape Caledonia's growth profile, supported by strong market conditions and positive exploration results.
Caledonia Mining (NYSE AMERICAN: CMCL) annuncia un'estensione della tempistica di completamento dello Studio di Fattibilità di Bilboes (FS) oltre il primo trimestre del 2025 per esplorare opportunità di ottimizzazione. Il progetto, che potrebbe potenzialmente triplicare la produzione d'oro di Caledonia, sta subendo diverse ottimizzazioni chiave:
- Esplorazione di potenziali vendite di concentrati per ridurre la spesa di capitale iniziale posticipando il circuito di processamento BIOX
- Valutazione del trasferimento della Struttura di Stoccaggio dei Fanghi alla proprietà di Motapa per efficienza dei costi
- Incorporazione di risultati promettenti dell'esplorazione di Motapa, che mostrano nuove zone mineralizzate vicino all'impianto proposto di Bilboes
Inoltre, la mineralizzazione ad alta legge scoperta nella Miniera Blanket potrebbe contribuire ai requisiti di capitale iniziali di Bilboes. L'azienda rimane fiduciosa nel potenziale del progetto di rimodellare il profilo di crescita di Caledonia, supportata da forti condizioni di mercato e risultati di esplorazione positivi.
Caledonia Mining (NYSE AMERICAN: CMCL) anuncia una extensión en el cronograma de finalización del Estudio de Viabilidad de Bilboes (FS) más allá del primer trimestre de 2025 para explorar oportunidades de optimización. El proyecto, que podría triplicar potencialmente la producción de oro de Caledonia, está experimentando varias optimizaciones clave:
- Exploración de posibles ventas de concentrados para reducir el gasto de capital inicial al posponer el circuito de procesamiento BIOX
- Evaluación de la reubicación de la Instalación de Almacenamiento de Relaves a la propiedad de Motapa para eficiencia de costos
- Incorporación de resultados prometedores de exploración en Motapa, que muestran nuevas zonas mineralizadas cerca de la planta propuesta de Bilboes
Además, la mineralización de alta ley descubierta en la Mina Blanket podría contribuir a los requisitos de capital inicial de Bilboes. La empresa sigue confiada en el potencial del proyecto para remodelar el perfil de crecimiento de Caledonia, respaldada por fuertes condiciones de mercado y resultados de exploración positivos.
칼레도니아 마이닝 (NYSE AMERICAN: CMCL)는 빌보에스 타당성 연구 (FS)의 완료 일정을 2025년 1분기 이후로 연장하여 최적화 기회를 탐색한다고 발표했습니다. 이 프로젝트는 칼레도니아의 금 생산량을 잠재적으로 세 배로 늘릴 수 있으며, 여러 주요 최적화를 진행 중입니다:
- BIOX 처리 회로를 연기하여 초기 자본 지출을 줄이기 위한 잠재적 농축물 판매 탐색
- 비용 효율성을 위해 모타파 소유지로 폐기물 저장 시설 이전 평가
- 제안된 빌보에스 공장 근처의 새로운 광물화 구역을 보여주는 유망한 모타파 탐사 결과 통합
또한, 블랭킷 광산에서 발견된 고품위 광물화는 빌보에스의 초기 자본 요구 사항에 기여할 수 있습니다. 회사는 강력한 시장 조건과 긍정적인 탐사 결과에 힘입어 프로젝트의 잠재력이 칼레도니아의 성장 프로필을 재구성할 것이라고 확신하고 있습니다.
Caledonia Mining (NYSE AMERICAN: CMCL) annonce une prolongation du calendrier d'achèvement de l'Étude de Faisabilité de Bilboes (FS) au-delà du premier trimestre 2025 pour explorer des opportunités d'optimisation. Le projet, qui pourrait potentiellement tripler la production d'or de Caledonia, subit plusieurs optimisations clés :
- Exploration de ventes potentielles de concentrés pour réduire les dépenses d'investissement initiales en reportant le circuit de traitement BIOX
- Évaluation du déménagement de l'installation de stockage des résidus vers la propriété de Motapa pour une efficacité des coûts
- Incorporation de résultats d'exploration prometteurs à Motapa, montrant de nouvelles zones minéralisées près de l'usine proposée de Bilboes
De plus, la minéralisation de haute qualité découverte à la mine Blanket pourrait contribuer aux besoins de capital initiaux de Bilboes. L'entreprise reste confiante dans le potentiel du projet pour redéfinir le profil de croissance de Caledonia, soutenue par de fortes conditions de marché et des résultats d'exploration positifs.
Caledonia Mining (NYSE AMERICAN: CMCL) gibt eine Verlängerung des Zeitplans für den Abschluss der Machbarkeitsstudie für Bilboes (FS) über das erste Quartal 2025 hinaus bekannt, um Optimierungsmöglichkeiten zu erkunden. Das Projekt, das die Goldproduktion von Caledonia potenziell verdreifachen könnte, unterliegt mehreren wichtigen Optimierungen:
- Erforschung potenzieller Konzentratsverkäufe zur Reduzierung der anfänglichen Investitionsausgaben durch Verschiebung des BIOX-Verarbeitungszirkels
- Bewertung der Verlagerung der Rückstandsdeponie auf das Grundstück Motapa zur Kosteneffizienz
- Integration vielversprechender Erkundungsergebnisse aus Motapa, die neue mineralisierte Zonen in der Nähe des vorgeschlagenen Bilboes-Werks zeigen
Darüber hinaus könnte die hochgradige Mineralisierung, die in der Blanket-Mine entdeckt wurde, zu den anfänglichen Kapitalanforderungen von Bilboes beitragen. Das Unternehmen bleibt zuversichtlich, dass das Projekt das Wachstum von Caledonia neu gestalten kann, unterstützt durch starke Marktbedingungen und positive Erkundungsergebnisse.
- Potential to triple gold production through Bilboes project
- Discovery of new mineralized zones at Motapa property near Bilboes plant
- High-grade mineralization found at Blanket Mine could fund Bilboes development
- Strong gold price environment supporting project viability
- Delay in Feasibility Study completion beyond Q1 2025
- Additional capital expenditure requirements for BIOX processing circuit
Insights
Caledonia's Bilboes optimization update represents a strategic pivot with mixed investment implications. While the extended feasibility study timeline delays the project that could triple the company's gold production, management is pursuing several value-enhancing optimizations that could materially improve project economics.
The potential to sell concentrate rather than building a complete BIOX circuit immediately is particularly significant. This phased development approach could substantially reduce initial capital requirements - often the greatest hurdle for junior miners - while still allowing production to commence. Similarly, relocating the tailings facility to more favorable topography at Motapa could drive meaningful cost efficiencies.
The promising exploration results at Motapa represent a potential resource expansion opportunity that wasn't fully factored into previous economic assessments. Having additional mineralized zones within just hundreds of meters of the planned processing plant could enhance the project's long-term value proposition through improved grade profile or extended mine life.
High-grade mineralization at Blanket could provide critical near-term cash flow to partially self-fund Bilboes development, reducing potential equity dilution or debt burden. This demonstrates management's holistic portfolio approach to capital allocation.
While the extended timeline warrants caution, the disciplined optimization strategy in the current strong gold price environment suggests a company focused on maximizing project economics rather than rushing into production.
The operational adjustments outlined for Bilboes reflect sound mining development principles. The concentrate sale option represents a pragmatic phased development approach - by deferring the capital-intensive BIOX circuit initially, Caledonia could achieve earlier production while reducing upfront capital intensity by potentially tens of millions of dollars.
Tailings facility optimization is particularly noteworthy. TSF construction represents a significant capital cost for new mining projects, and the topographical advantages mentioned at Motapa could translate to substantial savings while potentially improving environmental management.
The proximity of new mineralized zones at Motapa to the proposed Bilboes processing infrastructure creates operational synergies that weren't previously factored into the project economics. This could enhance mill feed flexibility and grade management capabilities over the mine life.
The high-grade mineralization identified at Blanket represents an operational opportunity to generate additional near-term cash flow from an existing asset, demonstrating effective resource management across the company's portfolio.
While timeline extensions in mining development always warrant scrutiny, the optimization pathways being explored here address the three critical aspects that determine project success: reducing capital intensity, enhancing operating economics, and improving resource utilization. This suggests a technically sound approach to maximizing project value rather than merely delaying development.
ST HELIER, Jersey, March 27, 2025 (GLOBE NEWSWIRE) -- Caledonia Mining Corporation Plc (NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL) (“Caledonia” or “the Company”) is pleased to announce that with the support of DRA Projects (Pty) Ltd and other technical consultants, it has been making good progress on the Feasibility Study (“FS”) for the Bilboes project.
While the FS was initially targeted for completion in Q1 2025, the Company has decided to extend the timeline to fully explore several material optimisation opportunities that have the potential to enhance project economics and reduce upfront capital requirements.
The FS will supersede the Preliminary Economic Assessment released on June 3, 2024, which outlined attractive project economics and a mine plan capable of tripling Caledonia’s gold production and positioning the Company as an intermediate gold producer. Encouragingly, ongoing work continues to confirm the project’s attractive fundamentals. Against the backdrop of a strong gold price, Bilboes remains both compelling and financeable.
Key areas of optimisation currently under review include:
- Engaging with the authorities to explore the potential sale of concentrate, which could significantly reduce upfront capital expenditures by deferring the capital expenditure on a BIOX processing circuit, at least in the first few years of production;
- Evaluating the potential relocation of the Tailings Storage Facility to a more efficient site, including on Caledonia’s Motapa property adjacent to Bilboes, where the topography could lead to lower initial construction costs; and
- Incorporating near-term opportunities at Motapa into the Bilboes FS, following strong exploration results in 2024 and the additional exploration and development work planned at Motapa this year.
Exploration at Motapa, which is located directly adjacent to Bilboes, has been particularly promising, indicating the presence of new mineralised zones within a few hundred metres of the proposed Bilboes processing plant. Demonstrating significant resource additions at Motapa has the potential to materially improve the long-term economics of a combined Bilboes-Motapa project.
In addition, Caledonia continues to assess near-term revenue opportunities across its portfolio. In particular, high-grade mineralisation recently identified at the Blanket Mine could make a meaningful contribution to the initial capital requirements for Bilboes, providing further flexibility around funding.
The Board remains fully committed to maximising shareholder value: this means ensuring that Bilboes is optimised both technically and financially, while continuing discussions with funding partners and relevant authorities in Zimbabwe. The optimisation work is advancing well, and the Company will provide a further update on the expected timing of the FS in due course.
Mark Learmonth, Chief Executive Officer of Caledonia, commented:
“Bilboes has the potential to be truly transformative for Caledonia, and the work we are doing now is about making sure we get it right. We are encouraged by the results to date and are taking a disciplined approach to optimisation—both to enhance returns and to ensure we can fund the project in the most efficient way possible.
“With strong exploration results at Motapa, promising developments at Blanket, and supportive market conditions, we remain confident in Bilboes’ ability to significantly reshape Caledonia’s growth profile.”
Enquiries:
| Caledonia Mining Corporation Plc Mark Learmonth Camilla Horsfall | Tel: +44 1534 679 800 Tel: +44 7817 841 793 |
| Cavendish Capital Markets Limited (Nomad and Joint Broker) Adrian Hadden Pearl Kellie | Tel: +44 207 397 1965 Tel: +44 131 220 9775 |
| Panmure Liberum (Joint Broker) Scott Mathieson/ Ailsa MacMaster | Tel: +44 20 3100 2000 |
| Camarco, Financial PR (UK) Gordon Poole | Tel: +44 20 3757 4980 |
| 3PPB (Financial PR, North America) Patrick Chidley Paul Durham | Tel: +1 917 991 7701 Tel: +1 203 940 2538 |
| Curate Public Relations (Zimbabwe) Debra Tatenda | Tel: +263 77802131 |
| IH Securities (Private) Limited (VFEX Sponsor - Zimbabwe) Lloyd Mlotshwa | Tel: +263 (242) 745 119/33/39 |
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.
Cautionary Note Concerning Forward-Looking Information
Information and statements contained in this news release that are not historical facts are "forward-looking information" within the meaning of applicable securities legislation that involve risks and uncertainties relating, but not limited to Caledonia's current expectations, intentions, plans, and beliefs. Forward-looking information can often be identified by forward-looking words such as "anticipate", "believe", "expect", "goal", "plan", "target", "intend", "estimate", "could", "should", "may" and "will" or the negative of these terms or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Examples of forward-looking information in this news release include: production guidance, our plans and timing regarding further exploration and drilling and development, future costs, the development of Bilboes and Motapa, our strategic vision, the potential sale of concentrate, the potential relocation of the Tailings Storage Facility and the publication of the Bilboes feasibility study. This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information. Such factors and assumptions include, but are not limited to: failure to establish estimated resources and reserves, the grade and recovery of ore which is mined varying from estimates, success of future exploration and drilling programs, reliability of drilling, sampling and assay data, assumptions regarding the representativeness of mineralization being inaccurate, success of planned metallurgical test-work, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors.
Security holders, potential security holders and other prospective investors should be aware that these statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking information. Such factors include, but are not limited to: risks relating to estimates of mineral reserves and mineral resources proving to be inaccurate, fluctuations in gold price, risks and hazards associated with the business of mineral exploration, development and mining, risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards, employee relations; relationships with and claims by local communities and indigenous populations; political risk; risks related to natural disasters, terrorism, civil unrest, public health concerns (including health epidemics or outbreaks of communicable diseases such as the coronavirus (COVID-19)); availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining or maintaining necessary licenses and permits, diminishing quantities or grades of mineral reserves as mining occurs; global financial condition, the actual results of current exploration activities, changes to conclusions of economic evaluations, and changes in project parameters to deal with unanticipated economic or other factors, risks of increased capital and operating costs, environmental, safety or regulatory risks, expropriation, the Company's title to properties including ownership thereof, increased competition in the mining industry for properties, equipment, qualified personnel and their costs, risks relating to the uncertainty of timing of events including targeted production rate increase and currency fluctuations. Security holders, potential security holders and other prospective investors are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Caledonia undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
Craig James Harvey, MGSSA, MAIG, Caledonia Vice President, Technical Services, has reviewed and approved the scientific and technical information contained in this news release. Craig James Harvey is a "Qualified Person" as defined by each of (i) the Canadian Securities Administrators' National Instrument 43-101 - Standards of Disclosure for Mineral Projects and (ii) sub-part 1300 of Regulation S-K of the U.S. Securities Act.
This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation (EU) No. 596/2014 (“MAR”) as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
FAQ
What optimization opportunities is CMCL exploring for the Bilboes project?
How will the Bilboes project impact CMCL's gold production capacity?
What recent developments at Motapa property could benefit CMCL's Bilboes project?
How is CMCL planning to fund the initial capital requirements for Bilboes?
