REG - Caledonia Mining Crp - Bilboes Optimisation Update

Caledonia MiningAnnouncement

27/03/2025 07:15

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RNS Number : 3982C  Caledonia Mining Corporation PLC  27 March 2025

 

Caledonia Mining Corporation Plc

Bilboes Optimisation Update

 

(NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL)

 

 

St Helier, March 27, 2025 - Caledonia Mining Corporation Plc ("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                                              Tel: +44 1534 679 800

 Camilla Horsfall                                            Tel: +44 7817 841 793
 Cavendish Capital Markets Limited (Nomad and Joint Broker)

 Adrian Hadden                                               Tel: +44 207 397 1965

 Pearl Kellie                                                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                                             Tel: +1 917 991 7701

 Paul Durham                                                 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.

 

 

 

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