REG - Caledonia Mining Crp - Resource update and Form 20-F 2024
15/05/2024 07:00
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RNS Number : 4461O Caledonia Mining Corporation PLC 15 May 2024
Caledonia Mining Corporation Plc
Increases in mineral resources and mineral reserves estimates at Blanket Mine,
publication of Annual Report on Form 20-F and notice of a shareholder webinar
(NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL)
St Helier, May 15, 2024 - following the announcements of encouraging drilling
results at Blanket Mine in Zimbabwe ("Blanket") on July 10, 2023 and
January 30, 2024, Caledonia Mining Corporation Plc ("Caledonia" or "the
Company") is pleased to announce an increase to the mineral resources and
mineral reserves estimates at Blanket.
The Company also announces that today it is filing with the U.S. Securities
and Exchange Commission (the "SEC") on EDGAR the Company's Annual Report on
Form 20-F for the fiscal year ended December 31, 2023 (the "Annual Report").
As per last year, the Annual Report was prepared in compliance with the SEC's
technical disclosure requirements for mining companies under subpart 1300 of
Regulation S-K ("1300 S-K"). In accordance with 1300 S-K, the Annual Report
includes estimates of mineral resources in addition to the mineral reserves
for each of the Company's mineral projects as at the end of the reporting
period (i.e. December 31, 2023), on an attributable basis (i.e. in respect of
Blanket, on the basis of its 64% ownership), with mineral resources presented
exclusive of mineral reserves. This method of presentation differs from the
Company's other method of presentation of mineral resources and mineral
reserves estimates under Canada's National Instrument 43-101 ("NI 43-101"),
which is done on a 100% project basis and mineral resources being inclusive of
mineral reserves. The Company is also filing an NI 43-101 technical report
in respect of an increase in Blanket's mineral resources and mineral reserves
estimates with SEDAR today (the "New Blanket NI 43-101").
Highlights
· Increase in Blanket's 1300 S-K mineral reserve and mineral
resource ounces by 111% and 36% respectively, with a 7% and 23% increase
in mineral reserve and mineral resource grade respectively.
· Increase in Blanket's NI 43-101 mineral reserve and measured and
indicated ("M&I") mineral resource ounces by 106% and 63% respectively,
with a 5% and 14% increase in mineral reserve and M&I mineral resource
grade respectively.
· Increase in Blanket's NI 43-101 inferred mineral resource ounces
by 26% with an increase in inferred mineral resource grade of 28%.
· Blanket's life of mine is estimated, based only on the updated
mineral reserves estimate, to 2034. Management believes that the inferred
mineral resources may, based on past successful conversion rates, further
extend the life of mine past 2040.
· Release of 1300 S-K mineral reserves and resources
estimates at the Bilboes Gold Project ("Bilboes") for the first time, which,
using the same methodology, are similar to current NI 43-101 mineral reserves
and mineral resources estimates.
Commenting on the increased mineral resources and mineral reserves estimates
at Blanket, Mark Learmonth, Chief Executive Officer, said:
"Our 2023 drilling campaign at Blanket yielded excellent results, with better
than expected grades and widths indicated from our deep level drilling
programme. I am delighted that the 2023 campaign has resulted in a significant
increase to Blanket's mineral resources and mineral reserves estimates.
Measured and indicated mineral resources, reported under NI 43-101, have
increased by 63% to 1,789k ounces and mineral reserves by 106% to 812k ounces.
"Blanket's mine life is estimated to 2034 based only on the updated mineral
reserves estimate, thus securing the future of our flagship asset and
demonstrating its continued prospectivity and potential at higher production
levels. Management believes that the inferred mineral resources may, based on
past successful conversion rates, further extend the life of mine past 2040."
Further details
The total 1300 S-K M&I mineral resource estimate at Blanket, exclusive of
mineral reserves and at 64% attributable ownership to Caledonia (as reported
pursuant to 1300 S-K), has increased by 50% to 606k ounces of gold in 5,426k
tonnes with a 16% improvement in grade and the total mineral reserves estimate
at Blanket has increased by 111% to 519k ounces of gold in 4,918k tonnes with
a 7% improvement in grade. The moderate increase in inferred mineral resource,
by 26% to 679k ounces of gold in 5,646k tonnes, is due to successfully
converting the bulk of the inferred mineral resources into indicated mineral
resources as evidenced by the 2% drop in tonnes and is offset by a 28%
increase in grade.
A comparison of the 1300 S-K measured, indicated and inferred mineral
resources estimates as at December 31, 2022 with those as at December 31, 2023
at Blanket are shown below:
December 31, 2022 December 31, 2023 % Variance
Mineral Resource Classification Tonnes Au Ounces Tonnes Au Ounces Tonnes Au Ounces
(1300 S-K)
kt g/t koz kt g/t koz kt g/t koz
Measured Total 1,855 3.10 185 2,700 3.72 323 46 20 75
Indicated Total 2,363 2.89 220 2,726 3.23 283 15 12 29
M&I Total 4,218 2.98 405 5,426 3.47 606 29 16 50
Inferred Total 5,748 2.92 539 5,646 3.74 679 -2 28 26
Grand total 9,967 2.94 944 11,072 3.61 1,285 11 23 36
Notes:
1. Cut-off applied 1.5 g/t.
2. 2022 - No geological loss applied for measured, 5% for indicated and
inferred.
3. 2023 - Geological loss for measured 2.5%, indicated 5%, inferred 10%.
4. 2022 - Commodity price of $1,800/oz.
5. 2023 - Commodity price of $2,150/oz.
6. Mineral resources are reported as 64% attributable to Caledonia.
7. All orebodies are depleted for mining.
8. Mineral resources are stated exclusive of mineral reserves.
9. Plant recovery factor of 93.64% applied.
A comparison of the 1300 S-K mineral reserves estimates as at December 31,
2022 with those as at December 31, 2023 at Blanket are shown below:
December 31, 2022 December 31, 2023 % Variance
Mineral Reserve Classification Tonnes Grade Au Content Tonnes Grade Au Content Tonnes Grade Au Content
(1300 S-K)
kt g/t kg koz kt g/t kg koz kt g/t kg koz
Proven 1,191 3.23 3,842 124 1,363 3.21 4,377 141 14 -1 14 14
Probable 1,300 2.92 3,801 123 3,555 3.31 11,782 379 173 14 210 208
Total 2,491 3.07 7,643 246 4,918 3.29 16,158 519 97 7 111 111
Notes (December 31,2023):
1. Mineral reserve cut-off of 2.1 g/t applied.
2. The gold price that has been utilised in the economic analysis to
convert diluted measured and indicated mineral resources in the life or mine
("LoM") plan to mineral reserves is an average real term price of USD1,877/oz
over the LoM, using the forecast prices as per economic analysis.
3. The mineral reserve estimation utilises the depleted 2023 mineral
resource estimation and the 2023 mine design and LoM plan.
4. Mineral reserves are reported as 64% attributable to Caledonia.
5. Totals may not add due to rounding.
The total NI 43-101 M&I mineral resource estimates at Blanket, inclusive
of mineral reserves (as reported in the New Blanket NI 43-101), have increased
from the estimates set out in the technical report entitled "NI 43-101
Technical Report on the Blanket Gold Mine, Zimbabwe" dated March 13, 2023
prepared by Caledonia and Minxcon (Pty) Ltd and filed on SEDAR (www.sedar.com)
on March 13, 2023 ("Previous Blanket NI 43-101"), by 63% to 1,789k ounces of
gold in 15,273k tonnes and the total mineral reserves estimates at Blanket
have increased by 106% to 812k ounces of gold in 7,684k tonnes. Again, the
moderate increase in inferred mineral resources, by 26% to 1,061k ounces of
gold in 8,821k tonnes, is due to successfully converting the bulk of the
inferred mineral resources into indicated mineral resources as evidenced by
the 2% drop in tonnes and is offset by a 28% increase in grade.
The following table shows a comparison of the new measured, indicated and
inferred mineral resources estimates under the New Blanket NI 43-101 with
those set out in the Previous Blanket NI 43-101:
March 31, 2022 December 31, 2023 % Variance
Mineral Resource Classification Tonnes Au Ounces Tonnes Au Ounces Tonnes Au Ounces
(NI 43-101)
kt g/t koz kt g/t koz kt g/t koz
Measured Total 5,065 3.32 541 6,161 3.72 737 22 12 36
Indicated Total 5,659 3.04 554 9,112 3.59 1,052 61 18 90
M&I Total 10,724 3.18 1,095 15,273 3.64 1,789 42 14 63
Inferred Total 8,995 2.92 844 8,821 3.74 1,061 -2 28 26
Mineral resources (December 31, 2023)
Notes:
1. Cut-off applied 1.5 g/t.
2. Geological loss applied: measured 2.5%, indicated 5.0%, inferred
10.0%.
3. Commodity price utilised: USD2,150/oz.
4. Mineral resources are stated inclusive of mineral reserves.
5. Mineral resources are reported as total mineral resources and are
not attributed.
6. All orebodies are depleted for mining.
7. Totals may not add due to rounding.
The following table shows a comparison of the new mineral reserves estimates
under the New Blanket NI 43-101 with those set out in the Previous Blanket NI
43-101:
September 1, 2022 March 1, 2024 % Variance
Mineral Reserve Classification Tonnes Grade Au Content Tonnes Grade Au Content Tonnes Grade Au Content
(NI 43-101)
kt g/t kg koz kt g/t kg koz kt g/t kg koz
Proven 1,978 3.30 6,534 210 2,129 3.21 6,838 220 8 -3 5 5
Probable 1,964 2.94 5,763 185 5,555 3.31 18,409 592 183 13 219 220
Total 3,942 3.12 12,298 395 7,684 3.29 25,247 812 95 5 106 106
.
Mineral reserves (March 1, 2024)
Notes:
1. Mineral reserve cut-off of 2.1 g/t applied.
2. The gold price that has been utilised in the economic analysis to
convert diluted measured and indicated mineral resources in the LoM plan to
mineral reserves is an average real term price of USD1,877/oz over the LoM.
3. Mineral reserves are reported as total mineral reserves and are not
attributed.
4. Totals may not add due to rounding.
Publication of Annual Report and Technical Report Summaries
As mentioned above, the Annual Report includes a technical report summary
("TRS") for each of the Blanket Gold Mine and the Bilboes Gold Project,
prepared in accordance with S-K 1300. It does not include an updated TRS for
the Maligreen Gold Project or a TRS for the Motapa Gold Project, given there
has been no gold production from those areas or subsequent exploration
results. The Company's annual report on Form 20-F for the fiscal year ended
December 31, 2022 included a TRS for the Maligreen Gold Project but did not
include a TRS in respect of the Bilboes Gold Project because the acquisition
by Caledonia of Bilboes Gold Limited took place after the end of that
reporting year. The current NI 43-101 technical report in respect of the
Bilboes Gold Project is the "Bilboes Gold Project Feasibility Study" with
effective date December 15, 2021 prepared by DRA Projects (Pty) Ltd and filed
by the Company on SEDAR on July 21, 2022 (the " Bilboes NI 43-101 Report ").
Similarly to the announcements made by the Company on May 17, 2022 and April
28, 2023 regarding the annual reports on Form 20-F for the fiscal years ended
December 31, 2021 and 2022 respectively, shareholders are reminded that, as
stated above, under 1300 S-K the mineral resources and mineral reserves
estimates in the Annual Report are reported on an attributable basis, as at
December 31, 2023, and the mineral resources estimates are reported exclusive
of mineral reserves. Therefore, the mineral resources and mineral reserves
estimates in the Annual Report in respect of Blanket and the Bilboes Gold
Project differ from those stated in the New Blanket NI 43-101 and the Bilboes
NI 43-101 Report respectively.
Whilst there are TRSs for Blanket in previous annual reports to compare its
new 1300 S-K mineral resources and mineral reserves estimates with, this
Annual Report is the first report in which Bilboes' mineral resources and
mineral reserves estimates have been reported pursuant to 1300 S-K. In terms
of the differences in the mineral resources and mineral reserves estimates
between the Bilboes NI 43-101 Report and the Annual Report/Bilboes TRS, these
are insignificant if the 1300 S-K methodology (e.g. excluding mineral reserves
from mineral resources) is applied to the estimates in the Bilboes NI 43-101
Report. The mineral resources and mineral reserves estimates in the Bilboes
TRS are slightly reduced after taking into account oxide mining depletion
during 2023 and reclassification of oxide material to transitional or sulphide
material due to grade control drilling undertaken in 2023.
The tables below compare the mineral resources and mineral reserves estimates
in the Bilboes NI 43-101 Report as at December 15, 2021 to the 1300 S-K
mineral resources and reserves estimates for Bilboes in the Annual Report
which are stated with an effective date of December 31, 2023. Column B in
the table below shows the 1300 S-K mineral resources, but inclusive of mineral
reserves so as to more easily show the correlation with the NI 43-101 Bilboes
Report mineral resources. The final table shows a comparison of the mineral
reserves.
Mineral Resources Comparison
A B C Variance % (B to C)
Effective Date December 31, 2023 December 31, 2023 December 15, 2021
Source Annual Report Annual Report Bilboes NI-43-101 Report
(1300 S-K) (1300 S-K)
Basis Exclusive of Mineral Reserves Inclusive of Mineral Reserves Inclusive of Mineral Reserves
(i.e. as per 1300 S-K) (i.e. not as per 1300 S-K)
Mineral Resources Classification Tonnes Grade Au Content Tonnes Grade Au Content Tonnes Grade Au Content Tonnes Grade Au Content
kt g/t koz kt g/t koz kt g/t koz kt g/t koz
Measured 241 1.85 14 6,120 2.51 495 6,128 2.51 495 0% 0% 0%
Indicated 8,475 1.79 488 27,522 2.23 1,976 29,052 2.21 2,061 -6% 1% -4%
Total M&I 8,716 1.79 502 33,650 2.28 2,470 35,180 2.26 2,555 -5% 1% -3%
Inferred 9,118 1.91 560 9,118 1.91 560 9,475 1.89 577 -4% 1% -3%
Mineral Reserves Comparison
Effective Date December 31, 2023 December 15, 2021 Variance %
Source Annual Report (1300 S-K) Bilboes NI-43-101 Report
Mineral Reserves Classification Tonnes Grade Au Content Tonnes Grade Au Content Tonnes Grade Au Content
kt g/t koz kt g/t koz kt g/t koz
Proven 5,900 2.42 455 5,858 2.42 456 1% 0% 0%
Probable 19,100 2.31 1,418 20,785 2.26 1,509 -9% 2% -6%
Total 24,900 2.34 1,873 26,644 2.29 1,964 -7% 2% -5%
Shareholder webinar
Shareholders are invited to a Zoom webinar for management to discuss the
updates to the mineral resources and mineral reserves estimates. The details
are as follows:
When: May 17, 2024 02:00 PM London
Topic: Shareholder call to discuss resource update
Register in advance for this webinar:
https://caledoniamining.zoom.us/webinar/register/WN_z3uiy4INQLOqRpfUrASIIw
(https://caledoniamining.zoom.us/webinar/register/WN_z3uiy4INQLOqRpfUrASIIw)
After registering, you will receive a confirmation email containing
information about joining the webinar.
.
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
Pearl Kellie Tel: +44 207 397 1965
Tel: +44 131 220 9775
Liberum Capital Limited (Joint Broker)
Scott Mathieson Tel: +44 20 3100 2000
Matt Hogg
Camarco, Financial PR (UK)
Gordon Poole Tel: +44 20 3757 4980
Julia Tilley
Elfie Kent
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: the estimates of mineral resources,
mineral reserves, gold price, cut-off grade, costs, life of mine and other
economic projections contained in this news release, the Annual Report and the
technical reports described herein, and the potential of inferred mineral
resources to extend Blanket's life of mine. The forward-looking information
contained in this news release 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 statements. 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.
This news release has been approved by Mr Craig James Harvey, MGSSA, MAIG,
Caledonia Vice President, Technical Services, the Company's qualified person
as defined by Canada's National Instrument 43-101 - Standards of Disclosure
for Mineral Projects ("NI 43-101") who has verified the data disclosed
herein, including sampling, analytical and test data informing the mineral
resources and mineral reserves estimates, by reviewing the methodologies,
results and all procedures undertaken in a manner consistent with industry
practice, and all matters were consistent and accurate according to his
professional judgement. There were no limitations on the verification process.
Mr Harvey was responsible for the compilation of the technical reports
referred to in this document and for the mineral resource information therein.
Marthinus Steyn van Staden, Pr. Eng, MAMMSA, MSAIMM, 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. Mr van Staden
was responsible for the mineral reserve information in the technical reports.
Glossary
Unit Definition
% Percent
/ Per
± or ~ Approximately
a Year
g Grammes
g/t Grammes per tonne
k Thousands (1,000)
kg Kilogram (1,000 g)
km Kilometre (1,000 m)
koz Kilo ounces (1,000 oz)
kt Kilotonnes (1,000 t)
ktpm Kilo tonnes per month
m Metre
Moz Million ounces (1,000,000 oz)
Mt Million tonnes (1,000,000 t)
Mtpa Million tonnes per annum
oz Troy Ounces
t Tonne
tpd Tonnes per day
x By / Multiplied by
The following abbreviations were used in the Reports:
Abbreviation Description
amsl Above Mean Sea Level
Bilboes Bilboes Gold Project
Bilboes NI43-101 Report Bilboes Gold Project Feasibility Study with effective date December 15, 2021
prepared by DRA Projects (Pty) Ltd
Blanket Mine Company Blanket Mine (1983) (Pvt) Ltd
Blanket or the Mine Blanket Gold Mine
BQR Blanket Quartz Reef
Caledonia or the Company Caledonia Mining Corporation Plc
CIM Canadian Institute of Mining, Metallurgy and Petroleum
EDGAR Electronic Data Gathering, Analysis, and Retrieval system
Form 20-F Annual Report on Form 20-F pursuant to the Securities Exchange Act of 1934
LoM Life of Mine
M&I Measured and Indicated mineral Resources
Minxcon Minxcon (Pty) Ltd
NI 43-101 National Instrument 43-101, Form 43-101 F1 and the Companion Policy Document
43-101CP
NPV Net Present Value
QAQC Quality Assurance and Quality Control
QP Qualified Person
RoM Run of Mine
SEC U.S. Securities and Exchange Commission
SEDAR System for Electronic Document Analysis and Retrieval
SK-1300 Sub part 1300 of Regulation S-K of the SEC
New Blanket Ni43-101 NI 43-101 Technical Report on the Blanket Gold Mine, Zimbabwe" with an
effective date of 31 December 2023
TRS Technical Report Summary
TSF Tailings Storage Facility
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