REG - Caledonia Mining Crp - Feasibility Study for Bilboes Gold Project

Caledonia MiningAnnouncement

25/11/2025 07:00

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RNS Number : 8191I  Caledonia Mining Corporation PLC  25 November 2025

Caledonia Mining Corporation Plc

 

Publication and Highlights of the Feasibility Study for Bilboes Gold Project

 

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

 

 

St Helier, November 25, 2025 - Caledonia Mining Corporation Plc ("Caledonia"
or the "Company") is pleased to announce the decision to proceed with the
Bilboes Gold Project ("Bilboes" or the "Project") following completion and
publication of the feasibility study (the "Feasibility Study")(( 1  (#_ftn1)
)).

 

Highlights

·        Single-phase development confirmed as the most economic
development approach.

 

·        Mineral reserves:

o   Summary of proven and probable: 1.749 Moz of gold at 2.26 g/t.  See
Appendix for complete estimate, as extracted from the TRS.

 

·        Mineral resources (excluding mineral reserves):

o   Summary of measured and indicated: 532,000 oz of gold at 1.37 g/t. See
Appendix for complete estimate, as extracted from the TRS.

o   Summary of inferred: 984,000 oz of gold at 1.62 g/t. See Appendix for
complete estimate, as extracted from the TRS.

 

·        Processing: BIOX® technology selected for refractory ore.

 

·        Production profile:

o   Plant throughput of 240kt per month for the first 6 years of production,
falling to 180kt per month for the remainder of the Project.

o   Metallurgical recovery ranging from 83.6% to 88.9%.

o   First full year (2029): ~200,000 oz.

o   Life of Mine: 1.55 Moz over 10.8 years.

o   All-in-sustaining cost ("AISC"): US$1,061/oz.

 

·        Economic analysis results, as extracted from the TRS:

The Project generates a value accretive business case in all three of the gold
price scenarios evaluated:

 Metric                       Unit             Consensus Forecast Price  3-Year Trailing Average Price  Spot Price
 Gold Price (Ave)             US$ / oz (Real)  2,548                     2,350                          3,648
 Post-Tax NPV(8% Real)        US$ M            582                       454                            1,234
 Post-Tax IRR                 % Real           32.5                      27.4                           50.4
 Payback Period( 1 )          years            1.7                       2.8                            1.1
 Peak Funding Required        US$ M (Real)     484                       484                            484
 Value-Investment Ratio       ratio            1.2x                      0.9x                           2.6x
 Life of Mine (Active Years)  years            10.8                      10.8                           10.8
 Operating Margin             % Real           59.5                      56.5                           70.2

 

The pricing scenario, evaluated on a LoM average realised gold price of
US$2,548/oz, yields the following key results:

Post-tax NPV(8%Real) of US$582 M at a post-tax IRR of 32.5%,

Payback period of 1.7 years, as measured from the date of first production,

Robust Value-Investment Ratio of 1.2x,

Peak funding requirement of US$484 M (real),

Healthy operating margin of 59.5%.

 

Adopting the September 2025 London Bullion Market Association ("LBMA") spot
price of US$3,648/oz materially improves all the key business return metrics
resulting in a post-tax NPV(8%Real) of US$1,234 M and a post-tax IRR of more
than 50%.

The three-year trailing average price of US$2,350/oz does however result in a
reduction of both the NPV and IRR to US$454 M and 27.4% respectively, which is
still considered attractive.

·        Funding strategy

The project has a peak funding requirement of US$484 M; in addition,
management anticipates approximately US$100 M will be required in respect of
interest and working capital and a further US$50 M (in addition to the
existing cost contingencies) in respect of the usual cost overrun facilities
that are required by senior lenders.   Management anticipates the Project
will be funded as follows:

o   majority of funding is expected from non-recourse senior debt;

o   internal equity from Blanket Mine; and

o   flexible instruments (such as royalties, streams and mezzanine funding,
which may include the issue of convertible bonds).

 

The Company will adopt a phased fund-raising approach to provide early
liquidity so that the development timetable can be accelerated.

 

The funding strategy has been designed to maximise the uplift in Net Present
Value ("NPV") per Caledonia share by minimising equity issuance.

 

·        Timeline:

o   Front end engineering design ("FEED") phase commences immediately.

o   First production expected in late 2028.

o   Steady-state production expected 2029.

 

·        Permitting: Fully permitted.

 

·        Location: Bilboes is situated in Matabeleland North province,
80 km north of Bulawayo.

 

·        Ownership: Caledonia owns 100% of Bilboes, acquired in
January 2023 for approximately US$65 M worth of Caledonia shares at the time
and a 1% net smelter royalty.

 

Caledonia's Chief Executive Officer, Mark Learmonth, said:

"The finalisation of the Feasibility Study and the decision to implement the
Project is a defining moment for Caledonia in our journey to become a mid-tier
gold producer.

"This Feasibility Study confirms that the Project has robust economics,
delivering 1.55 Moz over 10.8 years with first production expected in late
2028. This Project has been decades in the making and represents the
culmination of an extraordinary amount of work by our team and our partners
and by the previous owners of the Project.

"We believe Bilboes will transform Caledonia and significantly change our
production profile.

"Bilboes should deliver substantial benefits to Zimbabwe: a project of this
scale should help Zimbabwe to reclaim its position as a major "gold
destination" in the eyes of the international investment community.  The
Project should also deliver substantial benefits to Zimbabwe in terms of
foreign exchange earnings and tax receipts.

"Caledonia intends to replicate some of the social and community structures it
has successfully implemented at Blanket Mine.  These have delivered
significant benefits to the local community in terms of the ownership in
Blanket by the Gwanda Community Share Ownership Trust, and Blanket's community
and social investment programmes.

"I look forward to providing future updates on development."

 

The Project covers 2,731.60 hectares (10.55 square miles) in Matabeleland
North province, approximately 80 kilometres north of Bulawayo, Zimbabwe's
second largest city. Caledonia acquired 100% ownership of Bilboes in January
2023 for US$65 M, settled through the issue of approximately 5.1 M Caledonia
shares, and the grant of a 1% net smelter royalty to a previous owner. The
mineral reserve and mineral resource bases at Bilboes are substantial. Proven
and probable mineral reserves total 1.75 Moz of gold contained in 24.1 Mt of
ore at a grade of 2.26 g/t. Measured and indicated mineral resources
(exclusive of mineral reserves) total 532,000 oz of gold contained in 12.1 Mt
of ore at a grade of 1.37 g/t, while inferred mineral resources total 984,000
oz contained in 18.9 Mt at a grade of 1.62 g/t. See the Appendix below for
further details of the estimates. There is also significant exploration
potential both within Bilboes and on the adjacent Motapa property, a
brownfield site comprising 2,161.34 hectares which is also owned by Caledonia.

The ore is refractory and after extensive evaluation of several processing
methods, Metso's BIOX® technology was chosen.  This technology, which is
already used successfully in similar gold projects around the world, involves
the pre-treatment of refractory concentrates using bacteria to destroy
sulphides ahead of conventional cyanide leaching for gold recovery.

The New Technical Reports will replace the NI 43-101 Preliminary Economic
Analysis (the "PEA") and SK-1300 Initial Assessment (the "IA") published in
June and December 2024 respectively.

Using a gold price of US$2,548/oz, the Project has a projected capital cost of
US$584 M and a peak funding requirement of US$484 M. The post-tax ungeared
internal rate of return ("IRR") is 32.5%, with an all-in sustaining cost
("AISC") of US$1,061/oz and a payback period of just 1.7 years. Compared to
the PEA and the IA, the Feasibility Study reflects a higher gold price and
refined mine scheduling, which prioritises early mining of shallow,
higher-grade ore to improve project economics. Although capital costs have
increased compared to the PEA and the IA by 45% driven by general cost
escalation and exchange rate impact (US$35 M), scope refinement and
market-related adjustments (US$86 M), and revisions to project services and
contingency (US$59 M), the project remains attractive with robust margins and
strong cash flow potential.

The Project is fully permitted under Zimbabwean laws. Caledonia intends to
introduce employee and community participation schemes, following consultation
with relevant authorities.

Funding Strategy

Caledonia, advised by Cutfield Freeman & Co Ltd, expects most of the
financing to be in the form of non-recourse senior debt, internal equity
contributions from Blanket Mine and flexible instruments such as royalties,
streams and mezzanine funding which may include the issue of convertible
bonds. The Company aims to minimise equity dilution and maintain its current
quarterly dividend of 14 cents per share, subject to prevailing conditions.

Management anticipates that a complete funding package will be in place by
late 2026 or early 2027. However, the Company has already embarked on
preparations to provide sufficient liquidity to allow for the early
procurement of long lead-time items in the second half of 2026, thereby
accelerating the project development timetable.  First production is expected
to commence in late 2028.

To support the funding strategy, Caledonia has recently entered into hedging
arrangements, in the form of put options, with Auramet International, Inc. and
Standard Bank of South Africa Limited, whereby it has hedged 3,000 oz of gold
production from Blanket Mine per month for the next three years at a strike
price of US$3,500/oz. The total cost of the hedging was US$13.5 M (inclusive
of interest), with US$3.8 M paid upfront in cash and deferred payment terms of
US$4.2 M and US$5.5 M payable in 6 months and 12 months respectively, which
gives an approximate cost of US$125/oz hedged.  Assuming cumulative
production at Blanket of 233,000 oz and an average on mine cost of US$1,270/oz
per ounce, over the three years 2026, 2027 and 2028 and no changes to the
relevant fiscal or monetary regimes, the hedging arrangements are designed to
underpin cash receipts by Caledonia from Blanket of approximately US$200 M in
the three-years from January 1, 2026 to December 31, 2028, which broadly
coincides with the peak capital investment period for the Project.

Indicative Timetable

The Company will immediately commence the FEED phase for the Project.
Subject to arranging early funding before the finalisation of the senior debt,
the Company plans to procure the long-lead time items as soon as the FEED
phase has been completed, thereby reducing the overall development period.
Construction is expected to take approximately two years, with initial
production anticipated at the end of 2028, followed by a five-month ramp-up
period. In its first full year of production, Bilboes is anticipated to
produce approximately 200,000 oz of gold.

Webcast

The Company will host a remote presentation for analysts and investors on the
Publication and Highlights of the Feasibility Study on Monday December 1,
2025 at 2:00pm London time, followed by an opportunity to ask questions.

 

Webcast link: https://stream.brrmedia.co.uk/broadcast/690dd1a327ca940014423b9b
(https://stream.brrmedia.co.uk/broadcast/690dd1a327ca940014423b9b)

 

 

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 Sole Broker)

 Adrian Hadden                                              Tel: +44 207 397 1965

 George Lawson                                              Tel: +44 131 220 9775
 Camarco, Financial PR (UK)

 Gordon Poole                                               Tel: +44 20 3757 4980

 Elfie Kent
 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

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 in (i) the Canadian Securities Administrators' National Instrument
43-101 - Standards of Disclosure for Mineral Projects and (ii) sub-part 1300
of Regulation S-K under the U.S. Securities Act. DRA Projects (Pty) Ltd, the
qualified person responsible for the TRS, has also reviewed and approved this
news release and the scientific and technical data presented herein. Each of
the qualified persons stated above has verified the data disclosed herein,
including sampling, analytical and test data 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 their
professional judgement. There were no limitations on the verification process.

 

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.

 

CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS

 

Information and statements contained in this document that are not historical
facts are "forward-looking information" or "forward-looking statements"
(collectively, "forward-looking statements") 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 statements 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 statements in this document
include: the expected filing and publication date of [the TRS and ]the NI
43-101 report; the estimates of mineral resources and mineral reserves, metal
prices, production profile, timeline, and economic analysis, including capital
and operating costs, net present value, payback and rates of return; funding
strategy; anticipated funding, development and production; first production
being expected to commence in late 2028; delivery of value to shareholders;
delivery of benefits to Zimbabwe; replication of social and community
structures utilized at the Blanket Mine; exploration potential; potential
hedging outcomes; future cash receipts from Blanket;  and future dividend
payments. These forward-looking statements are 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 statements. Such factors and
assumptions include, but are not limited to: that adequate funding will be
available on favourable terms and that the assumed metal prices, costs and
recoveries described herein as well as all other assumptions set out in the
TRS and not expressly set out herein remain correct.

Security holders, potential security holders and prospective investors should
be aware that forward-looking 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 and payment terms for gold sold, risks and hazards associated
with the business of mineral exploration, development and mining (including
environmental hazards, industrial accidents, unusual or unexpected geological
or structural formations, pressures, power outages, fire, explosions,
landslides, cave-ins and flooding), risks relating to the credit worthiness or
financial condition of suppliers, refiners and other parties with whom the
group 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 Group'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, and the other risks discussed in
Caledonia's most recent Form 20-F annual report and other filings made with
the U.S. Securities and Exchange Commission. Security holders, potential
security holders and prospective investors are cautioned not to place undue
reliance on forward-looking statements. By their nature, forward-looking
statements involve 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 reviews forward-looking statements for the purposes of preparing
each announcement; however, Caledonia undertakes no obligation to update
publicly or otherwise revise any forward-looking statements whether as a
result of new information, future events or other such factors which affect
these statements, except as required by law.

This news release is not an offer of the shares of Caledonia for sale in the
United States or elsewhere. This news release shall not constitute an offer to
sell or the solicitation of an offer to buy, nor shall there be any sale of
the shares of Caledonia, in any province, state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such province, state or
jurisdiction.

 

Appendix

 

Bilboes Gold Project Mineral Reserve Statement

 

 Deposit         Classification     Tonnage (Mt)  Au Grade (g/t)  Ounces (koz)
 McCays          Proven             0.5           2.80            44
                 Probable           3.5           2.39            266
 Isabella South  Proven             0.7           2.11            45
                 Probable           3.2           2.24            233
 Isabella North  Proven             1.2           2.30            89
                 Probable           3.5           1.95            217
 Bubi            Proven             1.2           1.92            73
                 Probable           10.4          2.34            783
 Total           Proven             3.5           2.21            251
                 Probable           20.6          2.26            1,499
 Grand Total     Probable + Proven  24.1          2.26            1,749

Note: All tonnes quoted are in-situ dry tonnes. Differences in the addition of
deposit tonnes to the total displayed is due to rounding to one decimal place.

Pit shells parameters assumed gold price at US$2,190 /oz, Recovery 83.6 %
Isabella and McCays, 88.9%, Bubi. Ore cost, US$ 2.60/t for Isabella, McCays
and Bubi. Waste US$2.00/t Isabella, McCays, and Bubi.  Processing cost US$
22.26/t for Isabella & McCays and US$ 42.25/t for Bubi.

The Mineral Reserve has been determined by applying the modifying factors and
pit optimisation parameters described in Section 13.4 of the TRS. The optimal
pit shell from this optimisation was selected on the basis of the required
project financial performance indicators and subsequently used to develop the
final pit and pushback designs. Following completion of the pushback designs,
the pushbacks were scheduled in Deswik Sched using all applicable modifying
factors, resulting in the final Mineral Reserve tonnages and contained metal
reported above.

The Mineral Reserve estimate has been classified and reported in accordance
with U.S. Securities and Exchange Commission (SEC) S-K 1300.

The estimate of Mineral Reserves for the Bilboes Gold Project is not at this
stage materially affected by any known environmental, permitting, legal,
title, taxation, socioeconomic, marketing, political, or other relevant
issues. Furthermore, the estimate of Mineral Reserves is not materially
affected by any known mining, metallurgical, infrastructure, or other relevant
factors.

A cut-off grade of 0.56 g/t (McCays, Isabella South and Isabella North) and
1.05 g/t (Bubi) was applied based on project specifics.

Effective Date of Mineral Reserve Estimate is 31 October 2025.

 

 

 

 

Bilboes Gold Project Mineral Resource Statement

Mineral Resources exclude Mineral Reserves.

 Property                            Classification                Tonnes (Mt)  Au (g/t)  Ounces (koz)
 Isabella South (ISBS)               Measured                      0.1          1.42      2
                                     Indicated                     1.4          1.68      78
                                     Total Measured and Indicated  1.5          1.67      80
                                     Inferred                      2.0          1.76      113
 Isabella North (ISBN)               Measured                      0.2          1.07      6
                                     Indicated                     1.6          1.68      88
                                     Total Measured and Indicated  1.8          1.63      93
                                     Inferred                      4.3          1.86      255
 Bubi                                Measured                      0.1          1.06      3
                                     Indicated                     7.3          1.23      290
                                     Total Measured and Indicated  7.4          1.23      293
                                     Inferred                      10.3         1.40      465
 McCays                              Measured                      0.1          1.33      3
                                     Indicated                     1.3          1.46      62
                                     Total Measured and Indicated  1.4          1.46      66
                                     Inferred                      2.4          1.99      151
 Totals (ISBS +ISBN+ Bubi + McCays)  Total Measured                0.4          1.16      15
                                     Total Indicated               11.7         1.37      517
                                     Total Measured and Indicated  12.1         1.37      532
                                     Total Inferred                18.9         1.62      984

S-K 1300 definitions observed for classification of Mineral Resources.

Mineral Resources are in situ.

Block bulk density interpolated from bulk density measurements taken from core
samples.

Resources are constrained by a Lerchs-Grossman (LG) optimized pit shell using
Whittle software.

Pit shells parameters assumed gold price at US$3,000 /oz, Recovery 83.6 %
Isabella and McCays, 88.9%, Bubi. Ore cost, US$ 2.60/t for Isabella, McCays
and Bubi. Waste US$2.00/t Isabella, McCays, and Bubi.  Processing cost US$
22.26/t for Isabella & McCays and US$ 42.25/t for Bubi.

Mineral Resources are not Mineral Reserves and have no demonstrated economic
viability. The estimate of Mineral Resources may be materially affected by
mining, processing, metallurgical, infrastructure, economic, marketing, legal,
environmental, social, and governmental factors (Modifying Factors).

Numbers may not add due to rounding.

A cut-off grade of 0.50 g/t was applied for the Mineral Resources.

Effective Date of Mineral Resource Estimate is 31 October 2025.

 

Glossary

 Abbreviations/Terms  Definition
 Au                   Native Gold
 Bilboes              Bilboes Holdings (Private) Limited
 BIOX®                Biological Oxidation
 Caledonia            Caledonia Mining Corporation Plc
 DRA                  DRA Projects (Pty) Ltd
 FEED                 Front End Engineering Design
 FS                   Feasibility Study
 g/t                  Grammes per tonne
 IA                   Initial Assessment
 IRR                  Internal Rate of Return
 ISBN                 Isabella North
 ISBS                 Isabella South
 Koz                  Kilo ounces
 Kt                   Kilo tonnes
 LBMA                 London Bullion Market Association
 LG                   Lerchs-Grossman
 LoM                  Life of Mine
 M                    Million
 Moz                  Million Ounces
 Mt                   million tonnes
 NPV                  Net Present Value
 NI 43-101            National Instrument 43-101
 oz                   ounces
 QP                   Qualified Person as defined in S-K 1300
 S-K 1300             Subpart 1300 and Item 601(b)(96) of Regulation S-K
 TRS                  Technical Report Summary within the meaning of S-K 1300
 TSF                  Tailings Storage Facility
 US$                  United States Dollar

 

 

 1  This press release includes a summary of the main elements of the
Feasibility Study which is included in a technical report summary ("TRS")
which has been prepared in accordance with Subpart 1300 and Item 601(b)(96) of
Regulation S-K ("SK-1300"), as adopted by the United States Securities and
Exchange Commission (the "SEC"), and which has just been filed with the SEC on
EDGAR. A technical report pursuant to National Instrument 43-101 - Standards
of Disclosure for Mineral Projects ("NI 43-101") reflecting the Feasibility
Study is expected to be filed in Canada on SEDAR+ before the end of 2025. The
TRS and the NI 43-101 technical report are together referred to herein as the
"New Technical Reports". The effective date of each of the estimates of
mineral resources and mineral reserves in the TRS is October 31, 2025.  All
references to US$ or $ are references to U.S. dollars.  For further
information please refer to the TRS, a copy of which is available on EDGAR and
on Caledonia's website at
https://www.caledoniamining.com/investors/technical-reports/
(https://www.caledoniamining.com/investors/technical-reports/) .

 

 1  As measured from the date of first ore processed / first revenue.

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