At current gold prices, the gross in-situ metal value of the 510 000 ounces is about US$2,35 billion, although the figure does not represent the project’s recoverable value or future revenue. The post Caledonia declares 510 000-ounce gold resource at Motapa appeared first on newsday .
HARARE, Aug. 28 (NewsDay Live) — Jersey-based gold miner Caledonia Mining Corporation has declared a maiden mineral resource of 510 000 ounces at its Motapa project in Zimbabwe, strengthening the potential for the operation to support or extend production at its neighbouring Bilboes Gold Project.
The Motapa resource comprises 379 000 ounces in the measured and indicated categories and a further 131 000 ounces in the inferred category.
At current gold prices, the gross in-situ metal value of the 510 000 ounces is about US$2,35 billion, although the figure does not represent the project’s recoverable value or future revenue.
The declaration adds to Caledonia’s growing resource base around Bilboes, which the company expects to become its flagship operation.
Last year, Caledonia said Bilboes contained 1,749 million ounces of proven and probable gold reserves. The project also hosts 532 000 ounces in measured and indicated resources and 984 000 ounces in inferred resources, excluding the declared mineable reserves.
Bilboes is expected to produce its first gold in late 2028, with full-year production scheduled for 2029. The operation is projected to produce about five tonnes of gold annually.
Caledonia said the Motapa resource could provide additional feedstock, extend Bilboes’ mine life or support the development of a larger mining complex, although further exploration, metallurgical testing, technical studies and economic assessments are required before the project can be considered for development.
“The identification of 379 000 ounces in the measured and indicated mineral resource categories, together with a further 131 000 ounces in the inferred mineral resource category, demonstrates the value created by the exploration work completed to date,” Caledonia chief executive Mark Learmonth said in a statement.
“Achieving this at an estimated combined exploration discovery and acquisition cost of approximately US$40,45 per measured and indicated ounce is particularly pleasing.”
Learmonth said the maiden resource estimate supported the company’s view that the combined Bilboes and Motapa properties could eventually sustain a larger operation or extend Bilboes’ planned production profile of 1,5 million ounces over a 10,8-year life of mine.
He said the proximity of the two properties presented a compelling long-term opportunity.
“Our immediate priority remains bringing Bilboes into production on schedule, with first gold expected in late 2028,” Learmonth said.
“At the same time, we expect to continue exploration at Motapa during the Bilboes construction period.”
Caledonia spent US$7,08 million on exploration at Motapa and US$8,25 million on the initial acquisition of the property.
The measured and indicated resource has an average grade of 1,51 grammes of gold per tonne, while the inferred resource averages 1,48g/t, indicating relatively consistent gold mineralisation across the declared resource.
Caledonia acquired Motapa as a strategic addition to its portfolio because of its proximity to Bilboes and said it would continue evaluating the exploration potential of both properties.
“Bilboes is currently in development, with first gold production expected at the end of 2028, and already hosts substantial mineral resources,” Learmonth said.
“In addition, Bilboes itself remains highly prospective and we expect to evaluate and advance its broader exploration potential in due course.”
The post Caledonia declares 510 000-ounce gold resource at Motapa appeared first on newsday.
