Gold miner Caledonia Mining has announced a maiden mineral resource estimate (MRE) for its 100%-owned Motapa property, in Zimbabwe.

This shows a maiden measured and indicated MRE of 7.8-million tonnes at a grade of 1.51 g/t, containing 379 000 oz of gold at a cutoff grade of 0.5 g/t.

There is a further inferred MRE of 2.7-million tonnes at a grade of 1.48 g/t, containing 131 000 oz of gold at a cutoff grade of 0.5 g/t.

The MRE indicates $7.08-million of exploration spend and an initial acquisition cost of $8.25-million, resulting in an exploration discovery and acquisition cost of $40.45 per measured and indicated resource ounce.

“The maiden MRE at Motapa is a significant milestone for Caledonia and demonstrates the value created through our exploration activities over the past two years,” says CEO Mark Learmonth.

“The acquisition of Motapa was a highly strategic move and should be viewed in the context of our ownership of the adjacent Bilboes gold project. Bilboes is currently in development, with first gold production expected at the end of 2028, and already hosts substantial mineral resources.

“In addition, Bilboes itself remains highly prospective and we expect to evaluate and advance its broader exploration potential in due course,” he explains.

Learmonth acclaims that the identification of 379 000 oz in the measured and indicated mineral resource categories, together with a further 131 000 oz in the inferred mineral resource category, demonstrates the value created by the exploration work completed to date.

“Achieving this at an estimated combined exploration discovery and acquisition cost of approximately $40.45 per measured and indicated ounce is particularly pleasing,” he avers.

Learmonth points out that this maiden MRE supports the company’s view that the combined Bilboes and Motapa properties may ultimately support a larger operation and/or extend the current planned production profile for Bilboes of 1.5-million ounces over a 10.8-year life-of-mine (LoM).

“While considerable work remains to be completed, including further exploration, metallurgical testwork, technical studies and economic evaluation, the proximity of the two properties presents a compelling long-term opportunity,” he highlights.

Caledonia’s immediate priority remains bringing Bilboes into production on schedule, with first gold expected in late 2028, and concurrently it expects to continue exploration at Motapa during the Bilboes construction period.

BLANKET

Meanwhile, Caledonia, in a separate statement, announced a 22% increase to the underground measured and indicated MREs at its Blanket gold mine, in Zimbabwe, to 2.18-million ounces of gold, contained in 17.7-million tonnes at a grade of 3.83 g/t.

This is highlighted to reflect the success of the company’s underground drilling and development programmes.

Measured mineral resources increased by 48%, demonstrating successful conversion of mineral resources into higher-confidence categories.

Indicated mineral resources have been declared for surface oxide and transitional material of 22 000 oz of gold contained in 1.02-million tonnes of ore at a grade of 0.69 g/t with further indicated mineral resources of 8 000 oz of gold contained in 228 000 t of sulphide material at a grade of 1.07 g/t.

These MREs provide increased confidence in Blanket’s long-term production profile and form the basis for a revised LoM plan and a future mineral reserve update, Caledonia highlights.

“Following the commissioning of the Central shaft in 2021, Caledonia has used the increased operating capacity to restart underground exploration, investing $3.73-million in deep drilling at Blanket over the last six years, enabling the addition of 1.28-million ounces of measured and indicated ounces of gold (before depletion) – a discovery cost of $2.92/oz,” Learmonth avers.

“This most recent MRE at Blanket re-confirms that Blanket’s mineralisation continues at depth with generally improving grades and widths and creates the potential to extend Blanket’s mine-life by deepening its operations,” he adds.

A technical study to evaluate the optimal approach to further deepen Blanket’s operations below the current depth of 1 100 m below surface is advanced, and expected to be published towards the end of the year.

“The newly discovered oxide orebody at surface opens up the possibility of near-term incremental gold production from oxides. Metallurgical testwork on the amenability of the oxide material to heap-leach processing demonstrates recoveries of up to 67%.

“Work will commence shortly on preparing a trial heap-leach pad and mining a 10 000 t sample. Application has been made for the necessary environmental approvals for an oxide mining and processing operation.

Subject to the success of the evaluations and receipt of the necessary environmental approvals, oxide mining and processing may commence in the first half of 2027 with a target mining rate of 40 000 t of ore per month,” Learmonth informs.

He points out that the discovery of the small sulphide resource below the new oxide resource was unexpected and requires further evaluation, but could give rise to incremental gold production from sulphide material in the shallower portion of Blanket’s underground operations, thereby increasing mine flexibility and reducing the pressure on the higher-volume production areas at depth. 

Caledonia will now assess the amenability of this material to processing through Blanket’s existing metallurgical plant.