Caledonia Mining Corporation PLC Announces Filing of Preliminary Economic Assessment for Bilboes Sulphide Gold Project

Caledonia Mining Corporation Plc has announced the filing of a preliminary economic assessment (PEA) for the Bilboes sulphide gold project. The PEA, prepared by DRA Projects (Pty) Ltd, reflects the work done by Caledonia and its consultants since the acquisition of the project in January 2023. The assessment focused on updating the feasibility study and considering alternative development options, resulting in a single-phase development plan for the project.

The PEA supersedes the Former Feasibility Study and highlights the decision to advance the project to the execution stage in a single-phase development, which is expected to yield superior returns compared to multiple phases. The project is estimated to yield approximately 1.5 million ounces of gold over an initial 10-year life of mine at an all-in sustaining cost of $968 per ounce, with a payback period of 1.9 years at a gold price of $1,884 per ounce.

Significant revisions have been made to the single-phase development plan, including modular construction of the Tailings Storage Facility (TSF) to reduce upfront capital, revised pit designs, and a review of process plant and infrastructure costs. The single-phase development option is expected to offer more appealing returns and accommodate a lower cost of capital due to increased debt capacity compared to multi-phased development options.

The Company intends to upgrade the confidence level of the study in respect of the TSF over the next 9 months, with the expectation of completing this work in the first half of 2025. The main focus of this work relates to the TSF, which is effectively a new undertaking due to the modular construction approach. Additionally, a new single-phase feasibility study is expected to be delivered during the first half of 2025, with funding solutions being progressed in tandem with this study.

The publication of the PEA and the decision to advance the project to a single-phase development plan mark significant progress for Caledonia Mining Corporation Plc and the Bilboes sulphide gold project.