Caledonia Greenlights Bilboes, Set to Become Zimbabwe’s Largest Gold Mine

Caledonia Mining has taken a decisive step toward reshaping Zimbabwe’s gold industry with its approval of the Bilboes gold project, a development set to become the country’s largest gold producing operation. This decision follows the completion of a new feasibility study that confirms strong economic potential and operational viability for the long awaited project. Having acquired Bilboes in 2023, Caledonia is positioning the asset as a cornerstone of Zimbabwe’s ambition to restore its status as one of Africa’s leading gold producers.

The feasibility study outlines a total capital cost of 584 million dollars, with peak funding requirements estimated at 484 million dollars. Caledonia plans to secure financing through a combination of debt and equity, leveraging the stable cash flow from its flagship Blanket mine as a financial anchor. Bilboes is projected to deliver approximately 1.55 million ounces of gold over an almost eleven year mine life, with production expected to commence in late 2028. Output is forecast to ramp up to around 200,000 ounces annually by 2029, placing the mine among the largest primary gold operations in the region. The company’s CEO noted that the project represents decades of geological evaluation and corporate planning, and its advancement signals confidence in Zimbabwe’s long term mining prospects.

Caledonia’s decision to proceed comes despite persistent macroeconomic challenges in Zimbabwe, including unreliable power supply, currency volatility, and elevated inflation. The company’s strategy is supported by major institutional investors such as Allan Gray and BlackRock, whose backing underscores the perceived quality of the project and its capacity to generate substantial returns. The strong financial metrics revealed in the feasibility study provide further assurance that Bilboes can withstand operational pressures while delivering sustained value.

The development of Bilboes carries meaningful implications for Zimbabwe’s broader economy. A project of this scale is likely to attract additional exploration capital, stimulate local procurement and employment, and enhance fiscal revenues through royalties and taxes. For Africa’s mining industry, Bilboes stands as an example of how robust geological assets combined with credible corporate investment can rejuvenate mature mining jurisdictions and strengthen regional gold supply chains. If successfully executed, the project may help reposition Zimbabwe as a competitive gold producer and reinforce investor confidence across Southern Africa’s mineral sector.

Mini Glossary

• Feasibility Study: A comprehensive assessment that evaluates the economic, technical, and operational viability of a mining project.
• Peak Funding: The maximum amount of capital required at any point during project development before revenues begin offsetting costs.
• Debt and Equity Financing: Methods of raising capital, where debt involves borrowing funds and equity involves selling shares to investors.
• Mine Life: The estimated duration over which a mine can produce economically viable quantities of minerals.