Botswana Mining Review Comprehensive Coverage of the Progress and Achievements in the Mining Sector
Related Articles
Caledonia Mining Corporation is accelerating its growth strategy with a planned $132 million investment in 2026 to advance development of the Bilboes gold project in Zimbabwe, positioning the asset as a future cornerstone of the company’s portfolio. The proposed spend sits within a broader $162.5 million capital expenditure programme, subject to board approval and funding availability.
Bilboes is expected to become Zimbabwe’s largest gold mine once operational, with total development costs estimated at about $584 million. First gold production is targeted for late 2028, followed by a ramp-up to steady-state output of roughly 200,000 ounces a year from 2029. The project is designed with an initial mine life of at least ten years, underpinning Caledonia’s long-term production outlook.
Funding for the development is expected to be structured through a mix of non-recourse senior debt, cash flows from existing operations and alternative financing mechanisms, including potential streaming arrangements. While funding initiatives are described as well advanced, final investment remains contingent on-board approval. “Our FY 2026 budget reflects our commitment to sustained investment in both our core operations and future growth,” stated Mark Learmonth, CEO of Caledonia Mining Corporation.
The Bilboes development will account for the bulk of Caledonia’s $135.9 million growth capital allocation for 2026. An additional $3.8 million has been earmarked for exploration at the Motapa project, while $26.6 million is allocated to sustaining capital across the group, largely focused on the Blanket mine in Zimbabwe. At Blanket, sustaining capital will prioritise underground development, engineering upgrades, milling improvements, risk management and broader business optimisation initiatives. The company is also assessing a further $11 million investment in power infrastructure to mitigate recurring grid interruptions, subject to technical and financial evaluation.
“The planned capital expenditure will support ongoing production at Blanket and advance the development of the Bilboes project and exploration at Motapa where we see long term, value enhancing synergies with Bilboes,” added Learmonth. For the 2025 financial year, Caledonia reported gold production of 76,213 ounces at Blanket, meeting its revised guidance and broadly matching output from the prior two years. Fourth-quarter production eased year-on-year due to reduced access to higher-grade areas and power disruptions, although this was partly offset by strong milling throughput.
