Caledonia to file preliminary economic assessment on chosen approach to develop the Bilboes sulphide gold project

Core Viewpoint - Caledonia Mining Corporation is advancing the Bilboes sulphide gold project to a single-phase development, which is expected to yield superior economic returns compared to multi-phase options [4][7]. Project Overview - The company will file a preliminary economic assessment (PEA) for the Bilboes project, reflecting updates since its acquisition in January 2023 [1][2]. - The PEA indicates a projected production of approximately 1.5 million ounces of gold over an initial 10-year mine life at an all-in sustaining cost of $968 per ounce [5][9]. Economic Assessment Highlights - The PEA shows a payback period of 1.9 years at a gold price of $1,884 per ounce [5]. - Key economic outcomes from the PEA include: - Total production: 1.518 million ounces - Total capital cost: $403 million - Peak funding requirement: $309 million - Net present value (NPV) at 10%: $309 million - Internal rate of return (IRR): 34% [9]. Development Strategy - The decision for a single-phase development is based on evaluations showing it offers better cash generation and lower capital costs compared to phased development [5][7]. - The revised approach includes a modular construction for the Tailings Storage Facility (TSF) to reduce initial capital expenditure [2][6]. Future Plans - The company plans to upgrade the confidence level of the study regarding the TSF to a feasibility study, expected to be completed in the first half of 2025 [8][12]. - Funding solutions are being pursued alongside the preparation of the New Feasibility Study [5][13]. Mineral Resource Estimate - The PEA includes a mineral resource estimate with total measured and indicated resources of 33.650 million tonnes at an average grade of 2.30 g/t Au, equating to approximately 2.47 million ounces [10]. - Inferred resources are not included in the economic outcomes of the PEA [11]. Management Commentary - The CEO emphasized that the single-phase development represents a strategic milestone for Caledonia, potentially tripling its production capacity to over 200,000 ounces per annum [12][14].