Operations
Bilboes
On 6 January 2023, Caledonia announced that it had completed the acquisition of Bilboes Gold Limited for a total consideration of 5,123,044 Caledonia
shares representing approximately 28.5 per cent of Caledonia’s fully diluted
equity, and a 1 per cent net smelter royalty the Project’s revenues.
The Feasibility Study, announced in November 2025, confirms that the Project has robust economics, delivering 1.55 Moz over 10.8 years with first production expected in late 2028.
Based on the last trading day’s closing share price on NYSE American of US$12.82 per share, the value of the maximum number of new shares that could be issued as consideration if there is no adjustment is currently US$65,677,424.
Highlights
- Bilboes is a large, high grade gold deposit located approximately 75 kmnorth of Bulawayo, Zimbabwe. Historically, it has been subject to a limited amount of open pit mining.
- The Project has NI43-101 compliant proven and probable mineral reserves of 1.96 million ounces of gold at a grade of 2.29 g/t and measured and indicated mineral resources of 2.56 million ounces of gold at a grade of 2.26 g/t and inferred mineral resources of 577,000 ounces of gold at a grade of 1.89 g/t. The Project has produced approximately 288,000 ounces of gold since 1989.
- A feasibility study prepared by the vendors (DRA) indicates the potential for an open-pit gold mine producing an average of 168,000 ounces per year over a 10-year life of mine.
- Caledonia will conduct its own feasibility study to identify the most judicious way to commercialise the Project to optimize shareholder returns. One approach that will be considered is a phased development which would minimise the initial capital investment and reduce the need for third party funding.
- Prior to completion of the Transaction, Caledonia will enter a tribute arrangement with Bilboes Holdings so that oxide operations can be re-started with the expectation that Bilboes Holdings will return to profitable operations within 6 months. This also has the benefit of an element of pre-stripping for the main development of the Project.
- The Transaction is subject to several conditions including:
- that Bilboes Holdings receives confirmation from the Zimbabwe authorities that it will, for the life of the mine, be able to export gold directly and to retain 100 per cent of the sale proceeds in US dollars with no requirement to convert US dollar gold revenues into domestic currency; and
- an arrangement with or confirmation from the Zimbabwe authorities and/or an independent power producer regarding the future availability of a sufficiently reliable and affordable electricity supply to the Project.
- Caledonia will, subject to satisfaction of conditions and any customary adjustments to the purchase price to account for any extraordinary liabilities incurred before completion, purchase Bilboes Gold Limited for a consideration to be settled by the issue to the sellers of 5,123,044 new shares in Caledonia and a 1 per cent NSR on the Project’s revenues.
Transforming Caledonia’s Future
On 25 November 2025, Caledonia announced its decision to proceed with the Bilboes Gold Project following the successful completion of our comprehensive feasibility study. This milestone represents a defining moment in Caledonia’s evolution toward becoming a mid-tier gold producer.
Project Overview
Location: Matabeleland North Province, Zimbabwe (80km north of Bulawayo)
Ownership: 100% Caledonia ownership
Status: Fully permitted and ready for development
Resource Base
- Proven & Probable Reserves: 1.749 Moz at 2.26 g/t
- Measured & Indicated Resources: 532,000 oz at 1.37 g/t
- Inferred Resources: 984,000 oz at 1.62 g/t
Production Profile
Key Metrics
- Life of Mine Production: 1.55 Moz over 10.8 years
- First Full Year (2029): ~200,000 oz
- Plant Throughput: 240kt/month (years 1-6), 180kt/month thereafter
- All-in Sustaining Cost: US$1,061/oz
- Metallurgical Recovery: 83.6% to 88.9%
Technology
BIOX® Processing: Advanced bacterial pre-treatment technology for refractory ore processing, proven successful in similar global projects.
Financial Highlights
- Economic analysis results, as extracted from the TRS:
The Project generates a value accretive business case in all three of the gold price scenarios evaluated:
| Metric | Unit | Consensus Forecast Price | 3-Year Trailing Average Price | Spot Price |
|---|---|---|---|---|
| Gold Price (Ave) | US$ / oz (Real) | 2,548 | 2,350 | 3,648 |
| Post-Tax NPV 8% Real | US$ M | 582 | 454 | 1,234 |
| Post-Tax IRR | % Real | 32.5 | 27.4 | 50.4 |
| Payback Period[1] | years | 1.7 | 2.8 | 1.1 |
| Peak Funding Required | US$ M (Real) | 484 | 484 | 484 |
| Value-Investment Ratio | ratio | 1.2x | 0.9x | 2.6x |
| Life of Mine (Active Years) | years | 10.8 | 10.8 | 10.8 |
| Operating Margin | % Real | 59.5 | 56.5 | 70.2 |
While the Feasibility Study (FS) was initially targeted for completion in Q1 2025, the Company has decided to extend the timeline to fully explore several material optimisation opportunities that have the potential to enhance project economics and reduce upfront capital requirements.
The FS will supersede the Preliminary Economic Assessment (“PEA”) released on June 3, 2024, which outlined exceptional project economics and a mine plan capable of tripling Caledonia’s gold production and positioning the Company as an intermediate gold producer. Encouragingly, ongoing work continues to confirm the project’s highly attractive fundamentals. Against the backdrop of a strong gold price, Bilboes remains both compelling and financeable.
Key areas of optimisation currently under review include:
- Engaging with the authorities to explore the potential sale of concentrate, which could significantly reduce upfront capital expenditures by deferring the capital expenditure on a BIOX processing circuit, at least in the first few years of production;
- Evaluating the potential relocation of the Tailings Storage Facility to a more efficient site, including on Caledonia’s Motapa property adjacent to Bilboes, where the topography could lead to lower initial construction costs;
- Incorporating near-term opportunities at Motapa into the Bilboes FS, following strong exploration results in 2024 and the additional exploration and development work planned at Motapa this year;
Exploration at Motapa, which is located directly adjacent to Bilboes, has been particularly promising, indicating the presence of new ore sources within a few hundred metres of the proposed Bilboes processing plant. Demonstrating significant resource additions at Motapa has the potential to materially improve the long-term economics of a combined Bilboes-Motapa project.
In addition, Caledonia continues to assess near-term revenue opportunities across its portfolio. In particular, high-grade ore recently identified at the Blanket Mine could make a meaningful contribution to the initial capital requirements for Bilboes, providing further flexibility around funding.
The Board remains fully committed to maximising shareholder value. In the context of a positive development decision, this means ensuring that Bilboes is optimised both technically and financially, while continuing discussions with funding partners and relevant authorities in Zimbabwe. The optimisation work is advancing well, and the Company will provide a further update on the expected timing of the Feasibility Study in due course.