Blanket Mine produced 76,656 ounces of gold in 2024, within projections, and just above the 75,416 ounces produced in 2023. For 2025, Caledonia expects to produce between 73,500-77,500 ounces.

The company had a strong finish to the year. In the fourth quarter, Blanket milled a record 797,000 tonnes, with 89,727 tonnes hoisted in December, exceeding milling capacity.

Going forward, Caledonia plans to increase capital expenditure to expand mining operations. Of the budgeted US$41.8 million capex for 2025, Blanket Mine will get $34.9 million. The company will also spend US$5.8 million on Bilboes and Motapa projects, two of the projects it has acquired in recent years as part of a strategy to grow its portfolio beyond Blanket Mine.

“These investments aim to modernise operations and improve mining efficiency at Blanket. While there will be short-term cost pressures, the long-term goal is to reduce costs, improve profitability, and ensure the continued success of Blanket,” Caledonia says. The capital expenditure will be funded from cash generation.

“Over the past seven years, our investment in Blanket has nearly doubled production and has substantially increased the resource base following which Blanket’s mine life now extends to 2034 based on reserves,” CEO Mark Learmonth says.

In 2023, Caledonia spent US$65.7 million to buy Bilboes, potentially one of the country’s biggest gold assets. This year, the company will use part of its capex to complete a feasibility study at Bilboes. Recently, Caledonia announced an agreement that allows it to sell up to US$50 million worth of shares to US investor Cantor Fitzgerald & Co to raise money to develop Bilboes.

newZWire