Caledonia to file preliminary economic assessment for Zimbabwe gold project

The PEA reflects the work that has been done by Caledonia and its consultants over the period since the Project was acquired by Caledonia in January 2023. This work focused on updating the feasibility study in respect of the Project that was prepared by DRA on behalf of the previous owners of the project; the work also considered alternative development options for the Project.

The main change to the Project development plan that has been made relates to the proposed construction of the Tailings Storage Facility (TSF), which will now be constructed on a modular basis to reduce the initial capital expenditure and therefore improve the economic returns. The revised approach to the TSF constitutes a “significant change” to the Project and requires the preparation of an entirely new technical and economic study. Over the course of the next 9 months, the Company intends to upgrade the confidence level of the study in respect of the TSF so that the entire body of work on the Project may be classified as a feasibility study which will be published in due course.

Highlights of the PEA

• Publication of PEA for a single-phase development of the Project.
• Single-phase development is expected to provide improved cash generation allowing for a lower cost of capital due to enhanced debt financing capacity than phased development alternatives.
• Project to yield approximately 1.5 million oz of gold (based on measured and indicated mineral resources) over an initial 10-year life of mine at an all-in sustaining cost of US$968/oz.
• Payback period of 1.9 years at a gold price of US$1884/oz.
• New single-phase feasibility study commissioned that is expected to be delivered during the first half of 2025.
• Funding solutions being progressed in tandem with work on the New Feasibility Study.

Read the article online at: https://www.globalminingreview.com/mining/04062024/caledonia-to-file-preliminary-economic-assessment-for-zimbabwe-gold-project/