HARARE. – Caledonia Mining Corporation has allocated US$3.8 million to accelerate exploration at its Motapa gold project in Zimbabwe this year.
The investment is part of a broader US$162.5 million capital expenditure programme that also supports the development of the Bilboes project, which will become Zimbabwe’s largest gold mine once operational.
Motapa sits directly adjacent to Bilboes in southern Zimbabwe.
Initial results have shown widespread gold mineralisation over more than nine kilometres, including high-grade intersections of 12 metres at 6.36 grammes per tonne. A maiden resource estimate for the Motapa North sulphides is on track to be completed this year.
Caledonia is also advancing Bilboes through a four-part funding strategy. In January 2026, the company raised US$150 million via a seven-year convertible senior notes offering, the largest international capital raise for Zimbabwe in over a decade.
Investor demand exceeded US$600 million, highlighting growing confidence in the country’s mining sector.
First gold at Bilboes is targeted for early 2029, with a forecast annual output of 200,000 ounces over an initial 10-year period.
Total capital cost is estimated at US$584 million. Caledonia owns 100% of Bilboes, unlike its 64% stake in Blanket Mine.
The proximity of Motapa to Bilboes offers significant synergies. Motapa ore could feed directly into Bilboes’ planned processing plant, cutting costs and extending mine life.
Relocating Bilboes’ tailings storage to Motapa is also under review.
Caledonia has appointed Stanbic Bank Zimbabwe and CBZ Bank as co-lead arrangers for an interim funding facility of up to US$150 million, expected by mid-2026.
With Blanket Mine producing around 76,213 ounces annually, total group output could exceed 240,000 ounces once Bilboes and Motapa come on stream.
