Caledonia Mining Corporation (CMCL)

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Caledonia to evaluate Zim govt's minerals portfolio for development potential

Aim-listed Caledonia Mining will evaluate mining rights, properties and projects in the gold sector that are controlled by the Zimbabwe government with a view to assessing the potential to advance the development of these properties or projects.

Caledonia believes Zimbabwe is a highly prospective region for gold discoveries.

“Caledonia has assessed and continues to assess investment opportunities in the Zimbabwe gold sector that are privately owned.

"However, the government of Zimbabwe has a considerable portfolio of assets in the gold sector that are potentially very attractive and Caledonia and the government have, therefore, entered into an agreement whereby Caledonia is provided an opportunity to review this portfolio to determine whether they may be commercially developed for mutual benefit,” Caledonia notes.

"I am delighted we have reached this agreement, which will give Caledonia access to a new and much increased number of potential investment opportunities in the Zimbabwe gold sector.

"Over the years of operating in Zimbabwe, we have established a professional relationship with the appropriate bodies and have a strong performance, social and ethical record. We look forward to applying the same approach to any future opportunities in the country, developing the assets in the same responsible way we have done at Blanket, with any new developments including a local ownership structure and community engagement,” CEO Steve Curtis says.

He adds that the signing of this agreement is very timely, as the Blanket mine, Caledonia's current investment in Zimbabwe, is approaching the end of a multiyear investment of more than $60-million in a new shaft - the Central shaft.

When this project is completed later this year, Blanket's gold production is expected to increase from about 55 000 oz/y to about 80 000 oz/y from 2022 onwards.

“The increased level of production, in conjunction with the higher gold price, means that we should have the financial capacity to consider further meaningful investments in the Zimbabwe gold sector,” Curtis enthuses.

“Blanket mine has more than doubled its employment from less than 800 in 2006 to [about] 1 650; Blanket is also a major taxpayer in Zimbabwe and we expect this to increase substantially in the next few years. Caledonia is also an outstanding corporate citizen in Zimbabwe, having facilitated local ownership partnerships of Blanket mine since 2012.

"I am therefore pleased that Caledonia will apply its experience, technical expertise and its financial capacity to evaluate the portfolio of gold assets that are held by the government. I am confident that Caledonia will make an even larger contribution to the economy of Zimbabwe as a result of further investments in our gold industry,” says Zimbabwe Mines and Mine Development Minister Winston Chitando.


https://m.miningweekly.com/article/caledonia-to-evaluate-zim-govts-minerals-portfolio-for-development-potential-2020-10-06