- Caledonia Mining Corporation (DI)
- 10 June 2026 12:44:28
Source: Sharecast
The AIM-traded company said drilling from its 2025 exploration programme had confirmed significant gold mineralisation across multiple zones at Motapa, which lies directly adjacent to Bilboes.
Caledonia said the results highlighted the opportunity for Motapa to become a strategic extension of the Bilboes mining complex, potentially enhancing production and extending mine life through a combined mining operation.
Bilboes is being advanced as a major open-pit operation based on proven and probable reserves of 1.75 million ounces of gold in 24.1 million tonnes of ore at an average grade of 2.26 grams per tonne.
The company said Motapa’s proximity to Bilboes offered potential for shared infrastructure and operational synergies, which could improve project economics and reduce capital intensity over time.
Drilling confirmed continuity of mineralisation along a strike length of around six kilometres within the Bubi Greenstone Belt, with multiple mineralised shear zones across Motapa North, Central and South.
Caledonia said both oxide and sulphide mineralisation had been identified, supporting near-term and longer-term development potential.
It expects to publish a maiden mineral resource estimate for parts of Motapa in the third quarter of 2026.
Selected drilling highlights from Motapa North included 19 metres at 8.08 grams of gold per tonne in hole JPRC52, 6.38 metres at 13.95 grams per tonne in hole JDD11, and 12 metres at 7.12 grams per tonne in hole JPRC63.
Other Motapa North results included 14 metres at 4.31 grams per tonne, 17 metres at 3.25 grams per tonne, 13 metres at 3.72 grams per tonne and six metres at 6.89 grams per tonne.
At Motapa Central, also known as Mpudzi, selected results included seven metres at 2.39 grams per tonne, three metres at 4.79 grams per tonne and two metres at 5.25 grams per tonne.
The 2025 programme comprised 22,364 metres of trenching, 1,561.78 metres of diamond drilling and 18,547 metres of reverse circulation drilling.
Work focused mainly on sulphide mineralisation at Motapa North and oxide and sulphide mineralisation at Motapa Central.
Chief executive officer Mark Learmonth said the results demonstrated the potential to “significantly enhance the long-term value” of Bilboes.
“The consistent high-grade intersections at Motapa North highlight the opportunity to define a substantial resource in close proximity to the planned infrastructure at Bilboes,” he said.
“While our immediate focus remains the development of Bilboes, targeting first gold in Q4 2028, Motapa represents a compelling opportunity to extend mine life and increase future production across a combined mining complex.”
At 1220 BST, shares in Caledonia Mining Corporation were down 2.01% at 1,460p.
Reporting by Josh White for Sharecast.com.
See latest RNS on Investegate