Published: 25 June 2025

Jersey-registered Caledonia Mining Corporation has reported promising high-grade results from its ongoing resource expansion drilling programme at its flagship Blanket Mine in Zimbabwe, as the company targets building up to US$60 million in cash reserves by year-end.

The latest results are expected to bolster Caledonia's production ambitions and long-term mine planning, with the miner anticipating gold output of between 74,000 and 78,000 ounces this year - marginally down from the 76,656 ounces recorded in 2024. With record gold prices buoying revenues, the mine is projected to generate around US$100 million in 2025.

In a statement released this week, Caledonia said the drilling campaign has been focused on evaluating mineralisation continuity across the Blanket, Eroica and Lima orebodies - three of the mine's key resource zones.

"Caledonia Mining Corporation Plc is pleased to report further encouraging high-grade results from the ongoing resource expansion drill programme at Caledonia's 64% owned Blanket Mine," the company said.

The programme has drilled 6,976 metres from January 2024 to April 2025. Caledonia says the Blanket and Eroica orebodies have produced grades and widths that have exceeded expectations, while a new potential orebody has also been intersected in the Blanket orebody area.

"The results confirm the continuation of mineralisation at depth across the Blanket, Eroica and Lima zones," Caledonia said, adding that the increased drilling density aims to upgrade the inferred mineral resource category to an indicated or higher level, strengthening long-term planning and confidence.

Caledonia's capital expenditure for 2025 totals US$41 million, of which US$34.1 million is being channelled into Blanket Mine and US$6.9 million into its other assets, including Bilboes and Motapa.

Chief executive officer Mark Learmonth expressed confidence in the results and the mine's future: "Our ongoing drilling campaign continues to demonstrate encouraging results, further improving our confidence in the Blanket Mine mineral resource and pointing to additional future mineral resource growth," he said.

"The grades and widths we are seeing are as good as, and in some cases considerably better than, those from previous drilling campaigns. This bodes well for increasing our mineral resource estimate and potentially extending the life of mine."

Learmonth added that the company's strategic investment over the past seven years had significantly improved Blanket Mine's infrastructure, enabling it to support long-term production.

Drilling remains focused on deeper sections of the Blanket and Eroica orebodies, with new crosscuts developed to improve access to steeply dipping ore zones.

Caledonia, a Zimbabwe-focused gold producer, also holds ownership in the Bilboes Mine and exploration assets at Motapa and Maligreen, positioning it as one of the most active mining investors in the country's gold sector.
- newsday

You might also want to read this

• US$1m for strategic minerals licence in Zimbabwe
• US$15m mine to open in Mutawatawa
• Zimbabwe starts repossessing idle mines
• Illegal mining threatens Blanket Mine operations
• Minister 'unleashes' Zanu-PF youths, police to grab mine
• Mine to lose equipment
• Wrangle over Zimbabwe diamond mine continues
• Mine robbery gang members denied bail
• Mine Entra attracts more exhibitors