Caledonia Mining is considering various options to secure $250m (£206.06m) in necessary funding to support the development of the Bilboes gold mine in Zimbabwe.
Located 75km north of Bulawayo, the Bilboes high-grade gold deposit was subject to a limited amount of open-pit mining.
Following the feasibility study prepared by the Bilboes vendors, the project is expected to have an annual gold production of 168,000oz over ten years.
Caledonia is planning to develop the project into what could be Zimbabwe’s biggest gold mine.
Caledonia corporate development vice-president Maurice Mason told the news agency that the company expects to secure financing for the project via a combination of debt, its own cash reserves and equity.
Mason said the Bilboes project has the potential to produce 170,000oz of gold annually. This will boost the total bullion output of the company to around 250,000oz.
