Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) has updated investors on its ongoing programme for the feasibility study of the Bilboes project, which is seen as a transformational project.
The company, in a statement, said it now going to review several optimisation options that could improve project economics and reduce upfront capital costs.
Adding this work will mean that the study will take longer, with the timeline now due to extend beyond the initial target (it was previously anticipated to be complete before the end of the first quarter).
"Bilboes has the potential to be truly transformative for Caledonia, and the work we are doing now is about making sure we get it right,” said chief executive Mark Learmonth
“We are encouraged by the results to date and are taking a disciplined approach to optimisation to enhance returns and to ensure we can fund the project in the most efficient way possible.”
Among the options, Caledonia is examining the potential sale of concentrate during initial production years.
This could defer the need for early investment in a BIOX processing circuit.
The company is also evaluating relocating the Tailings Storage Facility, potentially to its adjacent Motapa property, which may lower construction costs.
Strong 2024 exploration results at Motapa have revealed new mineralised zones close to the proposed Bilboes plant. These findings are being considered in the update options, including utilising high-grade mineralisation at the Blanket Mine to support early-stage capital for Bilboes.
Learmonth added: “We remain confident in Bilboes' ability to significantly reshape Caledonia's growth profile."