Caledonia Mining Corp Plc has entered into a $4-million cash agreement with Pan African Mining to acquire the mining claims of the Maligreen project, a property situated in the Gweru mining district of Zimbabwe.
Maligreen is a substantial brownfield exploration opportunity with significant historical exploration and evaluation work conducted on the property over the past 30 years.
Mining Weekly reported that the project hosts an estimated National Instrument 43-101-compliant inferred mineral resource of around 940,000 ounces of gold in 15.6 million tonnes at a grade of 1.88 g/t as of Aug. 31.
“This transaction is an important next step as Caledonia pursues its strategy to become a multi-asset gold producer in Zimbabwe, one of the last gold frontiers in Africa,” Caledonia Mining Corp President and CEO Steve Curtis said.
The miner said that 76 percent of the inferred mineral resource (about 712 000 ounces) is shallower than 220 meters, indicating open-pit mining operation potential.
Nevertheless, the company will drill an initial 4,800 meters at an estimated cost of $1.6 million over a period of 18 to 24 months. This will enable it to improve its understanding of the existing resource and assess the potential for a mining operation.
Caledonia Mining Corp
Caledonia Mining Corp is a Jersey-based mineral exploration and development company that develops gold and base metal mines, primarily gold.
The company dual-lists on the London and New York stock exchanges, with the clicker code, “CMCL.” It also lists on Nasdaq with the same code.
Caledonia’s primary asset is the Blanket Mine in Zimbabwe. By 2022, the company plans to increase its annual production to 80,000 ounces.
