Caledonia Mining Corporation Plc (“Caledonia” or the
“Company”) (NYSE AMERICAN: CMCL; AIM: CMCL) is pleased to
announce that it has entered into an agreement to purchase the
mining claims over the Maligreen project (“Maligreen”), a property
situated in the Gweru mining district in the Zimbabwe Midlands,
from Pan African Mining (Private) Limited, a privately-owned
Zimbabwean company, for a total cash consideration of US$4 million.
The property is estimated to contain a NI 43-101 compliant inferred
mineral resource of approximately 940,000 ounces of gold1.
Maligreen is a substantial brownfield
exploration opportunity with significant historical exploration and
evaluation work having been conducted on the property over the last
30 years including:
- An estimated
60,000 meters of diamond core and percussion drilling
- 3.5 tonnes of
bulk metallurgical test work
- Aeromagnetic and
ground geophysical surveys
As at 31 August 2021, Maligreen is estimated to
host a NI 43-101 compliant inferred mineral resource of
approximately 940,000 ounces of gold in 15.6 million tonnes at a
grade of 1.88g/t. 76% of the inferred mineral resource
(approximately 712,000 ounces) is shallower than 220m indicating
the potential for an open pit mining operation. The inferred
mineral resource has been estimated using a cut-off grade of 0.4g/t
for a potential open pit and 1.5g/t for a potential underground
mine2. Initial assessments of the inferred mineral resource
indicate a favourable grade tonnage curve; by applying a higher
cut-off grade of 1.0g/t, the total estimated inferred mineral
resource reduces by 12% to approximately 827,000 ounces at a grade
of 2.79g/t, a 48% higher grade. These favourable grade tonnage
dynamics offer a high level of flexibility in the evaluation of a
future mining operation.
The total land area of Maligreen is
approximately 550 hectares comprising two historic open pit mining
operations which produced approximately 20,000 oz of gold mined
from oxides between 2000 and 2002 after which the operation was
closed. Caledonia expects to drill an initial 4,800 meters at an
estimated cost of US$1.6 million over a period of 18 to 24 months
to improve its understanding of the existing resource and assess
the potential for a mining operation. Further exploration
opportunities exist within the claims area and a subsequent
exploration programme is under consideration to explore for
continuations of the existing inferred mineral resource at depth to
the north-west and the strike extension in the northern part of the
property.
Commenting on the announcement, Steve Curtis, Chief Executive
Officer, said:
“We are delighted to enter into this agreement
to purchase the claims over Maligreen, one of the more significant
exploration opportunities in Zimbabwe. The property has significant
potential and has benefitted from many years of exploration
activity. Initial evaluation of the inferred mineral resource by
our own team and by independent consultants indicates the potential
for a significant mining operation with a NI 43-101 compliant
inferred mineral resource of almost one million ounces at a grade
of 1.88g/t, an acceptable open pit grade. Moreover, our
understanding of the grade tonnage curve indicates that the deposit
is likely to offer a high level of mining flexibility although much
more work is needed in this area. We believe the property also
offers significant upside exploration potential at the north-west
extensions to the existing inferred mineral resource and at
additional exploration targets in the northern part of the
property.
“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.”
For further information please contact:
Caledonia Mining Corporation PlcMark
LearmonthCamilla Horsfall |
Tel: +44 1534 679 802Tel: +44 7817 841793 |
|
|
WH IrelandAdrian
Hadden |
Tel: +44 20 7220 1751 |
|
|
BlytheweighTim
Blythe/Megan Ray |
Tel: +44 207 138 3204 |
|
|
3PPBPatrick
ChidleyPaul Durham |
Tel: +1 917 991 7701Tel: +1 203
940 2538 |
The information contained within this
announcement is deemed by the Company to constitute inside
information under the Market Abuse Regulation (EU) No.
596/2014 (“MAR”) as it forms part
of UK domestic law by virtue of the European Union (Withdrawal) Act
2018 and is disclosed in accordance with the
Company's obligations under Article 17 of MAR.
Cautionary Note Concerning
Forward-Looking Information
Information and
statements contained in this news release that are not historical
facts are "forward-looking information", "financial outlooks"
or "future oriented financial information" (collectively,
"forward-looking information") within" within the meaning of
applicable securities legislation that involve risks and
uncertainties relating, but not limited to Caledonia's current
expectations, intentions, plans, and beliefs. Forward-looking
information can often be identified by forward-looking words such
as "anticipate", "believe", "expect", "goal", "plan", "target",
"intend", "estimate", "could", "should", "may" and "will" or the
negative of these terms or similar words suggesting future
outcomes, or other expectations, beliefs, plans, objectives,
assumptions, intentions or statements about future events or
performance. Examples of forward-looking information in this news
release include: production guidance, estimates of future/targeted
production rates, and our plans and timing regarding further
exploration and drilling and development, construction plans,
financial and shareholders returns on investment in construction
projects and electricity production/supply to the mine. This
forward-looking information is based, in part, on assumptions and
factors that may change or prove to be incorrect, thus causing
actual results, performance or achievements to be materially
different from those expressed or implied by forward-looking
information. Such factors and assumptions include, but are
not limited to: failure to establish estimated resources and
reserves, the grade and recovery of ore which is mined varying from
estimates, success of future exploration and drilling programs,
reliability of drilling, sampling and assay data, assumptions
regarding the representativeness of mineralization being
inaccurate, success of planned metallurgical test-work, capital and
operating costs varying significantly from estimates, delays in
obtaining or failures to obtain required governmental,
environmental or other project approvals, inflation, changes in
exchange rates, fluctuations in commodity prices, delays in the
development of projects, the completion of construction projects,
the proposed benefits from construction projects and other
factors.
To the extent any
forward-looking information herein constitutes a financial outlook
or future oriented financial information, any such statement
is made as of the date hereof and included herein to provide
prospective investors with an understanding of the Company's
construction plans and assumptions. Security holders, potential
security holders and other prospective investors are cautioned that
such information may not be appropriate for other purposes and
should be aware that these statements are subject to known and
unknown risks, uncertainties and other factors that could cause
actual results to differ materially from those suggested by the
forward-looking statements. Such factors include, but are not
limited to: risks relating to estimates of mineral reserves and
mineral resources proving to be inaccurate, fluctuations in gold
price, risks and hazards associated with the business of mineral
exploration, development and mining, risks relating to the credit
worthiness or financial condition of suppliers, refiners,
contractors and other parties with whom the Company does business;
inadequate insurance, or inability to obtain insurance, to cover
these risks and hazards, employee relations; relationships with and
claims by local communities and indigenous populations; political
risk; risks related to natural disasters, terrorism, civil
unrest, public health concerns (including health epidemics or
outbreaks of communicable diseases such as the coronavirus
(COVID-19)); availability and increasing costs associated with
mining inputs and labour; the speculative nature of mineral
exploration and development, including the risks of obtaining or
maintaining necessary licenses and permits, diminishing quantities
or grades of mineral reserves as mining occurs; global financial
condition, the actual results of current exploration activities,
changes to conclusions of economic evaluations, and changes in
project parameters to deal with unanticipated economic or other
factors, risks of increased capital and operating costs,
environmental, safety or regulatory risks, expropriation, the
Company's title to properties including ownership thereof,
increased competition in the mining industry for properties,
equipment, qualified personnel and their costs, risks relating to
the uncertainty of timing of events including targeted production
rate increase, construction activity and currency fluctuations.
Security holders, potential security holders and other prospective
investors are cautioned that the assumptions used in the
preparation of such forward-looking information, although
considered reasonable at the time of preparation, may prove to be
imprecise and, accordingly, they should not place undue reliance on
such forward-looking information. By its nature, forward-looking
information involves numerous assumptions, inherent risks and
uncertainties, both general and specific, that contribute to the
possibility that the predictions, forecasts, projections and
various future events will not occur. Caledonia undertakes no
obligation to update publicly or otherwise revise any
forward-looking information whether as a result of new information,
future events or other such factors which affect this information,
except as required by law.
This news release is not an offer of the shares
of Caledonia for sale in the United States or elsewhere. This news
release shall not constitute an offer to sell or the solicitation
of an offer to buy, nor shall there be any sale of the shares of
Caledonia, in any province, state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of such province, state
or jurisdiction.
Technical disclosure in this news release has
been prepared in accordance with the requirements of the securities
laws in effect in Canada, which differ from the requirements of
United States securities laws. Such technical disclosure includes
mineral resources classification terms made in accordance with NI
43-101. NI 43-101 is a rule developed by the Canadian Securities
Administrators that establishes standards for all public disclosure
an issuer makes of scientific and technical information concerning
mineral projects. These standards differ from the requirements of
the United States Securities and Exchange Commission (the “SEC”)
applicable to domestic United States reporting companies.
Accordingly, technical disclosure in this news release that
describes mineral resources estimates may not be comparable with
information made public by United States companies subject to the
SEC's reporting and disclosure requirements.
1 This news release has been approved by Mr Dana
Roets (B Eng (Min.), MBA, Pr.Eng., FSAIMM, AMMSA), Chief Operating
Officer, the Company's qualified person as defined by Canada's
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects (“NI 43-101”). The Company’s independent qualified person
as defined by NI 43-101, Mr. Uwe Engelmann (BSc (Zoo. &
Bot.), BSc Hons (Geol.), Pr.Sci.Nat. No. 400058/08, MGSSA) of
Minxcon (Pty) Ltd has verified the data disclosed herein, including
sampling, analytical and test data informing the mineral resource
estimate by reviewing the methodologies, results and all procedures
undertaken in a manner consistent with industry practice, and all
matters were consistent and accurate according to his professional
judgement. There were no limitations on the verification process. A
technical report prepared in accordance with NI 43-101 for
Maligreen will be filed by the Company on SEDAR (www.sedar.com)
within 45 days of this news release.
2 The following
assumptions were applied in estimating the inferred mineral
resource:
- Gold price of USD1,800/oz used to
determine cut-offs
- Mineral resources have been
depleted for surface mining that has occurred
- Mineral resource cut-off of 0.4g/t
Au for open pit (<=220m below surface) and 1.5g/t Au for
underground (>220m below surface) was applied
- Densities utilised were 2.44 t/m³
for oxide, 2.67 t/m³ for transitional and 2.88 t/m³ for sulphide
material
- Mineral resource classified as
inferred based on quality of estimate, density of sampling and
quality and confidence in data
- Geological losses of 15% were
applied for inferred mineral resources
- Mineral resources reported as total
mineral resources and are not attributed
- All tonnages are reported in metric
tonnes and gold content conversion calculations based on a
conversion of 1kg = 32.15076 oz
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