Caledonia updates resource at Zimbabwe's Maligreen project

Caledonia Mining updated the market on the mineral resources at its wholly-owned Maligreen project in the Zimbabwe Midlands on Monday.

The AIM-traded firm said that, since it acquired the Maligreen claims in November last year, it had been focussed on reviewing the geological work conducted at the property, with a view to upgrading the mineral resources.

It reported measured and indicated mineral resources of 8.03 million tonnes, at a grade of 1.71 grams per tonne, containing around 442,000 ounces of gold.

Inferred mineral resources stood at 6.17 million tonnes at a grade of 2.12 grams per tonne, containing about 420,000 ounces of gold.

Caledonia said it would continue to evaluate the potential of Maligreen, with a view to developing the project within the context of its project pipeline while taking strategic priorities into account, specifically the recently-announced Bilboes project, also located in the Zimbabwe Midlands, which was a “far more advanced” project.

“We are pleased to announce an upgrade to the mineral resources at Maligreen,” said chief executive officer Mark Learmonth.

“Today's announcement which improves the geological confidence of approximately half the mineral resources from inferred to measured and indicated mineral resources supports our confidence in the project and its geological prospectivity.

“We expect to continue our evaluation work on the project, in line with other strategic and capital priorities for the business into the future as we build an attractive project and exploration pipeline in Zimbabwe.”

At 1017 GMT, shares in Caledonia Mining Corporation were up 3.87% at 940p.

Reporting by Josh White for Sharecast.com.