Caledonia Mining has entered into an agreement to purchase the mining claims over the Maligreen project, a property situated in the Gweru mining district in the Zimbabwe Midlands, from Pan African Mining, 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 gold.
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.”