Caledonia Mining’s new high grade results “encourage” broker who sees substantial upside
Published: 09:43 23 Jun 2025 EDT
Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL, VFEX:CMCL) is a ‘buy’, offering a potential 45% upside, that’s according to stockbroker Panmure Liberum, which called today’s high-grade gold results “encouraging”.
Panmure Liberum’s ‘buy’ rating comes with a price target pitched at 2,054p.
“The latest deep-level drilling programme at Blanket continues to yield results better than expected,” Panmure analyst Duncan Hay said in a note.
The analyst added: “These results will allow for an increased resource estimate, resulting in an expected extension of the life of mine well into the 2040s.”
“The impact of pushing out the end of the life of the mine on our DCF valuation will be relatively modest owing to the effect of the discount rate on late life cash flow; still, today’s news is clearly accretive, and testament to the quality of the asset and the company.”
High grade results
Caledonia today announced it has unearthed high grades in new drilling results from its Blanket Mine in Zimbabwe.
Grades and intersection widths from the Blanket and Eroica orebodies were better than expected.
The results come from 6,976 metres of underground drilling between January 2024 and April 2025.
"Our ongoing drilling campaign continues to demonstrate encouraging results, further improving our confidence in the Blanket mine mineral resource and pointing to additional future mineral resource growth,” chief executive Mark Learmonth said.
“The grades and widths we are seeing from this drilling campaign are as good as and, in some cases, considerably better than results from previous drilling campaigns, which is highly encouraging.”
He added: "We anticipate that the positive grades and widths will result in an increased overall mineral resource estimate, which in due course should result in the extension of the existing life of mine.”
Drills in detail
A new subparallel orebody was intersected. It returned 31.8 metres (true width 24.73m) at 6.71 g/t Au and 10.8m (true width 5.93m) at 17.73 g/t Au.
Drilling into Blanket 1 Footwall gave a composite grade of 20.64 g/t versus the model’s 4.64 g/t, with similar width.
Blanket 1 Hangingwall returned 7.14 m true width versus model 3.30 m and 6.28 g/t grade versus model 4.0–6.0 g/t.
Lima intersections confirm extension below 22 level towards 34 level.
Surface exploration of the Banded Iron Formation has begun. Initial grab samples yielded 0.59–32.12 g/t.
Planned 2025 work includes surface trenching at 50m spacing over a 600m strike and reverse circulation drilling for shallow oxide resources.
"Drilling is currently focused on the Blanket and Eroica orebodies, where crosscuts have been developed to allow optimal access to drill the deeper zones of the steeply-dipping orebodies,” Mark Learmonth added.
“These results are extremely promising, and we look forward to the next phase of drilling and updating the market accordingly."
