•  Deep-level drilling at the Blanket Mine has confirmed high-grade mineralization at depth
• The success of the 2025 drilling program has set the stage for a major Mineral Resource and Reserve update later in 2026,
• With gold production guidance for 2026 set at 72,000–76,500 ounces and local gold prices exceeding US$4,270 per ounce, the improved grades and de-risked resource base are driving immediate market confidence and share price growth

Harare- Caledonia Mining Corporation  has released compelling new evidence that its flagship Blanket Mine in Zimbabwe is not only holding strong at depth but is delivering grades and widths that exceed internal expectations. In results announced on 7 April 2026, the company reported the completion of 10,311.9 metres of deep-level drilling between March and December 2025.

The programme targeted the Blanket, Eroica and Lima orebodies below the current 1,110-metre (34-level) horizon and has now confirmed the continuity of mineralisation with multiple wide, high-grade intersections, including the newly identified Blanket 7 (BLK7) zone. These outcomes materially increase confidence in the deeper resource and are expected to drive an upgraded mineral resource and reserve statement later in 2026.

The standout results come from the Blanket 7 structure, where several drill holes returned impressive widths and tenor.

Intercepts included 46.3 metres true width at 4.25 g/t (including a high-grade core of 1.16 metres at 53.39 g/t) and 40.4 metres at 3.14 g/t. Other notable hits across the Blanket Quartz Reef and associated hanging-wall zones delivered consistent 7–11 metre widths at 6–7 g/t, while the Eroica North Hanging Wall returned 10.8 metres at 6.54 g/t and the Lima system was successfully traced to the 34 level with a high-grade 1.98-metre intersection grading 15.33 g/t.

Critically, many of these intercepts lie below the current limit of declared measured, indicated or inferred resources, demonstrating that Blanket remains open and economically prospective at depth. 

From an analytical standpoint, this drilling campaign is far more than incremental exploration success. It directly addresses the single biggest investor question for underground gold mines: can the resource base be replaced and expanded as mining progresses deeper? The density of intersections is now sufficient to support conversion of a significant portion of inferred material into the indicated category, a prerequisite for reserve growth under both NI 43-101 and S-K 1300 standards. Following the already substantial reserve increase achieved in 2025, these results provide a clear pathway to extend Blanket’s life well beyond the current 2034 horizon modelled on proven and probable reserves alone.

The timing could hardly be more favourable. Caledonia is guiding 72,000–76,500 ounces of gold production for 2026, a level that reflects disciplined planning rather than any operational shortfall. With gold prices hovering between US$4,273 and US$4,318 per ounce as of 7 April 2026, the revenue tailwind from higher grades in the new BLK7 zone and deeper Blanket structures will flow straight to the bottom line.

The deeper mineralisation also aligns with the company’s ongoing investment in underground infrastructure, ensuring that the capital already deployed on development and drilling is now delivering visible geological upside. 

The results reinforce Blanket’s status as a long-life, high-margin operation capable of generating robust free cash flow even in a higher-cost Zimbabwean environment. They also highlight the effectiveness of Caledonia’s on-mine geology team, which continues to test virgin areas of the shear zone with encouraging frequency.

Looking ahead, the 2026 resource and reserve update will be the next material milestone. Management has signalled that the new data will be incorporated directly into the technical report, likely improving both tonnage and grade in the deeper blocks. Every additional indicated ounce that converts to reserve not only lengthens the production tail but also enhances net present value calculations at current gold prices. In an industry where many peers struggle with reserve replacement, Blanket’s demonstrated depth potential stands out as a genuine competitive advantage.

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