Caledonia Mining is considering various options to secure $250m (£206.06m) in necessary funding to support the development of the Bilboes gold mine in Zimbabwe, reported Reuters.

Located 75km north of Bulawayo, the Bilboes high-grade gold deposit was subject to a limited amount of open-pit mining.

In accordance with the feasibility study prepared by the Bilboes vendors, the project is expected to have annual gold production of 168,000oz over a period of ten years.

Caledonia is planning to develop the project into what could be Zimbabwe’s biggest gold mine.

Caledonia corporate development vice-president Maurice Mason told the news agency that the company expects to secure financing for the project via a combination of debt, its own cash reserves and equity.

Mason said the Bilboes project has the potential to produce 170,000oz of gold annually. This will boost the total bullion output of the company to around 250,000oz.

Caledonia is seeking ways to cut the upfront capital needed to develop the project, which is due to be completed over a period of two years.

Mason said: "It will be Zimbabwe's biggest gold mine by far. We are considering phased capital raising, but that will depend on the outcome of the review of the feasibility study."

Caledonia acquired the Bilboes project earlier this year.

According to Caledonia, the project holds NI43-101-compliant proven and probable mineral reserves of 1.96 million ounces (moz) of gold in 26.64 million tonnes (mt) at a grade of 2.29 grams per tonne (g/t).

It has measured and indicated mineral resources of 2.56moz of gold in 35.18mt at a grade of 2.26g/t and inferred mineral resources of 577,000oz of gold in 9.48mt at a grade of 1.89g/t.