Blanket Mine gold production up

Published: 21 July 2014

CALEDONIA Mining Corp said gold production at its Zimbabwean unit, Blanket Mine, rose in the quarter to June but the group has revised downwards the projected output for 2014.

Production at Blanket Mine, a low cost gold producer, was up 9,6 percent to 11 223 ounces compared to the same period last year, the Toronto Exchange listed firm said. In the first six months, total output reached 21 464 ounces.

"In light of the 21 464 ounces produced during the first six months of 2014, guidance for gold production in 2014 is reduced from 48 000 ounces to approximately 45 000 ounces."

The average head grade is now expected to be lower than has been achieved in previous quarters while tonnes mined and milled in the second quarter did not increase sufficiently to offset the lower grade mined, although plant recoveries have remained strong.

Caledonia is a mining, exploration and development company focused on Southern Africa.

Its primary assets are a 49 percent interest in the Blanket Mine and a 100 percent interest in the Nama base metals exploration project in neighbouring Zambia.

Caledonia had maintained its production guidance of 48 000 ounces in its trade update for three months to March although it had produced less bullion compared to the last quarter of 2013.

In the three months to March, the firm produced 10 607 ounces of gold, representing a 7,2 percent decrease on the 11 429 produced in the last quarter of 2014.

The figure was, however, an increase on the 10 472 ounces seen in the first quarter of 2013.

Production in the first quarter was affected by the achieved grade being lower than the targeted grade of 3,83 grammes per tonne due to a fault encountered on the ore body.

Production on these panels was stopped and re-development was required to establish other panels at the required grade, Caledonia Mining said then.

It also noted that production in February was adversely affected by unstable electricity supply and having to replace a winding rope on the number four shaft.

Earlier this year, Caledonia said it would continue investing in the mine to boost production, which, for 2014, had initially projected 48 000 ounces and 52 000 ounces for 2015.

In 12 months to December last year, gold production came in at 45 527 ounces, compared to 45 465 a year earlier, while the average realised gold price for the year was $1 402 per ounce compared to $1 666 in 2012.
- The Herald

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