Published: 07 April 2014

Gold producer Blanket Mine produced a lower than expected 10,607 ounces of gold in the first quarter of this year, but remains steadfast on its production guidance of 48,000 ounces for 2014.

In a trading update for the first three months released today, co-owners Caledonia Mining Corporation, said 10,607 ounces of gold were produced.

The output was a 7,2 percent decrease on the 11,429 produced in the previous quarter, but was, however, an increase on the 10,472 ounces seen in the first quarter of 2013.

As highlighted in last month's final results production in the first quarter was affected by the achieved grade being lower than the targeted grade of 3.83 g/t due to a fault.

"Production on these panels was stopped and re-development was required to establish other panels at the required grade.

"Management believes that the above measures have been successful and that an average head grade of between 3.60 to 3.83 g/t Au is expected to be maintained, and closer attention will be paid to grade control in future," the company said in its trading update.

Caledonia noted that production in February was also adversely affected by unstable power and a requirement to replace a winding rope on the No 4 shaft.

Gwanda-based Blanket Mine was the first mining firm to fully adhere to Zimbabwe's indigenisation requirement.

Canadian-based Caledonia Mining Corporation owns 49 percent of the mine.
- BH24

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