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Tinashe Makichi Business Reporter
Toronto Stock Exchange Listed, Caledonia Mining Corporation has completed developing a tramming loop and sinking a new central shaft as it eyes production of 80 000 ounces by 2021 at Blanket Mine.

Last year the mining group said it would develop a tramming loop 750 metres below surface, continue to sink the Number 6 Winze to provide access to deeper level resources and sink a new six metre diameter central shaft from surface to 1 080 metres.

In an update yesterday, Caledonia said the tramming loop was completed ahead of schedule in June 2015 and will allow for an increase in development, which is expected to result in increased production towards the end of 2015, as reflected in the 2015 production guidance of approximately 42 000 ounces of gold.

“The project remains on target for first production in January 2016; production is expected to reach the target rate of 500 tonnes per day in May 2017,” said the company.

Caledonia said the sinking of the Number 6 Winze was completed in June and the shaft is currently being equipped after which horizontal development towards the two main resource bodies will commence.

The mining company said the plan is designed to access mineralisation below the 750 metre level and increase gold output to around 65 000 ounces per annum by 2017 and 80 000 ounces of gold by 2021.

Caledonia said the plan comprises three main elements, two of which are now largely complete.

“The tramming loop, a new underground ore handling network on the 750 metres level, was completed ahead and this will allow for increased underground development and underpin increased production towards the end of 2015, as reflected in the 2015 production guidance of 42 000 ounces of gold,” said the company.

The No 6 Winze (internal shaft) was also completed in June and is currently being equipped which will allow increased horizontal development and a buildup of ore throughput from January 2016 to reach target levels of 500 tonnes per day May 217.

Caledonia said the final major part of the investment plan involves the $23 million sinking of the new central shaft from surface to a depth of 1 080 metres accessing mineralization below the 750 metres level and providing the foundation for the long term future of the mine.

Much of the preparatory work has been completed and initial sinking to a depth of 90metres is expected to be completed by the end of this year enabling the main shaft-sinking effort to get underway in mid-January next year.

Caledonia said much of the deeper mineralisation remains to be fully defined by exploratory drilling and sampling.

In May 2015, the company announced that it had upgraded 490,000 tonnes of deeper level mineralisation from inferred to indicated and the company has deployed additional drilling equipment to resource definition work.

As additional drilling sites become available through further underground development the company expects this effort to accelerate.

Caledonia Mining is making steady progress on the long term plans for the Blanket mine which should see production double by 2021 and ensure a longer term future for the operations.