Blanket Mine records increase in gold production Blanket Mine has generated more than $50 million in Government revenue since it reopened in 2009

Business Reporter
Toronto Exchange listed Caledonia Mining’s 49 percent owned Blanket Mine in Zimbabwe reported an increase in gold production in the third quarter due to higher grade ore. In the period, the miner produced 13 430 ounces of gold, representing an increase of 7,4 percent quarter on quarter and 23 percent year on year.

“Production in the third quarter was in line with expectations and shows that Caledonia and the Blanket mine remain on track to deliver our target performance for 2016,” said chief executive Steve Curtis.

Production during the third quarter includes production from higher grade material below 750 metres which is accessed via the Number 6 Winze and an additional decline development.

Mr Curtis said this production performance is further testament to the investments Caledonia has made to increase production flexibility and capacity over the past 18 months, which are now beginning to bear fruit as production from below 750 meters continues to increase.

Caledonia expects to produce 50 000 ounces of gold this year and for production to expand to 80 000 ounces by 2021.

Mr Curtis noted that the higher production at Blanket in the third quarter was the result of higher-grade materials mined below 750 metres, accessed through the Number 6 Winze, or connection, and an additional decline development.

“This is further testament to the investments Caledonia has made to increase production flexibility and capacity over the past 18 months, which are now beginning to bear fruit as production from below 750 metres continues to increase,” he highlighted.

Meanwhile, Caledonia also announced that a new ball mill had been installed. The new mill will increase daily throughput at the Blanket plant by 20 percent, from 1 500 t to 1 800 t and will contribute to reaching the 80 000 oz production goal.

“We are also pleased that the new mill, which was manufactured locally in Zimbabwe has been installed and the commissioning process is progressing as expected,” said Mr Curtis.

Following the implementation of indigenisation in Zimbabwe, Caledonia’s primary asset is a 49 percent interest in an operating gold mine in Zimbabwe (Blanket).

Caledonia’s shares are listed in Canada on the Toronto Stock Exchange, on London’s AIM and are also traded on the American OTCQX. At 30 June 2016, Caledonia had net cash of $10,6 million. Blanket plans to increase production from 42,800 ounces in 2015 to approximately 80,000 ounces in 2021.

Caledonia expects to publish its results for the quarter to September 30 2016 on November 14 2016.

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