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Oliver Kazunga

Senior Business Reporter

GWANDA-based gold miner, Blanket Mine, has produced 15 164 ounces of the yellow metal in the third quarter ended September 30, 2020 reflecting a 11,1 percent increase from last year’s corresponding quarter output of 13 646oz.

The mine is owned by Caledonia Mining Corporation, which is listed on the New York Stock Exchange. In a quarterly production update, the mining group whose latest output at Blanket Mine is a record high in many years, indicated that it has also reviewed annual production to 58 000oz from between 53 000oz and 56 000oz.

“Approximately 15 164oz of gold were produced during the quarter, an increase of 11,1 percent on the 13 646oz produced in the corresponding quarter of 2019,” said the company.

“Production guidance for the year to December 31, 2020 increased to between 55 000 and 58 000oz.”

Gold produced in the nine months to September 30, 2020 was 42 896oz, which is 12 percent above the 38 306oz produced in the nine months to September 30, 2019. Caledonia remains on track to achieve its production target of 80 000oz by 2022.

Commenting on the latest production figures Caledonia chief executive officer Mr Steve Curtis said: “The production of 15 164oz in the third quarter is a record result and is an increase of more than 11 percent compared to the corresponding quarter in 2019.”

Despite the negative effect of the Covid-19 pandemic on supply chains and operating arrangements, Mr Curtis said Blanket Mine has delivered robust production results for the first nine months of 2020.

“Due to strong production, I am delighted that we are now able to increase our production guidance from 53 000 to 56 000oz to 55 000 to 58 000oz,”  he said.

“Along with the increased dividend, this really demonstrates the strength of our business and I would like to thank the team for this result,” said Mr Curtis.

Meanwhile, Caledonia has signed a memorandum of understanding (MoU) with the Government so that the firm can boost investment and production in its local gold mining operation and play a leading part in the drive to a US$12 billion mining sector economy by 2023. In the MoU, Caledonia declared and affirmed its intention to increase gold production in excess of 500 000oz, around 15,5 tonnes by 2030.