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Enacy Mapakame

Blanket Mine, a unit of Caledonia Mining Corporation says gold production for the year to December 31, 2022 jumped 19 percent to 80 775 ounces, slightly surpassing its projected target for the year.

The group had a target of 80 000 ounces at its Gwanda-based mine in the Matabeleland South province.

“I am delighted to announce…that we have now achieved this target, with 2022 annual production of 80 775 ounces — just over the top end of our guidance.

“This achievement is a huge milestone for the company; it has been a tremendous team effort and I would like to thank all of our employees for their continued hard work,” said chief executive Mr Mark Learmonth.

Caledonia’s main assets include significant stakes in the Blanket Mine and Bilboes Gold Mine. It also owns Motapa Mining Company UK Limited, the ultimate holding company of an exploration project adjacent to Bilboes.

In 2014, Caledonia announced a plan to sink a new shaft (Central Shaft) to 1 200 metres from surface, all funded through internal cash resources, with a long-term target of achieving an annual 80 000 ounces production rate.

This has helped the group surpass the target, following its commissioning.

Caledonia, listed on the Victoria Falls Stock Exchange is now banking on Blanket Mine to maintain its growth trajectory.

The group has set 2023 production target of 87 500 ounces to 97 000 ounces. Of this group consolidated target, Bilboes oxides should contribute between 12 500 ounces and 17 000 ounces while Blanket’s target is set to range from 75 000 ounces to 80 000 ounces.

“Production guidance for 2023 assumes that Blanket will broadly maintain the production rate achieved in 2022. (The) 2023 guidance also includes the estimated production from the small oxides project at Bilboes where mining activity is expected to commence in February and we expect to extract gold from the heap leach process in March,” said Mr Learmonth.

“Cost guidance at Blanket and Caledonia (excluding the costs of the Bilboes oxides project) is consistent with the costs we have historically incurred.”

He said the company anticipated the inflationary pressures being experienced by most mining companies would be offset by efficiencies resulting from the successful implementation of the central shaft.

“At the consolidated level, the all-in sustaining cost per ounce is also expected to benefit from the lower cost of electricity due to the recently installed solar plant,” he added.

The resources group has indicated it will continue to scout for investment opportunities in Zimbabwe as it pushes to become the country’s leading top gold producer.

Earlier this month, the group completed its acquisition of Bilboes — a large high-grade gold deposit located about 75km north of Bulawayo — after meeting all the regulatory requirements for the transaction.

Mr Learmonth said: “Over the last 18 months the company has built an attractive portfolio of assets with the acquisitions of Bilboes, Motapa and Maligreen.

“Blanket will continue to serve as a solid foundation for this growth, as we look to progress our assets with our long-term goal of becoming a multi-asset gold producer.”