Toronto listed, Caledonia Mining Corporation is targeting annual production of 50 000 ounces this year at its subsidiary, Blanket Mine. This will be a 17 percent increase from the production achieved in 2015. Total gold production for 2015 was approximately 42 806 ounces, a 2,5 per- cent increase over the annual gold production of 41 771 ounces in 2014 and 1,9 percent higher than the production guidance of 42 000 ounces for 2015.
The mining company said 11 518 ounces of gold was produced during the fourth quarter of 2015 representing a 10,6 percent increase on the gold produced during the same period in 2014 (10 417 ounces) and a 5,4 percent increase on the gold produced during the third quarter of 2015 (10 927 ounces).
Quarterly production profile is expected to be 10 700 ounces of gold in the first quarter increasing to approximately 14 000 ounces of gold by the fourth quarter of 2016.
Caledonia chief executive Mr Steve Curtis yesterday said increased production in 2016 will be derived from the No.6 Winze, which is scheduled to commence production in the middle of the first quarter of 2016, and will provide access to ore below 750 meters
“Target production for 2016 of approximately 50 000 ounces represents an increase of approximately 17 percent from the production achieved in 2015. The increased production in 2016 will be derived from the No.6 Winze, which is scheduled to commence production in the middle of the first quarter of 2016, and will provide access to ore below 750 metres.
“Production in the fourth quarter of 2015 was higher than in both the preceding quarter and the comparative quarter of 2014. Production in 2015 was also higher than the previous year and slightly exceeded our guidance,” said Mr Curtis.
“Increased production reflects continued progress in implementing the Revised Investment Plan, announced on November 3, 2014. The completion of Tramming Loop on 22-Level (750 metres below surface) slightly ahead of schedule in Mid-2015 was an important factor which contributed to increased production by alleviating underground logistical problems which constrained production in 2014.”
Mr Curtis said due to the high fixed cost component at Blanket and the generally stable environment for input costs, projected increase in production to approximately 50 000 ounces of gold is expected to result in a lower average production cost per ounce. – Wires.