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Caledonia Mining Corporation says mineral reserves at its Blanket mine in Zimbabwe have increased by 52 percent to 1 095 000 ounces following completion of a mineral resource and reserves update exercise.

The company said following the completion of the Central Shaft project, and the migration to fully digital estimation protocols, it commissioned mineral resources specialists Minxcom Private Limited to produce the updated resource report.

“The total measured and indicated mineral resources estimate (M&I) at Blanket, inclusive of mineral reserves, has increased by fifty-two percent to 1 095 000 ounces of gold and the total mineral reserves estimate at Blanket has increased by one percent to 395 000 ounces of gold,” the company said in an update.

Mr Mark Learmonth, the group’s chief executive officer said the report reflects the completion of the Central Shaft which not only has increased M&I by 52 percent to over 1 million ounces but also increased Mineral Reserves by 1 percent to 395 000 ounces.

This, Caledonia said, secures “the long-term future of Blanket”.

Mr Learmonth said the slight reduction in inferred mineral resources was partly due to the group’s long track record of growing mineral resources and successfully converting inferred mineral resources into M&I, but also signified the constrained deep-level exploration due to sinking and equipping the Central Shaft.

“We are pleased to have established new drilling platforms with resumed drilling,” he said.

He noted that in 2022, the company achieved its long-term target of producing 80 000 ounces of gold at Blanket and this, coupled with a high gold price, puts the company in a good position to start to progress the new portfolio of assets supported by cash generated from stable production at Blanket.

The Blanket Mines’s US$67 million central shaft expansion project was commissioned by President Mnangagwa last November.

The project, which was launched in 2015 deepened the shafts to 1 200 meters, tapping into the higher gold ore deposits.

The investment is viewed as a major boost to the country’s mining sector, as it drives towards the attainment of the US$12 billion milestone by 2023.

Caledonia has previously indicated that it continued to evaluate further investment opportunities in Zimbabwe’s gold sector to transform the Company into a mid-tier, multi-asset Zimbabwe-focused gold producer.

Caledonia became the third listing on the VFEX and listed by way of introduction of Depository Receipts.