Caledonia Mining Corporation reports that the Blanket mine, in Zimbabwe, produced almost 11 koz of gold in Q3, taking gold production for the first nine months of the year to 31.3 koz (9 mnth 2014: 31.3 koz)
The company expects the mine to achieve its target production for 2015 of 42.0 koz of gold.
49%-owned Blanket is a low-cost producer and although Q3 costs will only be released with full quarterly results next month, in the first half of 2015, cash costs were US$699/oz and AISC US$984/oz.
Caledonia’s Chief Executive Officer, Steve Curtis, comments that the completion of the tramming loop in June 2015 has increased the underground haulage capacity and allows for an increase in development activity, which is expected to result in increases in future production.
He added, “We are confident that the revised investment plan, which was announced on November 3, 2014, will result in progressive increases in production from 2016 onwards when we expect to see the first production from below 750 meters – initially from the No. 6 Winze and subsequently from the Central shaft.”
Caledonia is debt-free and at 30 June 2015 had cash of US$23.7 million.
Caledonia’s Blanket mine on track to produce 42 koz of gold in 2015: CMCL