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Caledonia Mining record quarterly and annual gold production

Caledonia Mining (CMCL:AIM) (CAL:TSX)

The company produced approximately 13,591 oz of gold in Q4 2016 from its 49% owned subsidiary, the Blanket Gold Mine in Zimbabwe. Production represented an 18% increase over Q4 2015 and a 1.2% increase over Q3, 2016. Full year production was approximately 50,351 oz of gold, which set a new record, representing a 17.6% increase over 2015 production of 42,804 oz. Improvements in underground infrastructure, commissioning of the new ball mill and the commencement of production below 750 meters, contributed to the production performance.

2017 target gold production is approximately 60,000 oz at estimated mine costs of US$600 – US$630 per ounce and All-in Sustaining Costs(AISC) in the range of $810-$850 per ounce. The mine is on track to reach annual production of approximately 80,000 ounces of gold by 2021.

Chief Executive Officer, Steve Curtis, said:

We look forward to a further improvement in 2017 as we target 60,000 ounces of production from Blanket, being a 20 per cent increase on the production achieved in 2016.  We continue our progress towards annual production of 80,000 ounces by 2021.

As we increase production we expect earnings will continue to benefit from the increased sales volumes and from a lower average cost per ounce as fixed production costs and overheads are spread across higher production.  This improvement makes us confident of achieving a significant improvement in earnings for 2017. Caledonia expects to publish its results for the year to December 31, 2016 on March 21, 2017.”

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