Caledonia Mining’s Blanket gold mine, in Zimbabwe, produced 12.8koz of gold in Q1 2017, an 18% increase on Q1 2016. Production continues to be supported by access to resources below the 750m level through the development of a second decline into the AR Main ore body as well as through the current decline at AR South and through the 6 Winze shaft.
Q1 is traditionally the lowest production quarter of any year (owing to holidays and mine scheduling) and the company maintains its’ 2017 full year production guidance of approximately 60 koz.
About Caledonia Mining
Caledonia is a gold mining company with an operating mine in the southern region of Zimbabwe. The company’s shares trade on the Toronto Stock Exchange (TSX) with the symbol CAL and on London’s AIM with the symbol CMCL.
The company is registered in Jersey, having moved its domicile from Canada in Q1 16 to simplify the group structure and to reduce travel and compliance costs. One benefit for non-Canadian shareholders is that they will no longer have to pay withholding tax on dividends.
The company acquired the Blanket mine from Kinross Gold in 2006. In 2012, it sold a 51% interest in the mine to various local parties to comply with indigenisation law (designed to increase the participation of Black Zimbabweans in the local economy). Caledonia is able to participate in Blanket mine’s cash flow at a higher level of 77%, because of the way the indigenisation deal was facilitated.
Caledonia’s Blanket gold mine ups Q1 production by 18% year-on-year: CMCL