Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) CEO Mark Learmonth speaks to Thomas Warner from Proactive London after the Zimbabwe-focused gold producer released an update on production at its Blanket Gold Mine for calendar year 2023.
Learmonth explains that Caledonia managed to meet its guidance for the year despite a very challenging start to the period. For 2024, the company anticipates a slightly lower production of 74,000-78,000 ounces, due to strategic decisions to suspend mining in certain lower-grade areas.
Learmonth emphasises the company's ongoing shift towards more efficient mining practices, facilitated by the newly operational central shaft. This transition includes phasing out older, less efficient infrastructure in favour of the central shaft operations. The aim is to optimise mining for profitability rather than mere volume. He goes on to say that exploration remains a key focus for Caledonia Mining.
The company began extensive exploration activities at the Blanket Mine in early 2023, following the commissioning of the central shaft. This has allowed for increased logistical capacity and facilitation of underground exploration. Learmonth anticipates releasing new drilling results soon, which are expected to enhance the mine's lifespan through improved tonnage and grade.
The exploration efforts are primarily concentrated on existing areas to upgrade inferred resources to higher confidence levels. Future exploration will also target new mineralised zones near the Blanket Mine.
Lastly, Learmonth touches upon the feasibility study for Bilboes, mentioning that the company is updating the existing study and exploring an alternative, smaller-scale approach. He suggests this phase of work is vital for determining the most beneficial path forward for the company and its shareholders.