Caledonia Mining Corporation PLC (LON:CMCL) produced 10,822 ounces of gold from its Blanket mine in southern Zimbabwe during the quarter to March 31.
That figure was up by eight per cent on the gold produced in the corresponding period during 2015, but down six per cent on the gold produced in the previous quarter, to the end of December 2015.
The company’s target of 50,000 ounces of production from Blanket for the full year remains in place, with plans for progressive quarterly increases of production to approximately 14,000 ounces per quarter as operations at the new 750 level begin to make a real impact.
Caledonia has been investing heavily in Blanket lately, opening up new levels to the mine and improving the infrastructure underground, both in terms of access and transport.
The increase in production due later in the year comes against that backdrop, and the first quarter dip doesn’t appear to be ringing any alarm bells.
On the contrary, chief executive Steve Curtis notes that first quarter production was actually “higher than planned.”
It was, he said, lower than the previous quarter simply due to the “combined effects of the New Year and Easter holiday periods.”
“We remain on target to achieve our full year production target of 50,000 ounces,” he added.