Proactive Investors - Run By Investors For Investors

Caledonia Mining sees year-on-year production at Blanket creep up in first half

The gold miner said around 25,582 ounces of gold had been produced in the first half of the year, marginally ahead of the 25,316 ounces produced in the same period a year ago
Gold on dollars
For the second quarter, production was 1% higher compared to the same period in 2017

Caledonia Mining Corporation (LON:CMCL, TSX:CAL) has reported an increase in gold production at its Blanket mine in Zimbabwe for the first half of the year 

The AIM-listed gold miner said around 25,582 ounces of gold had been produced in the first half of the year, marginally ahead of the 25,316 ounces produced in the same period a year ago.

READ: Caledonia Mining sees earnings boost in first quarter

For the second quarter, the company said around 12,657 ounces had been produced, a 1% increase on the second quarter of 2017 but 2% below production in the first quarter of 2018.

Caledonia added that production remained in line with expectations and maintained its full-year production guidance at between 55,000-59,000 ounces, with Blanket on track to progress toward a long-term target of 80,000 ounces by 2021.

Steve Curtis, chief executive of Caledonia Mining, said: "Production of 12,657 ounces in the second quarter of 2018 is consistent with the level achieved in the corresponding quarter of 2017 and the first quarter of 2018. Grade during the quarter was below our expectation although grade has reverted to budgeted levels in the recent weeks. The lower grade was partly a result of normal variations in the ore body and partly a one-off consequence of some modified mining practices which were adopted to improve safety.

He added: "The sinking of the central shaft remains according to plan and within budget, with the shaft currently at a depth of 1,073 meters; sinking is currently paused due to the process of cutting stations for horizontal development on 30 level. The project continues to progress well and we look forward to commencing production from the central shaft in 2020”.

In a separate announcement, the company also announced a fatality at the Blanket mine on July 12.

The accident occurred in a development area at the Blanket ore body section of the mine, with the company saying it had notified the Minister of Mines and Mining

Development and the Inspector of Mines and would provide all the necessary assistance to the Ministry of Mines Inspectorate Department in its enquiry into the incident.

--Adds information on mine fatality--

View full CMCL profile View Profile

Caledonia Mining Corporation Timeline

Related Articles

1526401963_shutterstock_130308137.jpg
May 15 2018
It has hired engineer Hatch Ltd to look at a potential autoclave to produce gold bars
Picture of green hills in Serbia
July 20 2018
Taor held two exploration licences totalling around 100 sq km adjacent to the Suva Ruda licence
1541084172_shutterstock_130308137.jpg
November 01 2018
The gold mining sector is beginning a period of consolidation

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use