Caledonia Mining Corporation PLC (LON:CMCL) has added 13% to the most certain category resource at the Blanket gold mine in Zimbabwe.
Measured and Indicated ounces are now 805,000oz, up from 714,000oz in August 2017, from 6.74mln tonnes at a grade of 3.72 g/t.
WATCH: Caledonia Mining to increase stake in Blanket mine to 64%
Inferred resources, the least certain category, rose by 9% to 963,000 ounces.
Average grades on the resource dropped compared to the previous estimate but remain above the current mill feed grade of 3.3g/t, said Caledonia. The grades trend higher as the mining gets deeper.
Total proven reserves and indicated resources are 4.98mln tonnes, a 10% increase.
Steve Curtis, chief executive, said: “We have increased total resources at Blanket by 86% since 2011 in addition to mining over 300,000 ounces over this period.
“Whilst there is a small downward revision in grade, the grade of the ore body remains consistent with our expectations and continues to be well above the current mined grade at Blanket of 3.3g/t.
“The inferred resource in particular at a grade of 4.5g/t and the substantial increase in inferred resources at depth gives us confidence in the longer-term potential of the mine.“
Caledonia owns 49% of Blanket.
In a note to clients, analysts at ‘house’ broker Shore Capital pointed out that ounces up and grade slightly down, but still OK, bodes well for longer-term life at Blanket.
In early afternoon trading, Caledonia Mining shares were 3.3% higher at 545p.
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