Caledonia Mining Corporation has told DirectorsTalk that gold production from its 49 per cent owned subsidiary, the Blanket Mine in Zimbabwe for the quarter ended June 30, 2015 (“Q2 2015” or the “Quarter”). All numbers are expressed on a 100 per cent basis.
— Gold production in the first six months of 2015 remains on track to achieve target production for 2015 of 42,000 ounces
— 10,424 ounces of gold were produced during Q2 2015, representing a 4.7 per cent increase on the gold produced in Q1 2015 (9,960 ounces) and a 7.1 per cent decrease on the gold produced in Q2 2014 (11,223 ounces). Production in the Quarter is based on mine assays and is subject to adjustment following third party assays.
Commenting on the production for Q2 2015, Steve Curtis, Caledonia’s Chief Executive Officer said: “The increased production reflects the improved management control over grade and tonnage. It is anticipated that production will increase somewhat in the second half of 2015 following completion of the tramming loop on 22 Level in June. The completed tramming loop will increase the underground haulage capacity and allow for an increase in development activity, which is expected to result in an increase in future production.
“Sinking of the no 6 Winze has been completed and work has commenced on equipping the completed shaft prior to the start of horizontal development toward the ore bodies. The start of initial production from the No. 6 Winze remains on target for January 2016.
“The pre-sink at Central Shaft has commenced and the shaft collar is being concreted after which shaft sinking can resume.
“We are confident that the revised investment plan, which was announced on November 3, 2014, will result in progressive increases in production from 2016 onwards when we expect to see the first production from below 750 meters – initially from the No. 6 Winze and subsequently from the Central shaft”
Caledonia expects that its results for Q2 2015 will be released on August 13, 2015.
Caledonia is debt-free and at March 31, 2015 had cash of $26.1m. Blanket is a low-cost producer: in 2014 Blanket’s on-mine costs were US$652 per ounce of gold produced and its all-in sustaining cost was US$969 per ounce of gold produced. Caledonia expects to publish its results for the quarter to June 30, 2015 on August 13, 2015.
