Blanket commissions generator power plant

to ensure that the mine becomes self-sufficient in power supply for its surface and underground operations during power outages.
The development comes at a time when mining output in general is facing production constraints due to unreliable power supplies from Zesa Holdings.
Officials at the mine say that consistent power supplies will ensure that Blanket meets its gold output target of 10 000 ounces a quarter, which translates to 40 000oz annually.
Commenting on the performance of the gold producer for the period under review, Caledonia chief executive officer Mr Stefan Hayden, among other things, noted some of the important improvements that the mine had undertaken to address prior production constraints.
“We have made significant progress during the current quarter to address the remaining constraints which, once solved, should enable us to reach our target of 10 000 ounces per quarter.
“A new ore pass was raise-bored and commissioned on May 13, 2011.
“The commissioning of the complete standby generating system commenced on May 16, 2011 and is expected to be completed by the end of May, after which Blanket will be able to maintain full operations during any interruption to the normal power supply.
“I am confident that Blanket will achieve its targeted quarterly production from the third quarter of 2011,” he said.
A ramp-up in production at Blanket is anticipated to contribute to the country’s total annual output this year, which is estimated to surpass 13 000kg by year-end.
Chamber of Mines outgoing president Mr Victor Gapare has said increased investment in gold mines will boost the precious mineral’s output to 50 tonnes over a five-year period.
Meanwhile, during the first quarter of the year, Blanket reported a gold production increase of 17 percent to 7 322 ounces, compared to 6 235 ounces in the fourth quarter last year.
Gold production last month was 2 737 ounces.
The average cash cost per ounce of gold produced decreased by 18 percent to US$648 compared to the fourth quarter 2010.
Average achieved price per ounce of gold was US$1 397 and gross profit for the quarter – before depreciation, amortisation and administrative expenses – nearly doubled to US$5,2 million compared to US$2,8 million in the fourth quarter 2010.
At the close of March, the company had net cash and cash equivalents of US$1,4 million.
The Toronto Stock Exchange-listed Caledonia Mining Corporation owns Blanket Mine.
The mine is located in the southwest of Zimbabwe approximately 15km west of Gwanda, the provincial capital of Matabeleland South.