Blanket Mine drilling results excite Caledonia

Caledonia Mining Corporation Plc has expressed confidence that the on-going drilling at Blanket and Eroica ore bodies which is yielding better than expected grades will result in the existing life of the mine being extended, rather than an increase in the target annual production rate.

A total of 7,652 metres of drilling from June to the end of December last year indicates that the existing Blanket and Eroica ore bodies have grades and widths which are generally better than expected.

Total drilling for 2023 was 13,280 metres, the mining house said in its latest update yesterday.

It is expected that this will result in the existing life of mine being extended, rather than an increase in the target annual production rate.

Chief Executive Officer, Mr Mark Learmonth, said the ongoing drilling campaign continues to demonstrate encouraging results, further improving confidence in the Blanket resource.

“We anticipate that the positive grades and widths will result in an increased overall resource, which in due course should result in the extension of the existing life of the mine. We have invested heavily in Blanket over the last seven years to increase production capacity, resulting in a mine infrastructure that can sustain production beyond the current production horizon,” he said.

Drilling is currently focused on the Blanket and Eroica ore bodies, where cross-cuts have been mined to allow optimal access to drill the deeper zones of the steeply-dipping ore bodies.

These results are extremely promising, and the firm has cast its focus on the next phase of drilling.

The firm said it is anticipated that a portion of the existing inferred mineral resources will be upgraded to measured or indicated mineral resources together with the addition of new inferred mineral resources.

Last year, the mining house produced 75,416 gold ounces against a target of between 74,000 and 78,000 ounces for the year to December 31, 2023.

The group has budgeted US$34,4 million capital expenditure for 2024 as the group looks at enhancing production efficiencies and the entity is focused on unlocking value and delivering multi-asset growth pipeline in Zimbabwe.

Caledonia’s 75,416 gold ounces produced last year comes as the country’s gold deliveries declined by 14,7 percent last year to 30,1 tonnes compared to a record high of 35,3 tonnes realised in 2022 official figures show.

Gold is the country’s major foreign currency earner whose output was projected to reach 40 tonnes last year having missed the same projection in recent years largely due to factors such as power supply challenges.

In 2019, stakeholders in the gold sector set themselves a 40-tonne target, which is yet to be achieved due to a cocktail of challenges including smuggling of the mineral and intermittent power supplies that affected production.

The mining house has it on record that it is eyeing consolidating its strategy of becoming a multi-asset gold producer by acquiring several lucrative mining assets.

Over the years, the firm has been creating a solid base at becoming a multi-asset gold producer by making significant investments in operations.

For instance, in 2022, the resource group expanded its footprint by purchasing Motapa Mining Company UK Limited and signed a US$53,2 million agreement to buy Bilboes Gold Limited as part of its expansion drive.