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Mernat Mafirakurewa Business Editor—
GOLD output at Caledonia Mining Corporation subsidiary, Blanket Mine, fell 7,2 percent in the first quarter to March 31 due to low grades. Caledonia, however, said the targeted annual output of 48,000 ounces at the Gwanda-based mine remained unchanged. In a trading update issued yesterday, Caledonia, which has a 49 percent shareholding, said production in the first quarter to March 31 was below target.
In the period under review, 10,607 ounces of gold were produced representing a 7,2 percent decrease on the gold produced in the last quarter of 2013 of 11,429 ounces.
“This was due to a sub-horizontal fault which was encountered at the AR South ore body between 680 and 695 metrer below surface and which had displaced the ore zone to the west and south,” the company said.
“Production on these panels was stopped and re-development was required to establish other panels at the required grade. Management believes that the above measures have been successful and that an average head grade of between 3,60 to 3,83 gandt Au is expected to be maintained, and closer attention will be paid to grade control in future.
“Production in February 2014 was also adversely affected by an unstable mains power supply and by the unscheduled requirement to replace the winding rope on No. 4 Shaft.”
In its full year 2013 results, the company said it would continue to invest in the mine to boost production, which, for 2014, it has forecast at 48,000 ounces before reaching 52,000 ounces next year.
Last year gold production reached 45,527 ounces, compared to 45,465 in 2012. The average realised gold price for the year was $1,402 per ounce compared to $1,666 in 2012.
“In the early part of 2014, the achieved grade in certain production areas became uneconomic and production in those areas was terminated. Production in the first quarter of 2014 was also adversely affected by the unscheduled requirement to replace the winding ropes on the main production shaft,” said Caledonia’s chief executive and president Stefan Hayden after the release of its 2013 results at the end of last month.
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