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Oliver Kazunga, Senior Business Reporter
CALEDONIA Mining Corporation says its local operation, Blanket Mine, has missed its first quarter 2019 production target after producing 11 948 ounces of gold compared to 12 924oz in the same period last year.
In a production update for the first quarter, the mining group said although the Gwanda-based mine missed its production target during the period under review, the operation has maintained its full-year production guidance.
“Production in the first quarter of 2019 was slightly below our target and below the comparable quarter in 2018, albeit at a level which allows us to maintain our 2019 production guidance of 53 000oz to 56 000oz for the full year.
“Continued difficulties with unstable electricity supply and grade dilution, which we experienced in 2018 had an adverse effect on production, but improved drilling and blasting practices have been put in place in pursuit of improved grade control and I am pleased to say that efforts to minimise dilution are proving successful,” said Caledonia chief executive officer, Mr Steve Curtis.
He said their technical team continued to work “tirelessly” to mitigate the effects of electricity supply interruptions while continuing to work with Zesa to address the power challenges.
Mr Curtis also hinted that the sinking of the central shaft at the mine was progressing as planned and the exercise was expected to be completed soon while shaft equipping was slated to begin midyear.
“We look forward to commencing production from the central shaft from mid-2020, which is expected to deliver the company’s growth plan to achieve 75 000oz in 2021 and 80 000oz by 2022,” he said.
In 2018, Blanket Mine produced 54 512oz of the yellow metal which was within the projected annual target, which ranged between 54 000 and 56 000oz.
The mining group remains optimistic that it will achieve the projected 80 000oz of gold per year from 2021 following completion of the Central Shaft.
The target is to sink the shaft to a depth of 1 204 metres and by the end of 2018, a depth of 1 150 metres had been sunk. Of late, Blanket Mine has been intensifying exploration activities with the objective of further extending the mine’s life.
Since 2015, Caledonia has announced seven successive increases in the resource base at Blanket Mine thereby extending the life span from six years as at the end of 2014 to 14 years as at the end of last year.
— @okazunga.
Online Reporter