Blanket Mine ready relinquish stake

into with the Government in February. Caledonia operates the Blanket Mine in Gwanda.
In terms of that agreement indigenous Zimbabweans will acquire an effective 51 percent of the Blanket Mine for a paid transactional value of US$30 million.
“We are working hard on the various transactions envisaged in this MoU which we hope will be implemented during the second quarter of 2012,” said the company in a statement.
Caledonia chief executive officer Mr Stephan Hayden said the empowerment deal, once implemented, would leave Blanket “financially and strategically well-positioned to progress its exploration and development projects.”
Mr Hayden also said Blanket Mine was one of the low-cost gold producers on the continent.
“I believe that Blanket Mine is now one of the most efficient and lowest cost gold producers in Africa.”
The remarks come as the mine increased output by 69 percent in the quarter ended December 2011.
2011 fourth quarter output at Blanket reached 10 533 ounces.
Total annual production last year increased by 102 percent to 35 826oz while cash operating costs eased substantially to US$521 per ounce of gold produced compared to US$583 in the preceding quarter.
In terms of financial performance, the group’s turnover for the year increased to US$55,7 million from US$22,3 million in 2010.
Gross profit for the year increased by 358 percent to US$29,1 million from US$6,3 million in the prior year.
Net profit after income taxes for the year just ended stood at US$12,1 million.