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Gwanda-based gold producer Blanket Mine’s output rose 11 percent to 10 927 ounces in the three months to September 30, 2015 from 9 890 ounces in the prior comparable period. This drove net profit for the period to $1,7 million. And after tax profit at $3,6 million was lower than the $5,4 million in the prior year.
Toronto Stock Exchange-listed Caledonia Mining Corporation, which has a 49 percent interest in the Blanket Mine said the mine remains on track to reach its target production of 42 000 ounces for 2015.
As it stands, total output for the nine months to September stands at 31 288 ounces.
According to Caledonia, the higher quarterly output was due to increased tonnes milled, offset by lower grades and metallurgical recovery while operating profit rose 55 percent on the $1,1 million achieved in the same period last year.
Gold prices averaged $1 106 per ounce during the quarter compared to $1 252 per ounce last year.
Costs were higher at $1 011 an ounce compared to $952 an ounce previously.
Commenting on the performance, Caledonia CEO Mr Steve Curtis said the result were a reflection of the yields of the ongoing investment programme at the mine.
“In the quarter to September 30, 2015, we began to see the benefits of the Revised Investment Plan at Blanket Mine, which we presented to investors in November 2014.
“The first element of the Revised Investment Plan, the Tramming Loop at the 750 metre level, was completed in June 2015 following which Blanket increased its mining activity to a record level.
“The record level of mining activity contributed to the 10 percent increase in gold production compared to Q3 of 2014,” said Mr Curtis.
“The next element of the Revised Investment Plan is the No. 6 Winze, which will start production in the first quarter of 2016, and will provide access to resources below 750 metres.
“This will allow Blanket to increase production progressively in 2016 with a full year target for 2016 of 50 000 ounces.”
“Caledonia’s cash position remains robust and gives us the confidence to continue to invest in Blanket.
“Caledonia’s board and management believe that the implementation of the Revised Investment Plan remains in the best interests of shareholders: the successful implementation of the plan will result in a significant increase in Blanket’s production and operating efficiency; the lower gold price increases the importance of delivering the Revised Investment Plan as scheduled.” — BH24.
Online Reporter