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Enacy Mapakame
Gwanda-based gold producer Blanket Mine’s production for the second quarter to June 30, 2023 jumped 8,7 percent to 17 436 ounces, compared to the 16 036 ounces produced in the first quarter of 2023.
Total half-year gold production at the Caledonia-owned mine closed at 33 472 ounces, compared to 38 606 ounces produced in the first half-year of 2022 as production remained below expectation for the six-month period, albeit the recovery in the second quarter period.
The group attributed this volume performance to several factors including mechanical breakdowns, which impacted the implementation of the mine plan in certain mining areas.
According to the group, these factors included a high level of missed blasts and errors in blasting accuracy which contributed to inadequate face advances. Management has focused intensively on these problem areas and production in late June and in July has shown a marked improvement.
Gold is Zimbabwe’s single largest export and together with platinum group metals, accounts for more than half the value of minerals imports. Bullion is an integral element of the Government’s US$12 billion mining economy target by the end of 2023.
Caledonia group chief executive officer Mark Learmonth said production at Blanket Mine was already seeing significant recovery with the first week of July alone hitting a record level of 400 ounces.
“After an encouraging start to the second quarter at Blanket, production was below expectations in May and the first half of June,” he said in an update.
“Management interventions to identify and address the problems appear to have been successful and production improved substantially in late June and early July. Production in the first week of July was at a record level and was almost 400 ounces better than planned.
“Whilst we have much work to do to make up for the production shortfall from the first six months, we are confident that we will do so and we therefore re-iterate our production guidance for 2023 of between 75 000 and 80 000 ounces of gold,” said Mr Learmonth.
At Bilboes Oxides, 1 076 ounces of gold were produced during the quarter, showing an increase from the 105 ounces produced in the first quarter of 2023. There was no production at the Bilboes Oxides in 2022.
The Bilboes Oxides was intended as a small-scale, low-margin, short-term project, which was primarily justified by the benefits of pre-stripping in anticipation of the development of the larger sulphide project.
Caledonia has previously withdrawn guidance for the Bilboes Oxides and, in the absence of a reasonable prospect of it making an overall cash contribution, the project will be returned to care and maintenance with effect from October 1, 2023.
“The outlook for the Bilboes Oxides is insufficiently certain unless it is done in conjunction with the waste stripping for the sulphide project,” said Mr Learmonth.
According to the company, mining and metallurgical processing will continue at Bilboes Oxides until the end of September, thereafter leaching of material that has already been deposited on the leach pad will continue.
Additionally, oxide mining and processing will resume when the stripping of the waste for the sulphide project commences.
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