adminGold output at Blanket Mine decreased 11,9 percent to 9 890 ounces in the third quarter compared to the second, its parent company, Caledonia Mining Corporation said on Tuesday.In a trading update for the quarter ended September 30, 2014 Caledonia said gold produced during the period under review was also lower than that mined during the same period last year.
Third quarter production in 2013 was 12 042 ounces.
“9,890 ounces of gold were produced during Q3 2014, representing an 11,9 per cent decrease on the gold produced in Q2 2014 of 11,223 ounces,” it said.
Caledonia attributed the decline in production to a number of factors, chiefly lower grades.
“Tonnes mined and milled in Q3 did not increase sufficiently to offset the lower grades mined, although plant recoveries have remained strong.
“The target grade for the year was 3,84 grams per tonne and in the first half of 2014, the achieved grade was 3,7 grams per tonne. In recent months the grade has fallen further due to lower than anticipated grades at AR Main and AR South, which are the two largest tonnage contributors to Blanket’s run-of-mine production.”
Caledonia said in light of weakened production, projected output at Blanket mine for the full year had been lowered to approximately 40 000 ounces.
Blanket mine had targeted to produce 45 000 ounces this year.
The company said gold produced during the first nine months of the year had now reached 31 354 ounces.
Caledonia said the decline in gold prices and high royalties on gold had affected the financial performance of Blanket and Caledonia during the period under review.
“The effect of lower than anticipated production and the lower gold price has to some extent been mitigated by a reduction in the cost per tonne of ore processed,” it said.
The company said it was working on a short term investment plan, to be finalised during the fourth quarter of this year.
“Management at Blanket and Caledonia is reviewing the medium term capital investment programme at Blanket with a view to improving grades and increasing tonnage throughput by facilitating more rapid access to deeper level resources.” – New Ziana
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