adminWalter Muchinguri Assistant Business Editor
Caledonia Mining Corporation and its subsidiary Blanket Gold Mine are re-evaluating the medium term investment plans for the local unit to address a number of challenges affecting production.
This follows realisation that underground logistics were the main factor constraining further increases in production.
According to a report by the Rodman & Renshaw Capital Group, Inc the plans will include —addressing underground logistics (waste and ore), accelerating access to deeper ore bodies and improving overall mine flexibility.
The research company said the two firms were expected to announce a revised investment and expansion plan later this year.
“There is continued exploration to define more resource above and below 750m (Level 22) and accelerating access to existing resources below 750m,” it said.
It added that improved underground logistics to handle increased tonnage of waste and ore had resulted in increased production.
“No. 4 shaft expansion project increased production from 600tpd to over 1,200tpd,” it said.
The report noted that at GG Project, 7kilometers from Blanket, a shaft had been sunk to 120 metres with stations at 60, 90 and 120 metres.
“Underground exploration and development continues while metallurgical test work suggests a new metallurgical process may be required,” the research firm said.
“Exploration is continuing to establish the overall size and characteristics of a potential resource.”
At the Mascot Project, 42 km from Blanket, existing infrastructure has been refurbished while underground development and exploration is taking place on 2 levels and metallurgical test work has commenced.
Gold production at Blanket mine rose 9,6 percent to 11 223 ounces in the quarter to June compared to the same period last year.
During the first six months of the year total output at the low cost mine reached 21 464 ounces.
This prompted the gold miner to reduce its guidance for gold production this year from 48 000 ounces to approximately 45 000 ounces.
Online Reporter