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Business Reporter
JERSEY-based Caledonia Mining Corporation remains confident its Zimbabwean unit, Blanket Mine, will meet the production target of 75 000 to 80 000 ounces for 2023, despite recording a 13 percent output dip to 16 141oz in the quarter to March 31, 2023, compared to the same period last year.
The Gwanda-based gold mine produced 18 515oz in the quarter to March 31, 2022. Blanket Mine is one of the Southern African country’s largest gold miners.
Zimbabwe is targeting about 40 tonnes of bullion, the country’s single largest foreign currency earner, this year from 35 tonnes achieved last year.
The Government expects gold to contribute US$4 billion towards the national target of growing mining into a US$12 billion industry by the end of this year.
Caledonia said in a statement that production at Blanket Mine was lower than expected during the quarter due to minor mechanical breakdowns and logistical issues which have now been resolved.
The Zimbabwe-focused gold producer reported revenue for the first quarter of 2023 was US$29,4 million, down 16 percent from US$35,1 million a year ago.
The rate of production improved last month with 5 202oz of gold being produced in April, which had 23 production days due to public holidays, which equates to an estimated annual production rate of 80 000oz.
“Production guidance for Blanket for the year to December 31, 2023 of between 75 000 and 80 000oz of gold is maintained.
“A total of 16 141oz of gold were produced in the quarter (Q1 2022: 18 515oz) of which 16 036oz ounces were produced at Blanket and 105oz were produced at the Bilboes oxide mine.
“Gold produced in the quarter was lower due to lower mine production at Blanket than anticipated and the slower-than-expected restart of the Bilboes oxide mine,” said Caledonia.
In January this year, Caledonia announced it had completed the acquisition of Bilboes Gold Limited.
On-mine costs at Blanket are expected to fall in future quarters due to increased production and lower electricity costs.
Accordingly, guidance for on-mine costs at Blanket for this year is maintained at the range of US$770 to US$850 per ounce of gold produced.
Guidance for consolidated all-in sustaining costs per ounce was between US$1 150 and $1 250 per ounce, which included the anticipated production and associated costs at the Bilboes oxide mine in respect of which production and cost guidance has been withdrawn.
Deep-level drilling at Blanket has been re-commenced to upgrade the inferred mineral resources and identify new resources thereby extending the life of mine.
“The feasibility study on the Bilboes sulphide project should be completed in the first quarter of next year with the objective of maximising value accretion for Caledonia’s shareholders,” said Caledonia.
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