Vusumuzi Dube
Judith Phiri, Business Reporter
STOCK exchange-listed Caledonia Mining Corporation Plc has reiterated that it will achieve its gold production target of 75 000 to 80 000 ounces at Blanket Mine for 2023.
This is despite recording 17 436 ounces of gold from the mine in the second quarter of 2023 compared to 20 091 ounces produced in the same per in 2022.
In a statement announcing its operating and financial results for the quarter and the six months ended June 30, 2023, Caledonia said it will continue deep level drilling at Blanket with the objective of further upgrading inferred mineral resources.
“The immediate strategic focus is to achieve our reiterated production 75 000 to 80 000 ounces and on-mine cost ($770 to $850 per ounce) guidance at Blanket for 2023. Continue deep level drilling at Blanket with the objective of further upgrading inferred mineral resources, thereby potentially extending the life of mine,” read part of the statement.
Caledonia which recently announced that it will be placing its new acquisition, Bilboes Gold Project under care and maintenance in October, said it will complete the feasibility study on the Bilboes sulphide project to determine the best implementation strategy and financing requirements.
The Bilboes oxide operation recorded 1 076 ounces of gold for the period under review.
Caledonia chief executive officer (CEO), Mr Mark Learmonth said: “Mining is never without its difficulties, and the first half of this year has certainly not been without its challenges. However, Blanket is now running better than expected and I look forward to achieving production guidance of between 75 000 and 80 000 ounces of gold for 2023.”
He said due to the lack of confidence that the Bilboes oxide mine can operate profitably, it will return to care and maintenance with effect from October 1, 2023, while in due course, the remaining oxide material will be mined and processed alongside the sulphide ore.
“This outcome has no bearing on the viability of the much larger sulphide project which was the reason for acquiring Bilboes. The results of the feasibility study on the project will be published before year end after which we will be able to establish the best development approach.”
In terms of gross revenues, Caledonia recorded of $37.0 million compared to $37.09 million achieved in the second quarter of 2022, while the gross profit of $10.9 million compared to $17.9 million for the same period under review last year.
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