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CALEDONIA Mining has trimmed its production target for the current year after grades in the ore mined recently from Blanket were lower than anticipated.The company, which flagged the issue in May, said output for the year would now be 45,000 ounces of gold against a previous forecast of 48,000.
In May, Caledonia said that the average mined grade is expected to be between 3,6 grams per tonnes (g/t) and 3,7 g/t, compared with initial expectations of 3,83 g/t for the next two quarters.
Tonnes mined and milled in the second quarter of the year were not sufficient to offset the lower grade, although plant recoveries have remained strong, it added yesterday.
Blanket produced 11,223 ounces of gold in the three months to June, almost 10 percent higher than the first quarter’s 10,241, but down on the 11,587 produced in the same period a year ago.
Production in the first half of 2014 totalled 21,464 ounces. Caledonia has a 49 percent interest in Blanket mine. –Proactiveinvestors.co.uk
Online Reporter