Caledonia upbeat over ongoing underground drilling programme

CALEDONIA Mining Corporation Plc has revealed that the ongoing underground drilling programme at Blanket Mine in Matabeleland South targeting depth extensions to the Eroica ore body has shown positive results which indicate a significantly higher width and grade than expected.

The ongoing underground drilling came following the completion of the US$67 million Central Shaft project which was commissioned by President Mnangagwa in November 2021.

This is a major development in the mining house’s quest at becoming a multi-asset, Zimbabwe-focused gold producer. In a statement, Caledonia said approximately 5 600 metres of drilling have been completed between January and the end of May this year.

The company said initial results indicate that the existing Eroica ore body continues at depth with grades and widths being generally better than expected.

“I am delighted with the results of the drilling campaign so far. In particular, the grades are very encouraging when compared to the historically achieved mining grades from Eroica which have been approximately 4-5 grams per ton,” said the company’s chief executive officer Mr Mark Learmonth in a statement.

“The Central Shaft and related infrastructure are vital not only to increase production but to give us the capacity to re-start exploration with a view to extending the life at Blanket Mine.

“We have invested heavily in Blanket Mine in the last seven years, including investment in 2023 (which will be continued in 2024) in a new tailings facility with an anticipated life of approximately 14 years, to create a mine infrastructure which can sustain production beyond the current production horizon.”

“These results are very encouraging and we look forward to receiving results from extension drilling at the Blanket ore bodies and also from the next phase of drilling,” he said.

According to the update, the mining house said deep-level drilling at Blanket Mine was suspended several years ago due to underground logistical constraints and the impact of Covid-19 on contractor operations.

Following the completion of the Central Shaft and related infrastructure, deep-level drilling resumed in January this year and is currently focused on the Eroica ore body where a crosscut has been mined to allow optimal access to drill the deeper zones of the steeply-dipping ore body.

“At the Eroica zone, drilling from an exploration drive on the 750m level of the mine has focused mainly on converting inferred resources to indicated resources, in addition to drilling areas outside of inferred resources as the mineralisation extends to depth, between 850m and 1 150m below.

“This is above the bottom of the new Central Shaft and therefore any resources that are identified in this area will be served by the planned Central Shaft infrastructure,” said the company.

Last week, Caledonia announced that the board of directors declared a quarterly dividend of US$0,14 on each of the company’s shares.

In the past 18 months, Caledonia has undergone several key structural changes that are strategic in its quest to become a multi-asset, Zimbabwe-focused gold producer.

For instance, its new acquisition, Bilboes Gold Project, has commenced production — setting the thriving mining firm in a firm position to further boost its output in line with the company’s growth plans.

Bilboes is a large, high-grade sulphide deposit situated in Matabeleland North province, which is amenable to low-cost, open-pit operations.

It also saw its 12,2MW solar plant connected to the Blanket Mine electrical grid in Gwanda generating slightly more power than was anticipated.

The solar plant provides approximately 27 percent of Blanket’s average daily electricity demand. This has seen a marked reduction in the amount of diesel consumed in the mine and has reduced the frequency of interruptions to production.