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Toronto Stock Exchange listed Caledonia Mining Corporation’s gold production for the first quarter went down four percent to 9,960 ounces from 10,417 ounces produced in the last quarter of 2014.
The current production shows 2,7 per cent decrease on the gold produced in the first quarter of 2014 (10,241 ounces).
Caledonia is a Mining, Exploration and Development Company focused on Southern Africa and its primary asset is a 49 percent interest in the Blanket Mine in Zimbabwe.
Caledonia said 10,770 ounces of gold were sold in the first quarter representing a 12,1 percent increase on the ounces of gold sold in the last quarter of 2014 and an 11,8 percent decrease on the ounces of gold sold in the first quarter of 2014.
The mining company said targeted gold production for 2015 remains approximately 42,000 ounces
Caledonia chief executive Mr Steve Curtis said production in the first quarter of 2015 was over 98 percent of the target for the quarter.
“Target production in Q1 is lower than subsequent quarters due to the greater number of public holidays in the first quarter. It is also anticipated that production will increase somewhat in the second half of 2015 after the tramming loop on 22 Level has been completed, which will increase the underground haulage capacity. The tramming loop is on schedule for completion by the end of June 2015,” said Mr Curtis.
He said the number six Winze is now 900 meters below surface as at April 8 and is still on track to be completed by the end of July 2015. The pre-sink at Central Shaft has commenced.
“We are confident that the revised investment plan, which was announced on November 3, 2014, will result in progressive increases in production from 2016 onwards when we expect to see the first production from below 750 meters initially from the number six Winze and subsequently from the Central shaft,” said Mr Curtis.
Caledonia is also targeting production of approximately 75 000 ounces of gold per annum by 2021 from inferred resources and additional production of 6 000 ounces of gold in 2021 from proven and probable mineral reserves.
The increased investment pursuant to the revised plan is expected to give rise to production from inferred resources.
Caledonia said the revised plan is expected to improve Blanket’s long term operational efficiency, flexibility and sustainability.
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