Caledonia's Blanket Mine keeps company on track for 2018

Caledonia Mining Corporation announced quarterly gold production from the Blanket Mine in Zimbabwe for the period ended 30 June on Thursday, with approximately 12,657 ounces of gold produced during the quarter - 2% below production in the first quarter, and 1% above production in the second quarter of 2017.

The AIM-traded firm said gold produced in the first half was 25,582 ounces 0 marginally ahead of the 25,316 ounces produced in the first half of 2017.

Production remained in line with its expectations for 2018, with Caledonia maintaining its 2018 production guidance of between 55,000 ounces and 59,000 ounces for the full year.

Blanket remained on track, the board explained, with progress towards its long-term target of 80,000 ounces by 2021.

“Production of 12,657 ounces in the second quarter of 2018 is consistent with the level achieved in the corresponding quarter of 2017 and the first quarter of 2018,” said Caledonia chief executive Steve Curtis.

“Grade during the quarter was below our expectation although grade has reverted to budgeted levels in the recent weeks.”

Curtis said the lower grade was partly a result of normal variations in the ore body, and partly a one-off consequence of some modified mining practices which were adopted to improve safety.

He said the sinking of the central shaft remained according to plan and within budget, with the shaft currently at a depth of 1,073 meters, though sinking was currently paused due to the process of cutting stations for horizontal development on 30 level.

“The project continues to progress well and we look forward to commencing production from the central shaft in 2020 which is expected to deliver the company's growth plan to achieve 80,000 ounces by 2021.”

Caledonia Mining said production numbers were expressed on a 100% basis, and were based on mine production data and were therefore subject to adjustment following final assay at the refiners.