Caledonia Mining Corporation completes central shaft sinking at Blanket

The AIM-traded firm said the central shaft project had been in progress since early 2015, adding that it had spent around $44m sinking a new shaft from surface to a depth of more than 1,200 meters.

It said the project would now move to the equipping phase, prior to commissioning, which was expected during the third quarter in 2020.

Production from the Blanket mine was then expected to progressively increase to the target of 80,000 ounces of gold per year from 2022 onwards.

The company said it expected that the increased production, combined with economies of scale and lower future capital investment, would result in “significant increases” in its profit and distributable cash.

“Completion of the shaft sinking is an important milestone in Caledonia's investment plan,” said chief executive officer Steve Curtis.

“I would like to recognise the outstanding contribution of Caledonia's technical staff, led by Dana Roets, Caledonia's chief operating officer, who have worked hard over the last five years to ensure that we have reached this point.

“We now commence the equipping phase, which will take approximately 12 months, after which we can commence the production ramp-up towards our target of 80,000 ounces of gold in 2022.”