The Sunday News
Judith Phiri, Business Reporter
VICTORIA Falls Stock Exchange (VFEX) listed resources group, Caledonia Mining Corporation’s Zimbabwe based gold miner, Blanket Mine, is targeting to increase production and produce about 80 000 ounces of gold per year.
In its results for the quarter and nine months ended September 30, 2022, Caledonia Mining Corporation said it was targeting to increase production at Blanket Mine.
In terms of the outlook, it said: “Increase production at Blanket Mine to the target of 80 000 ounces of gold per year, reduce operating costs and increase the flexibility to undertake further development and exploration, thereby safeguarding and enhancing Blanket’s long-term future.”
It said it will commission the 12 megawatts solar plant, which is expected to provide 27 percent of Blanket’s total electricity demand.
Caledonia Mining Corporation which is aiming at increasing its gold portfolio project across the said it is working on satisfy the conditions to enable the completion of the acquisition of Bilboes and, thereafter, prepare a feasibility study to identify the most judicious way to commercialise the project with regard to the availability of funding on acceptable terms.
The mining group added: “Will restart the oxides operation at Bilboes under the terms of a tribute arrangement with a view to creating a cash-generative operation within approximately six months of the re-commencement of activities.”
Caledonia Mining Corporation chief executive officer (CEO), Mr Mark Learmonth said it has been another great quarter.
“This has been another terrific quarter, production of just over 21 000 ounces set a new quarterly production record. In both of the last two quarters we have exceeded our quarterly production target of 20 000 ounces and we are on-track to achieve the top end of our annual production target of between 73 000 and 80 000 ounces of gold,” said Mr Learmonth.
He said the benefit of higher production was diluted by a lower gold price and a modest increase in costs as, in common with other mining companies.
Mr Learmonth said despite the higher production, they experience inflation on consumables and diesel, while costs were also adversely affected by the increased use of diesel generators due to a further deterioration in the grid supply.
“However, we are now within a few weeks of seeing the benefit of the new solar plant which is currently being commissioned. This, along with other initiatives to reduce our diesel consumption, should curb the inflationary pressure on our costs.
“We have made good progress on implementing our strategy to acquire a portfolio of high-quality exploration and development assets in the Zimbabwe gold sector,” he added.
In terms Bilboes Gold Limited, which Caledonia Mining Corporation announced that it had signed an agreement to purchase in July, Mr Learmonth said they were making progress towards satisfying them.
“Once the transaction has completed, we intend to prepare a feasibility study to identify the most judicious way to commercialise the Project with regards to the availability of funding on acceptable terms.”
He said the proposed acquisition of Bilboes also builds on the acquisition of the Maligreen claims in November 2021 and they have evaluated the existing geological information.
Mr Learmonth said the information has allowed them to improve the geological confidence of approximately half the mineral resources from inferred to measured and indicated mineral resources.
