Photo by: Reuters
JOHANNESBURG (miningweekly.com) – Caledonia Mining Corporation’s 49%-owned subsidiary the Blanket mine, in Zimbabwe, has lifted gold production by 2.5% year-on-year, delivering 42 806 oz in the year ended December 31, exceeding its full-year guidance of 42 000 oz.
The London-listed miner also lifted output by 10.6% year-on-year in the final three months of 2015, delivering 11 518 oz in the fourth quarter.
Caledonia has retained its targeted gold production of 50 000 oz/y for 2016 but expected to increase its rate of production over the course of the year as the No 6 Winze shaft was scheduled to start production from the middle of the first quarter, providing access to ore below 750 m.
Owing to the high fixed cost component at Blanket and the generally stable environment for input costs, this projected increase in production was expected to result in a lower average production cost per ounce.
The quarterly production profile was expected to be about 10 700 oz of gold in the first quarter of the year, increasing to around 14 000 oz of gold by the fourth quarter.
“The increased production reflects the continued progress in implementing the revised investment plan, announced on November 3, 2014. Further, the completion of the tramming loop on 22 Level – slightly ahead of schedule in mid-2015 – was an important factor that contributed to the increased production by alleviating the underground logistical problems, which constrained production in 2014,” commented CEO Steve Curtis.
Caledonia expected to release its financial results for the quarter and year before March 31.