Name and Location
Blanket gold mine expansion project, Zimbabwe.

Client
Caledonia Mining Corporation.

Project Description
A revised investment plan and production projection have been announced for the Blanket mine.

The revised plan aims to improve the underground infrastructure and logistics and allow for an efficient and sustainable production build-up.

The infrastructure improvements will include the development of a tramming loop and the sinking of a new 6-m-diameter, four-compartment shaft, which will eventually be sunk to 1 080 m below surface, providing access to the current inferred mineral resources below 750 m, as well as allowing for further exploration, development and mining in these sections along the 3-km-long Blanket strike.

The increased investment pursuant to the revised plan is expected to increase production from inferred resources of about 70 000 oz in 2015 to 75 000 oz in 2021, in addition to projected production in 2021 from proven and probable mineral reserves of about 6 000 oz.

The revised plan is also expected to improve Blanket’s long-term operational efficiency, flexibility and sustainability.

Net Present Value/Internal Rate of Return
The mine currently has a net present value of $147-million, with an internal rate of return of 267%.

Value
$50-million is expected to be spent from 2015 to 2017 and about $20-million from 2018 to 2020.

All capital expenditure is expected to be funded from Blanket’s in-house cash flows and existing facilities.

Duration
Production is expected to start in 2021.

Latest Developments
Caledonia has completed the development of a tramming loop 750 m below surface, as well as the sinking of the No 6 Winze shaft.

The tramming loop is expected to contribute to increasing production at the mine to 42 000 oz/y of gold by the end of this year.

Preparations for equipping the No 6 Winze shaft have also begun, with the shaft to be fully equipped by the end of July, after which horizontal development towards the two main resource bodies will start.

First production from the shaft is scheduled for January 2016 and will reach the target rate of 500 t/d in May 2017.

Further, surface earthworks have been completed at the Central shaft, which has been sunk to 8 m.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Caledonia Mining, tel +1 416 369 9835 or email info@caledoniamining.com.