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Caledonia narrows 2014 guidance to 45 000 oz

Caledonia narrows 2014 guidance to 45 000 oz

Photo by Duane Daws

15th July 2014

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Caledonia Mining has reduced its gold production guidance for this year from 48 000 oz to about 45 000 oz, despite having achieved higher output in the second quarter of the year.

Production at the company’s 49%-owned Blanket mine, in Zimbabwe, increased to 11 223 oz in the quarter ended June 30, compared with the 10 241 oz produced in the first quarter of the year.

This represented a 9.6% quarter-on-quarter increase.

The Canadian company noted in a market update on Tuesday that the average headgrade at Blanket was now expected to be lower than had been achieved in previous quarters.

Moreover, tons mined and milled in the second quarter did not increase sufficiently to offset the lower grade mined despite plant recoveries having remained strong.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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