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Caledonia starts equipping newly sunk shaft at Blanket mine

2nd August 2019

By: Marleny Arnoldi

Online News Editor

     

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Aim- and TSX-listed Caledonia Mining Corporation has completed the sinking of the new Central shaft at its 49%-owned Blanket gold mine, in Zimbabwe.

The Central shaft project started in early 2015 and has cost the company $44-million. It has been sunk to a depth of more than 1 200 m.

The project will now move to the equipping phase, which will take 12 months to complete.

Thereafter, commissioning will start – in the third quarter of 2020.

The Blanket mine plans to increase production from 54 511 oz/y in 2018 to about 56 000 oz this year, and to 75 000 oz in 2021, once the new shaft has been commissioned.

Further, production at Blanket is expected to increase to 80 000 oz/y from 2022 onwards.

Caledonia expects the increased production, combined with economies of scale and lower future capital investment, to result in increased profit and distributable cash.

Meanwhile, Caledonia has signed a legally binding agreement with Fremiro Investments to buy its 15% shareholding in Blanket for $16.6-million. This will increase Caledonia’s holding in Blanket to 64% once regulatory approvals have been granted.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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