Aim-listed Caledonia Mining has fully equipped the Central Shaft – from the base to the surface collar – of its Blanket mine, in Zimbabwe, well below budget and within its set timeframe.
The shaft sinking at the new Central Shaft at the Blanket mine was completed in 2019, before the company moved to the now completed equipping phase prior to the commissioning planned for the first quarter of 2021.
“The completion of the equipping phase is a huge milestone for the company,” says Caledonia CEO Steve Curtis.
“Central Shaft is one of the largest gold mining investment projects in Zimbabwe and will be transformational to our business; our target production is set to increase by 45% to 80 000 oz by 2022, while our long-term all-in sustaining costs are expected to drop to between $700/oz and $800/oz [from $855/oz],” he explains.
Central Shaft will also enable the company to enhance its deep-level exploration which, if successful, may extend Blanket’s life-of-mine, which is currently to 2034.
Caledonia has injected $60-million into the owner-built project since inception in 2015, and has fully funded the project through internal cash flow. The progress to date had also been completed at a cost well below the initial sinking contractor quotes of $100-million.
Further, over the past five years, the crew achieved 1 850 fatality-free shifts, with only two lost-time injuries (LTI), and achieved more than one million LTI-free work hours worked since the last LTI.
“Over the last five years, we have built a solid foundation for the company, we have a healthy balance sheet, a strong gold price and a highly cash generative asset with free cash flow expected to increase significantly with the rise in production,” Curtis comments.