Blanket Mine to produce 42 000 ounces of gold this year

Gold production at Blanket Mine in Gwanda is seen around 42 000 ounces of gold this year, based on output levels reached in 2014, which surpassed target by nearly 5 percent despite low grades and infrastructural problems, the company announced on Thursday.

Canada-based Caledonia Mining, which owns 49 percent of the mine, said although 2014 output, at 41 836 ounces was higher against its target of 40 000 0z, it was however still 8.1 percent lower than 2013 levels. The mine produced of 45 527 ounces in 2013.

It said Q4 production was also 8.3 percent lower than in the same period in 2013.

Chief executive Steve Curtis said 2014 output had been affected by the lower grade and underground infrastructure constraints.

“I am confident that the revised investment plan, which was announced on November 3, 2014, will result in progressive increases in production from 2016 onwards when we expect to see the first production from below 750 meters – initially from the No. 6 Winze and subsequently from the Central shaft,” he said.

The firm expects its results for the quarter and year to December 31 will be released on March 31 this year.

On Tuesday, the miner declared a quarterly dividend of one and a half Canadian cents (C$0.015), its fifth quarterly payment. The firm has announced a $70 million expansion to double output to 80 000 ounces by 2018.-The Source

(76 VIEWS)