Caledonia Mining Corporation surpasses gold production target

VICTORIA Falls Stock Exchange (VFEX)-listed company, Caledonia Mining Corporation has set a new quarterly gold production record of 21 772 ounces at Blanket mine, a three percent increase from 21 120 ounces produced in the corresponding quarter in the prior year.

The mining house said gold produced in the nine months to the end of September was 55 244 ounces and it has invested heavily in Blanket over the last seven years.

Last year, it produced a record 80 775 ounces against a set target of 80 000 ounces.

In an update for the quarter ended September 30, the firm said it is still optimistic of achieving production of between 75 000 and 80 000 ounces of gold this year.

“I am pleased that Blanket is performing well and we have set a new quarterly production record. I look forward to achieving our guidance of between 75 000 and 80 000 ounces of gold for 2023,” said Mr Mark Learmonth, the Chief Executive Officer.

Gold

“We have invested heavily in Blanket over the last seven years, including investment this year to construct a new tailings storage facility which is expected to have a life of at least 15 years, based on the current production profile, and will support production well into the future.”

Mr Learmonth added that recent encouraging drill results at Blanket indicate that there is additional mineralisation that may, in due course, be accessed using the current infrastructure and which should further extend the life of Blanket.

“Blanket continues to provide a solid foundation for the Company, providing us with a platform for our other growth projects in Zimbabwe,” he said.

Caledonia is eyeing consolidating its strategy of becoming a multi-asset gold producer by acquiring several lucrative mining assets.

In 2022, the resource group expanded its footprint by purchasing Motapa Mining Company UK Limited and signed a US$53,2 million agreement to buy Bilboes Gold Limited as part of its expansion drive.

Bilboes Gold is a gold mining entity that owns three major gold mines in Matabeleland North and was once ranked among the country’s 10 biggest gold producers. -ebusinessweekly