Blanket Mine’s gold production rises 10% in Q1 2025

JERSEY-DOMICILED miner Caledonia Mining Corporation Plc has reported a near 10% increase in gold production to 18 671 ounces at its Blanket Mine for the first quarter of the year.

The increase is from a 2024 comparative of 17 050 ounces.

Caledonia is a Zimbabwe-focused exploration, development and mining corporation that owns the local gold-producing Blanket Mine, Bilboes Mine and the Motapa and Maligreen gold mining claims.

Blanket Mine is the miner’s best-producing gold mine.

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“Quarterly gold production of 18 671 ounces (recorded), exceeding 17 050 ounces produced in the first quarter of 2024 (Q1 2024),” Caledonia said in a statement.

The miner noted that this was a first-quarter production record, surpassing the previous high of 18 515 ounces set in the first quarter of 2022.

“Tonnes milled for the quarter were 201 755 tonnes, 23 793 tonnes (13,4%) above expectation. The surface stockpile increased significantly to approximately 15 000 tonnes as run-of-mine production exceeds milling capacity,” the miner said.

“Blanket remains on track to achieve gold production guidance of 74 000-78 000 ounces this year.”

Commenting on the results, Caledonia chief executive officer Mark Learmonth said this achievement reflected continued operational improvements.

“I’m delighted to report that production in Q1 2025 has set a new record for production in a first quarter at Blanket, with over 18 500 ounces produced—a particularly strong performance given that the first quarter is traditionally our weakest” he said.

“This achievement reflects continued operational improvements and the dedication of our team on the ground. The significant increase in both tonnes milled and the surface stockpile provide a strong foundation for the remainder of the year.”

He said this was an excellent start to the year and with strong gold prices expected, the miner was well-positioned to generate healthy cash flows and to continue investing in its growth projects.

Caledonia set aside US$41 million in capital expenditure for 2025 to modernise operations, improve mining efficiency and invest in exploration efforts.

From this amount, US$34,1 million was allocated to Blanket Mine and US$6,9 million to Bilboes Mine and the Motapa claims.

Meanwhile, Caledonia has completed the sale of its Zimbabwean subsidiary, Caledonia Mining Services (Private) Limited (CMS), to CrossBoundary Energy Holdings for a pre-tax consideration of US$22,35 million , payable in cash.

The transaction was sealed on April 11.

“CMS owns and operates the 12,2MWac (megawatt alternating current) solar plant that supplies power to Blanket Mine,” the miner said.

“Under the terms of the sale, the solar plant will continue to provide Blanket Mine with power under an exclusive power purchase agreement, ensuring a reliable renewable energy source for the mine.”-newsda