Caledonia’s Blanket Mine hauls 76 600 ounces of gold

CALEDONIA Mining Corporation Plc says its Gwanda-based operation, Blanket Mine, last year produced 76 656 ounces of gold in line with an annual production guidance of between 74 000 and 78 000oz.

In a production update for the fourth quarter ended December 31, 2024 and full year, Caledonia said Blanket’s output for the quarter was 19 841oz on the back of strong mining activity.

“Blanket gold production for Q4 and the full year was in line with expectations, demonstrating consistent operations at Blanket.

“Annual Blanket gold production of 76 656oz met guidance (74 000 to 78 000oz), while slightly exceeding 2023 production of 75 416oz.

“Q4 Blanket production was 19 841oz; strong mine activity resulted in a record 797 000 tonnes milled for the year, with 89 727 tonnes hoisted in December, exceeding milling capacity.”

The mining group hinted that Blanket’s production for 2024 excludes an estimated 700oz of unrecovered gold contained in an 8 400-tonne stockpile, which provides a strong start for 2025.

The mine’s annual Blanket gold sales for the year under review amounted to 76 271oz and for the fourth quarter amounted to 17 734oz.

Meanwhile, Caledonia, which intends to become a multi-asset gold producer in Zimbabwe has entered into an agreement with Cantor Fitzgerald & Co to sell up to US$50 million worth of shares.

The mining group whose local assets include Blanket Mine, Maligreen Goldfields, and Glen Hulme projects in Gweru, intends to use funds from the above transaction in developing the Bilboes Gold Project in Bubi, Matabeleland North Province. In 2022, Caledonia acquired the Bilboes project for US$53,3 million from businessman Victor Gapare.

The mining group, which locally is listed on the Victoria Falls Stock Exchange, is on record stating that judging from its findings of a Preliminary Economic Assessment (PEA), the Bilboes holds huge potential to become a transformative asset and Zimbabwe’s biggest gold mining operation producing 150 000 ounces annually.

The PEA confirms the results of a feasibility study carried out by the previous owners of the Bilboes, which detailed a robust open-pit project.

The yellow metal is Zimbabwe’s biggest single export whose output, according to official figures from Fidelity Gold Refinery, the country’s sole buyer of gold produced locally, reached a record high of 36,4 tonnes last year, reflecting a 21,2 percent increase from 30,1 tonnes in 2023.

Last year, the artisanal and small-scale mining sector delivered 23,7 tonnes while primary producers or the large-scale miners produced 12,7 tonnes.-ebsinesweekl