Caledonia Mining Aims to Produce 40,000 ounces of Gold in 2012

PUBLISHED: Jan 24 2012 @ 10:51 | Comments (0) |

Caledonia Mining (LSE:CMCL) is aiming to produce 40,000 ounces of gold in 2012 from Blanket Mine, Zimbabwe. This projection is due to the impressive results the company realised in 2011.

Blanket Mine is situated at about 150 Km south of Bulawayo, which is Zimbabwe’s second city. The mine was acquired from Kinross Gold in 2006.

Impressive results in 2011

In the previous year, the company recorded impressive results. The production in Blanket Mine had managed to extract 35,826 ounces of gold- which was an 102% increase over the 17,707 ounces achieved in 2010.

The last quarter production totaled 10,533 ounces, an increase of 8.1% over the previous three months and 69% increase on the same period in 2010.

Development projects

The rapidly expanding output is largely attributed to the completion of some development projects and equipment upgrades during the fourth quarter of 2011.

The largest project was upgrading the Number 4 shaft, which together with small tasks, assisted the company in recording the impressive results.

Major renovations were done on the 14, 18, and 22 level underground haulages to support and sustain the company’s increased underground production.

Further, the setting up of an automatic cyanide measuring and dosing system on the carbon in leach circuit was undertaken to increase the efficiency of cyanide usage per tonne of ore milled.

Among the renovations, the setting up of a diesel power plant was perhaps the most significant. It provided the mine with a dependable source of electricity, whilst enabling the company’s operations to continue even in the event of power outages.

Company’s remarks

In a statement to shareholders this morning, the company said:

“Following a year in which Caledonia has increased production at Blanket by 102 per cent, we are now confident that we will be able to achieve our targeted gold production of 40,000 ounces for the current financial year.”

“Discussions with the government of Zimbabwe regarding the indigenisation of the Blanket Mine have continued.”

Since the company made the statement, its stocks have increased by +1% as at 10:09 A.M. morning trading session.

Company Spotlight

Caledonia Mining is an African-focused mining and exploration company. It currently runs projects in Zimbabwe, South Africa and Zambia.

References
↑ Minesite Company News
↑ Proactive Investors Analysis
↑ Company overview

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