Caledonia Mining Corporation
Plc
Encouraging results from deep
level drilling at Blanket Mine
Better than expected grades
and widths from deep level drilling anticipated to support
increased overall resource at Blanket
(NYSE AMERICAN, AIM and VFEX:
CMCL)
St
Helier, January 30 , 2024 - Caledonia Mining Corporation Plc ("Caledonia" or the
"Company") is pleased to report further encouraging results from the deep
level drilling programme at Blanket Mine which is currently
evaluating the continuity of the mineralised zones on the Blanket
and Eroica ore bodies in anticipation of delineating an increased
overall resource. These results follow the Eroica ore body
drilling results published on July 10, 2023. A total of 7,652
metres of drilling from June 2023 to end of December 2023 indicates
that the existing Blanket and Eroica ore bodies have grades and
widths which are generally better than expected. Total drilling for
2023 was 13,280 metres.
Highlights of the results include:
Holes
Identifier
|
Orebody
Name
|
Orebody
Intersection
|
Core Length
(m)
|
True width
(m)
|
Grade
(g/t)
|
Orebody Intersection depth
from surface (m)
|
*E.O.H(m)
|
From (m)
|
To
(m)
|
ERC750EX2308
|
ERCN_FW
|
350.00
|
358.40
|
8.40
|
5.80
|
4.95
|
1108.40
|
392.40
|
BLK 930EX2308
|
BQR_HW
|
176.03
|
200.63
|
24.60
|
13.33
|
5.92
|
1130.63
|
304.25
|
BLK 930EX2310
|
BLK2HW
|
181.30
|
217.30
|
36.00
|
16.31
|
6.12
|
1147.30
|
293.50
|
BLK870EX2303
|
BLK4_5
|
28.60
|
39.40
|
10.80
|
4.27
|
8.80
|
909.40
|
272.20
|
ARS1110EX2304
|
BQR
|
3.00
|
18.00
|
15.00
|
8.22
|
3.62
|
1128.00
|
161.00
|
*End of hole
depth
The complete long hole drilling
results for June 2023 to December 2023 are provided in Appendix
1.
Mark
Learmonth, Caledonia's Chief Executive Officer,
commented:
"Our ongoing drilling campaign continues to demonstrate
encouraging results, further improving our confidence in the
Blanket resource. We anticipate that the positive grades and
widths will result in an increased overall resource, which in due
course should result in the extension of the existing life of the
mine. We have invested heavily in Blanket over the last seven years
to increase production capacity, resulting in a mine infrastructure
that can sustain production beyond the current production
horizon.
"Drilling is currently focussed on the Blanket and Eroica ore
bodies, where crosscuts have been mined to allow optimal access to
drill the deeper zones of the steeply-dipping ore bodies. These
results are extremely promising, and we look forward to the next
phase of drilling and to updating the market
accordingly."
Commentary
These results, along with the
outcome of further planned exploration, will be reflected in a
revised mineral resource and mineral reserve statement which the
Company expects to publish in the second quarter of 2024 together
with a revised life of mine plan. It is anticipated
that a portion of the existing inferred mineral resources will be
upgraded to measured or indicated mineral resources together with
the addition of new inferred mineral resources. It is expected that
this will result in the existing life of mine being extended,
rather than an increase in the target annual production rate.
Drillholes at Eroica, drilled from
750 metres below surface, have intersected the orebodies to depths
of 1,110 metres below surface, the lowest level of main
infrastructure being developed from Central Shaft. Similarly,
drillholes at Blanket from 750 metres below surface have
intersected orebodies down to 1,110 metres below surface.
Drillholes from 930 metres below surface at Blanket and from 1,110
metres below surface on AR South have intersected the orebodies
below 1,110 metres, which is encouraging for Blanket's longer-term
development.
Further data on each drill hole is
set out at Appendix 2 and pictorial representations of the holes
are included below.
Appendix 1
Holes
Identifier
|
Orebody
Name
|
Orebody
Intersection
|
Core Length
(m)
|
True width
(m)
|
Grade
(g/t)
|
Orebody Intersection depth
from surface (m)
|
E.O.H
(m)
|
From
(m)
|
To
(m)
|
ERC750EX2307
|
ERCN_HW
|
330.45
|
332.25
|
1.80
|
1.50
|
0.72
|
1082.25
|
356.25
|
ERC750EX2308
|
ERCN_HW
|
302.60
|
306.80
|
4.20
|
3.50
|
5.97
|
1056.80
|
392.40
|
ERC750EX2308
|
ERCN_FW
|
350.00
|
358.40
|
8.40
|
5.80
|
4.95
|
1108.40
|
392.40
|
ERC750EX2309
|
ERCN_HW
|
304.80
|
307.80
|
3.00
|
1.66
|
3.62
|
1057.80
|
347.40
|
ERC750EX2310
|
ERCN_HW
|
303.60
|
304.20
|
0.60
|
0.48
|
5.49
|
1054.20
|
324.50
|
ERC750EX2312
|
ERC _South
|
|
|
Traces
|
|
|
|
287.20
|
ERC750EX2313
|
ERC _South
|
|
|
Traces
|
|
|
|
279.60
|
BLK870EX2301
|
BLK4_5
|
38.20
|
50.20
|
12.00
|
3.58
|
5.10
|
920.20
|
287.40
|
BLK870EX2302
|
BLK4_5
|
34.10
|
40.10
|
6.00
|
3.92
|
7.46
|
910.10
|
272.30
|
BLK870EX2303
|
BLK4_5
|
28.60
|
39.40
|
10.80
|
4.27
|
8.80
|
909.40
|
272.20
|
BLK870EX2303
|
BLK2FW
|
241.00
|
242.80
|
1.80
|
1.27
|
4.35
|
1112.80
|
275.50
|
BLK870EX2304
|
BLK4_5
|
26.20
|
40.60
|
14.40
|
7.74
|
4.14
|
910.60
|
275.50
|
BLK 930EX2301
|
BQR_HW
|
148.60
|
152.80
|
4.20
|
5.12
|
2.85
|
1082.80
|
299.20
|
BLK 930EX2301
|
BLK3HW
|
220.60
|
226.00
|
5.40
|
4.39
|
4.41
|
1156.00
|
299.20
|
BLK 930EX2302
|
BQR_HW
|
130.60
|
133.00
|
2.40
|
1.86
|
2.42
|
1063.00
|
299.20
|
BLK 930EX2303
|
BQR_HW
|
134.30
|
139.10
|
4.80
|
3.20
|
2.39
|
1069.10
|
233.30
|
BLK 930EX2304
|
BQR_HW
|
205.70
|
219.50
|
13.80
|
8.32
|
3.63
|
1149.50
|
251.30
|
BLK 930EX2305
|
BQR_HW
|
197.90
|
209.30
|
11.40
|
7.69
|
3.99
|
1139.30
|
259.30
|
BLK 930EX2305
|
BLK1HW
|
230.30
|
255.30
|
25.00
|
16.69
|
3.16
|
1185.30
|
259.30
|
BLK 930EX2306
|
BQR_HW
|
170.90
|
179.90
|
9.00
|
4.02
|
5.38
|
1109.90
|
275.30
|
BLK 930EX2306
|
BLK2HW
|
181.10
|
203.30
|
22.20
|
8.18
|
3.75
|
1133.30
|
275.30
|
BLK 930EX2307
|
BQR_HW
|
157.80
|
169.80
|
12.00
|
6.57
|
4.05
|
1099.80
|
259.30
|
BLK 930EX2308
|
BQR_HW
|
176.03
|
200.63
|
24.60
|
13.33
|
5.92
|
1130.63
|
304.25
|
BLK 930EX2309
|
BQR_HW
|
205.00
|
210.40
|
5.40
|
2.24
|
12.44
|
1140.40
|
287.30
|
BLK 930EX2310
|
BQR_HW
|
165.10
|
170.50
|
5.40
|
3.01
|
10.02
|
1100.50
|
293.50
|
BLK 930EX2310
|
BLK2HW
|
181.30
|
217.30
|
36.00
|
16.31
|
6.12
|
1147.30
|
293.50
|
BLK 930EX2311
|
BQR_HW
|
247.90
|
261.10
|
13.20
|
6.97
|
4.28
|
1191.10
|
293.40
|
BLK 930EX2313
|
BQR_HW
|
152.00
|
159.80
|
7.80
|
4.43
|
2.23
|
1089.80
|
312.95
|
BLK 930EX2313
|
BLK2HW
|
202.40
|
238.40
|
36.00
|
20.56
|
2.90
|
1168.40
|
312.95
|
ARS1110EX2301
|
BQR
|
3.00
|
9.00
|
6.00
|
4.16
|
4.23
|
1119.00
|
158.20
|
ARS1110EX2301
|
BLK1HW
|
104.20
|
106.60
|
2.40
|
1.70
|
4.48
|
1216.60
|
158.30
|
ARS1110EX2302
|
BQR
|
6.00
|
12.00
|
6.00
|
4.44
|
7.15
|
1122.00
|
158.30
|
ARS1110EX2302
|
BLK1HW
|
43.80
|
61.20
|
17.40
|
12.37
|
8.76
|
1171.20
|
158.20
|
ARS1110EX2303
|
BQR
|
6.00
|
9.00
|
3.00
|
2.09
|
8.29
|
1119.00
|
149.00
|
ARS1110EX2303
|
BLK1HW
|
25.20
|
32.20
|
7.00
|
3.36
|
5.27
|
1142.20
|
149.00
|
ARS1110EX2304
|
BQR
|
3.00
|
18.00
|
15.00
|
8.22
|
3.62
|
1128.00
|
161.00
|
ARS1110EX2304
|
BLK1HW
|
65.00
|
78.80
|
13.80
|
7.15
|
6.45
|
1188.80
|
161.00
|
* ERCN_HW - Eroica North Hanging wall, ERCN_FW -
Eroica North Footwall, ERC_STH - Eroica South, BQR - Blanket Quartz
Reef, BLK1HW - Blanket 1 Hanging wall, BLK2HW - Blanket 2 Hanging
wall, BLK2FW - Blanket 2 Footwall, BLK3HW - Blanket 3 Hanging wall,
BLK4_5 - Blanket 4 and 5, ARS EXT - AR South
Extension
Appendix 2
Underground exploration drill hole; azimuth, dip, drilled
length, and collar location (UTM NAD83)
Hole
Identifier
|
Azimuth
(°)
|
Dip
(°)
|
Drilled
Length
(m)
|
UTM
Easting
(m)
|
UTM
Northing
(m)
|
UTM Elevation
(m)
|
ERC750EX2307
|
31
|
-
75
|
356.3
|
697
206.3
|
7 694
516.0
|
388.1
|
ERC750EX2308
|
89
|
-
67
|
392.4
|
697
206.0
|
7 694
516.2
|
388.2
|
ERC750EX2309
|
124
|
-
81
|
374.4
|
697
205.5
|
7 694
512.7
|
388.0
|
ERC750EX2310
|
118
|
-
65
|
324.5
|
697
206.6
|
7 694
512.0
|
388.0
|
ERC750EX2312
|
150
|
-
56
|
287.2
|
697
312.7
|
7 694
284.6
|
387.0
|
ERC750EX2313
|
141
|
-
58
|
204.6
|
697
313.2
|
7 694
285.1
|
387.1
|
BLK870EX2301
|
65
|
-
71
|
287.4
|
698
043.0
|
7 692
507.8
|
263.6
|
BLK870EX2302
|
45
|
-
69
|
272.3
|
698
043.0
|
7 692
508.0
|
263.7
|
BLK870EX2303
|
28
|
-
63
|
272.2
|
698
043.0
|
7 692
508.0
|
263.7
|
BLK870EX2304
|
12
|
-
63
|
275.2
|
698
042.2
|
7 692
508.7
|
263.6
|
BLK930EX2301
|
37
|
-
61
|
299.2
|
697
784.1
|
7 692
827.9
|
206.4
|
BLK930EX2302
|
81
|
-
61
|
275.2
|
697
784.0
|
7 692
830.2
|
206.4
|
BLK930EX2303
|
76
|
-
72
|
233.3
|
697
784.4
|
7 692
826.4
|
206.5
|
BLK930EX2304
|
28
|
-
77
|
251.3
|
697
783.2
|
7 692
829.4
|
206.5
|
BLK930EX2305
|
23
|
-
69
|
259.3
|
697
782.9
|
7 692
829.9
|
206.4
|
BLK930EX2306
|
127
|
-
74
|
275.3
|
697
784.5
|
7 692
825.4
|
206.5
|
BLK930EX2307
|
35
|
-
79
|
272.4
|
697
783.5
|
7 692
828.4
|
206.5
|
BLK930EX2308
|
122
|
-
67
|
304.3
|
697
784.8
|
7 692
825.9
|
206.3
|
BLK930EX2309
|
133
|
-
76
|
287.3
|
697
784.5
|
7 692
825.7
|
206.5
|
BLK930EX2310
|
85
|
-
86
|
293.5
|
697
784.2
|
7 692
825.8
|
206.4
|
BLK930EX2311
|
21
|
-
81
|
293.4
|
697
783.4
|
7 692
828.7
|
206.9
|
BLK930EX2313
|
25
|
-
76
|
313.0
|
697
783.2
|
7 692
829.4
|
206.5
|
ARS1110EX2301
|
93
|
-
64
|
158.2
|
697
765.7
|
7 693
020.3
|
25.4
|
ARS1110EX2302
|
54
|
-
65
|
158.3
|
697
761.5
|
7 693
022.4
|
25.2
|
ARS1110EX2303
|
10
|
-
46
|
149.0
|
697
765.5
|
7 693
022.3
|
25.0
|
ARS1110EX2304
|
125
|
-
44
|
161.0
|
697
765.7
|
7 693
019.1
|
25.8
|
Eroica Orebody - Drilling from 750 metres below
surface
Blanket Orebodies - Drilling from 930 metres below
surface
Blanket Orebodies - Drilling from 870 metres below
surface
AR
South - Drilling from 1,110 metres below surface
Enquiries:
Caledonia Mining Corporation Plc
Mark Learmonth
Camilla Horsfall
|
Tel: +44 1534 679 800
Tel: +44 7817 841 793
|
Cavendish Capital Markets Limited (Nomad and Joint
Broker)
Adrian Hadden
Pearl Kellie
|
Tel: +44 207 397 1965
Tel: +44 131 220 9775
|
Liberum Capital Limited (Joint Broker)
Scott Mathieson/Kane
Collings
|
Tel: +44 20 3100 2000
|
Camarco, Financial PR (UK)
Gordon Poole
Julia Tilley
Elfie Kent
|
Tel: +44 20 3757 4980
|
3PPB
(Financial PR, North America)
Patrick Chidley
Paul Durham
|
Tel: +1 917 991 7701
Tel: +1 203 940 2538
|
Curate Public Relations (Zimbabwe)
Debra Tatenda
|
Tel: +263 77802131
|
|
Tel: +263
(242) 745 119/33/39
|
Qualified Persons
Craig James Harvey, MGSSA, MAIG,
Caledonia Vice President, Technical Services, has reviewed and
approved the scientific and technical information contained in this
news release. Craig James Harvey is a "Qualified Person" as defined
by each of (i) the Canadian Securities Administrators' National
Instrument 43-101 - Standards of Disclosure for Mineral Projects
and (ii) sub-part 1300 of Regulation S-K of the U.S. Securities
Act.
Quality Assurance and Quality Control
Access to Blanket Mine premises is
controlled by security personnel on the first gate. On the second
gate, in addition to security, entry is gained by biometric entry
system. Diamond drilling is performed by qualified diamond drillers
under the supervision of a diamond drill foreperson. Drilled core
is routinely brought to surface to the core shed where it is
received and laid down. A qualified geological technician performs
geotechnical logging while a qualified geologist logs the core and
marks the portions for splitting. The core is split in half along
the core axis using an electric core cutter equipped with a diamond
saw cutter. The geologist marks the sample intervals, put tickets,
insert standards and blanks. One half of the sample is put into a
plastic sample bag and sealed with cable ties. The sampling
information is entered into the database. The other half of the core is marked with sample intervals and
sample numbers and returned to the core box and retained for future
reference. The samples are put in marked grain bags and tied with
cable ties.
Transportation is by road using mine
vehicle to a SADCAS accredited testing laboratory (accreditation
number TEST-05 0030) in Kwekwe, some 330km from Blanket Mine.
A delivery note is signed as proof of dispatch.
Gold is analysed by a 50 grams fire
assay with an Atomic Absorption (AA) finish. The laboratory also
has internal quality control ("QC") programs that include insertion
of reagent blanks, reference materials, and pulp
duplicates.
Blanket Mine inserts QC samples
(blanks and reference materials) at regular intervals to monitor
laboratory performance. When results are received, the assay
results are painted against the sample numbers on the core
retained.
Note: This announcement contains inside information which is
disclosed in accordance with the Market Abuse Regulation (EU) No.
596/2014 ("MAR") as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018 and is disclosed in
accordance with the Company's obligations under Article 17 of
MAR.
Cautionary Note Concerning Forward-Looking
Information
Information and statements contained in this news release that
are not historical facts are "forward-looking information" within
the meaning of applicable securities legislation that involve risks
and uncertainties relating, but not limited, to Caledonia's current
expectations, intentions, plans, and beliefs. Forward-looking
information can often be identified by forward-looking words such
as "anticipate", "believe", "expect", "goal", "plan", "target",
"intend", "estimate", "could", "should", "may" and "will" or the
negative of these terms or similar words suggesting future
outcomes, or other expectations, beliefs, plans, objectives,
assumptions, intentions or statements about future events or
performance. Examples of forward-looking information in this news
release include: planned exploration programs, focuses, strategies,
drilling targets and work, potential for further exploration of
certain areas, potential drilling results and related expectations,
costs and expenditures, including with respect to the cost of
development and production, project economics, gold price
assumptions, potential mineralization, projected ore grades,
opportunities to add near mine and further high-grade mineral
reserves and resources, expectations regarding the mine plan,
sustaining capital and value of operations and other statements and
information that is based on forecasts and projections of future
operational, geological or financial results, estimates of amounts
not yet determinable and assumptions of management. This
forward-looking information is based, in part, on assumptions and
factors that may change or prove to be incorrect, thus causing
actual results, performance or achievements to be materially
different from those expressed or implied by forward-looking
information. Such factors and assumptions include, but are
not limited to: failure to establish estimated resources and
reserves, the grade and recovery of ore which is mined varying from
estimates, success of future exploration and drilling programs,
reliability of drilling, sampling and assay data, assumptions
regarding the representativeness of mineralization being
inaccurate, success of planned metallurgical test-work, capital and
operating costs varying significantly from estimates, delays in
obtaining or failures to obtain required governmental,
environmental or other project approvals, inflation, changes in
exchange rates, fluctuations in commodity prices, delays in the
development of projects and other factors.
Exploration results that include geophysics, sampling, and
drill results on wide spacings may not be indicative of the
occurrence of a mineral deposit. Such results do not provide
assurance that further work will establish sufficient grade,
continuity, metallurgical characteristics and economic potential to
be classed as a category of mineral resource. A mineral resource
that is classified as "inferred" or "indicated" has a great amount
of uncertainty as to its existence and economic and legal
feasibility. It cannot be assumed that any or part of an "indicated
mineral resource" or "inferred mineral resource" will ever be
upgraded to a higher category of mineral resource. Investors are
cautioned not to assume that all or any part of mineral deposits in
these categories will ever be converted into proven and probable
mineral reserves.
Security holders, potential security holders and other
prospective investors should be aware that these statements are
subject to known and unknown risks, uncertainties and other factors
that could cause actual results to differ materially from those
suggested by the forward-looking statements. Such factors
include, but are not limited to: risks relating to estimates of
mineral reserves and mineral resources proving to be inaccurate,
fluctuations in gold price, risks and hazards associated with the
business of mineral exploration, development and mining, risks
relating to the credit worthiness or financial condition of
suppliers, refiners and other parties with whom the Company does
business; inadequate insurance, or inability to obtain insurance,
to cover these risks and hazards, employee relations; relationships
with and claims by local communities and indigenous populations;
political risk; risks related to natural disasters, terrorism,
civil unrest, public health concerns (including health epidemics or
outbreaks of communicable diseases such as the coronavirus
(COVID-19)); availability and increasing costs associated with
mining inputs and labour; the speculative nature of mineral
exploration and development, including the risks of obtaining or
maintaining necessary licenses and permits, diminishing quantities
or grades of mineral reserves as mining occurs; global financial
condition, the actual results of current exploration activities,
changes to conclusions of economic evaluations, and changes in
project parameters to deal with unanticipated economic or other
factors, risks of increased capital and operating costs,
environmental, safety or regulatory risks, expropriation, the
Company's title to properties including ownership thereof,
increased competition in the mining industry for properties,
equipment, qualified personnel and their costs, risks relating to
the uncertainty of timing of events including targeted production
rate increase and currency fluctuations. Security holders,
potential security holders and other prospective investors are
cautioned not to place undue reliance on forward-looking
information. By its nature, forward-looking information
involves numerous assumptions, inherent risks and uncertainties,
both general and specific, that contribute to the possibility that
the predictions, forecasts, projections and various future events
will not occur. Caledonia undertakes no obligation to update
publicly or otherwise revise any forward-looking information
whether as a result of new information, future events or other such
factors which affect this information, except as required by
law.
For a more detailed discussion of such risks and other factors
that may affect the Company's ability to achieve the expectations
set forth in the forward-looking statements contained in this news
release, see the Company's latest 20-F and Management's Discussion
and Analysis, each under the heading "Risk Factors", available on
the SEDAR website at www.sedar.com
or on EDGAR
at www.sec.gov. The foregoing should be
reviewed in conjunction with the information and risk factors and
assumptions found in this news release.
This news release is not an offer of the shares of Caledonia
for sale in the United States or elsewhere. This news release shall
not constitute an offer to sell or the solicitation of an offer to
buy, nor shall there be any sale of the shares of Caledonia, in any
province, state or jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of such province, state or
jurisdiction.