Blanket Mine sets gold production record

Zim Now Writer

Caledonia Mining Corporation owned Blanket gold mine set a new quarterly production record in the third quarter of this year of 21 772 oz.

This is 3% up from production in the third quarter of 2022. Cumulatively Blanket Mine has produced took production for the 55 244 oz, in the first mine towards the annual target of between 75 000 oz and 80 000 oz.

Caledonia Mining Corporation CEO, Mark Learmonth, said that the company is reaping from its investment into the gold mine.

"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,” said Learmonth.

In addition, to mitigate power shortages, Caledonia commissioned a 12 MW solar photovoltaic plant in early 2023 to supplement as much as 25% of Blanket mine’s daily power demand.

"The solar plant . . . continues to operate well. The solar plant is owned by Caledonia rather than by Blanket and therefore the economic benefit arising from the solar plant has been realised in the consolidated all-in sustaining cost rather than the on-mine cost,” said Learmonth.

Caledonia is now in process to sell the plant to a global solar operator.

Learmonth said with Blanket Mine providing Caledonia with a solid foundation, the company is looking to strengthen its other operations within Zimbabwe.

This include the drive to raise $250-million to develop the Bilboes project which Caledonia says could be Zimbabwe's biggest gold mine.

With an annual potential of 170 000 oz which is more than double that of Blanket Mine, Bilboes could boost Caledonia total Zimbabwe bullion output to around 250 000 oz.

Going forward, Caledonia Mining Corporation intends to operate Blanket gold mine in 2024 within the same guidance range as 2023 of between 75 000 oz to 80 000 oz, while also continuing to explore the mine with the objective of further upgrading inferred mineral resources, thereby extending the LoM.

Blanket Mine, which was acquired by a 100 percent owned Caledonia subsidiary in 2006, has been in production since 1904.