- Gold production at Caledonia decreased by 13% to 16 036 ounces
- Production at Blanket was dampened by mechanical and logistic issues
- Production at Bilboes was affected by the limited availability of spare parts or alternative equipment.
Harare- Gold mining company, Caledonia Mining Corporation has recorded a 13% decline in gold output at the Blanket Mine from 18 515 ounces in the previous first quarter to 16 036 ounces, according to the Company’s latest trading update for the quarter ended 31 March 2023.
The Company’s Chief Executive Officer, Mark Learmonth said production downturn was a result of mechanical and logistics issues, that the Company however, said already dealt with.
“Gold production at Blanket is usually lower in the first quarter of each year and increases in the following quarters. This trend is in evidence this year, albeit production in the first quarter of 2023 was below our target due to a series of issues including equipment failures and logistical issues,” said Learmonth.
Despite the gold production plunge, the Company is still optimistic about hitting a gold production target of between 75,000 and 80,000 ounces at Blanket Mine by full year 2023.
Hope for a massive rebound is anchored by the 12-megawatt solar plant commissioned by the Company which is supplying 27% of electricity needs, thus, offsetting power blackouts.
Production at Bilboes’ oxide project was adversely affected by the breakdown of contractor-provided drill-rigs which are used for evaluation drilling and the limited availability in Zimbabwe of spare parts or alternative equipment.
The Group expects that in 2023, approximately US$2 million will be incurred in the preparation of a revised feasibility study for the larger sulphide project at Bilboes with the cost of the projected capital expenditure for the Group expected to be met from operating cashflows and in-country borrowings.
Reports indicate that Bilboes has the potential for an open-pit gold mine producing an average of 168,000 ounces per year over a 10-year life of mine against Blanket Mine’s production of 80,000 ounces of gold per year.
The investments are a bold step toward the Corporation’s strategy of becoming a multi-asset gold producer in Zimbabwe, one of the last gold frontiers in Africa.
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