Caledonia Mining is on track to achieve production at Zimbabwe’s Blanket Mine within its pre-disclosed guidance range of 74,000 to 78,000 ounces (oz) for 2024.
It produced 20,773 oz of gold at Blanket in the second quarter of 2024, compared to 17,436 ounces, a year earlier.
The group is progressing with the new feasibility study on the Bilboes Sulphide Project, which is expected to be delivered during the first quarter of 2025.
Bilboes has the potential to almost triple Caledonia's gold production to over 200,000 oz per year, in combination with output from Blanket, said company chief executive Mark Learmonth.
Meanwhile, Caledonia recorded gross revenues of $50.1 million compared to $37.0 million in the second quarter of 2023 driven by higher gold production and a higher gold price.
"This has been an excellent quarter, during which profitability benefited from higher gold production, a higher gold price and lower costs per ounce. With today's results, we remain on track to achieve our production and cost guidance for the year,” said Learmonth.
"I was delighted that the 2023 drilling campaign resulted in a significant increase to Blanket's mineral resources and mineral reserves estimates, as well as an increase in Blanket's life of mine. A 10-year mine life, based on reserves, indicates the robustness of the orebodies at Blanket.”
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
