Caledonia pins growth plans on Blanket Mine

CALEDONIA Mining Corporation (Caledonia) says its Gwanda operation at Blanket Mine will continue to anchor its countrywide operations, as prospects for its lifespan increase.
In a statement accompanying the company’s operating and financial results for the quarter and the nine months ended September 30, 2023, Caledonia’s chief executive, Mark Learmonth alluded to what he described as encouraging results received during the quarter, from an ongoing underground drilling programme at Blanket.

“Initial results indicate that the Eroica ore body has better grades and widths than expected. These results indicate that there is additional mineralisation that may, in due course, be accessed using the current infrastructure and which should further extend the life of the mine.
“Blanket continues to provide a solid foundation for the company, providing us with a platform for our other growth projects in Zimbabwe.
“We continue to work on a revised feasibility study for the sulphide project at Bilboes, which will consider updated commercial assumptions and will inform the most judicious way to commercialise the project with the objective of providing the best returns for investors,” Learmonth said.
“The Bilboes oxide mine has been a disappointment and as a result of operating losses it incurred, has been returned to care and maintenance with effect from October 1; from October onwards the monthly holding cost of Bilboes is expected to be significantly reduced to approximately US$200 000 per month (from approximately US$1 million).
“In due course, the remaining oxide material will be mined and processed alongside the sulphide ore.
“This outcome has no bearing on the viability of the much larger sulphide project, which was the reason for acquiring Bilboes,” he added.
Revenues for the quarter were reported at US$41,2 million, a record quarterly performance for the group.
“Nine months’ revenue of US$107,7 million is in line with the prior year’s performance,” Learmonth added.
Gross profit in the quarter was at US$14,1 million and earnings before interest, taxes, depreciation, and amortisation, US$15,5 million, 2,5 percent lower than the US$15,9 million in the comparative period.
Gold production for the quarter was at 21 772 ounces, three percent higher than the 21 120 ounces produced in Q3 2022 and a new quarterly production record.
Gold produced in the nine months was 55 244 ounces, with the company sticking to its production guidance for 2023 of between 75 000 and 80 000 ounces.
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