CALEDONIA Mining Corporation posted a six percent increase in gold production at its flagship subsidiary, Blanket mine, to 17,050 ounces during the first quarter ended March, 31, 2024 despite having eight fewer production days compared to the same period last year.
Fewer production days were due to the production cut-off for gold de- livery set to March 21, 2024. None- t h e l e s s , B l a n k e t mine continued to leverage on in- stalled additional capacity from the Central Shaft that was com- missioned in 2022.
D u r i n g the quarter, the mine sold 18,450 ounces, representing a 17 percent increase from 15,797 ounces which were sold in the same quarter in 2023. Ounces sold during the period included 3,057 ounces of gold work in progress classified as inventory at the end of 2023.
The gold miner said 2024 gold production guidance at Blanket remains at 74,000 to 78,000 ounces. “I am pleased that 2024 production at Blanket has got off to a strong start with over 17,000 ounces produced in the quarter which, considering we had eight fewer production days compared to the first quarter of 2023, is an excellent result,” said Caledonia chief executive, Mark Learmonth.
“With the current high gold prices, it was good to see our gold sales ounces increase by 17 percent in the first quarter of 2024 versus first quarter of 2023. Our significant investment in Blanket over the past seven years and completion of the central shaft has nearly doubled production, extended the mine life and allowed the restart of underground exploration in 2023,”
“We continue to see Blanket as the solid foundation for growth as we pursue our strategy to become a multi-asset gold producer.”
Meanwhile, Caledonia warned that increased operating costs for 2023 and several significant once-off, non-operating costs in the final quarter of 2023 will see a reduction in profit for the full year. Caledonia said the increase in operating costs comprises higher-than-expected overtime payments and power costs at Blanket Mine.