VICTORIA Falls Stock Exchange-listed Caledonia Mining Corporation has successfully met its gold production guidance after producing a record 75 416 ounces of the yellow metal last year.
The mining giant owns Blanket Mine, Bilboes and Motapa.
“I am pleased that after a challenging first half we successfully met production guidance for the year, producing 75 416 gold ounces,” Caledonia chief executive officer Mark Learmonth said in a statement announcing production for the year ended December 31 2023.
“Our 2024 guidance of 74 000 to 78 000 ounces assumes that Blanket will broadly maintain the production rate achieved in 2023 and reflects the prudent decision to suspend mining in lower margin areas, which include lower grades and volumes, and higher costs.”
He added: “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; in July we announced that the Eroica zone persists to depth and grades are significantly higher than previously thought.
“We continue to progress with the underground exploration programme and we expect to publish further exploration results in the first quarter of 2024 and a revised resource statement in the following quarter.”
The Caledonia chief said their wider capital expenditure programme continues to focus on unlocking value and delivering their multi-asset growth pipeline in Zimbabwe with Motapa and Bilboes, while maintaining a disciplined focus on cost and capital allocation.
“We continue to progress our feasibility studies for the Bilboes sulphide project with a view to determining the best option for Caledonia stakeholders, and I look forward to providing an update in due course,” he said.
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The group anticipates a capital expenditure of US$34,4 million, including US$20 million of sustaining investment and US$14,4 million of expansion expenditure, which includes investment in a new tailings storage facility with a life of approximately 12 years and further underground development.
Expansion expenditure also includes US$2 million on preliminary exploration at Motapa and US$3,5 million on further work on the Bilboes feasibility studies.
On-mine costs of between US$870 and US$970 per ounce are expected to be consistent with costs incurred in 2023.
The group has set all-in sustaining cost guidance of between US$1 370 and US$1 470 per ounce.
He said Caledonia continues to work on the feasibility studies in respect of the Bilboes sulphide project to determine the optimal implementation strategy for the project.
This work includes updating the existing feasibility study for a project producing approximately 170 000oz of gold per annum and work on an alternative phased approach to the project.
