Blanket mine ups production by 10%

“What has happened now is that all the milling plants have been registered and all of them are now required to send their gold to Fidelity Refineries,”

JOHANNESBURG — TSX-listed Caledonia Mining Corporation yesterday announced that its 49% — owned Blanket mine, near Gwanda, produced 11 592 ounces of gold in the second quarter, ended June 30.

This reflected a 10,7% increase on the first quarter production of 10 472 ounces, and a 0,3% increase on the 11 560 ounces of gold produced in the second quarter of last year.

Similarly, the mine increased its first-half production by 6,5% to 22 064 ounces of gold in the first six months of the year.

SP Angel said in a note to clients that Caledonia’s production figures were in line with expectations that real growth in expansion plans was expected to come through next year.

“Cash costs at the mine are running at around $500/ounce, which positions the company well to keep generating cash to self-fund expansion and pay dividends to shareholders,” it added.

“This is one of the better run companies in the sector with cash in hand and a programme of indigenisation, which should give them some protection against political risk.”