HARARE – Blanket Mine in Gwanda has reported an 11% decline in revenue to 17,1 million Canadian dollars for the first quarter to March due to a slight decline in gold production, but remains on track to meet its year-end target of 48 000 ounces.
The Gwanda-based mine, 49% owned by Canadian junior miner, Caledonia Mining, said gold sales were 2% higher year on year at 12 210 ounces but prices were 20% lower at $1 288 per ounce.
Production for the quarter was 2% lower at 10 241oz from 10 472oz, an adjustment from a previously announced figure of 10 607oz.
“Gold production in Q1 was adversely affected by lower head grade and lower tonnage throughput,” Caledonia said in a trading update.
Capital expenditure attributable to expansion projects rose by 61% to C$1,84 million from C$1,14 million in the prior year.
Blanket is in the process of completing the No 6 Winze project, intended to improve access to deep resources below 750m.
The project is part of the mine’s expansion project aimed at increasing production to 53 000oz by 2015.
Caledonia will consider additional acquisition opportunities in Zimbabwe, “subject to an ongoing evaluation of the investment climate”.
— The Source