HARARE – Canadian based mining firm, Caledonia Mining Corporation says due to increased exploration activities, it has identified additional gold reserves at its Blanket Mine, which will extend its lifespan.
The mining firm owns 49 percent stake in Blanket Mine in Gwanda, Matabeleland South province.
“Today’s resource upgrade is yet another positive step in our journey as we invest for the long term future of Blanket.
This upgrade takes our total resource endowment at the mine to almost 1.8 million ounces. We have increased total resources at Blanket by 86 percent since 2011 in addition to mining over 300,000 ounces over this period,” chief executive Steve Curtis said in a statement on Thursday.
The resource upgrade marks the seventh successive year of sustained resource growth at Blanket mine.
“The increase in the Measured and Indicated resource base of 13 per cent to 805,000 ounces is good news for the longer term life of mine plan at Blanket and underscores the overall confidence level in Blanket’s resources which is underpinned by the planned increases in cash flow and production as the investment in our Central Shaft comes to an end.”
The grade of the ore body remains consistent with the company’s expectations and continues to be well above the current mined grade at Blanket of 3,3g/t. Curtis said the nine per cent increase in the inferred resources at depth to 963,000 ounces shows the longer term potential of the mine.
The group is optimistic that the Central Shaft project will set the mine up for many years. “I am confident that the life of mine will be further supplemented by resource additions and upgrades as a result of the increased exploration activity at Blanket in the future,” he added.
As at June 30 2018, Caledonia had net cash of $5.3 million. Blanket is poised to produce about 55,000 to 59,000 oz of gold by year end.
Caledonia targets to produce 80,000 ounces of gold by 2021.