Third quarter production was also 10,5 percent higher than the same period last year in which 9 890 ounces were produced.

 

In an update, Caledonia said Blanket mine remained on track to achieve target production for 2015 of 42 000 ounces.

 

Commenting on the figures, Caledonia chief executive officer Mr Steve Curtis attributed the production increase to upgrades being done at the mine.

 

Blanket mine is currently undergoing a $70 million recapitalisation programme under a revised investment plan which is expected to see production increase to approximately 80 000 ounces of gold per year by 2021.

 

"The continued increase in production reflects the improved management control over grade and tonnage.

 

"The completion of the tramming loop in June 2015 has increased the underground haulage capacity and allows for an increase in development activity, which is expected to result in further increases in future production," he said.

 

"We are confident that the revised investment plan, which was announced on November 3, 2014, will result in progressive increases in production from 2016 onwards when we expect to see the first production from below 750 metres - initially from the No. 6 Winze and subsequently from the Central shaft."

 

Production at Blanket, which is located in Gwanda, is projected to grow to around 50 000 ounces next year.

 

The company has said that it was debt free and held $23,7 million cash as at June 30, 2015, and was capable of funding Blanket mine's growth strategy from internal resources.

Source : allafrica.com