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Blanket Mine gold output surges 2,5%

Business
GOLD output at Caledonia Mining Corporation’s subsidiary, Blanket Mine went up by 2,5% to 42 806 ounces in 2015 compared to the same period in 2014

GOLD output at Caledonia Mining Corporation’s subsidiary, Blanket Mine went up by 2,5% to 42 806 ounces in 2015 compared to the same period in 2014.

BY TATIRA ZWINOIRA

The company produced 41 771 ounces of gold in the comparative period in 2014.

Blanket-Mine

For the fourth quarter of 2015, production went up by 10,6% from 10 927 ounces in the third quarter, to 11 518 ounces, compared 10 417 ounces produced during the same period in 2014.

Caledonia’s chief executive officer Steve Curtis said: “Production in the fourth quarter of 2015 was higher than in both the preceding quarter and the comparative quarter of 2014. Production in 2015 was also higher than the previous year and slightly exceeded our guidance.

“The increased production reflects the continued progress in implementing the revised investment plan, announced on November 3, 2014. The completion of the Tramming Loop on 22-Level (750 metres below surface) slightly ahead of schedule in mid-2015 was an important factor which contributed to the increased production by alleviating the underground logistical problems which constrained production in 2014,” he said.

Curtis said the target for 2016 was 50 000 ounces, which represents a 17% increase from 2015 and the increase was attributed to No 6 Winze, which would commence operations in the first quarter of this year.

“Due to the high fixed cost component at Blanket and the generally stable environment for input costs, the projected increase in production to approximately 50 000 ounces of gold is expected to result in a lower average production cost per ounce.”

Government has predicted that the economy would grow by 2,7% this year, anchored by growth in the mining, tourism, construction and financial sectors.