AIM-LISTED Caledonia Mining Corporation has produced approximately 12,657 ounces of gold at its Blanket Mine subsidiary in Gwanda during the second quarter ended 30 June 2018 compared to 12,924 ounces produced in the first quarter.
In total, 25,582 ounces of gold have been produced from the Gwanda-based mine during the first half of the year compared to 25,316 ounces produced during the same period last year. In a production update for the period, chief executive officer, Mr Steve Curtis, said second quarter gold output was two percent below first quarter production level and above a percent production in the corresponding period last year.
“Production of 12,657 ounces in the second quarter of 2018 is consistent with the level achieved in the corresponding quarter of 2017 and the first quarter of 2018. Grade during the quarter was below our expectation although grade has reverted to budgeted levels in the recent weeks,” said Mr Curtis. He attributed the lower grade to normal variations in the ore body and to a once-off consequence of some modified mining practices, which were adopted to improve safety.
Mr Curtis said Blanket Mine remains on track to deliver its full year guidance of 55,000 to 59,000 ounces for the full year and that by 2021, output is expected to increase to 80,000 ounces. Last year, the Matabeleland South-based mine produced 56,135 ounces of gold.