Harare – Caledonia Mining Corporation’s local unit Blanket Mine’s resources have grown by approximately 86 percent since 2011 despite having mined over 300 000 oz over this period, says Caledonia Mining Corporation CEO Steve Curtis.
In a statement Curtis said Blanket mine’s resources have increased both in terms of measured and indicated as well as inferred resources.
Curtis said, based on development and diamond core drilling that has been completed up to the end of July 2018 and combined with improvements to the geological model, the total measured and indicated gold ounces at Blanket gold mine have increased by 13 percent from 714 000 oz, in August 2017, to 805 000 oz, as at July 2018.
Total measured and indicated resources now stand at 6.74 Mt at a grade of 3.72 g/t.
He said inferred gold resources at Blanket have been increased by 9 percent from 887 000 oz, in August 2017, to 963 000 oz, as at July 2018.
Total inferred resources now stand at 6.63 Mt at a grade of 4.52g/t.
“The upgrade has resulted in a modest decline in the average grade of the resources in the indicated and inferred categories as a result of additional infill drilling data, improvements in the definition of the geological models, additional lower grade resources in peripheral areas, and upward movements of resources between categories.
“However, the average resource grade remains well above the current mill feed grade of 3.3g/t. “
Curtis said Caledonia expects the mined grade to trend upwards over time as higher-grade resources are accessed at depth.
“The increase in measured and indicated resources has increased the proven reserves and indicated resources that may be used in the life of mine plan by 10 percent from 4.52 Mt used for the technical report published in December 2017, to 4.98 Mt currently.
“The latest resource upgrade is yet another positive step in our journey as we invest for the long term future of Blanket mine and the upgrade takes the total resource endowment at the mine to almost 1.8 Moz.
“The increase in the measured and indicated resource base of 13 percent 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.”
Furthermore, he said the 9 percent increase in the inferred resources at depth to 963 000 oz shows the longer term potential of Blanket and gives us full confidence that the current Central Shaft project will set the mine up for many years into the future.
He added that life of the mine will be further supplemented by resource additions and upgrades as a result of the increased exploration activity at Blanket gold mine in the future.
Last year, Caledonia Mining Corporation said gold production for the third quarter ended September 30 at its Blanket Mine reached a record 14 396 ounces, 15 percent higher than the previous quarter.
It said production for the period under review was also seven percent higher than the same period last year.
The company attributed the increased production primarily to higher grades, which was due to the improved mine flexibility as a result of the measure taken in previous quarters.
The Toronto Stock Exchange listed miner in April this year said it anticipates a $5.1 million boost in income for its local gold mining unit, Blanket Mine, for the year to December 31, 2018, after the central bank quadrupled the export credit incentive (ECI) for gold miners.
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