Gold production from the Blanket Mine in Zimbabwe announced

Caledonia Mining Corporation Plc has announced the gold production numbers for the quarter ended March 31st, 2023, from two of its mines in Zimbabwe.

The Blanket Mine produced around 16,036 ounces of gold, which is 13% lower than the production in the first quarter of 2022. The lower production was due to various mechanical breakdowns and logistical issues, which have now been resolved. The management has re-iterated the production guidance for Blanket for the year 2023, which is expected to be between 75,000 and 80,000 ounces of gold.

Breakdowns

On the other hand, the Bilboes oxides project started producing gold from pre-stripping works in the last few days of the quarter, producing 105 ounces of gold. The beginning of oxide production was slower than expected due to mechanical breakdowns, inconsistent grades, and the poor availability of spare parts and alternative equipment. The on-mine cost/oz of Bilboes oxide production is expected to be $1,200-1,320, and it is a low margin activity mainly justified by the parallel advantage of pre-stripping for the growth of the Bilboes sulfide project.

The company will report actual production obtained each quarter at the oxides project as part of the pre-stripping activities. Hence, it has reserved guidance on low-margin oxide production. Caledonia Mining Corporation Plc has already commenced work on an updated feasibility study for the larger sulfide project. The CEO of the company, Mark Learmonth, has stated that the small-scale low margin oxide operation at Bilboes is effectively a pre-stripping exercise for the larger sulfide project.

“Gold production at Blanket is usually lower in the first quarter of each year and increases in the following quarters. This trend is in evidence this year, albeit production in the first quarter of 2023 was below our target due to a series of issues including equipment failures and logistical issues. These issues have been resolved and production to date in April has been higher than expected,” said Mark Learmonth.