Blanket Mine defies odds, ups output by 17,6 percent Blanket Mine
Blanket Mine

Blanket Mine

Oliver Kazunga, Senior Business Reporter
GWANDA-based gold producer, Blanket Mine, defied the difficult economic climate in 2016 by increasing its annual output  by 17,6 percent representing an estimated 50,351 ounces.

The gold mine, which is 49 percent owned by the Toronto Exchange listed Caledonia Mining Corporation, in 2015 produced 42,804 ounces (oz).

In a statement showing production figures for the 2016 fourth quarter, Caledonia said it is targeting 60 000oz of gold from Blanket Mine this year.

“Total 2016 gold production was approximately 50,351oz, a new annual production record representing a 17.6 percent increase over the annual gold production in 2015 of 42,804 ounces.

“The increase in production in 2016 was largely due to the start of production from below 750 metres, improvements in underground infrastructure and the commissioning of the new ball mill, in line with the Investment Plan at Blanket,” said the parent company.

An estimated 13,591oz of gold were produced during Q4 2016, a new quarterly production record representing an 18 per cent increase on the gold produced in Q4 2015 (11,515 ounces) and a 1.2 per cent increase on the gold produced in Q3 2016 (13,428oz).

“Target gold production for 2017 is approximately 60,000oz at an estimated on-mine cost in the range of $600 to $630 per oz and an all-in sustaining cost in the range of $810 to $850 per oz.

“Blanket remains on-track to increase annual production to approximately 80,000oz of gold by 2021,” said the group.

Caledonia chief executive officer Mr Steve Curtis said 2016 was a significant year for Caledonia as the continued investment at Blanket began to bear fruit.

“Gold production in 2016 of 50,351oz surpassed the previous record from underground operations of 45,530oz, which was achieved in 2013.

“The record level of production was due to the commencement of production below 750 metres following the successful completion of the No.6 Winze and other infrastructure projects; improved underground infrastructure and the installation of the new ball mill late in 2016,” he said.

“The sinking of the new central shaft continued according to plan and reached a depth of 534 m by year end. We look forward to a further improvement in 2017 as we target 60,000oz of production from Blanket, being a 20 per cent increase on the production achieved in 2016. We continue our progress towards annual production of 80,000oz by 2021.”

The giant mine anticipates earnings will continue to benefit from the increased sales volumes and from a lower average cost per ounce as fixed production costs and overheads are spread across higher production.

“This improvement makes us confident of achieving a significant improvement in earnings for 2017,” said Mr Curtis.

Improved production is set to be ramped up by the Reserve Bank of Zimbabwe’s five percent bond notes export incentives to exporters that include gold producers, who have since been paid a total of $10 million.

Recently, the Chamber of Mines reported that the sector has remained relatively diversified in terms of minerals produced.

It noted gold, platinum and associated minerals, diamonds, nickel, coal and chromite, among others as being the key minerals presently extracted in the country.

Gold, with a share of 47 percent of the total mineral value, contributed the largest share to the total mining income, said the chamber.

@okazunga

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