Blanket Mine gold output surges to 14 233oz in Q1

Harare(New Ziana) – Blanket Mine’s gold production in the first quarter ended March 31, 2020 rose 19 percent to 14 233 ounces from 11 948 ounces in the same period last year, its parent company has said.

Caledonia Mining Corporation holds a 49 percent stake in Blanket Mine.

In a trading update, chief executive officer Steve Curtis attributed the output increase to improved operational efficiencies.

“Notwithstanding restrictions in Zimbabwe, referred to in our RNS of 30 March 2020, we remain in production and are maintaining good levels of output,” he said.

“Subject to the mine not experiencing any unforeseen production interruptions associated with the COVID-19 Pandemic, I expect the quarterly production profile to be more evenly balanced throughout 2020 because of the increased focus on development.

“To begin the year with a strong start, at a time of firm gold prices, has established a strong base which is helpful in withstanding any disruptions that may arise as a result of the current COVID-19 Pandemic,” said Curtis.

Blanket Mine is poised to be commission its Central Shaft Project by year end after which production can begin to ramp up. Shaft sinking at Central Shaft was completed in July 2019 to the target depth of 1 204 meters.

The mining firm has been on a positive trajectory, having recorded 55 182 ounces of gold last year, which is about 671 ounces better than 54 511 ounces realized the previous year.

Target output in 2021 is estimated at 75 000oz and 80 000oz in 2022.

After tax profit for the miner increased three fold to US$50.4 million in 2019 from US$13.75 million in 2018 backed by a net foreign exchange gain of about US$30 million.

New Ziana