Caledonia Mining adds 13% to mining resource at Zimbabwe operation

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By Agencies

Caledonia Mining Corporation PLC has added 13% to the most certain category resource at the Blanket gold mine in Zimbabwe.

Measured and Indicated ounces are now 805,000oz, up from 714,000oz in August 2017, from 6.74mln tonnes.

Inferred resources, the least certain category, rose by 9% to 963,000 ounces.

Average grades on the resource dropped compared to the previous estimate but remain above the current mill feed grade of 3.3g/t, said Caledonia. The grades trend higher as the mining gets deeper.

Total proven reserves and indicated resources are 4.98mln tonnes, a 10% increase.

Steve Curtis, chief executive, said: “We have increased total resources at Blanket by 86% since 2011 in addition to mining over 300,000 ounces over this period.

“Whilst there is a small downward revision in grade, the grade of the ore body remains consistent with our expectations and continues to be well above the current mined grade at Blanket of 3.3g/t.

“The inferred resource in particular at a grade of 4.5g/t and the substantial increase in inferred resources at depth gives us confidence in the longer-term potential of the mine.“

Caledonia owns 49% of Blanket.

In a note to clients, analysts at ‘house’ broker Shore Capital pointed out that ounces up and grade slightly down, but still OK, bodes well for longer-term life at Blanket.