Blanket Mine forecasts an increase in gold output
Business Reporter
BLANKET Mine expects gold output to increase by 5,4 percent to 48 000 ounces this year after production rose only marginally due to the effect of plant shut down and low head grade.In its 2013 production update and 2014 outlook Blanket co-shareholder Caledonia Mining said it had recorded a 3 percent decline in the last quarter, which weighed down annual output.
Gold production in the fourth quarter of 2013 was adversely affected by a three-day shut down of the milling plant for essential maintenance and a lower realised head grade which, as previously indicated, is returning towards the long term mine average grade of 3,84 grams per tonne.
A total of 11 413oz were produced in the last quarter of 2013 compared to 11821oz in 2012, translating to a 3,84 percent decline, which saw out only 0,1 percent better that 2012 at 45 5170z.
“Total 2013 gold production was 45 517 ounces, a 0,1 per cent increase over the annual gold production in 2012 of 45 463ounces and 3,4 percent higher than the production guidance of 44 000 ounces for 2013.
Targeted gold production for 2014 is 480 00oz,” said Caledonia. Blanket chairman Mr Nick Ncube said: “Production for 2013 was little changed from 2012 notwithstanding the fact that during 2013 the achieved head grade returned towards the lower head grade normal life of mine average of 3,84 grams per tonne, as previously advised.”
The company said production for 2013 was 3,4 per cent ahead of the targeted production level of 44 000 ounces.
“The underground development that is required to achieve the projected increase in gold production to 48,000 ounces in 2014 has been completed and I look forward to Blanket delivering this increased level of production in 2014,” Mr Ncube said in the trade update statement.
He added that the underground development at Blanket Mine that is required to achieve the projected increase in gold production to 48 000 ounces in 2014 financial year has been completed and the directors expected the mine to deliver the increased level of production in 2014.
Notably, the company failed to achieve its target for a 10 percent increase in output announced when second quarter output came in well ahead of budget and previous output records.
“Management believes Blanket is on course to produce approximately 44 000 ounces in 2013, 10 percent higher than the previous guidance of 40 000 ounces,” Caledonia said in August last year.
The Gwanda based indigenised associate of Toronto Stock Exchange listed Caledonia Mining Corporation agreed with Government in 2012 to sell an effective 51 percent to local investors in line with provisions of the country’s Indigenisation and Economic Empowerment Act.