Business / Companies
Blanket Mine to increase production
03 Apr 2013 at 05:20hrs | Views
BLANKET Mine, which is partly owned by Caledonia, targets to increase annual gold output by 90 percent to 76 000 ounces (oz) in 2016 following the implementation of its indigenisation plan last year.
In a statement accompanying Caledonia's operating and financial results for the year ending 31 December 2012, president and chief operating officer Mr Stefan Heydan said their plan to achieve the targeted production level was estimated to cost $37 million.
He said the growth strategy would be wholly funded from Blanket Mine's internally generated cash.
"Following the implementation of Indigenisation at Blanket, Caledonia announced in January 2013 a growth strategy to increase production by 90 percent to 76 000 oz of gold in 2016.
"The target production of 76 000 ounces excludes any potential production upside from any of Blanket's highly prospective 18 satellite properties," he said.
He said exploration and development work was presently well underway at the first three satellites and preliminary results of the exercise would be announced in due course.
Mr Heydan said the Blanket crushing and metallurgical plant had surplus capacity and any incremental ore from the satellites could be treated with modest additional capital investment.
He said since the re-commencement of operations at Blanket Mine in 2009, production has quadrupled to 45.465 oz as at 31 December 2012.
And if the figures were compared to those achieved in the financial year ending 31 December 2011, it means output increased by 27 percent in 2012.
He said the latest production increases had also reduced the cash cost of production to $571 per oz, making Caledonia one of the lowest cost gold producers in the world.
Last year in October, Caledonia announced its completion of the transactions that implemented the indigenisation of Blanket that saw the foreign mining concern owning 49 percent of Blanket.
The entity has received a Certificate of Compliance from the Government confirming that Blanket Mine was fully compliant with the Indigenisation and Economic Empowerment Act.
In a statement accompanying Caledonia's operating and financial results for the year ending 31 December 2012, president and chief operating officer Mr Stefan Heydan said their plan to achieve the targeted production level was estimated to cost $37 million.
He said the growth strategy would be wholly funded from Blanket Mine's internally generated cash.
"Following the implementation of Indigenisation at Blanket, Caledonia announced in January 2013 a growth strategy to increase production by 90 percent to 76 000 oz of gold in 2016.
"The target production of 76 000 ounces excludes any potential production upside from any of Blanket's highly prospective 18 satellite properties," he said.
He said exploration and development work was presently well underway at the first three satellites and preliminary results of the exercise would be announced in due course.
He said since the re-commencement of operations at Blanket Mine in 2009, production has quadrupled to 45.465 oz as at 31 December 2012.
And if the figures were compared to those achieved in the financial year ending 31 December 2011, it means output increased by 27 percent in 2012.
He said the latest production increases had also reduced the cash cost of production to $571 per oz, making Caledonia one of the lowest cost gold producers in the world.
Last year in October, Caledonia announced its completion of the transactions that implemented the indigenisation of Blanket that saw the foreign mining concern owning 49 percent of Blanket.
The entity has received a Certificate of Compliance from the Government confirming that Blanket Mine was fully compliant with the Indigenisation and Economic Empowerment Act.
Source - TH