Blanket's gold output up

Caledonia Mining Corporation has said its 49 percent owned Blanket gold mine continues to operate profitably despite prevailing weak gold prices.

In recent months the price of gold has fallen from over $1 200 per ounce to below $1 100 per ounce.

In a statement accompanying the gold producer's results for both the second quarter and first half of this year, Caledonia CEO Steve Curtis however, cautioned investors to revise their expectations if the prevailing gold price trend continues, insofar as it could reduce Blanket's cash generation.

In terms of production, Blanket Mine's gold output in both the second quarter and half-year was "slightly ahead of target," reported the company.

In the second quarter the mine produced 10 401 ounces, which was however lower than the 11 223 ounces produced in the prior comparable period.