Business / Companies
Zimbabwe mine surpasses gold production by 36 percent
13 Sep 2011 at 09:30hrs | Views
Blanket Mine has surpassed its underground gold production target by 36 percent to 1 361 tonnes of ore a day.
The TSX and AIM listed company said Blanket's No. 4 Shaft hoisted 1 220 tonnes of ore and a further 141 tonnes of ore were hoisted via the Lima Shaft.
Blanket Mine was targeting 1 000 tonnes of ore per day and the increase represents a new underground mining record for the mine, for which production records date back to 1906.
Caledonia's chief executive, Mr Stefan Hayden, said: "This is a tremendous achievement by the management and employees at Blanket, who are to be heartily congratulated and bodes well for Blanket achieving its future production targets".
During the first half of the year, the gold producer reported a 300 percent increase in profits on the back of record world market prices and a significant ramp-up in production.
Gold output for the first half topped 8 226 ounces up 12 percent on the previous quarter and some 141 percent over the comparable period last year. Gross profits rose 300 percent reaching $6,3 million compared to about $1,5 million over the same period in 2010.
The mine's improved first half performance was driven by record high gold prices on the world market which, last week, topped an all-time high of $1 740 an ounce.
Gold has been a haven for investors in view of a weaker United States dollar and other major currencies in the European Union.
The Gwanda-based mine achieved an average price of $1 512 up from $1 192 over the same period last year, while at the same time reducing production costs to about $585 per ounce, down from $648/oz in the first quarter.
Caledonia has been investing in improving infrastructure to boost production at the mine.
The company also said power supplies over the period were relatively stable with the company managing to maintain production during interruptions following the installation of alternative supply systems.
Blanket is targeting to achieve a production level of 40 000 ounces per annum by year end.
The TSX and AIM listed company said Blanket's No. 4 Shaft hoisted 1 220 tonnes of ore and a further 141 tonnes of ore were hoisted via the Lima Shaft.
Blanket Mine was targeting 1 000 tonnes of ore per day and the increase represents a new underground mining record for the mine, for which production records date back to 1906.
Caledonia's chief executive, Mr Stefan Hayden, said: "This is a tremendous achievement by the management and employees at Blanket, who are to be heartily congratulated and bodes well for Blanket achieving its future production targets".
During the first half of the year, the gold producer reported a 300 percent increase in profits on the back of record world market prices and a significant ramp-up in production.
Gold output for the first half topped 8 226 ounces up 12 percent on the previous quarter and some 141 percent over the comparable period last year. Gross profits rose 300 percent reaching $6,3 million compared to about $1,5 million over the same period in 2010.
The mine's improved first half performance was driven by record high gold prices on the world market which, last week, topped an all-time high of $1 740 an ounce.
Gold has been a haven for investors in view of a weaker United States dollar and other major currencies in the European Union.
The Gwanda-based mine achieved an average price of $1 512 up from $1 192 over the same period last year, while at the same time reducing production costs to about $585 per ounce, down from $648/oz in the first quarter.
Caledonia has been investing in improving infrastructure to boost production at the mine.
The company also said power supplies over the period were relatively stable with the company managing to maintain production during interruptions following the installation of alternative supply systems.
Blanket is targeting to achieve a production level of 40 000 ounces per annum by year end.
Source - TH
