Zimbabwe: Caledonia Mining Posts Record Quarterly Gold Output

14 October 2021

New York Stock Exchange-listed Caledonia Mining Corporation, reported record quarterly gold output from Zimbabwe based Blanket mine and narrowed its production guidance for 2021 towards the upper end of its previous range.

It produced 18,965 ounces of gold during the quarter to end September, the second consecutive quarterly record, up 25 percent on the 15,155 ounces produced in the corresponding quarter of 2020.

The record output means gold production for the nine months to end September 2021 rose 14 percent on the year-earlier period to 48,872 ounces.

Chief executive Steve Curtis said the new production record come as Blanket begins to reap the rewards of the substantially increased production capacity following the commissioning of the Central Shaft in March 2021.

"The ramp-up in production towards our quarterly target of 20,000 ounces has met our best estimate and, consequently, we have been able to narrow our annual production guidance from 61-67,000 ounces to 65-67,000 ounces."

Mr Curtis said the miner remains on track to achieve its production target of 80,000 ounces in 2022.

"When we acquired Blanket from Kinross in 2006 our production in the third quarter of 2006 was 6,475 ounces -- the company has come a long way since then," said Mr Curtis.

"Central Shaft provides the infrastructure required to access the deeper resources at Blanket for many years before any new vertical shaft deepening needs to be considered. The extra hoisting capacity provided by the shaft is the foundation to the production build-up to 80,000 ounces from next year onwards."

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