Blanket Mine’s Q4 2013 gold production drops by 3.4%

9 January 2014 (Last Updated January 9th, 2014 18:30)

Caledonia Mining has reported a 3.4% decline in gold production from its 49% owned subsidiary, the Blanket Mine in Zimbabwe, during Q4 of 2013.

Caledonia Mining has reported a 3.4% decline in gold production from its 49% owned subsidiary, the Blanket Mine in Zimbabwe, during Q4 of 2013.

Production for Q4 2013 was 11,417oz, compared to 11,821oz for the same quarter of 2012.

The company said that gold production in Q4 was adversely affected by a three-day shut down of the milling plant for essential maintenance. It also suffered from a lower realised head grade which, as previously advised, returned towards the long-term mine average grade of 3.84g per tonne.

Total gold production for 2013 was 45,517oz, which represents an increase of 0.1% from the 45,463oz produced in 2012. It is 3.4% higher than the production guidance.

The company expects to produce 48,000oz of gold in 2014.

Caledonia Mining president and CEO Stefan Hayden said that the 2013 production had changed little from 2012.

"The underground development that is required to achieve the projected increase in gold production to 48,000oz in 2014 has been completed and I look forward to Blanket delivering this increased level of production in 2014," Hayden said.

Caledonia acquired the Blanket mine from Kinross Gold in April 2006, while in 2012 the company agreed to divest a 51% stake of the mine to Indigenous Zimbabweans for $30.09m.

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