Toronto Stock Exchange-listed mining group, Caledonia Mining Corporation Plc has set an improved gold output target for 2019 of 56 000 ounces at its flagship Blanket Gold Mine in Zimbabwe.
For 2018, the gold mine achieved total output of 54 512 ounces.
In the last quarter of 2018, the mining firm boosted production to 14,952 ounces, a 7 per cent increase over the previous quarter.
In the long-term, Caledonia remains on track to achieve production of approximately 80,000 ounces of gold per annum from 2021 following completion of the Central Shaft.
The Central Shaft is currently at a depth of 1,150 meters and will be sunk to a depth of 1,204 meters.
It is anticipated that shaft sinking will be completed towards the middle of 2019 after which the shaft will be equipped and commissioned.
This increase in operational capacity has been matched by an increase in the resource base, as the mine life now stands at 14 years, significantly higher than the estimated life of six years made in 2014.
“Completion of the Central Shaft is the key to Blanket achieving its planned production of approximately 80,000 ounces of gold per annum from 2021 onwards,” said chief executive Steve Curtis.
“I expect that sinking work at Central Shaft will be completed by mid-year after which we will start to equip the shaft.
“This part of the Central Shaft project is relatively capital intensive. In light of our significant capital expenditure commitments, we believe it is prudent to take advantage of the recent strengthening of the gold price and we have therefore secured a minimum received gold price of $1,250 per ounce for the 5 months to June 2019 whilst maintaining full upside exposure to the gold price through a cost-effective option structure.”