GWANDA – Caledonia Mining Corporation’s gold production for the nine months ended September 30, 2022 increased 22% to 59,726 ounces from 48,872 ounces in the corresponding period last year.
The mining conglomerate, owner of Blanket Mine in Gwanda, announced in its quarterly update for the current quarter that it produced a record production of 21,120 ounces.
The latest quarterly production numbers are 11% higher than the quarter ended June 30, 2022, which produced 20,091 ounces.
Commenting on the latest quarterly production figures, Dana Roets, COO of Caledonia, said: “We are delighted to have again set a new production record at Blanket this quarter and to have achieved our target quarterly ounces for the last three quarters.
“It has been an excellent year, the ramp-up of production to our annual target of 80,000 ounces has met our best estimate and as such we are on track to reach the top of our production guidance of 73,000 and 80,000 ounces.”
In July this year, the mining group announced that it had signed a contract worth $53.3 million to purchase Bilboes Gold Limited in Bubi District, Matabeleland North Province.
The deal underscores Caledonia’s readiness to become a multi-asset gold producer in Zimbabwe and elsewhere.
“We continue to work hard to complete the transaction for Bilboes and in the meantime we will resume oxide operations in the hope that they will return to profitability in the second quarter of 2023.
“Caledonia is optimistic about Zimbabwe’s geological prospects and continues to evaluate other investment opportunities in the country with our long-term vision to become a multi-asset gold producer.
“This is an exciting time for the company and we look forward to continuing to update shareholders on our progress,” Roets said.
The $53.3 million transaction is subject to several conditions, including receipt of confirmation from Zimbabwean authorities that Bilboes Holdings will be able to export the yellow metal directly over the life of the mine.
Additionally, as part of the terms, Caledonia will retain 100% of US dollar sales proceeds, with no need to convert US dollar gold proceeds into local currency.
