BULAWAYO, March 2 (The Source) – Caledonia Mining says plans to nearly double production at its Blanket gold mine to 75,000 ounces by 2021 are on course, with the first project expected to come on line by June this year.
The Canadian junior miner, which owns 49 percent of the Gwanda operation, last year tabled a revised investment plan and production target for the mine which will entail a capex of $70 million in six years to increase output from 40,000oz to around 75,000oz by 2021.
On Friday, in an update of the investment plan that details progress as at January 2015, the company said work on the Tramming Loop which commenced in November 2014 was almost half way with 384 of the 800 meters having been completed.
The project is expected to done by June this year.
“A further 60 meters of sinking is required at the No. 6 Winze to achieve the interim objective of 930 meters below surface. Completion of the No. 6 Winze is expected, as planned, for the end of July 2015. The winders at No. 6 Winze have been installed and commissioned,” said the company.
It added that at Central Shaft preparatory work to allow pre-sink work to commence as scheduled in July this year was on course.
“Two 3,100 kW double-drum winders have been acquired which, once refurbished, will be sufficient for the sinking phase and eventual production up to a depth of 2,000 meters below surface,” it said.
The projects are being funded from Blanket Mine’s internal cash flows.