Blanket Mine says gold resources up 67 percent following exploration

Blanket Mine says gold resources up 67 percent following exploration

BULAWAYO, July 29 (The Source) – Caledonia Mining Corporation on Thursday announced that the mineable resource at its Blanket Mine in Zimbabwe had increased by 67 percent following exploration.

Caledonia has a 49 percent stake in the gold mine near Gwanda.

In a statement the company said based on exploration done at the mine over the past half year, 343,000 tonnes have been upgraded from the inferred to the Indicated Resource category and an additional 1,276,000 tonnes of new inventory had been added to inferred resources.

Indicated resources refers to resource estimates whose grade and other physical properties are based on detailed and reliable exploration detail while Inferred resources are based on limited geological information.

The upgraded Indicated Resource of 343,000 tonnes increases the quantum of reserves and indicated resources that may be used in the life of mine plan from 2,934,000 tonnes as at December 2014, to 4,889,000 tonnes.

“The upgrade of approximately 343,000 tonnes from Inferred Resource to Indicated Resource underscores the overall confidence level of Blanket’s resources. The significant increase in new Inferred Resources occurred at depth and paves the way for the phase 2 expansion program to extend mining below the current target depth of 990 m Level,” said Caledonia chief executive Steve Curtis.

“I am confident that the life of mine will be further supplemented by resource additions and upgrades as a result of the increased exploration activity, both at Blanket and also at the satellite projects.”

In 2015 Blanket mine produced 42,806 ounces of gold. The mine is currently undertaking two phased $70 million expansion program (2015-2017 and 2018 and 2020) which is expected to double annual output from 40,000 ounces to around 80,000oz by 2021.