St Helier, October 14, 2019: Caledonia Mining Corporation Plc (“Caledonia” or the “Company”) announces quarterly gold production from the Blanket Mine (“Blanket”) in Zimbabwe for the quarter ended September 30, 2019 (“Q3 2019” or the “Quarter”). All production numbers are expressed on a 100 per cent basis and are based on mine production data and are therefore subject to adjustment following final assay at the refiners.
Approximately 13,646 ounces of gold were produced during the Quarter, 7.3% above the 12,712 ounces produced in the second quarter of 2019. Gold produced for the 9 months to September 30, 2019 was 38,306 ounces, approximately 3.2% below the 39,559 ounces produced in the corresponding period of 2018. Caledonia maintains its 2019 full year production guidance of 50,000 to 53,000[1] ounces and remains on track with progress towards its target of 80,000 ounces by 2022.
Commenting on the announcement, Steve Curtis, Chief Executive Officer, said:
“Production in the third quarter of 2019 was slightly below our target but showed steady growth in production on the previous two quarters. Production in the quarter had a difficult start due to significant interruptions in the supply of electricity in July and early August although the electricity situation improved substantially later in the quarter. Caledonia remains on track to achieve our guidance of 50,000 to 53,0001 ounces for the full year.”
“We are very pleased to have completed the shaft sinking phase of the central shaft project during the quarter, a significant milestone for our business. The shaft has now entered the equipping phase of the project which we expect to be completed in mid-2020 . We look forward to commencing production from the central shaft during the second half of 2020 which is expected to deliver the Company’s growth plan to achieve 75,000 ounces in 2021 and 80,000 ounces by 2022.”
About Caledonia Mining
Caledonia’s primary asset is a 49 per cent interest in the Blanket gold mine in Zimbabwe. In November 2018, Caledonia announced that it had signed a legally binding agreement to increase its shareholding in Blanket to 64% subject to the receipt of, amongst other things, regulatory approvals. Caledonia’s shares are listed on the NYSE American (symbol: CMCL) and on the Toronto Stock Exchange (symbol: CAL) and depositary interests representing the shares are traded on London’s AIM (symbol: CMCL).
As at June 30, 2019, Caledonia had cash of approximately US$7.9 million. The Company plans for Blanket to increase gold production from 54,511 ounces in 2018 to approximately 75,000 ounces in 2021 and approximately 80,000 ounces by 2022; Blanket’s target production for 2019 is 50,000 to 53,0001 ounces. Caledonia expects to publish its results for the quarter to September 30, 2019 on or around November 12, 2019.
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