Caledonia Exceeds Production Target, Plans Expansion in Zimbabwe


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DT Correspondent 

Caledonia Mining Corporation, a gold-focused miner with multiple listings, announced that it has successfully achieved its production target for the year 2023 at its Blanket Mine in Gwanda.

Despite facing challenges during the first half of the year, the mine produced a commendable 75,416 ounces of gold, surpassing the projected range of 75,000 to 80,000 ounces.

Mark Learmonth, CEO of Caledonia Mining Corporation, expressed satisfaction with the mine’s performance, highlighting the company’s ability to meet its production guidance for the year. 

“I am pleased that, after a challenging first half, we successfully met production guidance for the year, producing 75,416 gold ounces. 

“Our 2024 guidance of 74,000 to 78,000 ounces assumes that Blanket will broadly maintain the production rate achieved in 2023 and reflects the prudent decision to suspend mining in lower margin areas which include lower grades and volumes, and higher costs,” Learmonth said.

Learmonth acknowledged the challenges faced in the first half of the year but remained optimistic about the mine’s prospects. 

He emphasized the prudent decision to suspend mining activities in lower-margin areas characterized by lower grades, volumes, and higher costs. 

By focusing on higher-value areas, Caledonia Mining Corporation aims to optimize profitability and operational efficiency.

The company has allocated a budget of $34.4 million for capital expenditure (capex) in the current year. This includes planned exploration activities at Motapa and further work on the Bilboes feasibility studies.

In terms of costs, Caledonia Mining Corporation guided on-mine costs at Blanket Mine, ranging between US$870 and US$970 per ounce. 

The all-in-sustaining cost guidance is projected to be between US$1,370 and US$1,470 per ounce.

Learmonth emphasized that the company’s wider capex program remains focused on unlocking value and delivering its multi-asset growth pipeline in Zimbabwe, particularly with the Motapa and Bilboes projects. 

The company maintains a disciplined approach to cost management and capital allocation.

Over the past seven years, Caledonia Mining Corporation has made significant investments in Blanket Mine, resulting in nearly doubled production, extended mine life, and the resumption of underground exploration in 2023. 

Learmonth highlighted the positive findings from the underground exploration program, specifically the persistence of the Eroicazone to depth and significantly higher-grade deposits than previously anticipated. 

The company expects to release further exploration results in the first quarter of 2024, along with a revised resource statement in the subsequent quarter.

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