NEW: Blanket Mine boosts Q2 gold output  

Online Reporter 

Gwanda-based gold producer Blanket Gold Mine upped its output to a record 473,7 kilogrammes (16 710 ounces) in the three months to June 30, 2021 from 382,6 kilogrammes (13 499 ounces) in the same period a year ago. 

Output for the first six months of the year similarly rose by 8 percent to 847,8 kg (29 907 ounces) from 786kg (27 732) in the comparable period a year earlier. 

The mine has benefitted from an investment project that was commissioned earlier this year. 

 “Over 165 000 tonnes were milled in the quarter, which is a new record for Blanket and reflects the contribution of Central Shaft which is now operational,” said Caledonia chief executive officer Mr Steve Curtis.

“Higher production, lower costs and a higher gold price resulted in a significant increase in the underlying profitability of our business, with gross profit increasing by 51 percent compared to the comparable quarter in 2020.”

Production in July was 170 kg (5 995 ounces), which is a further increase in average monthly production and demonstrates that Blanket is on track to achieve its production guidance of 1,7 tonnes to 1,89 tonnes (61 000 – 67 000 ounces) for the current year. 

 The gold producer is targeting 80 000 ounces per annum (about 2,26 tonnes) from next year onwards.

 A total dividend of US12 cents was paid during the quarter in April and a further dividend at the increased rate of US13 cents per share was paid in July.

 Meanwhile, although the Caledonia last year acquired an option over the Glen Hume – a property situated in the Gweru mining district – it has decided not to exercise this option “due to disappointing exploration results”. 

 Caledonia will conduct exploration at Connemara North, the other optioned property in Zimbabwe as announced in December.