Caledonia Mining posts improved gold production from Blanket

(Sharecast News) - Caledonia Mining said on Monday that gold production at its Blanket mine in Zimbabwe rose 18% quarter-on-quarter to 17,360 ounces in the three months to 30 June as access to higher-grade mining areas improved. Average ore grade increased to 2.88 grams per tonne during the quarter, with July grades running at about 3.05g/t, and the company reiterated full-year production guidance of 72,000 to 76,500 ounces.

The AIM-traded miner said production is expected to strengthen further in the second half, supported by improved access to higher-grade ore, the completion of an elution plant upgrade and the introduction of a seven-day working week, which will allow an additional 200 tonnes of ore to be processed each day.

While second-quarter output was below the record level achieved a year earlier, Caledonia said this reflected its planned mining sequence and remained consistent with its full-year expectations.

At 1221 BST, shares in Caledonia Mining Corporation were up 5.1% at 1,340p.

Reporting by Josh White for Sharecast.com.

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