Caledonia Mining Corporation Plc (NYSE AMERICAN: CMCL; AIM:
CMCL; TSX: CAL) (“Caledonia” or the “Company”) announces that the
shaft sinking at the new Central Shaft at Blanket Mine has been
completed. The Central Shaft project has been in progress
since early 2015 and the Company has spent approximately $44
million sinking a new shaft from surface to a depth of over 1,200
meters (approximately 4,000 feet).
The project now moves to the equipping phase
prior to commissioning which is expected during the third quarter
in 2020. Production from Blanket mine is then expected to
progressively increase to the target of 80,000 ounces of gold per
year from 2022 onwards.
The Company expects the increased production,
combined with economies of scale and lower future capital
investment, will result in significant increases in Caledonia’s
profit and distributable cash.
Commenting on completion of the shaft sinking,
Steve Curtis, Caledonia’s Chief Executive Officer, said:
“Completion of the shaft sinking is an important
milestone in Caledonia’s investment plan. I would like to
recognise the outstanding contribution of Caledonia’s technical
staff, led by Dana Roets, Caledonia’s Chief Operating Officer, who
have worked hard over the last five years to ensure that we have
reached this point.
“We now commence the equipping phase, which will
take approximately 12 months, after which we can commence the
production ramp-up towards our target of 80,000 ounces of gold in
2022.”
About Caledonia Mining
Caledonia’s primary asset is a 49% interest in
an operating gold mine in Zimbabwe (“Blanket Mine”). In
November 2018, Caledonia announced that it had signed a legally
binding sale agreement to increase its holding in Blanket Mine to
64%, subject to 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 March 31, 2019, Caledonia had cash of
approximately US$9.7m. Blanket Mine plans to increase
production from 54,511 ounces of gold in 2018 to approximately
75,000 ounces in 2021 and approximately 80,000 ounces in 2022;
Blanket Mine’s target production for 2019 is between 53,000 and
56,000 ounces. Caledonia expects to publish its results for the
quarter to June 30, 2019 on or around August 13, 2019.
For further information please contact:
Caledonia Mining Corporation PlcMark
Learmonth
Tel: +44 1534 679 802Maurice
Mason
Tel: +44 759 078 1139
WH IrelandAdrian Hadden/Jessica Cave/James
Sinclair-Ford
Tel: +44 20 7220 1751
Blytheweigh Tim Blythe/Camilla Horsfall/Megan
Ray
Tel:
+44 207 138 3204
Note: This announcement contains
inside information which is disclosed in accordance with the Market
Abuse Regulation (EU) No.
596/2014.
Cautionary Note Concerning Forward-Looking
Information
Information and statements contained in this
news release that are not historical facts are “forward-looking
information” within the meaning of applicable securities
legislation that involve risks and uncertainties relating, but not
limited to Caledonia’s current expectations, intentions, plans, and
beliefs. Forward-looking information can often be identified
by forward-looking words such as “anticipate”, “believe”, “expect”,
“goal”, “plan”, “target”, “intend”, “estimate”, “could”, “should”,
“may” and “will” or the negative of these terms or similar words
suggesting future outcomes, or other expectations, beliefs, plans,
objectives, assumptions, intentions or statements about future
events or performance. Examples of forward-looking information in
this news release include: production guidance, estimates of
future/targeted production rates, our plans and timing regarding
further exploration and drilling and development. This
forward-looking information is based, in part, on assumptions and
factors that may change or prove to be incorrect, thus causing
actual results, performance or achievements to be materially
different from those expressed or implied by forward-looking
information. Such factors and assumptions include, but are
not limited to: failure to establish estimated resources and
reserves, the grade and recovery of ore which is mined varying from
estimates, success of future exploration and drilling programs,
reliability of drilling, sampling and assay data, assumptions
regarding the representativeness of mineralization being
inaccurate, success of planned metallurgical test-work, capital and
operating costs varying significantly from estimates, delays in
obtaining or failures to obtain required governmental,
environmental or other project approvals, inflation, changes in
exchange rates, fluctuations in commodity prices and delays in the
development of projects.
Security holders, potential security holders and
other prospective investors should be aware that these statements
are subject to known and unknown risks, uncertainties and other
factors that could cause actual results to differ materially from
those suggested by the forward-looking statements. Such
factors include, but are not limited to: risks relating to
estimates of mineral reserves and mineral resources proving to be
inaccurate, fluctuations in gold price, risks and hazards
associated with the business of mineral exploration, development
and mining, risks relating to the credit worthiness or financial
condition of suppliers, refiners and other parties with whom the
Company does business; inadequate insurance, or inability to obtain
insurance, to cover these risks and hazards, employee relations;
relationships with and claims by local communities and indigenous
populations; political risk; availability and increasing costs
associated with mining inputs and labour; the speculative nature of
mineral exploration and development, including the risks of
obtaining or maintaining necessary licenses and permits,
diminishing quantities or grades of mineral reserves as mining
occurs; global financial condition, the actual results of current
exploration activities, changes to conclusions of economic
evaluations, and changes in project parameters to deal with
unanticipated economic or other factors, risks of increased capital
and operating costs, environmental, safety or regulatory risks,
expropriation, the Company’s title to properties including
ownership thereof, increased competition in the mining industry for
properties, equipment, qualified personnel and their costs and
risks relating to the uncertainty of timing of events including
targeted production rate increase. Security holders,
potential security holders and other prospective investors are
cautioned not to place undue reliance on forward-looking
information. By its nature, forward-looking information
involves numerous assumptions, inherent risks and uncertainties,
both general and specific, that contribute to the possibility that
the predictions, forecasts, projections and various future events
will not occur. Caledonia undertakes no obligation to update
publicly or otherwise revise any forward-looking information
whether as a result of new information, future events or other such
factors which affect this information, except as required by
law.
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