Caledonia Mining Corporation Plc ("Caledonia" or the
"Company") (NYSE AMERICAN: CMCL; AIM: CMCL) is pleased to
announce that the phase of fully equipping the Central Shaft from
its base to the surface collar is now complete and it is on track
to be commissioned in the first quarter of 2021. This has been
completed considerably below budget and within a time frame to
underpin the Company’s expectation of delivering production of
80,000 ounces of gold in 2022.
Key features of the Central Shaft project since
the start on 3 August 2015 include:
- Safety: 1,850 fatality free shifts with only two lost time
injuries (LTI); 920 shifts since last LTI;
- Extended scope:
the scope of the Central Shaft project was extended from an initial
target depth of 1,089 meters to a final depth of 1,204 meters;
- Project is
self-funded and is owner-built by Blanket crews with supervision
from Sinking Engineering Mining Construction;
- During shaft
sinking, more than 1,800 metres of infrastructure development was
completed including mid-shaft loading;
- Capital cost to
date is approximately $60 million, compared to initial sinking
contractor quotes received of about $100 million;
- Increased
mine-life: the shaft has extended Blanket’s life of mine to the
current time horizon of 2034;
- Increased
production: the Central Shaft is expected to increase production by
around 45 per cent from approximately 55,000 ounces of gold in 2019
to the target rate of 80,000 ounces from 2022;
- Reduced costs:
economies of scale and operational efficiencies arising from the
Central Shaft are expected to reduce the all-in sustaining cost per
ounce of gold from $8551 in 2019 to between $700 and $800 per
ounce;
- Increased
exploration: the Central Shaft will provide access for further
deep-level exploration which, if successful, may extend Blanket
mine life beyond 2034;
- The erecting and
fixing of the headgear is due to be completed by the end of 2020
and commissioning is on track for first quarter 2021.
Commenting on news of the
completion, Steve Curtis, Chief Executive Officer,
said
“The completion of the equipping phase is a huge milestone for
the Company, and no-one should underestimate this achievement. The
last five years have been a tremendous team effort and we commend
our employees for their hard work and their commitment to safety.
Shaft sinking is widely regarded as one of the most dangerous
activities in mining and I am proud to report that over more than
five years the crew achieved 1,850 fatality free shifts to date
with only two LTI and achieving more than one million LTI free man
hours worked since the last LTI.
“We’ve invested approximately $60 million in this project since
we first announced it in 2015 and it has been owner-built and fully
funded through internal cash flow and has been completed at a cost
that is well below initial quotes received.
“Central Shaft is one of the largest gold mining investment
projects in Zimbabwe and will be transformational to our business:
our target production is set to increase by 45 per cent to 80,000
ounces by 2022 while our long-term all-in sustaining costs are
expected to drop to $700-$800 per ounce. Central Shaft will also
position us to step-up our deep level exploration which, if
successful may extend Blanket’s life of mine, which is currently to
2034.
“Over the last five years we have built a solid foundation for
the Company, we have a healthy balance sheet, a strong gold price
and a highly cash generative asset with free cash flow expected to
increase significantly with the rise in production. This is a very
exciting time for Caledonia, and I would like to take this
opportunity to recognise Dana Roets (Chief Operating Officer),
Caxton Mangezi (Blanket Mine General Manager), Wimpy Nel (Design
Engineer), Carel Greeff (Projects Manager), the late Rodney Voight
(Civils Design Engineer), the entire team at Blanket, our technical
team in Johannesburg especially Deon Niemand and the contractors
for their outstanding performance as we take the business into its
next chapter.”
____________________________Mr Dana Roets (B Eng (Min.), MBA,
Pr.Eng., FSAIMM, AMMSA), Chief Operating Officer, is the Company's
qualified person as defined by Canada's National Instrument 43-101
and has approved any scientific or technical information contained
in this news release.
For further information please contact:
Caledonia Mining Corporation PlcMark
LearmonthCamilla Horsfall |
Tel: +44 1534 679 802 Tel: +44 7817 841793 |
|
|
WH
IrelandAdrian Hadden/James Sinclair-Ford |
Tel: +44 20 7220 1751 |
|
|
BlytheweighTim
Blythe/Megan Ray |
Tel: +44 207 138 3204 |
|
|
3PPBPatrick
ChidleyPaul Durham |
Tel: +1 917 991 7701Tel: +1
203 940 2538 |
|
|
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”, “financial outlooks” or “future oriented
financial information” (collectively, “forward-looking
information”) within” 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, and our plans and timing
regarding further exploration and drilling and development,
construction plans, financial and shareholders returns on
investment in construction projects and electricity
production/supply to the mine. 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, delays in the development of
projects, the completion of construction projects, the proposed
benefits from construction projects and other factors.
To the extent any forward-looking information
herein constitutes a financial outlook or future oriented financial
information, any such statement is made as of the date hereof
and included herein to provide prospective investors with an
understanding of the Company’s construction plans and assumptions.
Security holders, potential security holders and other prospective
investors are cautioned that such information may not be
appropriate for other purposes and 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, contractors 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; risks
related to natural disasters, terrorism, civil unrest, public
health concerns (including health epidemics or outbreaks of
communicable diseases such as the coronavirus (COVID-19));
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, risks relating to the uncertainty of timing of
events including targeted production rate increase, construction
activity and currency fluctuations. Security holders, potential
security holders and other prospective investors are cautioned that
the assumptions used in the preparation of such forward-looking
information, although considered reasonable at the time of
preparation, may prove to be imprecise and, accordingly, they
should not to place undue reliance on such 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.
____________________________1 $855 per ounce
excludes $1.93 million of income which was received as a government
grant in terms of the export credit incentive scheme which has
subsequently been discontinued; refer to section 10 of the MD&A
published on March 18, 2019 for the calculation of all-in
sustaining cost per ounce. Forecast costs for 2022 take no account
of any income which may arise if the export credit incentive scheme
(or similar arrangements) is re-introduced.
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