Caledonia Mining Corporation Plc (“Caledonia” or the “Company”)
(NYSE AMERICAN: CMCL; AIM: CMCL; TSX: CAL) is pleased to
announce an upgrade to the resource base at its 49 per cent1 owned
subsidiary, the Blanket Mine in Zimbabwe (“Blanket”).
Based on development and diamond core drilling
that has been completed up to the end of July 2018 and combined
with improvements to the geological model, the total Measured and
Indicated gold ounces at Blanket mine have increased by 13 per cent
from 714,000 ounces, in August 2017, to 805,000 ounces, as at July
2018. Total Measured and Indicated resources now stand at 6.74
million tonnes at a grade of 3.72 grammes per tonne (“g/t”).
Inferred gold resources at Blanket have been
increased by nine per cent from 887,000 ounces, in August 2017, to
963,000 ounces, as at July 2018. Total Inferred resources now stand
at 6.63 million tonnes at a grade of 4.52g/t.
The upgrade has resulted in a modest decline in
the average grade of the resources in the Indicated and Inferred
categories as a result of additional infill drilling data,
improvements in the definition of the geological models, additional
lower grade resources in peripheral areas, and upward movements of
resources between categories. However, the average resource grade
remains well above the current mill feed grade of 3.3g/t. Caledonia
expects the mined grade to trend upwards over time as higher-grade
resources are accessed at depth.
The increase in Measured and Indicated resources
has increased the Proven reserves and Indicated resources that may
be used in the life of mine plan by 10 per cent from 4.52 million
tonnes used for the Technical Report published in December 2017, to
4.98 million tonnes currently.
The resource upgrade announced today marks the
seventh successive year of sustained resource growth at Blanket
mine. Blanket mine’s resources have grown by approximately 86 per
cent since 2011 despite mining over 300,000 ounces over this
period. Blanket mine’s resources have increased both in terms of
Measured and Indicated as well as Inferred resources; see current
totals in the following table.
|
Blanket Total Resources (effective 31 July
2018) |
Resource Category |
Tonnes (Mt) |
Grade (g/t) |
Contained Gold (koz) |
|
Aug 2017 |
Jul 2018 |
Aug 2017 |
Jul 2018 |
Aug 2017 |
Jul 2018 |
% change |
Measured (M) |
1.81 |
2.01 |
3.90 |
3.80 |
227 |
245 |
8 |
% |
Indicated (I) |
3.81 |
4.73 |
3.98 |
3.68 |
488 |
560 |
15 |
% |
Total M&I |
5.62 |
6.74 |
3.95 |
3.72 |
714 |
805 |
13 |
% |
Inferred |
5.53 |
6.63 |
4.99 |
4.52 |
887 |
963 |
9 |
% |
All resources for Blanket are shown on a 100% basis,
Caledonia owns 49% of Blanket
|
Commenting on the resource upgrade, Steve Curtis,
Chief Executive Officer said:
“Today’s resource upgrade is yet another
positive step in our journey as we invest for the long term future
of Blanket. This upgrade takes our total resource endowment at the
mine to almost 1.8 million ounces. We have increased total
resources at Blanket by 86 per cent since 2011 in addition to
mining over 300,000 ounces over this period. Whilst there is a
small downward revision in grade, the grade of the ore body remains
consistent with our expectations and continues to be well above the
current mined grade at Blanket of 3.3g/t. The inferred resource in
particular at a grade of 4.5g/t and the substantial increase in
inferred resources at depth gives us confidence in the longer term
potential of the mine. Today’s announcement is a testament to the
efforts of our technical staff and it is very satisfying to see our
investment in exploration continues to deliver results.
“The increase in the Measured and Indicated
resource base of 13 per cent to 805,000 ounces is good news for the
longer term life of mine plan at Blanket and underscores the
overall confidence level in Blanket’s resources which is
underpinned by the planned increases in cashflow and production as
the investment in our Central Shaft comes to an end. Furthermore,
the 9 per cent increase in the inferred resources at depth to
963,000 ounces shows the longer term potential of Blanket and gives
us full confidence that the current Central Shaft project will set
the mine up for many years into the future.
“I am confident that the life of mine will be
further supplemented by resource additions and upgrades as a result
of the increased exploration activity at Blanket in the
future.”
Caledonia’s Qualified Person for the purposes of
National Instrument 43-101, Mr Paul Matthews has reviewed and
approved the information contained in this announcement that
relates to mineral resources. Mr Matthews is a full-time employee
of the Caledonia Group and has sufficient experience relevant to
the style of mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a
Qualified Person as defined by National Instrument 43-101.
About Caledonia Mining
Following the implementation of indigenisation
in Zimbabwe, Caledonia’s primary asset is a 49 per cent interest in
an operating gold mine in Zimbabwe (“Blanket”). In August 2018
Caledonia Mining announced that it had concluded an MOU to increase
its shareholding in Blanket from 49 per cent to 64 per cent.
Caledonia’s shares are listed on the NYSE American as “CMCL” and on
the Toronto Stock Exchange as “CAL”; depository interests
representing the Company’s shares are also admitted for trading on
AIM of the London Stock Exchange plc.
At 30 June 2018, Caledonia had net cash of US
$5.3 million. Blanket plans to increase production from 56,135
ounces in 2017 to approximately 80,000 ounces in 2021; Blanket’s
target production for 2018 is between 55,000 and 59,000 ounces.
Caledonia expects to publish its results for the quarter to 30
September 2018 on or about 14 November 2018.
Caledonia Mining Corporation PlcMark
LearmonthMaurice Mason |
Tel: +44 1534 679 802
Tel: +44 759 078 1139 |
WH IrelandAdrian Hadden/Ed Allsopp |
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.
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, and 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, delays in the
development of projects and other factors.
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, risks
relating to the uncertainty of timing of events including targeted
production rate increase and currency fluctuations. Security
holders 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.
1 In August 2018 Caledonia Mining announced that it had
concluded an MOU to increase its shareholding in Blanket from 49%
to 64%