Caledonia Mining Corporation Plc COM SHS NPV (DI) (LON:CMCL) has today announced an increase and upgrade to the resource base at its 49% owned subsidiary, the Blanket Mine in Zimbabwe (“Blanket”).
Based on development and diamond core drilling carried out to the end of August 2017 combined with improvements to the geological model, total Measured and Indicated gold ounces at Blanket have increased by 6% from 671,000 ounces in December 2016 to 714,000 ounces today. Total Measured and Indicated resources now stand at 5.62 million tonnes at a grade of 3.95 grammes per tonne (“g/t”). Inferred gold resources at Blanket have been increased by 47% from 604,000 ounces in December 2016 to 887,000 ounces today. Total Inferred resources now stand at 5.53 million tonnes at a grade of 4.99g/t.
The resource update has resulted in a modest decline in the average grade of the resource in the Indicated category (from 4.31g/t to 3.98g/t) as a result of additional infill drilling data, although the average resource grade remains well above the current mill feed grade. 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 have increased the Proven reserves and Indicated resources that may be used in the life of mine plan by 45% from 3.33 million tonnes, used for the Technical Report published in December 2014, to 4.84 million tonnes currently. These results are provisional and will be updated following any material change to reflect the results of ongoing exploration and definition drilling.
The resource update announced today marks the sixth successive year of sustained resource growth at Blanket. Blanket’s resources have grown by approximately 69% since 2011 despite mining over 250,000 ounces over this period. 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 August 2017) |
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|
Resource Category |
Tonnes (Mt) |
Grade (g/t) |
Contained Gold (koz) |
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|
Dec 16 |
Aug 17 |
Dec 16 |
Aug 17 |
Dec 16 |
Aug 17 |
% change |
|
|
Measured (M) |
1.53 |
1.81 |
4.04 |
3.9 |
199 |
227 |
14% |
|
Indicated (I) |
3.41 |
3.81 |
4.31 |
3.98 |
473 |
488 |
3% |
|
Total M&I |
4.94 |
5.62 |
4.23 |
3.95 |
671 |
714 |
6% |
|
Inferred |
3.76 |
5.53 |
4.99 |
4.99 |
604 |
887 |
47% |
All resources for Blanket are shown on a 100% basis; Caledonia owns 49% of Blanket
Continued exploration success at Blanket has prompted Caledonia to re-asses the Life of Mine Plan (“LOMP”) for Blanket in the context of the increased resources and the current progress of the Central Shaft project. Caledonia is currently engaged in an investigation of the potential to bring additional ounces into the LOMP with the potential for increased mine life at Blanket.
Commenting on the resource upgrade, Steve Curtis, Caledonia Mining Corporation Plc Chief Executive Officer said: “We are pleased to see continued positive results from our exploration activities at Blanket. To have consistently grown the total resource base at Blanket every year since 2011 is a commendable achievement and is testament to the great potential of the mine and to the efforts of our technical staff. It is very satisfying to see our investment in exploration continue to deliver results.
“The increase in the Measured and Indicated resource base of 6% to 714,000 ounces is good news for the longer-term life of Blanket and underscores the overall confidence level in Blanket’s resources. Furthermore, the increase of 47% in the Inferred resources at depth to 887,000 ounces shows the future potential of the mine. We are especially pleased to see good grade continuity in both our Measured and Indicated resources as well as in our Inferred resources at depth with grades above the current mine head grade.”
“We are currently engaged in an investigation into the economic potential of modifying the current life of mine plan and the current investment plan at Blanket which commenced in the fourth quarter of 2014 to include additional ounces where possible with a view to extending the life of Blanket. I look forward to updating the market in due course.”
Caledonia 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 Caledonia’s 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% interest in an operating gold mine in Zimbabwe (“Blanket”). 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 2017, Caledonia had net cash of US $10.8 million. Blanket plans to increase production from 50,351 ounces in 2016 to approximately 80,000 ounces in 2021; Blanket’s target production for 2017 is between 54,000 and 56,000 ounces. Caledonia expects to publish its results for the quarter to September 30, 2017 on or about November 13, 2017.
