Blanket gold mine
in Zimbabwe
Toronto, Canada — 03 April 2012 – Caledonia Mining Corporation “’ an African-focused mining and exploration company with an operating gold mine in Zimbabwe “’ more than doubled its gold production during the 1911 calendar year.

Pro-active Investors, United Kingdom reports that in its results statement released here, the company pointed out that production had increased in each of the last seven quarters. In the fourth quarter of 2011 alone 10,533oz of the precious metal had been produced, exceeding the firm’s quarterly production target of 10,000oz.

“Improved operations and economics led to a significant decrease in costs. In 2011, the cash costs were US$581/oz, compared to US$751/oz the previous year,” the statement added.  

“I believe that Blanket Mine is now one of the most efficient and lowest cost gold producers in Africa,” said Caledonia president and CEO Stefan Hayden. “The total gold production in the year increased by 102% to 35,826oz (2010: 17,707oz),” he confirmed.

Net profit after tax for the year came in at US$12.1 million compared to US$1.45 million in 2010, on turnover of US$55.7 million, compared to the previous year’s US$22.4 million.

Cash and cash equivalents as at year-end stood at US$9.7 compared to US$1.14 million at 31December 2010.

In February this year, the company confirmed the sale of a 51% stake in the Blanket mine in a deal worth US$30.09 million as part of Zimbabwe’s indigenisation programme. It sees 16% of the mine being sold to the National Indigenisation and Economic Empowerment Fund and 15% to indigenous Zimbabweans. A further 10% will go to the management and employee trust, and 10% to the Blanket Gwanda Community Trust.

“Looking ahead, once indigenisation has been implemented, Blanket will be financially and strategically well-positioned to progress its exploration and development projects. Depending on the outcome of these projects, Blanket may, in due course, be able to increase production above 40,000ozpa of gold,” said Hayden.

Source: Pro-active Investors, United Kingdom. For more information click here.