HomeGoldGood times roll for Blanket mine

Good times roll for Blanket mine

Caledonia Mining
Corporation’s Blanket
gold mine in Zimbabwe
Toronto, Canada — 11 October 2012 – Zimbabwe’s Blanket gold mine recorded a 12% increase in gold production in the third quarter of this year. The Gwanda-based gold producer, owned by Canadian firm Caledonia Mining Corporation, revealed that 12,919oz of gold had been produced during Q3 of 2012, compared to 11,560oz in the previous quarter.  

allAfrica.com reports that the latest quarter’s production was also 33% more than the 9,743oz produced during the same period last year.

The mine’s total gold production for the nine months to September 30, 2012 was 33,643oz, which is also a 33% increase in production compared to the first nine months of 2011.

Caledonia president and CEO Stefan Hayden said the latest production results were the highest in over a century.

“The record gold production achieved during the quarter is the highest quarterly gold production ever achieved by the Blanket mine since its first recorded year of production in 1906,” he added.

Although Blanket mine is owned by Caledonia Mining Corporation, processes are underway for the completion of the mine’s indigenisation.

The company has announced that it has completed the signing of conditional agreements to dispose of 51% of its equity to several indigenous parties. Caledonia has since agreed to sell a 16% stake in its Blanket mine to Zimbabwe’s National Indigenisation and Economic Empowerment Fund for US$11.74 million.

An agreement has been signed for the sale of 10% of Blanket for a consideration of US$7.34 million to the Blanket Mine Employee Trust that was established for the benefit of the present and future managers and employees of the mine.

A second agreement has been signed for the donation of 10% of the mine to the Gwanda Community Share Ownership Trust, which would benefit the local community. Under the terms of the MoU, Blanket would make a non-refundable donation of US$1 million to this trust.

The agreements were in addition to the agreement for the sale of 15% ownership of Blanket to a consortium of indigenous Zimbabweans for a consideration of US$11 million. Completion of the sale agreements is, however, subject to several conditions being met that include certain approvals from the Reserve Bank of Zimbabwe.

Source: allAfrica.com. For more information, click here.