TINASHE MAKICHI
New York Stock Exchange listed resources firm, Caledonia Mining Corporation, is targeting more gold claims in Zimbabwe as the resources firm expands its footprint on the local market.
The development comes after Caledonia, which operates Blanket Gold Mine in Gwanda, Matabeleland South Province, secured exclusive rights to explore and acquire the mining claims in the gold rich Connemara North area in the Gweru district as well as Glen Hume claims in the same area.
The Gweru claims cover approximately 350 hectares and are believed to have huge gold deposits.
“(We will also) evaluate further investment opportunities in the gold and precious metals sector in Zimbabwe and in other jurisdictions, with our long-term vision of becoming a mid-tier, multi-asset gold producer,” Steve Curtis, the group chief executive officer of Caledonia, said.
Caledonia has been aggressive looking to expand its mining portfolio. At one time, Caledonia was targeting to acquire some gold assets owned by the Zimbabwe Mining Development Corporation.
Blanket Mine has completed its Central Shaft project, which is expected to increase production, reduce operating costs and increase the flexibility to undertake further exploration and development.
The miner spent about US$67m to complete the project. This was funded through internal cash flow.
Commissioning of the shaft project, which is expected to potentially secure Blanket Mine’s operating future for the next 20 years, is expected before the end of June.
Once Central Shaft is commissioned, the miner expects to increase production to between 61 000 and 67 000 ounces this year. It expects to ramp up production to 80 000 ounces next year.
Caledonia is also planning to construct a 12megawatt solar plant at Blanket Mine.
To fund the project the company issued approximately 600,000 shares to raise $13m before expenses.
The miner expects the new solar plant to provide about 27% of daily electricity to Blanket.
