St Helier, October 5, 2017: Caledonia Mining Corporation Plc (“Caledonia” or the “Company”) announces record quarterly gold production from the Blanket Mine (“Blanket”) in Zimbabwe for the quarter ended September 30, 2017 (“Q3 2017” or the “Quarter”). All production numbers are expressed on a 100 per cent basis and are based on mine production data and are therefore subject to adjustment following final assay at the refiners.
Approximately 14,389 ounces of gold were produced during the Quarter, a new quarterly production record for the mine. Production in the Quarter was 15 per cent higher than the previous quarter (Q2 2017) and 7 per cent higher than the corresponding quarter of 2016 (Q3 2016). The improvement in production in the third quarter is expected to continue into the fourth quarter. The Directors of Caledonia are pleased to be able to narrow the range of the 2017 production guidance from 52,000 to 57,000 ounces to a range of between 54,000 and 56,000 ounces. Caledonia remains on track to achieve its production target of 80,000 ounces in 2021.
Commenting on the production for Q3 2017, Steve Curtis, Chief Executive Officer, said:
“We are very pleased to have achieved yet another production record at Blanket, which surpasses the previous production record of 13,591 ounces set in the fourth quarter of 2016. The Q3 2017 production of 14,389 ounces is a commendable achievement for which I would like to acknowledge the hard work and dedication of our technical and production staff.
The first half of 2017 presented Caledonia with some significant operating challenges which adversely affected production. In May 2017 it was announced that our technical team was implementing various remedial measures aimed at alleviating the operating challenges and improving the reliability of our underground infrastructure. I am pleased to confirm that these measures implemented in the last three months have had the desired effect and have resulted in an improvement in both tonnage and grade at Blanket with associated higher production for the Quarter.
We are also pleased that the initiatives introduced to focus on the safe effective production of gold have been adopted fully by the Blanket work force.
We expect these improvements to continue into the fourth quarter and as a result we have tightened our production guidance for the full year to 54,000 ounces to 56,000 ounces. We remain confident of achieving our long-term production target of 80,000 ounces in 2021 as the Central Shaft project continues to progress well.”
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”). Caledonia’s shares are listed on the NYSE American as “CMCL” and on the Toronto Stock Exchange as “CAL”; and depository interests representing the Company’s shares are admitted for trading on AIM of the London Stock Exchange plc as “CMCL”.
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 15, 2017.
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