Business - Companies & Markets - Featured - Local - Mining - November 30, 2020

Caledonia completes equipping phase of a central shaft

HARARE – Caledonia Mining Corporation on Monday announced that the phase of fully equipping the Central Shaft from its base to the surface collar is now complete and it is on track to be commissioned in the first quarter of 2021.

This has been completed considerably below budget and within a time frame to underpin the Company’s expectation of delivering a production of 80,000 ounces of gold in 2022.

Commenting on the news of the completion, Steve Curtis, Chief Executive Officer, said it is a huge milestone for the company and no-one should underestimate this achievement.

“The last five years have been a tremendous team effort and we commend our employees for their hard work and their commitment to safety. Shaft sinking is widely regarded as one of the most dangerous activities in mining and I am proud to report that over more than five years the crew achieved 1,850 fatality-free shifts to date with only two Lost Time Injuries (LTI) and achieving more than one million LTI free man-hours worked since the last LTI.

“We’ve invested approximately $60 million in this project since we first announced it in 2015 and it has been owner-built and fully funded through internal cash flow and has been completed at a cost that is well below initial quotes received,” he said.

He added that: “Central Shaft is one of the largest gold mining investment projects in Zimbabwe and will be transformational to our business: our target production is set to increase by 45 percent to 80,000 ounces by 2022 while our long-term all-in sustaining costs are expected to drop to $700-$800 per ounce.”

Increased exploration – the Central Shaft is projected to provide access for further deep-level exploration which, if successful, may extend Blanket mine life beyond 2034.

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