Releasing its financial results for the second quarter of the year, the company said it was buoyed by the fact that production had been on the increase monthly since it reopened in April.
Blanket expects to achieve an annualized production rate of 40 000 ounces per annum after the completion of the No. 4 Shaft Expansion Project, which will be funded by internally generated cash flows and /or third party debt funding, said the company in a statement.
The company attributed the positive performance to the reduction in the frequency and duration of load shedding.
Caledonia has over the past few months bemoaned the electricity outages culminating in the company engaging in talks with the Zimbabwean government and the countrys electricity supplier.
Zimbabwe has over the years experienced electricity shortfalls and resorted to load shedding after foreign companies either cut off or reduced supplies owing to ZESAs massive debt.
19.8.2009
11:56
Power cuts down gold up
JOHANNESBURG - Caledonia Mining Corporation, which owns Blanket Mine in Zimbabwe, this week forecasted the mine to produce 40 000 ounces of gold per year once refurbishments worth US$2.25million are completed.