The parent company said explorations had started at two satellite projects and, depending on the results, mining plans would be developed next year.
“GG satellite project exploration has started and if successful a mine plan will be developed in late 2012. Indicative capital for the project is approximately $900 000,” said the firm.
Caledonia is an African-focused mining and exploration company with an operating gold mine in Zimbabwe, two platinum-nickel exploration projects in South Africa and a cobalt-copper exploration project in Zambia amongst its exploration portfolio in South Africa, Zimbabwe and Zambia.
The other project, Mascot, is expected to chew about $600 000 and it will consist of three shafts.
“Development and exploration work at Mascot can commence quickly using existing infrastructure. Depending on exploration results a mine plan could be developed in mid-2012," it said.
Blanket Mine produces 40 000 ounces of gold a year and considerable exploration upside is funded by internal resources. The Zimbabwean unit registered an 18 percent increase in gold output to help Caledonia to a $8,3 million profit in the third quarter of 2011. The mining firm also recorded a 15 percent increase in gold prices on global markets and reduced costs. Average price received per ounce of gold sold during the quarter, said Caledonia, was $1,737 compared to $1,241 in the quarter last year. Gold output at Blanket rose to 9 700 ounces from 8 200ounces in the preceding quarter and 4 900 ounces in same period last year. This represents the sixth consecutive output growth for the mine.Post published in: Business