The group said it has already started development of the existing ore resources above and below the current lowest mining level (750m) which will produce an additional 36,000oz pa of gold by 2016.
Afterwards, 12 000oz is planned to start in 1Q in 2014, which will move to 24 000oz in 4Q in 2015 from the Winze project.
In a statement, Blanket Mine, which is a low cost producer, will process substantial volumes of additional ore with only a modest investment required to upgrade the existing crushing and milling circuits.
"This will result in a combined 90% increase to 76,000oz pa from Blanket’s targeted 2013 gold production of approximately 40,000oz."
Blanket’s total capital investment between 2013 and 2017 is anticipated to be approximately US$37 million, which will be funded entirely from Blanket’s internal cash flows.
The group also said increased production is expected to come from the first three of Blanket’s portfolio of 18 satellite properties which are expected to commence production in 4Q of 2013.
"The eventual rate of production from these properties will be determined by the success of on-going exploration and mining development work. Production from these properties has not been included in the 76,000oz gold target as the resources are undefined at present."
Blanket holds 18 licenced satellite exploration properties, the furthest of which is 42 km from Blanket’s plant, on which there has been some small-scale historic gold mining activity. Any ore mined from the satellite properties will be crushed and transported to Blanket for processing in Blanket’s metallurgical plant.
Post published in: Economy