15th Jul 2014 10:07
LONDON (Alliance News) - Caledonia Mining Corp Tuesday reduced its gold production target for 2014, as tonnes mined and milled at its 49%-owned Blanket Mine in Zimbabwe during the second quarter did not not increase enough to offset lower gold grades.
The mine produced 11,223 ounces of gold during the quarter to end-June, down from 11,587 ounces in the previous year, although up from 10,241 ounces in the first quarter.
In April the company said that the average grade of gold it achieved during the first quarter was lower than it had targeted. Tuesday it said that the average head grade is now expected to be lower than it has achieved in previous quarters.
In light of the 21,464 ounces it produced in the first six months, it has reduced its guidance to 45,000 ounces from 48,000 ounces.
Shares in Caledonia were trading down 7.4% at 56.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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