3rd Nov 2014 09:43
LONDON (Alliance News) - Caledonia Mining Corp Monday said it has revised its investment plan for the Blanket Mine in Zimbabwe and changed its production projections for the project to 2021.
Caledonia said the new plans for the Blanket mine will focus on improving the underground infrastructure and logistics at the site to stabilise the production build-up.
The increased investment in the mine means the group has revised is production forecasts for the project to approximately 70-75,000 ounces of gold per year by 2021 from inferred resources, with an addition 6,000 ounces from proven and probable reserves.
The group plans to make an investment of approximately USD50 million between 2015 and 2017, and about USD20 million more between 2018 and 2020.
The entire capital expenditure will be covered by internal cashflows from Blanket and from existing facilities, it said.
Caledonia Mining shares were down 9.3% to 43.1 pence Monday, making it one of the worst performers in the AIM All Share index.
By Sam Unsted; [email protected]; @SamUAtAlliance
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