STOCK exchange listed Caledonia Mining Corporation says its 12MW solar project at Blanket Mine in Gwanda is generating more power than anticipated and has eased electricity challenges and in the process increasing the mine’s production time.
Zimbabwe Stock Exchange
The US$14 million solar plant that the corporation embarked on was part of efforts to address electricity constraints that have over the years affected the mining industry and it provides approximately 27 percent of the Gwanda-based mine’s average daily electricity demand.
In a statement on Friday, the company said in recent months there has been a substantial improvement in the supply of power from the main grid which has substantially reduced the amount of diesel consumed and has reduced the frequency of interruptions to production.
Commenting on the announcement, Caledonia Mining Corporation chief executive officer (CEO), Mr Mark Learmonth said the completion of the solar project coincides with an improvement in the supply of power from the Zimbabwe grid which had substantially reduced the amount of diesel consumed.
“As an initial early-stage indicator, in January 2023, Blanket Mine consumed 18 000 litres of diesel, which compares to approximately 120 000 litres per month for the whole of 2022.”
The development coincides with the recent announcement that Blanket Mine has increased its mineral resources and reserves projecting positive prospects for the gold mining giant. Mineral resources increased by 52 percent while mineral reserves have a percentage increase.
The mining corporation said the total measured and indicated mineral resources estimate (M and I) at Blanket, inclusive of mineral reserves, has increased by 52 percent to 1 095 000 ounces of gold and the total mineral reserves estimate increased by one percent to 395 000 ounces of gold.
The company said Minxcon (Pty) Ltd was commissioned to produce updated mineral resources and mineral reserves estimates based upon existing data. The results reflected on the completion of Central Shaft, and the migration to fully digital estimation protocols. Mr Learmonth said the increase secured a long-term future of Blanket Mine.
“I am delighted to be publishing this report reflecting the completion of Central Shaft which not only has increased MI by 52 percent to over 1 million ounces, but also increased Mineral Reserves by one percent to 395 000 ounces, thus securing the long-term future of Blanket. The slight reduction in Inferred Mineral Resources is partly due to our long track record of growing Mineral Resources and successfully converting Inferred Mineral Resources into M and I, but also reflects the constrained deep-level exploration due to sinking and equipping Central Shaft. We are pleased to have established new drilling platforms with resumed drilling.”
He said in 2022, the company achieved its long-term target of producing 80 000 ounces of gold at Blanket Mine this, coupled with a high gold price, puts the company in a good position to start to progress their new portfolio of assets supported by cash generated from stable production at Blanket.
Caledonia Mining Corporation holds a 64 percent shareholding in the Gwanda-based mine, while the community via the Gwanda Community Share Ownership Trust (GCSOT) holds a 10 percent ownership. – Sunday News
