JOHANNESBURG (miningweekly.com) – Construction of the Zimbabwe-based Blanket gold mine is “going as planned” and progressing well, says Aim-listed Caledonia Mining, which owns 49% of the mine.

Speaking to Mining Weekly Online on Friday, CFO Mark Learmonth said the company’s $70-million development plan, which would be executed over the next five years, would double production at the mine to about 80 000 oz/y by 2021.

During a site visit earlier this week, the management team could see that work on the Central shaft, which started late last year was “going fantastically well”, he added.

The shaft was being sunk to just under 1 km below surface.

“The area that we are working on is enormous; much bigger than we expected and we have excavated this hole where we are going to place the shaft column, where the headgear will stand.

“This is about 9 m by 9 m by 5 m deep. Once the concrete has set, we can actually start the serious business of sinking the shaft,” Learmonth enthused, adding that the shaft should be finished by early 2018.

Further, he noted that the mine had already acquired the required winders from South Africa’s Harmony Gold, stating that one winder was “currently being shipped up to the mine”, while the other winder was being refurbished in Johannesburg.

He added that smaller components of the expansion project, which included the sinking of a subvertical shaft up to about 980 m below surface, were also progressing well.

“We’ve been working on that for quite some time and that shaft was finished last month. We are now busy equipping the shaft, which should be done by the end of August and we expect to see first production from that shaft in January next year,” Learmonth pointed out.

He further noted that the smallest part of the mine’s revised development plan – the tramming loop 650 m below surface – had already been completed. “On Tuesday, the entire Caledonia board went around the loop. It’s big, it’s fast [and] fully equipped. It helps to remove the logistical logjam underground”.

He added that the company expected to produce about 32 000 oz this year, ramping up to 50 000 oz next year.

BUSINESS IN ZIMBABWE
Learmonth rubbished the notion that operating in Zimbabwe was risky business, adding that mining in South Africa was far worse.

“The mining sector in South Africa is hampered by the lack of electricity. . .[it is] beset by hostile trade unions; [it is] beset by an incompetent and hostile government.

“We have no difficulties with electricity in Zimbabwe; we have no difficulties with trade unions; we don't have the issue [of a difficult government here]. Government, frankly, leaves you alone if you are fully indigenised,” he added.

He highlighted that productivity in Zimbabwe was also “much higher” compared with that in South Africa. “It’s a shame that South Africans think that [life is much worse across] the border. We make more money with our little mine in Zimbabwe than we would have made with a much bigger mine in South Africa.

“As soon as there are opportunities in Zimbabwe, we would run a mile for it, but similar opportunities in South Africa – we wouldn't touch it with a pole,” Learmonth said.

He pointed out that the company would continue to seek gold mining opportunities in Zimbabwe and other neighbouring countries.