Name and Location
Blanket gold mine expansion project, Zimbabwe.

Client
Caledonia Mining Corporation.

Project Description
A revised investment plan and production projection have been announced for the Blanket mine.

The objectives of the revised plan are to improve the underground infrastructure and logistics and allow an efficient and sustainable production build-up.

The infrastructure improvements will include the development of a tramming loop and the sinking of a new 6-m-diameter Central shaft from surface to 1 080 m.

The increased investment pursuant to the revised plan is expected to increase production from inferred resources of about 70 000 oz to 75 000 oz in 2021, in addition to projected production in 2021 from proven and probable mineral reserves of about 6 000 oz.

The revised plan is also expected to improve Blanket’s long-term operational efficiency, flexibility and sustainability.

Net Present Value/Internal Rate of Return
The mine currently has a net present value of $147-million, with an internal rate of return of 267%.

Value
$50-million is expected to be spent from 2015 to 2017 and about $20-million from 2018 to 2020.
All capital expenditure is expected to be funded from Blanket’s in-house cash flows and existing facilities.

Duration
Production is expected to start in 2021.

Latest Developments
Work that formed part of Caledonia’s revised investment plan for its Blanket gold mine will be completed by July.

As part of its plan, the company plans to develop a tramming loop 750 m below surface, which is now at 384 m.
Further, Caledonia continues to sink its No 6 Winze shaft to provide rapid access to deeper-level resources, with only 60 m of sinking needed to achieve the interim aim of 930 m below surface.

The winders at No 6 Winze have also been installed and commissioned.

The company is also considering the sinking of the new 6-m-diameter Central shaft from surface to 1 080 m, as part of its revised investment plan. Work is under way to allow for presink work to start in July.

Two 3 100 kW double-drum winders have been acquired which, once refurbished, will be sufficient for the sinking phase and eventual production up to a depth of 2 000 m below surface.

The new Central shaft will provide access to the current inferred mineral resources below 750 m and will allow for further exploration, development and mining in these sections along the known Blanket strike, which is about 3 km in length.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Caledonia Mining, tel +1 416 369 9835 or email info@caledoniamining.com.