Name of the Project
Blanket gold mine expansion project.

Location
Zimbabwe.

Project Owner/s
Caledonia Mining Corporation (49%).

Project Description
A revised investment plan and production projection were announced in 2014.

The revised plan aims to improve the underground infrastructure and logistics and allow for an efficient and sustainable production build-up.

Infrastructure improvements will include the continuation of the No 6 Winze shaft, the development of a tramming loop 650 m below surface and the sinking of the new 6-m-diameter, four-compartment Central shaft.

The extension will add two further production levels. They will provide access to the indicated and inferred resources below 30 Level and potentially increase Blanket's projected life-of-mine by a further four years to 2031.

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

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Based on the revised plan, the best-estimated net present value of the extension project has been calculated at $65-million at a real discount rate of 8.36%. The internal rate of return has been calculated at 42%.

Capital Expenditure
The Central shaft project is estimated at $44-million.

Planned Start/End Date
Production is expected to start in 2021.

Latest Developments
Caledonia Mining Corporation has successfully installed and commissioned a new oxygen plant at the Blanket mine. The plant is expected to improve metallurgical recovery and reduce cyanide consumption.

It will also provide up to 6 t of improved oxygen supply to the Blanket carbon-in-leach plant, which is expected to increase recoveries to about 94%, according to testwork.

Recoveries have averaged about 93% this year.

“We also anticipate that the oxygen plant will result in slightly lower operating costs, as cyanide consumption is expected to be reduced as a result of the improved oxygen supply; and the operating costs of the new oxygen plant are predicted to be lower than those of the previous two-tonne plant,” Caledonia CEO Steve Curtis has said.

Curtis has noted that this marks the latest in a series of investments to increase production and improve the operating proficiency at Blanket as the company continues its growth trajectory to produce 80 000 oz/y of gold by 2022.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
The project remains on target for first production in January 2016, with production expected to reach the target rate of 500 t/d in May 2017.

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