TIDMCMCL
RNS Number : 5472L
Caledonia Mining Corporation PLC
20 July 2017
Caledonia Mining Corporation Plc
Q2 2017 Production Update
(TSX: CAL, OTCQX: CALVD, AIM: CMCL)
St Helier, 20 July 2017: Caledonia Mining Corporation Plc
("Caledonia" or the "Company") announces gold production from the
Blanket Mine ("Blanket") in Zimbabwe, for the quarter ended 30 June
2017 ("Q2 2017" or the "Quarter"). All production numbers are
expressed on a 100 per cent basis and are based on mine production
data and are therefore subject to adjustment following final assay
at the refiners.
Approximately 12,522 ounces of gold were produced during the
Quarter, this amount was approximately equivalent to the gold
produced in Q2 2016 (12,510 ounces). Gold produced for the first
half of 2017 was 25,316 ounces, an 8.5 per cent increase on the
23,322 ounces produced in the first half of 2016. Caledonia
maintains its' 2017 full year production guidance of between 52,000
ounces and 57,000 ounces and remains on track with progress towards
its long-term target of 80,000 ounces by 2021.
Commenting on the production for Q2 of 2017, Steve Curtis,
Caledonia's Chief Executive Officer, said:
"Notwithstanding the 8.5 per cent increase in production in the
first six months of 2017 compared to the first six months of 2016,
the second quarter of 2017 presented some operating challenges at
Blanket. Although we have improved the infrastructure on 750 metre
level in recent years, we are still constrained in our ability to
move increased quantities of ore and development waste.
Accordingly, in quarter 2, Caledonia took the decision to safeguard
the long-term production target of 80,000 ounces in 2021 by
prioritizing capital development tonnage over ore production
tonnage. This resulted in the 2017 production target being reduced
from 60,000 ounces to a revised target of between 52,000 and 57,000
ounces.
"The existing infrastructure constraints at Blanket are
temporary and are expected to be fully alleviated when the new
Central Shaft is commissioned in the second half of 2018. I am
pleased to say that work on the Central Shaft remains on track.
"In the meantime, management has implemented further measures to
address the short-term infrastructure constraints. We are
optimistic that these measures will result in a higher quarterly
production in the remaining quarters of 2017 and we are confident
that will achieve the revised production guidance for 2017 of
between 52,000 and 57,000 ounces of gold."
About Caledonia Mining
Following the implementation of indigenisation in Zimbabwe,
Caledonia's primary asset is a 49 per cent interest in an operating
gold mine in Zimbabwe ("Blanket"). Caledonia's shares are listed in
Canada on the Toronto Stock Exchange as "CAL", on London's AIM as
"CMCL" and are also currently traded on the American OTCQX as
"CALVD".
On 26 June 2017, Caledonia implemented a share consolidation on
an effective basis of 1 new Caledonia share for every pre-existing
5 shares. This consolidation was implemented with the objective of
securing a listing for Caledonia's shares on the NYSE MKT. It is
anticipated that the Caledonia's shares will commence trading on
the NYSE MKT by the end of July 2017.
At 31 March 2017, Caledonia had cash of US$11.7m. Blanket plans
to increase production from 50,351 ounces in 2016 to approximately
80,000 ounces in 2021; Blanket's target production for 2017 is
52,000 - 57,000 ounces. Caledonia expects to publish its results
for the quarter to 30 June 2017 on 14 August 2017.
For further information please contact:
Caledonia Mining Corporation WH Ireland
Plc Adrian Hadden/Ed Allsopp
Mark Learmonth Tel: +44 20 7220 1751
Tel: +44 1534 679800
marklearmonth@caledoniamining.com
Maurice Mason Blytheweigh
Tel: +44 759 078 1139 Tim Blythe/Camilla Horsfall/Megan
mauricemason@caledoniamining.com Ray
Tel: +44 20 7138 3204
Cautionary Note Concerning Forward-Looking Information
Information and statements contained in this news release that
are not historical facts are "forward-looking information" within
the meaning of applicable securities legislation that involve risks
and uncertainties relating, but not limited to Caledonia's current
expectations, intentions, plans, and beliefs. Forward-looking
information can often be identified by forward-looking words such
as "anticipate", "believe", "expect", "goal", "plan", "target",
"intend", "estimate", "could", "should", "may" and "will" or the
negative of these terms or similar words suggesting future
outcomes, or other expectations, beliefs, plans, objectives,
assumptions, intentions or statements about future events or
performance. Examples of forward-looking information in this news
release include: production guidance, estimates of future/targeted
production rates, and our plans and timing regarding further
exploration and drilling and development. This forward-looking
information is based, in part, on assumptions and factors that may
change or prove to be incorrect, thus causing actual results,
performance or achievements to be materially different from those
expressed or implied by forward-looking information. Such factors
and assumptions include, but are not limited to: failure to
establish estimated resources and reserves, the grade and recovery
of ore which is mined varying from estimates, success of future
exploration and drilling programs, reliability of drilling,
sampling and assay data, assumptions regarding the
representativeness of mineralization being inaccurate, success of
planned metallurgical test-work, capital and operating costs
varying significantly from estimates, delays in obtaining or
failures to obtain required governmental, environmental or other
project approvals, inflation, changes in exchange rates,
fluctuations in commodity prices, delays in the development of
projects and other factors.
Shareholders, potential shareholders and other prospective
investors should be aware that these statements are subject to
known and unknown risks, uncertainties and other factors that could
cause actual results to differ materially from those suggested by
the forward-looking statements. Such factors include, but are not
limited to: risks relating to estimates of mineral reserves and
mineral resources proving to be inaccurate, fluctuations in gold
price, risks and hazards associated with the business of mineral
exploration, development and mining, risks relating to the credit
worthiness or financial condition of suppliers, refiners and other
parties with whom the Company does business; inadequate insurance,
or inability to obtain insurance, to cover these risks and hazards,
employee relations; relationships with and claims by local
communities and indigenous populations; political risk;
availability and increasing costs associated with mining inputs and
labour; the speculative nature of mineral exploration and
development, including the risks of obtaining or maintaining
necessary licenses and permits, diminishing quantities or grades of
mineral reserves as mining occurs; global financial condition, the
actual results of current exploration activities, changes to
conclusions of economic evaluations, and changes in project
parameters to deal with unanticipated economic or other factors,
risks of increased capital and operating costs, environmental,
safety or regulatory risks, expropriation, the Company's title to
properties including ownership thereof, increased competition in
the mining industry for properties, equipment, qualified personnel
and their costs, risks relating to the uncertainty of timing of
events including targeted production rate increase and currency
fluctuations. Shareholders are cautioned not to place undue
reliance on forward-looking information. By its nature,
forward-looking information involves numerous assumptions, inherent
risks and uncertainties, both general and specific, that contribute
to the possibility that the predictions, forecasts, projections and
various future events will not occur. Caledonia undertakes no
obligation to update publicly or otherwise revise any
forward-looking information whether as a result of new information,
future events or other such factors which affect this information,
except as required by law.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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