TIDMCMCL
RNS Number : 4744G
Caledonia Mining Corporation PLC
24 July 2019
Caledonia Mining Corporation Plc
Completion of Shaft Sinking at Blanket Mine
(NYSE AMERICAN: CMCL; AIM: CMCL; TSX: CAL)
St Helier, July 24, 2019: Caledonia Mining Corporation Plc
("Caledonia" or the "Company") announces that the shaft sinking at
the new Central Shaft at Blanket Mine has been completed. The
Central Shaft project has been in progress since early 2015 and the
Company has spent approximately $44 million sinking a new shaft
from surface to a depth of over 1,200 meters (approximately 4,000
feet).
The project now moves to the equipping phase prior to
commissioning which is expected during the third quarter in 2020.
Production from Blanket mine is then expected to progressively
increase to the target of 80,000 ounces of gold per year from 2022
onwards.
The Company expects the increased production, combined with
economies of scale and lower future capital investment, will result
in significant increases in Caledonia's profit and distributable
cash.
Commenting on completion of the shaft sinking, Steve Curtis,
Caledonia's Chief Executive Officer, said
"Completion of the shaft sinking is an important milestone in
Caledonia's investment plan. I would like to recognise the
outstanding contribution of Caledonia's technical staff, led by
Dana Roets, Caledonia's Chief Operating Officer, who have worked
hard over the last five years to ensure that we have reached this
point.
"We now commence the equipping phase, which will take
approximately 12 months, after which we can commence the production
ramp-up towards our target of 80,000 ounces of gold in 2022."
About Caledonia Mining
Caledonia's primary asset is a 49% interest in an operating gold
mine in Zimbabwe ("Blanket Mine"). In November 2018, Caledonia
announced that it had signed a legally binding sale agreement to
increase its holding in Blanket Mine to 64%, subject to receipt of,
amongst other things, regulatory approvals. Caledonia's shares are
listed on the NYSE American (symbol: CMCL) and on the Toronto Stock
Exchange (symbol: CAL) and depositary interests representing the
shares are traded on London's AIM (symbol: CMCL).
As at March 31, 2019, Caledonia had cash of approximately
US$9.7m. Blanket Mine plans to increase production from 54,511
ounces of gold in 2018 to approximately 75,000 ounces in 2021 and
approximately 80,000 ounces in 2022; Blanket Mine's target
production for 2019 is between 53,000 and 56,000 ounces. Caledonia
expects to publish its results for the quarter to June 30, 2019 on
or around August 13, 2019.
For further information please contact:
Caledonia Mining Corporation Plc
Mark Learmonth Tel: +44 1534 679 802
Maurice Mason Tel: +44 759 078 1139
WH Ireland
Adrian Hadden/Jessica Cave/James Sinclair-Ford Tel: +44 20 7220 1751
Blytheweigh
Tim Blythe/Camilla Horsfall/Megan Ray Tel: +44 207 138 3204
Note: This announcement contains inside information which is
disclosed in accordance with the Market Abuse Regulation (EU) No.
596/2014.
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, 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 and delays in the development of
projects.
Security holders, potential security holders 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 and risks relating
to the uncertainty of timing of events including targeted
production rate increase. Security holders, potential security
holders and other prospective investors 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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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