by Rungano Dzikira

Caledonia Mining Corporation is set to commission its central shaft expansion project at its Blanket Mine unit during the fourth quarter of 2020, the company has said.

Speaking on the improved performance that the mining company has had this past year, Caledonia’s chief executive acknowledged the need to pour into capital projects for high output.

“We expect the Central Shaft to be commissioned in the fourth quarter of 2020; thereafter we look forward to further increases in operating cash flow as production increases to the target rate of 80,000 ounces of gold per annum from 2022, as capital expenditure falls further and we begin to realise the operational efficiencies arising from the new shaft,” said Steve Curtis, Caledonia’s chief executive.

The New York Stock Exchange-listed mining company’s financial performance was reported to have improved due to increased production and continued higher gold price, hence leading to the mine opting to secure Blanket Mine’s operating future for the next 20 years.

The US$18 million Central Shaft expansion project is aimed at extending an additional 250 metres in depth including development on 34 and 38 levels.

Plans are currently afoot for Blanket Mine to increase production from 54,511 ounces of gold in 2018 to approximately 75,000 ounces in 2021 and approximately 80,000 ounces by 2022.

Last October, Caledonia successfully installed and commissioned a new oxygen plant at Blanket Mine aimed to improve metallurgical recovery and reduce cyanide consumption at the mine.