TIDMCMCL
RNS Number : 7023L
Caledonia Mining Corporation PLC
05 October 2016
Caledonia Mining Corporation Plc
Q3 2016 Production Update & New Ball Mill Commissioning
(TSX: CAL, OTCQX: CALVF, AIM: CMCL)
5 October 2016: Caledonia Mining Corporation Plc ("Caledonia" or
the "Company") announces gold production from its 49 per cent owned
subsidiary, the Blanket Mine ("Blanket") in Zimbabwe, for the
quarter ended 30 September 2016 ("Q3 2016" 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 13,430 ounces of gold were produced during the
Quarter, representing a 23 per cent year on year increase on the
gold produced in Q3 2015 (10,927 ounces) and a 7.4 per cent quarter
on quarter increase on the gold produced in Q2 2016 (12,509
ounces).
Caledonia remains on track to meet production guidance for 2016
of 50,000 ounces and continues to progress towards its long term
target of 80,000 ounces by 2021.
Caledonia is also pleased to announce that in terms of the
ongoing investment programme at Blanket Mine, a new ball mill has
been installed and the commissioning process is proceeding as
anticipated. The new mill will increase daily throughput at the
Blanket plant by 20 per cent, from 1,500 t/day to 1,800t/d, and
will allow Blanket to meet its plan to double 2015 production to
80,000 ounces by 2021.
Commenting on the production for Q3 of 2016 and on the
installation of the new ball mill, Steve Curtis, Caledonia's Chief
Executive Officer said:
"Production in the third quarter was in line with expectations,
and shows that Caledonia and the Blanket Mine remain on track to
deliver our target performance for 2016.
"Production in the Quarter includes production from higher grade
material below 750 meters which is accessed via the No. 6 Winze and
an additional decline development. This is further testament to the
investments Caledonia has made to increase production flexibility
and capacity over the past 18 months, which are now beginning to
bear fruit as production from below 750 meters continues to
increase.
"We are also pleased that the new mill, which was manufactured
locally in Zimbabwe has been installed and the commissioning
process is progressing as expected as it is an important step in
increasing our production to 80,000 ounces over the next 4
years."
About Caledonia Mining
Following the implementation of indigenisation in Zimbabwe,
Caledonia's primary asset is a 49% 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 traded on the American OTCQX as "CALVF".
At 30 June 2016, Caledonia had net cash of US$10.6m. Blanket
plans to increase production from 42,800 ounces in 2015 to
approximately 80,000 ounces in 2021; Blanket's target production
for 2016 is approximately 50,000 ounces. Caledonia expects to
publish its results for the quarter to 30 September 2016 on 14
November 2016.
For further information please contact:
Caledonia Mining Corporation WH Ireland
Plc Adrian Hadden/Nick Prowting
Mark Learmonth - CFO Tel: +44 20 7220 1751
Tel: +44 1534 702 998
marklearmonth@caledoniamining.com
Maurice Mason - Investor Blytheweigh
Relations Tim Blythe/Camilla Horsfall/Megan
Tel: +44 759 078 1139 Ray
mauricemason@caledoniamining.com Tel: +44 20 7138 3204
Note: This announcement contains inside information which is
disclosed in accordance with the Market Abuse Regulation.
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.
Potential shareholders and 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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October 05, 2016 02:00 ET (06:00 GMT)
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