TIDMCMCL
RNS Number : 7898Z
Caledonia Mining Corporation PLC
26 May 2021
Caledonia Mining Corporation Plc
Resource and Reserve Update at the Blanket Mine
(NYSE AMERICAN: CMCL; AIM: CMCL)
St Helier, May 26, 2021 : Caledonia Mining Corporation Plc
("Caledonia" or the "Company") is pleased to announce an upgrade to
the Mineral Resource and Mineral Reserve base at its 64 per cent
owned subsidiary, the Blanket Mine in Zimbabwe ("Blanket"). [1]
Total Proven and Probable Mineral Reserves increased by one per
cent to 528,000 ounces (17 per cent increase including depletion of
84,925 ounces since last update) and a 12 per cent increase in
total Measured and Indicated Mineral Resources ("M&I") to
902,000 ounces (23 per cent increase including depletion).
The report fully validates the Company's medium term production
profile targeting 80,000 ounces per annum from 2022.
Minxcon (Pty) Ltd were commissioned by the Company to produce an
updated Mineral Resource and Mineral Reserve estimation based upon
existing data, but reflecting the completion of Central Shaft,
historic mining and taking the opportunity to further digitise data
and embrace the latest analytical tools. The report was
commissioned based upon data struck at 1 January 2020, albeit its
completion was delayed by the impacts of the Covid pandemic.
Commenting on the Mineral Resource and Mineral Reserve update,
Steve Curtis, Chief Executive Officer said:
"Today's announcement marks an additional milestone in the long
track record of growing Mineral Resources and successfully
converting Inferred Mineral Resources into M&I to keep
extending the life of mine at Blanket since its inception in 1906.
A one per cent increase in the Proven and Probable Mineral Reserves
and a 12 per cent increase in M&I after mining depletion of
84,925 ounces is a continuation of securing the long-term future of
Blanket.
"The reduction in Inferred Mineral Resources is due partly to
successful conversion to M&I, at approximately 18 per cent, and
partly the lack of deep level exploration over the last 12 months,
awaiting the development of new drilling platforms on the lower
levels via the recently-commissioned Central Shaft. The latest
geological information available, combined with a lower Mineral
Resource cut-off grade, from 2.1 grammes per tonne ("g/t") to 1.5
g/t, due to the higher gold price, added lower grade Mineral
Resources, resulting in a reduction in the Inferred Mineral
Resources grade. These numbers are independently determined and
available in the latest technical report which is being filed today
on SEDAR. The lower Inferred Mineral Resources grade is broadly
consistent with Blanket's recently achieved grade, which
demonstrates that Blanket can comfortably mine at this grade.
"Now that the Central Shaft is completed, we will have the
ability to do more deep level exploration and we expect to replace
the depleted Mineral Resources as we continue to go deeper,
extending the life of mine while achieving the 80,000 ounce target
from 2022 onwards."
The Mineral Reserve grade of 3.38 g/t remained unchanged from
July 2018 with the Mineral Reserve cut-off grade also remaining
unchanged at 2.1 g/t.
Total M&I now stand at 8.5 million tonnes at a grade of 3.29
g/t, a 12 per cent reduction in grade although the updated Mineral
Resource grade remains consistent with current Blanket run of mine
grade.
Inferred Mineral Resources at Blanket have decreased by 10 per
cent from 963,000 ounces, as at July 2018, to 866,000 ounces as at
January 1, 2020. As mentioned above, the decrease is due to
approximately 18 per cent of Inferred Mineral Resources being
converted to the M&I category and the lack of deep drilling
exploration over the last 12 months awaiting the development of new
drilling platforms on the lower levels via the recently
commissioned Central Shaft. Lower grade Inferred Mineral Resources
were added due to lowering the Mineral Resource cut-off grade to
1.5 g/t from 2.1 g/t as a result of a higher gold price. Total
Inferred Mineral Resources now stand at 8.5 million tonnes at a
grade of 3.17 g/t. The reduction in Mineral Resource grade is due
to a combination of the Mineral Resource cut-off grade being
lowered, as mentioned, adding lower grade Mineral Resources in all
categories, and an updated interpretation of the ore bodies with
additional geological information.
Blanket's Mineral Resources have grown by approximately 86 per
cent since 2011 despite mining over 400,000 ounces over this
period.
The table below compares the January 2020 Mineral Resources with
the previously stated July 2018 Mineral Resources (refer to news
release filed on SEDAR on September 20, 2018). The January 2020
Mineral Reserves are compared to the previously stated July 2018
Mineral Reserves (refer to Mineral Reserve Calculations in the
Company's annual report on Form 20-F filed on SEDAR on 29 March
2021).
Blanket Total Mineral Resources and Mineral Reserves (effective January
1, 2020)
Mineral Resources
Mineral Resource Tonnes (Mt) Grade (g/t) Contained Gold (koz)
Category
------------------ ---------------- ---------------------------
Jul-18 Jan-20 Jul-18 Jan-20 Jul-18 Jan-20 % change
-------- -------- ------- ------- ------- ------- ---------
Measured (M) 2.01 2.73 3.80 3.32 245 292 19%
-------- -------- ------- ------- ------- ------- ---------
Indicated (I) 4.73 5.79 3.68 3.27 560 610 9%
-------- -------- ------- ------- ------- ------- ---------
Total M&I 6.74 8.53 3.72 3.29 805 902 12%
-------- -------- ------- ------- ------- ------- ---------
Inferred 6.63 8.49 4.52 3.17 963 866 -10%
-------- -------- ------- ------- ------- ------- ---------
Mineral Reserves
Mineral Reserve Tonnes (Mt) Grade (g/t) Contained Gold (koz)
Category
------------------ ---------------- ---------------------------
Jul-18 Jan-20 Jul-18 Jan-20 Jul-18 Jan-20 % change
-------- -------- ------- ------- ------- ------- ---------
Proven 1.21 1.70 3.33 3.34 130 183 41%
-------- -------- ------- ------- ------- ------- ---------
Probable 3.59 3.16 3.40 3.39 393 345 -12%
-------- -------- ------- ------- ------- ------- ---------
Total Proven
& Probable 4.80 4.86 3.38 3.38 523 528 1%
-------- -------- ------- ------- ------- ------- ---------
All Mineral Resources for Blanket are shown on a 100% basis;
Caledonia owns 64% of Blanket.
Mineral Resources (2020)
Notes:
1. Cut-off applied 1.5 g/t.
2. No Geological loss applied for Measured, 5% for Indicated and Inferred.
3. Gold price: USD1,600/oz.
4. Mineral Resources are stated inclusive of Mineral Reserves.
5. Mineral Resources are reported as total Mineral Resources and are not attributed.
6. All orebodies are depleted for mining.
.
Mineral Reserves (2020)
Notes:
1. Mineral Reserve cut-off of 2.1 g/t applied.
2. The gold price that has been utilised in the economic
analysis to convert diluted Measured and Indicated Mineral
Resources in the LoM plan to Mineral Reserves is an average real
term price of USD1,660/oz over the LoM.
3. Mineral reserves are reported as total Mineral Reserves and are not attributed.
Caledonia Mining Corporation Plc
Mark Learmonth Tel: +44 1534 679 800
Camilla Horsfall Tel: + 44 7817 841793
WH Ireland (Nomad and Broker)
Adrian Hadden/ James Sinclair-Ford Tel: +44 20 7220 1751
Blytheweigh
Tim Blythe/Megan Ray Tel: +44 207 138 3204
3PPB
Patrick Chidley Tel: +1 917 991 7701
Paul Durham Tel: +1 203 940 2538
The information contained within this announcement is deemed by
the Company to constitute inside information under 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", " envisage ", "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.
Securityholders, potential securityholders 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; risks
related to natural disasters, terrorism, civil unrest, public
health concerns (including health epidemics or outbreaks of
communicable diseases such as the coronavirus (COVID-19));
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 news release is not an offer of the common shares of
Caledonia for sale in the United States. This news release shall
not constitute an offer to sell or the solicitation of an offer to
buy, nor shall there be any sale of the common shares of Caledonia,
in any province, state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities
laws of such province, state or jurisdiction.
[1] Refer to the technical report entitled "Caledonia Mining
Corporation Plc NI 43-101 Technical Report on the Blanket Gold
Mine, Zimbabwe" dated May 17, 2021 prepared by Minxcon (Pty) Ltd
and filed by the Company on SEDAR on May 26, 2021. Mr Dana Roets (B
Eng (Min.), MBA, Pr.Eng., FSAIMM, AMMSA), Chief Operating Officer,
is the Company's qualified person as defined by Canada's National
Instrument 43-101 and has approved any scientific or technical
information contained in this news release.
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