TORONTO Stock Exchange listed miner, Caledonia Mining Corporation, has upgraded the resource base at its local gold mining unit, Blanket Mine by 13 percent, taking the miner’s total resource endowment to almost 1.8 million ounces.
The upgrade will result in longer term life of mine plan at Blanket and underscores the overall confidence level in mine’s resources.
According to a statement released by the company last week, the total Measured and Indicated gold ounces at Blanket Mine have increased by 13 percent to 805 000 ounces, as at July 2018 from 714 000 ounces, in August 2017.
“Based on development and diamond core drilling that has been completed up to the end of July 2018 and combined with improvements to the geological model, the total Measured and Indicated gold ounces at Blanket Mine have increased by 13 percent to 805 000 ounces, as at July 2018 from 714,000 ounces, in August 2017.
Over the years, Blanket Mine’s resources have increased both in terms of Measured and Indicated as well as Inferred resources.
Measured resources are assumed to be fully bankable as there is little chance of assumptions being incorrect due to such tight drillhole spacing while Indicated equals somewhat well-defined resources which have a high certainty of being there but are somewhat less reliable than measured resources.
Inferred gold resources at Blanket have been increased by nine percent to 963 000 ounces, as at July 2018 from 887,000 ounces, in August 2017. Total Inferred resources now stand at 6,63 million tonnes at a grade of 4,52g/t. Inferred resources are not based on any drillhole campaign and are an educated guess regarding the mineral reserves in the land base in question.
The resource upgrade marks the seventh successive year of sustained resource growth at Blanket Mine.
The latest development means the increase in Measured and Indicated resources has increased the Proven reserves and Indicated resources that may be used in the life of mine plan by 10 percent to 4,98 million tonnes from 4,52 million tonnes used for the Technical Report published in December 2017.
Commenting on the resource upgrade, Caledonia Mining Corporation chief executive officer Steve Curtis, said the resource upgrade “is yet another positive step in our journey as we invest for the long term future of Blanket.”
“This upgrade takes our total resource endowment at the mine to almost 1,8 million ounces. We have increased total resources at Blanket by 86 percent since 2011 in addition to mining over 300 000 ounces over this period,” said Mr Curtis.
He said the increase in the Measured and Indicated resource base of 13 percent to 805 000 ounces is good news for the longer term life of mine plan at Blanket and underscores the overall confidence level in Blanket’s resources, which is underpinned by the planned increases in cashflow and production as the investment in our Central Shaft comes to an end.
“Furthermore, the 9 percent increase in the inferred resources at depth to 963 000 ounces shows the longer term potential of Blanket and gives us full confidence that the current Central Shaft project will set the mine up for many years into the future.
“I am confident that the life of mine will be further supplemented by resource additions and upgrades as a result of the increased exploration activity at Blanket in the future,” said Curtis.
Blanket plans to increase production from 56 135 ounces in 2017 to approximately 80 000 ounces in 2021; Blanket’s target production for 2018 is between 55 000 and 59 000 ounces.