Blanket output increases as group doubles revenue
Harare – BLANKET Gold Mine’s full year output doubled to 6 228 ounces, helping boost group revenues for the TSX-listed Caledonia Mining Corporation. Gold production from the Blanket mine doubled during the year from approximately 3,100 ounces in the quarter ended March 31, 2010 to over 6,228 ounces in the quarter ended December 31, 2010. The group also said Blanket’s performance saw revenues double from the US$11.5 million recorded in 2009 to US$22.4 million, yielding gross profits of US$8.3 million and net income of US$2.2 million. Caledonia chief executive Mr Stefan Hayden attributed the improved performance to the completion of an expansion programme, more reliable power supplies and higher gold prices on the world market. “The completion of the No. 4 Shaft Expansion Project dramatically improved the operating performance at Blanket due to increased production capability, particularly towards the end of the fourth quarter,” he said.