Caledonia Mining produces 12,509 oz gold for quarter

Caledonia Mining Corp. Plc [CAL-TSX; CALVF-OTCQX; CMCL-AIM] has released its gold production results from its 49%-owned subsidiary, the Blanket Mine in southwest Zimbabwe, for the quarter ended June 30, 2016. Indigenous Zimbabweans own 51%.All production numbers are expressed on a 100% basis and are based on mine production data, and are therefore subject to adjustment following final assay at the refiners.

Approximately 12,509 ounces of gold were produced during the quarter, representing a 20% increase on the gold produced in Q2 2015 (10,401 ounces) and a 16% increase on the gold produced in Q1 2016 (10,822 ounces).

Targeted gold production for 2016 is approximately 50,000 ounces, unchanged from previous guidance. Quarterly production for the remainder of 2016 is expected to increase progressively to approximately 14,000 ounces by the fourth quarter of 2016 as production from below 750 metres increases over the course of 2016.

Commenting on the production for Q2 2016, Steve Curtis, Caledonia’s chief executive officer, said, “Production in the second quarter was slightly higher than planned demonstrating that Caledonia and the Blanket Mine remain on track to deliver our target performance of 50,000 ounces for 2016. Production in the quarter includes production from higher-grade material below 750 m, which is accessed via the No. 6 winze and decline development. Both of these capital projects commenced production in late March, 2016.”