LONDON (Alliance News) - Caledonia Mining Corp Monday said it saw lower gold production from its 49%-owned subsidiary Blanket Mine in Zimbabwe in the quarter ended March 31, compared to the quarter before.
Caledonia said 10,607 ounces of gold were produced in the quarter, up slightly from 10,472 ounces in the previous year, but down 7.2% from 11,429 ounces in the fourth quarter of 2013.
Results were hit by the achieved grade of gold being lower than the targeted 3.83 grammes per tonne of gold, due to a sub-horizontal fault at the AR South ore body between 680 and 695 meters below the surface. This displaced the ore zone to the west and south, Caledonia said, which led to production being stopped on these panels.
Caledonia established other panels at the required grade, and expects to maintain an average grade between 3.60 to 3.83 grams per tonne of gold. It said "closer attention will be paid to grade control in future."
Caledonia maintained its gold production target for 2014 at 48,000 ounces.
Shares in Caledonia were trading down 3.1% at 43.60 pence Monday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Caledonia Min (CMCL)