Modern Mining March 2015

MINING News

Caledonia provides update on Blanket

mence, as scheduled, in July 2015. Two 3 100 kW double-drumwinders have been acquired which, once refurbished, will be sufficient for the sinking phase and even- tual production up to a depth of 2 000 m below surface. Steve Curtis, Caledonia’s Chief Executive Officer, commented: “The Board is pleased with the ongoing implementation of the Revised Investment Plan and we look for- ward to keeping the market updated with further progress.” 

In November last year, Caledonia Mining Corporation, listed on the TSX and AIM, announced the Revised Investment Plan and production targets for the Blanket gold mine near Gwanda in Zimbabwe. In terms of the plan, Blanket is develop- ing a‘Tramming Loop’750 mbelow surface and continuing to sink the No 6 Winze to provide rapid – but limited – access to deeper level resources. In addition, it is sinking a new 6-m diameter Central Shaft from surface to 1 080 m. The new Central Shaft will provide access to the current inferred mineral resources below 750 m and allow for further exploration, develop- ment and mining in these sections along the known Blanket strike, which is approxi- mately 3 km in length. On December 2, 2014, Caledonia pub- lished a Preliminary Economic Assessment

of the Revised Plan which includes the following conclusions: an Internal Rate of Return of 267 % and a Net Present Value of the Blanket mine of US$147 million. Caledonia has now provided an update on the implementation of the Revised Plan as at the end of January 2015. Work on the Tramming Loop began in November 2014. Some 384 m out of the total length of 800mhave been completed and the loop is on target for completion as scheduled in June 2015. A further 60 m of sinking is required at the No 6 Winze to achieve the interim objective of 930 m below surface. Completion of the No 6 Winze is expected, as planned, at the end of July 2015. The winders at No 6 Winze have been installed and commissioned. At the Central Shaft, preparatory work is in hand to allow pre-sink work to com-

Askaf iron ore project comes to a standstill

In October 2014, ASX-listed Sphere Minerals (which is controlled by Glencore) initiated a slowdown and a review of the Askaf iron ore project in Mauritania. Iron ore prices in China were then approximately US$80/t; the 2015 year-to-date average price is around US$65/t. Based on the results of the review, Sphere says it has concluded that while there are potential improvements in operating costs, capital efficiency and product quality, at cur- rent prices there is no prospect for profitable development of theAskaf project. Accordingly, it has determined to defer further develop- ment of Askaf. All construction commitments are being closed out, expenditure minimised and employment numbers reduced. Sphere says it will continue to monitor and assess market conditions and whether it is economic to restart the Askaf project at some time in the future. Sphere reports, however, that the fea- sibility study on the El Aouj project, also in Mauritania, is continuing. It is beingmanaged by the El Aouj Joint Venture Company. 

The Blanket gold mine near Gwanda in Zimbabwe showing the No 4 Shaft headgear. The mine is to sink a new 6-m diameter Central Shaft from surface to 1 080 m (photo: Caledonia).

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