Caledonia Mining Corporation (CMCL)

[chevy56]

(50,000 ounces will be achieved) Chief Executive Officer, Steve Curtis, said,

"Blanket Mine's operating performance continues to improve with the investment programme being implemented as planned, resulting in continued robust cash generation for Caledonia Mining and Blanket's indigenous partners.

"The investment that all stakeholders have made in the Blanket Mine over the past 20 months continues to bear fruit with increased operational flexibility and production volumes. I am now confident that our production guidance of 50,000 ounces in 2016 will be achieved.

"The planned increase in production up to 80,000 ounces by 2021 is expected to result in a lower average cost of production as fixed costs are spread across an increased number of gold ounces. I therefore expect that the benefits of incremental volume will become increasingly evident in the months and years to come."

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