Caledonia Mining Corporation (CMCL)

[NYBob]

Caledonia Mining Corporation Plc Q1 2019 Production Update
ST. HELIER, Jersey, April 16, 2019 (GLOBE NEWSWIRE) --

Caledonia Mining Corporation Plc (NYSE AMERICAN: CMCL; AIM: CMCL; TSX: CAL) (“Caledonia” or the “Company”) announces quarterly gold production from the Blanket Mine (“Blanket”) in Zimbabwe for the quarter ended March 31, 2019 (“Q1 2019” or the “Quarter”). All production numbers are expressed on a 100 per cent basis and are based on mine production data and are therefore subject to adjustment following final assay at the refiners.

Approximately 11,948 ounces of gold were produced during the Quarter. Caledonia maintains its 2019 full year production guidance of 53,000 ounces to 56,000 ounces and remains on track with progress towards its target of 80,000 ounces by 2022.

Commenting on the announcement, Steve Curtis, Chief Executive Officer, said:

“Production in the first quarter of 2019 was slightly below our target and below the comparable quarter in 2018 (Q1 2018: 12,924), albeit at a level which allows us to maintain our 2019 production guidance of 53,000 to 56,000 ounces for the full year. Continued difficulties with unstable electricity supply and grade dilution which we experienced in 2018 had an adverse effect on production, but improved drilling and blasting practices have been put in place in pursuit of improved grade control and I am pleased to say that efforts to minimize dilution are proving successful.”

“Our technical team has worked tirelessly to mitigate the effects of electricity supply interruptions and we continue to work closely with the Zimbabwean electricity supply authorities to address these challenges as well as investing internally to improve our resilience to this issue.”

“The sinking of the central shaft continues according to plan; we are now only months away from the completion of the shaft sinking phase of the project and are set to commence shaft equipping from mid-2019. We look forward to commencing production from the central shaft from mid-2020 which is expected to deliver the Company’s growth plan to achieve 75,000 ounces in 2021 and 80,000 ounces by 2022.”

About Caledonia Mining
Caledonia’s primary asset is a 49 per cent interest in an operating gold mine in Zimbabwe, Blanket. In November 2018, Caledonia announced that it had signed a legally binding agreement to increase its shareholding in Blanket to 64%, subject to the receipt of, amongst other things, regulatory approvals. Caledonia’s shares are listed on the NYSE American (symbol: CMCL) and on the Toronto Stock Exchange (symbol: CAL), and depositary interests representing the shares are traded on London’s AIM (symbol: CMCL).

As at December 31, 2018, Caledonia had cash of approximately US$11.2
million.
The Company plans for Blanket to increase gold production from 54,511
ounces in 2018 to approximately 75,000 ounces in 2021 and approximately
80,000 ounces by 2022;
Blanket’s target production for 2019 is 53,000 to 56,000 ounces.
Caledonia expects to publish its results for the quarter
to March 31, 2019 on or around May 14, 2019.

Caledonia Mining Corporation Plc
Mark Learmonth
Maurice Mason

http://www.caledoniamining.com

Tel: [phone]
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WH Ireland
Adrian Hadden/Jessica Cave/
James Sinclair-Ford


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Blytheweigh
Tim Blythe/Camilla Horsfall/Megan Ray
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The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.
Cautionary Note Concerning Forward-Looking Information

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