Caledonia 3rd Q's Recorded Net Profit of $8,442,000 compared to $742,000 in the comparative quarter which represents an 11-fold increase -
Caledonia Mining says Q3 after-tax profit reaches $6.1 million - By The Canadian Press | November 10, 2011
TORONTO - Caledonia Mining Corp. (TSX:CAL) says it made an after-tax profit of $6.1 million in the third quarter, or $1.23 per share.
That was a handsome increase over the $742,000, or 15 cents per share, the company made in the same period a year ago. Caledonia's quarterly revenue was $16.6 million compared to $6.3 million in the third quarter of 2010.
The increase in profit was primarily due to an 18 per cent boost in gold production and a 15 gain in the average price of gold.
Toronto-based Caledonia is an African-focused miner with the operations in Zimbabwe, South Africa and Zambia.
In late August, Caledonia said it had resolved a dispute with Zimbabwe over the future ownership of the company's Blanket gold mine.
Carbon in Leach Circuit.
Secondary Crushing & Screening Circuit feeding the Mill bin.
Genset Hall, showing gantry lifting system (Date taken, 10 May 2011)
Other Exploration Projects
Eagle Vulture Gold Mine: headgear, winder house and compressor house on the extreme right (February 2011)
Blanket will continue its exploration activities on other brownfield projects subject to the availability of funding. These activities will include detailed sampling and pitting of the previously identified gold anomalies in order to determine the potential scale of the mineralisation.
While larger occurrences will be followed up and drilled by Blanket itself, the smaller prospects may be combined with adjoining claims held by third parties such that viable mining entities may be formed. Blanket would retain an interest in such properties.
New headgear above the existing Mascot God Mine shaft which extends down to 4 Level 150 m below surface (taken September 2010).
On certain of its properties, Blanket has already entered into tribute agreements with indigenous, small-scale miners. The tribute agreements provide for Blanket to receive a royalty in respect of any production from the relevant properties. Tribute agreements also allow Blanket full visibility of the results of any exploration and mining activities that are undertaken on the properties by the tributee.
Blanket has brownfields Gold Mines projects in the vicinity of the existing mine operations, many of which were mined commercially from the early 1900s until the 1960's.
At the time of their closure, only the highest grade portions of these mines had been extracted, leaving significant amounts of lower grade mineralisation in the workings.
In addition, these old ore shoots remain open to depth and require further exploration to determine their full potential.
New headgear, winders and winder house and compressor installed for the purpose of sinking a new shaft down to Level 4 (approx. 150m below surface).
Advances in exploration, mining and metallurgical technologies over the last 40 years means that such old workings may now potentially be economically viable on a sustainable basis and not just because of the high gold prices which currently prevail.
Some of these workings therefore have substantial infrastructure in place which facilitates more rapid underground access for exploration, development, evaluation and the potential resumption of mining activity.
Blanket has commenced exploration on certain of these areas in order to better assess their suitability for further development as potential satellite operations, providing sources of broken ore for the existing Blanket metallurgical plant.
Blanket already has installed facilities to receive broken ore by road from satellite mines and it has substantial surplus capacity in its crushing, milling and CIL circuits.
The brownfield projects that have been prioritised as targets for immediate exploration development -
GG Gold Mines Project - is located approximately 7 km south of the existing Blanket Gold Mines operations -
The GG targeted ore body occurs in sheared and altered basaltic rocks of the Mafic unit (like Blanket's ore shoots) and old workings are limited to shallow excavations.
Blanket carried out a preliminary geological investigation followed up by a 16-hole diamond drilling program which showed encouraging gold values over highly varying widths.
Gold enrichment is associated with arsenopyrite which occurs in quartz shears within broad zones of bleaching (carbonate and mica alteration).
The highest grades are associated with the intersection of two vertical shear zones and therefore follow a steep shoot structure with a strike of about 150 meters.
The mining of exploratory drives, raises and cross-cuts will be required to determine the shape of the mineralisation in 3D and hence determine the optimal shape of the shoot for mining purposes.
Work commenced on excavating a 140 meter deep exploration shaft in May 2010 and underground development is expected to commence on the 60 m and 120 m levels in late 2011.
Pre-sink work has been completed and the headgear and a winder have been installed.
This development will provide the exposure necessary to map out the geology and evaluate the mineralisation, as well as provide a bulk sample of reef material for metallurgical testing.
All reef development ore that can be treated profitably at Blanket's metallurgical plant will be sent there for treatment. In the event that the GG prospect is shown to be viable, production could re-commence with more work of investments -
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