The company is sufficiently confident Zimbabwe will recover from its problems to re-invest on a modest scale.
Caledonia Mining Mining News
After completing the transaction, Caledonia will own 64% of Blanket.
We would like to see each and every asset owned by ZMDC getting into production - Mines Minister Winston Chitando
The company is negotiating the possibility of buying the government’s 16 per cent stake in the Blanket project.
An accident took place in the Blanket Quartz Reef area of the mine.
Caledonia Mining increased gold production by 17% and nearly doubled its profit to $5,248,000 compared to $2,815,000 in the fourth quarter 2010. Announcing its Q1 results on Wednesday, the company also said that its average cash cost per ounce of gold produced decreased by 18% to US$648 compared to the fourth quarter 2010. As of March 31, 2011 the company had net cash and cash equivalents of $1,406,000.