Caledonia Mining updates reserves at South African gold mines

Tonnage and grade are up at the South African gold mines of Caledonia Mining (TSE).

Proven and indicated reserves at the Eersteling gold mine are 746,380 tonnes at 6.71 grams gold per tonne, up from 137,000 tonnes at 4.6 grams gold per tonne reported in 1994. Completion of the shaft deepening and stope development will allow production to increase to 16,000 tonnes per month by the end of 1996, progressing to 20,000 tonnes per month in 1997. Caledonia says exploration and development will continue, with a view to attaining an initial resource target of 1 million oz. gold.

Underground development and drilling at Barbrook have developed a minable reserve of proven and probable ore estimated at 478,000 tonnes grading 5.9 grams gold per tonne; this is up from the 361,000 tonnes grading 3.79 grams reported in 1994. The drilling has established that the orebody continues to a depth of 75 metres below the 10th level, and that it remains open at depth. Drilling and development will continue.

The Barbrook underground mine is under development, with startup planned for late March 1996.

The level of production will start at 10,000 tonnes per month, increasing to 15,000 tonnes by late 1996 and to 25,000 late in 1997.