PEA determines IRR of 267% for Blanket mine

A preliminary economic assessment (PEA) based on triple-listed Caledonia Mining’s 49%-owned Blanket mine’s revised investment plan has determined an internal rate of return (IRR) of 267% for the project. The study also calculated a net present value for the mine, arising from reserves and the inferred resources used in the revised plan, at $147-million. It further found that, of the ounces that had to be produced for the cumulative cashflow arising from the revised plan to become positive, only 3% would come from resources that were currently classified as inferred.