The Toronto-based company nearly doubled its revenue, from $11.5 million in 2009 to $22.4 million last year, giving a profit of $8.3 million and net income of $2.257 million. It had $1.1 million in cash at the end of 2010.

Caledonia attributed the revenue spike  to higher gold production from the Blanket Mine. Production doubled from 3,100 ounces in Q1 2010 to 6,228 ounces in the last quarter of the year — due mainly to the expansion of a mine shaft.

Higher gold prices and lower cash costs were also factors. Caledonia realized an average gold price of US$1,273 per ounce compared to $1,099 in 2010, with the price jumping to $1,384 in Q4. Cash costs for the year were US$751per ounce, similar to 2009, but dropped dramatically in Q4 compared to the same period in 2009, because fixed costs were spread over higher production, according to Caledonia.

CEO Stefan Hayden said the $546 cash cost achieved in the last quarter is more representative of what the mine expects to achieve at the higher production level. He said underground exploration work currently underway is expected to be completed in the second quarter.

Read more here:
Caledonia Mining doubles production at Blanket Gold Mine, Zimbabwe

Vancouver-based Luna Gold Corp. produced 10,905 ounces in November and December, with combined 90-day average throughputs over 3,615 tonnes per day, the company announced on Feb. 9. Peak daily throughputs were as high as 5,000 tonnes. The plant is on target for meeting its 4,500-tpd capacity by April 2011.

“Over the course of its construction and production ramp-up, Aurizona has overcome significant challenges and achieved an operational milestone today with the commencement of commercial production,” said Luna Gold President and CEO John Blake.

“Our operational and exploration teams have demonstrated their skills and expertise to achieve this production milestone. We will apply these skills to our next suite of growth projects, which include the expansion of the Aurizona production capacity, increasing the Aurizona resource base, advancing the Cachoeira development project and fast tracking new discoveries in our highly prospective 170,000 ha land holding in Maranhão State.”

Aurizona’s feasibility study has a processing capacity  of 55,000 ounces in its first year of operations, ramping up to 60,000 ounces of gold per year for an 11-year mine life, the company stated.

Meanwhile, on Feb. 10 Luna Gold released a NI-43101 report for its Cachoeira project in northern Brazil. The report outlines 12.5 million tonnes of indicated gold resources at 1.11 g/t Au (446,000 gold ounces), and 5.4 million tonnes inferred at 1.27 g/t Au (221,300 gold ounces). The deposits are open along the strike and at depth.

For more details on both announcements, click here
Read more here:
First gold pour at Aurizon mine, Brazil