Caledonia Mining Corporation (CMCL)

[NYBob]

Caledonia Mining happy with Blanket upgrade progress -
27th Feb 2015, 2:36 am by Philip Whiterow

A new central shaft will be built that will almost double the mine’s
production.


A new central shaft will be built that will almost double the mine’s production.

Caledonia Mining Corporation (TSE:CAL) (LON:CMCL)
has made progress on the new development plan for
the Blanket mine in Zimbabwe, it said today.

A new central shaft will be built that will almost
double the mine’s production.

Almost half of the new tram loop has been completed while
preparatory work on the new shaft is on schedule with
excavation to begin in July.

Steve Curtis, chief executive, said he was pleased
with the ongoing implementation of the revised investment plan.

Blanket is forecast to produce 42,000 ounces of gold this year, but
after the central shaft development,
output will rise to around 80,000 ounces.

We are one of Africa’s Lowest-Cost Listed Gold Producers.
The Blanket Mine complies with Zimbabwean local ownership requirements
and has an internally-funded plan to increase production to
approximately 80,000 ounces -
We pay a quarterly dividend with an annual yield of 8%.

Caledonia had cash of C$27.9 million at September 30, 2914:
the aggregate annual dividend of 6 cents per annum (paid in quarterly
installments of 1.5 Canadian cents per quarter)
is 9-times covered by cash on hand.

Allan Gray, one of South Africa’s largest institutional investors,
acquired 12.25% of Caledonia in early 2014.

We are looking to continue the process of diversifying our shareholder
base by reaching out to a global audience outside Canada.

http://www.caledoniamining.com/pdfs/LOMP%20%2031102014.pdf

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God Bless