Caledonia Mining Corporation (CMCL)

[NYBob]

Caledonia Mining Corporation Nama Copper/Cobalt Exploration Project, Zambia: Summary of Results of the 2011 Exploration Programme and Outline of the 2012 Exploration Programme -



TORONTO, March 12, 2012 /CNW Telbec/ -

Caledonia Mining Corporation -
(the "Company") (TSX: CAL) (OTCQX: CALVF) (AIM: CMCL) is
pleased to announce the results summary of the 2011
exploration programme at its Nama Copper/Cobalt Project in
Zambia and outline the exploration programme for 2012.

Highlights -

The results from the 2011 drilling programme demonstrate a new
and very exciting aspect to the Nama Copper/Cobalt Project
A new mineralised copper zone has been identified

Estimated weighted average copper grade - 0.47%

Estimated weighted average thickness - 41 metres

Intersected depths of between 280 and 450 metres

A sufficiently large, near-surface resource up-dip from the
existing drill holes may provide the basis for a future open-
pit mining operation -

The 2012 exploration programme will now commence as soon as
possible and will include the following three phases of
drilling:

Phase 1: 2,400 metre drill programme to explore for potential
shallower up-dip continuation of the new mineralised zone to
surface

Phase 2: 6,000 metre drill programme to explore for potential
deeper down-dip continuation of the new mineralised zone

Phase 3: A possible resource drilling programme to quantify the
shallower up-dip resources.

This phase cannot be finalised at this stage as the scope of
this programme is entirely dependent on the evaluation of the
Phase 1 programme results.

The costs of these drilling programmes will be fully funded from
current cash resources.

Commenting on these exploration results, Stefan Hayden,
Caledonia's Chief Executive Officer and President said:
"The 2011 drilling programme at Nama identified a new and very
exciting aspect to Nama.
What we have found differs markedly in mineralisation style to
other properties in the region in that the zone we have
identified occurs in an atypical Copperbelt setting and
occurs in rocks overlying the Ore Shale.
This zone of mineralisation occurs at relatively shallow depth
relative to the depth of the Ore Shale in the area and possibly
extends to surface.
A sufficiently large, near-surface resource depth may therefore
provide the basis for a future open-pit mining operation.

"The 2012 exploration programme will commence as soon as the
rains and ground condition allow during the second quarter.
The results should allow us to confirm and further refine
our model of Nama's geology and copper resources potential.
Caledonia has sufficient cash to complete the 2012 exploration
programme and intends to manage its cash resources so that it
can undertake further work at Nama without raising new equity."

Background to the Nama Project -

Caledonia holds four, contiguous large scale mining licences
covering approximately 800 square kilometres on the Zambian
Copperbelt.

The northern boundary of Caledonia's licenced area is the DRC
border and the eastern boundary abuts the licence area that
is held by a joint venture between Vale and African Rainbow
Minerals where a new copper mine is currently under
construction.

Prior to the 2011 programme, exploration activities had defined
three main styles of mineralization in the Nama Licence area:

a) "A-type" cobalt oxide mineralisation;

b) "D-type' iron oxide bodies which are mostly enriched in
Cobalt; and

c) Copper dominated ore shale hosted copper-cobalt
mineralisation, commonly observed elsewhere in the Copperbelt
and which is being exploited by neighbouring mines to the east
and south of the Nama Licence Areas.

2011 Exploration Programme

The 2010 exploration programme identified two resource targets
at Nama (being "Konkola East" and "Kafwira") which were
characterised as belonging to the ore shale-hosted copper-
cobalt style of mineralisation.

The 2011 programme was focussed on Konkola East where a four-
hole diamond drilling programme was carried out with the
primary objective of confirming the existence of Ore Shale
member of the Copperbelt stratigraphy.
The results of this programme confirmed the existence of Ore
Shale in all holes.
The Ore Shale intersection in holes 1 & 2 was at depths and
copper grades that do not merit further exploration at this
stage.

Evaluation of the drill core extracted from holes 3 and 4
identified a zone of mineralisation which occurs at
considerably shallower depths than the Ore Shale and does not
occupy a specific stratigraphic layer as would be expected.

Assays of the mineralised zones identified in holes 3 and 4
were sufficiently encouraging to warrant a fifth hole being
drilled in late 2011 and which also intersected the newly
identified mineralised zone.

Preliminary Evaluation of the Results of the 2011 Drilling Programme

The new mineralised zone identified in holes 3, 4 and 5 is
considered to be a contiguous zone.

The assay results for the three intersections have a weighted
average of 0.47% copper over a weighted average width of
41 metres at depths of between 280 and 450 metres.

Holes 3 and 4 are approximately 1,650 metres apart representing
a minimum strike length of the mineralisation.

The interpreted structure of the mineralised zone suggests that
the zone may extend to surface within the Nama Licence.

Although the copper grades of the newly identified zone are
lower
than existing mines in the region, the zone is relatively
shallow and the ore mineralogy appears particularly suited
to low-cost metallurgical processing.

2012 Exploration Programme

Caledonia's Board has reviewed the results of the 2011
exploration programme and the recommendations of management and
has approved an exploration programme for Nama in 2012 which
has the following objectives:

Phase 1: drilling of additional holes comprising approximately
2,400 metres with the objective of identifying a continuation
of the newly discovered mineralized zone towards surface.

This phase of the exploration programme is expected to start as
soon as ground/weather conditions permit and results for this
work are expected 4 to 5 months thereafter.

Phase 2: drilling of additional holes comprising approximately
6,000 metres with the objective of identifying the nature of
a deeper continuation of the above mineralised zone.

This work will take place after completion of
Phase 1 and is expected to take approximately 8 to 10 months.

Phase 3: Provided the results of the Phase 1 programme are
positive, a drilling programme focussed on delineating and
evaluating resources compliant with NI43-101 will be presented
to the Caledonia Board for approval prior to possible
commencement.

This Phase may commence during Phase 2 activities.

Substantial additional exploration work may be required in
future years to arrive at a NI43-101 compliant resource
statement.

Caledonia has sufficient cash resources to cover all of
the exploration costs for 2012.

Caledonia intends to manage its cash resources so that it
retains the financial capacity to progress this project as far
as possible without requiring third party involvement or equity
funding.

Dr Pearton, BSc Eng. (Mining Geology), PhD (Geology), and
Fellow of the Geological Society of South Africa,
is Caledonia's VP Exploration and a "Qualified Person"
as defined by NI43-101.

Dr Pearton consents to the inclusion in the release of
the matters based on his information in the form and context
in which it appears.

Caution Regarding Forward Looking Statements:

Information included in this release constitutes forward-looking statements----be identified or that required
regulatory approvals will be obtained.

Caledonia Mining Corporation
Mark Learmonth
Tel: + 27 11 447 2499
[e-mail]

Renmark Financial Communications Inc
John Boidman or Nadia Marks
Tel: [phone] or [phone]
[e-mail]
[e-mail]

Newgate Threadneedle
Terry Garrett /Beth Harris/Graham Herring
Tel: [phone]

Collins Stewart Europe Limited
John Prior / Sebastian Jones
Tel: + 44 20 7523 8350

Collins Stewart LLC
Dan Mintz
Tel: [phone]
[e-mail]


Further information regarding Caledonia's exploration activities
and operations along with its latest financials and Management
Discussion and Analysis may be found at

http://www.caledoniamining.com

CALVF The Nama Cobalt Project in Zambia -
A World Class Deposit -

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http://www.caledoniamining.com/pdfs/CALPres12062011.pdf



http://www.proactiveinvestors.co.uk/LON:CMCL/Caledonia-Mining/
http://www.caledoniamining.com/pdfs/CALPres11212011.pdf

God Bless