Caledonia Mining Corporation (CMCL)

[NYBob]

Blanket Gold Mine is now one of the Lowest Cost
Gold Producers in both Africa and the World,
it highlighted -



The Blanket Gold mine production Au 12,918 ounces of the
Gold 99.999% yellow Gold Au metal;
- Reported in Q3 were produced -
- 12 per cent higher than
the 11,560 ounces generated in the second quarter -

CALVF meanwhile well, its financial position continued to improve
with almost $25 million of cash on hand -
its $.05 per share in cash; increased every quarter after taxes -

• Q3 gold production - Au 12,918 oz

• Q3 Cash costs – US$508/oz

• Q3 Operating cash flow (before capex) – C$ 6.8 million
– C$18 million 9 months to September 30, 2012

• Q3 normalised EBITDA - $9.8 million
– Further improvement on previous 3 quarters -

• CALVF Cash at 30 September 2012 - $24.6 million
– Held in US$ and C$ outside Zimbabwe

• Blanket Gold Mine’s future development strategy
- Funded using internal resources

• Anticipated 700tpd increase in future ore production

• Work continues at three satellite Gold mines properties:
Mascot, GG and Eagle Vulture Gold Mines -

- GG: shaft sinking work has reached 51 metres and will continue
down to 120 metres
- Mascot: Shaft has been re-accessed down to 120 metres and
re-equipped

• Underground development work continues at
Eagle Vulture Gold Mine production -
- with three more Gold Mines it will soon increase the
Gold production to go much higher -

Blanket Gold Mines
Gold production delivered to the refinery in
October 2012 was 4,479 ounces.
Caledonia's financial position continues to improve.
With $25 million+ of cash on hand Caledonia has sufficient
cash resources to invest in its existing projects and also in
potential new opportunities."

Nama Base Metals Project, Zambia

The 2012 drilling programme continued with the objectives of
further identifying and defining extensions of the mineralised
zone identified in 2011 and increasing the confidence level of
the information on this mineralised zone.

As at October 25, 2012, 30 holes and 8,400 metres of drilling had
been completed and three rigs are currently working on the site.

To date, an area of copper mineralization has been defined as
follows:

current identified strike length of 1.3 km and
a dip extent of 900 metres;

mineralisation intersected at depths from 98 to 579 metres;

thickness of mineralized zone varies from 10 to 27 metres;

average copper grade of 0.52%; and

possible extensions of the mineralized zone to the west and
to depths below 580 metres will be drill tested in future.

The 2012 drilling programme is expected to be completed shortly
following which the drill results will be analysed and
interpreted.

Caledonia expects to issue an NI 43-101 compliant
copper resource and reserve statement by June 30, 2013.

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

• RE: the information on this mineralised zone -
As at October 25, 2012,
30 holes and 8,400 metres of drilling had
been completed.
This is more than previously planned and reflects the
commencement of the complete in-fill drilling program.

The 2012 drilling programme will be completed shortly
following which the drill results will be analysed and
interpreted.

Caledonia expects to issue an NI 43-101 compliant copper
resource and reserve statement by June 30, 2013.

• the commencement of cobalt production by June 30, 2013;
the submission of an updated copper sulphide mineral resource and
reserve statement and as
sociated feasibility study and program of operations
by June 30, 2013; and
the commencement of copper sulphide resource exploitation by
March 31, 2015.

• Caledonia’s Board has approved a proposal which it believes
will address the requirement of the Zambian government that
cobalt production commences by June 30, 2012.
This proposal will be discussed with the Zambian authorities and,
once ratified, will be communicated to investors.

• Caledonia has sufficient cash resources to cover all of the
exploration costs budgeted for 2012 and 2013.

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

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81595138

http://www.caledoniamining.com
God Bless