Caledonia Mining Corporation (CMCL)

[NYBob]

Caledonia Nama Cobalt and Copper Projects - Caledonia Nama Limited,
a wholly owned subsidiary of Caledonia,
holds four contiguous Large Scale Mining Licences, which
cover approximately 800 square kilometres on
the northern extension of the Zambian Copperbelt.

The northern boundary of Caledonia's licence areas
is the Congolese border and the eastern boundary is
with licences areas that are held by a joint venture between
Vale and African Rainbow Minerals where a new copper mine (the
Konnoco mine) is currently under construction.

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



NAMA neighbor; African Rainbow, Vale start building $380m Zambia copper mine
JOHANNESBURG (miningweekly.com) –

Konnoco Zambia, the joint-venture (JV) company
owned by South Africa-based African Rainbow Minerals (Arm) and
Brazilian miner Vale, has started construction on the $380-
million Konkola North copper mine project.

The JV partners on Friday announced that they viewed the project
as an early development for a copper growth strategy in Africa.

The mine, which will have a design throughput of 2,5-million tons
a year of ore to yield 45 000 t/y of contained copper in
concentrate, was Arm’s first venture on the African continent
outside South Africa.

“The new copper mine that we are building in Zambia with our
partner Vale is significant because it adds a new exciting
commodity to our diverse commodity portfolio and is also our
first investment in Africa,” said Arm chairperson Patrice
Motsepe.

Arm would house the project under a new division, Arm Copper.

The concentrator plant at Konkola North
would be commissioned within the next 27 months, with
the project expected to reach full production by 2015.

The mine has an expected life of 28 years, but the JV partners
have started a further three-year exploration programme on an
additional exploration area that could potentially double output
at the mine to 100 000 t/y of copper in concentrate.

Last year, Arm CEO Andre Wilkens indicated that the group would
aim to produce at least 100 000 t/y of copper in five years.

Arm already mines coal, manganese, iron-ore, platinum, nickel and
chrome and sees copper as a “very good commodity” to be in.

Vale Inco now just 'Vale'
TORONTO (miningweekly.com) –

NAMA neighbor; Nickel-miner Vale Inco will trim its name down to just Vale,
the Brazilian-owned group said on Thursday.

Rio de Janeiro-based Vale, the world's second-largest mining
company, bought Canadian nickel-miner Inco in late 2006.

The global nickel business will continue to be headquartered in
Toronto, Vale nickel CEO Tito Martins said.

“Our nickel business today is larger than it was in 2006, when we
first invested in Inco and we are building on that investment
every day,” he added.

Vale's nickel unit has more than 11 000 employees worldwide and
net sales in 2009 of $3,26-billion, accounting for 13,6% of
Vale's overall global revenue.

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.

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