Caledonia Mining Corporation (CMCL)

[NYBob]

Caledonia Blanket Gold Mines - A Look On Gold From The $$ & Non-USD Perspective -

$Gold Chart priced in USD LT -


$Gold Chart priced in the Canadian Dollar -


$Gold Chart priced in the Australian Dollar -


Gold Chart priced in EURO -





From Jim Sinclair...My Dear Extended Family...
Let's keep things very simple:

1. The future of gold will not be determined by the USA.

2. The present manipulation in gold is purely Western, and any
other thought is rank nonsense. This event is both short term and
very short sighted in terms of people's published analysis.

3. The triumvirate of Euroland, Russia, India, China etc...
will determine the future of gold as financial power has shifted
from the West towards the East.

4. The strategy of the flushing of Lehman Brothers was to initiate
a transfer of failed and to fail debt and debit, producing
obligations in all forms from the balance sheets of international
banks and investment banks onto the only entity that could
mechanically accept them in infinite amounts, the balance sheet
of Western central banks.
To avoid a total and terminal collapse of Western finance,
the US Fed had to take the entirety of the problem onto its
balance sheet in exchange for newly
created electronic bank wired funds.

5. This cash then simply filled an empty hole that was
not visible to a general public because of the willingness of
FASB to allow these institutions to call what
was worthless as full value.

6. The means of the transfer is presently and was QE.

7. QE was a total success in stopping an absolute economic
collapse of the West in an unprecedented economic proportion.

8. QE was for the banks and not for anything else.
It filled a black hole made invisible by FASB capitulation
to politic pressure allowing fraudulent computer valuations.
This gave birth to the large equity rally off the bottom in
early 2009 within two weeks of the FASB's capitulation.

9. Because of the nature of QE, the only real economic stimulant
was the wealth effect of a roaring equity market.
That left Main Street totally out of the equation and
did nothing to reverse the long term bull trend in unemployment.

10. Any consideration of an exit formula for the Fed to reduce
the size of its balance sheet must take into consideration
the quality of the assets that QE has purchased, which is
known to have a strong emphasis on paper that truly has and
will never have a market.
For those assets that do have a market, sales of the dimension
of the purchase would certainly impact interest rates in a most
alarming way because of the lack of international buying
of US Federal debt.
All debt markets affect all other debt markets from
the loan shark to the US treasury.

11. So there must be a way of doing the necessary in order to
compensate for the weak asset expansion of the balance sheet
of the Fed and other central banks because there is
no exit strategy despite the over-educated academics
that would try and convince you otherwise.

12. I am the most practical market related writer in this field.
I assure you all talk of an exit program is based on a full
recovery to opulent economic times that
QE is not designed to produce, nor can.

13. Because the problem at the time of Lehman Brothers was so
great, there wasn't even a good estimate of its size so that
QE had to be to infinity.
I stated that many years before Bloomberg.

14. Therefore the solution to the present problem that must take
place before there is any chance of real economic recovery is
that central banks must balance their balance sheet in
an economic condition as present and predicted here to remain
about the same or worse that permits absolutely no exit strategy.

15. That means that the price of gold as the other central bank
asset must rise in the free market significantly so that
the balance sheets of the Western world central banks begins
to heal and maybe even balance.

16. The mathematics of the price of gold are well in excess of
the two magnets now functioning at $2111 and
revolving around $4000.

17. Marry this concept to the recent memo of CIGA Belgian and
you have the total solution to the present problem that
no other mechanism can produce.
This will be initiated not by the USA, but
by Euroland, Russia and China.

Bottom lines:
Now add the text of the discussion of earlier this week on
the ascendancy of the euro as we enter the final chapter of
the Monetary Crisis of 2008 caused by
the fraud of OTC derivatives, a crime with
many millions of victims and
potentially a lost generation.
Not one of the major perpetrators
suffered corporal repercussions.

Jim Sinclair's Commentary

This is a brief of discussions within a private
self financed research group in Holland.

It demands respect and my gratitude for their contribution of
this ever more complicated subject,
Gold.

They can be reached at goudstudieforum.com

Jim,


The Asian wealth producers (physical economy) and
the major oil and gas owners, sympathize with
the euro goldkoncept, that concept being,
the market revaluation of
Gold without any link to any currency.
(Remember the Duisenberg Speech.)

Gold, the wealth reserve (so not as a currency),
shall be freely valued at the world's gold auctions.
The demise of the old dollar standard and rise of
the Gold value standard and reserve.

Real value should be priced in and exchanged for
a currency that also values, recognizes and promotes
Gold as a value standard.
That currency is not the dollar, but the €
(€ system and regime).

This (brilliant) idea/concept is not new.
The early pioneers were Jacques Rueff and Triffin.
Read: The Monetary Sin of the West.

Both wanted, but disagreed, to a free-floating Gold price
(value) during the London Gold Pool period (sixties).
Their (Reuff and Triffin's) point was:

Financial, monetary, and economic global stability by introducing
not co the Gold Value Standard.
The Dollar-regime (system) refused and forced the acceptance
of the absurd SDR (paper gold).

But the two-tier Gold market was born:

Monetary ($)Gold and non-monetary Gold.
Oil and Asians keep accumulating physical Gold and
the € currency (€-system) that favors
Free Floating Gold Value.
Stability means that value should be exchanged for value.
Currencies that recognize the value of gold as a wealth
reserve are worth to buy valuable oil and products.
The owners and producers of wealth get the assurance that their
wealth can be safely stored as a reserve in free floating
Gold value, the only appropriate store of wealth.

That's the running transition out of the non-wealth $-system.

CIGA Belgian

Conclusion to both briefs:

You have all the mechanical parts of the solution to the problem.
The progress toward resolving this mess will again make huge
profits for the "Good ole boys club," particularly the Yalies.

Gold will move up in the free market and that is what this
reaction is all about.
The Canadian Dollar, Swiss and Euro will all benefit.
Gold will not be confiscated because it becomes a major asset
of the insiders.
Gold producing companies with low cost operation will
enjoy the leverage common to that industry in
what is about occur.
The amount of bearishness now developing in gold and certainly
in good gold shares is the ultimate contrarian's
dream about to come true.

This is the Golden stage.
It is so simple it is almost silly, but few if any,
really get it.

Respectfully,
Jim

Caledonia Mining -
The CIL plant has a nameplate capacity of 3,800 tonnes of milled ore
per day and current run only at 1000t/day to
produce Au 50000 oz/year it can be target 4 times as much -

Elution of the gold from the loaded carbon and electro winning
is done on site.

Gold is deposited onto steel wool cathodes, the loaded cathodes
are acid-digested and the resultant gold solids are smelted in
an induction furnace to produce gold bullion of
approximately 90% purity....



http://www.caledoniamining.com/blanket3test2.php

CALVF to speed UP the ore production to the mill and
increase production to 100,000 oz/year ++++

http://www.caledoniamining.com/blanket4test2.php

Blanket Gold Mines have a 3,000 ton/day production plant and
is still only producing at 1000 t/day but
increasing profitable gold production fast -

http://www.caledoniamining.com/blanket2test2.php

history often repeat itself -


Queen Sheba's Gold Mines -
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Merry Christmas & Happy New Year -
God Bless