Caledonia Mining Corporation (TSE:CAL)

[NYBob]

Blanket can produce 40,000 ounces of gold per year
from BLANKET alone, and there are 17 satellite gold properties
within easy trucking distance of Blanket that could be used
to push gold production over 1,000 tones of ore per day.

Let's just take one of these 17 properties, GG, and take a
look at the drilling intersections.

The mining cost at Blanket is $32.51 per tone according to
the 43-101 report, and the economic cutoff is on the order
of 2.3 grams per tone if I remember correctly.

The average gold grade in the mineralized intersections at
GG South is 3.3 grams per tone, and at $500 gold 9 out
of 12 drill holes contained economic gold.

At $1400 per ounce gold, that figure is now 11 out of 12
economic gold intercepts.

At GG North Main, only 2 of 12 holes were economic at
$500 per ounce gold, as the average gold grade was quite
low 1.67 grams per tone.
However, at $1400 per ounce, all of those drill holes
are now economic.

GG South Main contains an estimated 328,000 ounces of gold
at a total value of $312 million dollars,
while GG North Main contains an estimated 138,000 ounces
of gold.
I think that GG has a minimum combined economic value
of $422.7 million US dollars or roughly 80 cents per
fully diluted CALVF share.

That estimate is based on a horizontal strike of 500 meters
times a vertical strike of 200 meters times the respective
mean recoverable gold values of $3,123 USD per square meter
of strike at GG South and $1104 USD per square meter of
strike at GG North.

Here is my updated spreasheet on GG:

http://www.imageno.com/cp4z4x9xa933pic.html

Is it reasonable that there could be 100,000 square meters
of mineralized gold at GG?
Here is my preliminary modeling on GG.
I show two surfaces in the following graphic:
3.0 grams per tone is osurface, and 3.5 grams per tone.
My input assumptions are that the holes at GG were drilled
at a 45 degree down dip, and that the drill holes were long
enough for the SSE holes to intersect the NNW drill holes.

GG modeled on 1000 meter cubed domain at a 5 meter grid
spacing showing every 10th grid point.

http://www.imageno.com/vt9oay6akyxypic.html

http://www.imageno.com/t8ybxf9s7qu5pic.html

Still think CALVF is only worth 13 cents?
by ganndolph at another forum
thanks good info

btw...grapwine...
mugabe 86yrs got prostate cancer -
china made $10s billion investments and
they do protect their Au properties with
guard fulltime carry the machine guns and
plenty of barb wires and high fences -
CALVF will catch on -

dd....
Presentation

http://www.caledoniamining.com/pdfs/Pres_01282011a.pdf

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60571236

http://www.caledoniamining.com

Lindsey Williams says; Gold going $3000 to $4000

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59225432

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60892967

God Bless