Caledonia Mining Corporation (TSE:CAL)

[NYBob]

The drilling program at the Nama base metals project in Zambia
commenced in March 2011 to identify typical copper-belt type
mineralization.

Drilling of the first of four holes at the Konkola East target
area commenced in early March 2011 and the results of this
program are expected to be received in mid-2011.

Note.
At the Nama Project in Zambia, the 2010 work program focused
on metallurgical issues, the design considerations of
specialized plant and equipment while the exploration program
focused on completing and updating an evaluation of all the
known cobalt/copper anomalies.

Field work and desk studies in 2010 were also undertaken on
the Ore Shale horizon which hosts the typical Copperbelt type
mineralisation.

The presence of Ore Shale is known from previous shallow drilling
to extend into the Nama licenses for a distance of about
four kilometres from its eastern boundary.

The neighbouring Konkola and Konnoco Mines
have both reportedly defined substantial copper resources
on their properties.

Exploration activities by Caledonia at Nama during 2010
resulted in the definition of two resource target areas
("Konkola East" and "Kafwira") characterized as belonging
to the Ore Shale-hosted copper-cobalt style of mineralization.

These targets will be investigated further during the 2011
exploration field season, including a drilling program
of diamond drill-holes to confirm the existence of
Copperbelt stratigraphy within the two target areas.

Drilling of the first of four holes at the Konkola East target
area commenced in early March 2011 and the results of this
program are expected to be received in mid-2011.


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http://tmx.quotemedia.com/article.php?newsid=41421795&qm_symbol=CAL

Caledonia Mining First Quarter 2011 Results
May 18, 2011 (Marketwire Canada) --
TORONTO, ONTARIO --

Caledonia Mining Corporation -
("Caledonia" or the "Corporation") (TSX:CAL)(OTCBB:CALVF)
(AIM:CMCL) is pleased to announce its first quarter 2011
operating and financial results.

The financial results below are reported in Canadian dollars,
except where otherwise stated.

Highlights:

Gold production increased by 17% to 7,322 ounces
compared to 6,235 ounces in the fourth quarter 2010 (Q1 2010:
3,129 ounces).
Gold production in April 2011 was 2,737 ounces.

Average cash cost per ounce of gold produced decreased
by 18% to US$648 compared to the fourth quarter 2010
(Q1 2010: US$807).

Average achieved price per ounce of gold was US$1,397
(Q1 2010: US$1,107).

Gross Profit for the quarter (i.e. before depreciation,
amortization and administrative expenses) nearly doubled
to $5,248,000 compared to $2,815,000 in the fourth quarter
2010 (Q1 2010: $449,000).

At March 31, 2011 the Corporation had net cash and
cash equivalents of $1,406,000 (December 31, 2010: $398,000).

During the quarter Caledonia made considerable progress
in removing the remaining constraints to Blanket achieving
the targeted annual production rate.

The 2011 drilling program commenced in March 2011 at
the Konkola West area of the Nama base metals project in Zambia.

Commenting on the results, Stefan Hayden, President and CEO,
said:
"I am very pleased to report a strong first quarter performance
for 2011.
The increased production coupled with the continued strength
in the gold price and a reduction in Blanket's cash cost
resulted in a substantial improvement in
Caledonia's profitability and cash generation.

"We have made significant progress during the current quarter
to address the remaining constraints which, once solved,
should enable us to reach our target
of 10,000 ounces per quarter.

A new ore pass was raise-bored and commissioned on May 13, 2011.
The commissioning of the complete standby generating system
commenced on May 16, 2011 and is expected to be completed
by the end of May, after which Blanket will be able to
maintain full operations during any interruption to
the normal power supply.

I am confident that Blanket will achieve its targeted quarterly
production from the third quarter of 2011.

"The drilling program at the Nama base metals project in Zambia
commenced in March 2011 to identify typical copper-belt type
mineralization.

This drilling program is expected to be completed by
the third quarter 2011.

http://tmx.quotemedia.com/article.php?newsid=41421795&qm_symbol=CAL

http://www.caledoniamining.com





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