Caledonia Mining Corporation (CMCL)

[NYBob]

hfields thanks, FYI. CALVF short snippet;

With production growth now being realised its good potential
for the company to regain traction in the market.

Caledonia is self-funding, which is a novelty in the junior
mining sector.
And this is crucial because the group has some ambitious plans
and aims to be producing 100,000 ounces of gold a year...

Before it can do this it needs to increase its reserves and
resources, which at the anticipated production rate
gives Blanket at least a 13-year mine life.

It is currently sinking one new shaft
and rehabilitating three others on two of its
highly prospective brown-field satellite zones –
GG, which is seven kilometres from Blanket’s
metallurgical plant,
and the Mascot Project Area, which is 42 kilometres away.

Caledonia also isn’t ignoring the potential of
the Blanket Mine footprint itself.

It is developing the 22-Level Haulage,
which is essentially a horizontal tunnel 750m below surface
that will provide access for further exploration of the up-dip
and down-dip extensions of the mine’s known main ore bodies
above and below this depth.

This is a much faster and cheaper approach to exploration
than drilling all the way from surface.

Any incremental ore produced from Blanket and its satellite
properties could be immediately processed without any
requirement for new investment in its existing metallurgical
plant, due to the substantial surplus capacity.

This busy round of resource development activity should lead to
a revised43-101 compliant resource statement.
Caledonia has set aside US$4 million for exploration at
Blanket this year and early next.

The company’s Nama mining licences in Zambia’s copperbelt
shouldn’t be ignored in all of this for they are a
potentially huge value driver.

Caledonia has a large scale, long-termmining licencescovering
approximately 800 square kilometres in one of the world’s
premier locations for both cobalt and conventional copper-belt
type mineralisation.

In fact one of those mining licence areas borders onto the world
class Konnococopper property being developed jointly by
Brazilian giant Vale and African Rainbow Minerals, a South
African mining company, and is currently capitalised at
around US$4billion.

They are currently investing a massive US$400 million in their
neighboring Konkola North Copper Mine and expect to be in
production by 2013.

In terms of this type of copper mineralisation,
Caledonia’s immediate plans are more modest by comparison.
It is initially drilling four holes on its Konkola East target
at a cost of US$1.3m.

Subject to the drilling results and board approval,
a second programme will be focused either on defining this
target to a 43-101 compliant stage
or an initial program of holes on its second copper-belt target,
Kafwira, which lies about 20 kilometres northwest of
the Konkola East target.

However,the company won’t be drawn any further on this aggressive
exploration plan until the results of these holes are known.
An update should come in the summer when the initial
holes are drilled.

The activity on Nama’s copper potential does not, however,
detract from the ongoing research and development into a viable
treatment process for the cobalt-copper ores already defined
on this licence area.

Caledonia has regional exploration upside in Zimbabwe and
has commenced drilling at its Nama base metals project in
Zambia.
This exploration and production upside is in for free
at the current share price...

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Good to see you dd... the Caledonia Mining -
TIA