Penny Picks

[NYBob]

Gold is adding to yesterday’s solid gains, setting new 7-week highs near 1730.00.
26-Jan —

The yellow metal was boosted by yesterday’s revised Fed
guidance, which now projects that zero interest rate policy
will continue into late-2014.
The Fed has also embarked on inflation targeting:
In other words they are looking to devalue the dollar
by at least 2% a year.

The Fed also provided a weaker assessment of the US economy
and chairman Bernanke indicated that additional asset purchases
are an option that is “certainly on the table.”
The takeaway from all this is that the Fed remains very
worried:
Worried about sluggish domestic growth.
Worried about high unemployment.
Worried about Europe…

In a moribund economy with a high jobless rate that is further
saddled by endless uncertainty across the pond; how exactly to
you manufacture 2% inflation? You print like mad of course.
And that explains why gold is up more than $80
from yesterday’s intraday low.

“The Fed telling us no rate increase to at least 2014 is a sharp
rally promoter for gold,” says George Gero, senior vice
president at RBC Capital Markets, “as low interest rates to
continue will make gold a good alternative hold and not
expensive to maintain”
The rise in gold also triggered short covering where investors
who had been betting against gold bought back positions.



CALVF not much available -

http://www.otcqx.com/qx/market/quote?symbol=calvf

see $6.-/sh in the light again

MMID Ask Price Shares Date/Time (EST)
ETRF 0.125 5,000 8:40:07 AM
NITE 0.126 5,000 8:39:52 AM
CSTI 0.1292 5,000 Jan 25, 2012
INTL 0.14 5,000 Jan 25, 2012
RAFF 0.347 5,000 Dec 1, 2011
STXG 0.347 5,000 Jan 6, 2012
HDSN 0.3543 5,000 Dec 3, 2011
PERT 0.51 2,500 Dec 1, 2011
MAXM 0.51 2,500 Dec 2, 2011
VFIN - 6.00 - 500 - Dec 3, 2011
MSCO Unpriced 7:30:00 AM
CANTN Unpriced 7:41:13 AM
UBSS Unpriced 8:02:09 AM
AUTO Unpriced 8:06:04 AM

CALVF from pennies to above $6.-/sh -
twice before - top trend line > $6.-/sh est.
CALVF 3rd time run UP GO>GO

history often repeat itself -



CALVF drilling on NAMA, drilling results out soon -
world class cobalt-copper-belt type mineralization -

www.caledoniamining.com/nam1.php

CAL Production Cost Au US$583.0 per ounce -

NO DEBT -

CAL has 800+ mine workers and located 268 old Gold Mines
workings on the 100% owned large Blanket Gold Mines Property -

Gold Mines Producers to Fly HIGH -

Blanket Production Update and 2012 Outlook -
TORONTO, Jan. 24, 2012 /CNW Telbec/ -



Caledonia Mining Corporation -

("Caledonia") (TSX: CAL) (NASDAQ-OTCQX: CALVF) (AIM: CMCL) today
announces gold production from the Blanket Mine in Zimbabwe
during Q4 2011 which ended December 31, 2011.

10,533oz gold produced during Q4 2011,
representing an 8.1% increase on Q3 2011 (9,743oz),
and a 69% increase on Q4 2010 (6,227oz)

Total 2011 gold production was 35,826oz, a 102% increase

over the annual gold production in 2010 of 17,707oz

Targeted 2012 annual gold production of 40,000oz

Blanket Production

The Company is pleased to announce a successful year at
the Blanket Mine which produced 35,826oz of gold,
an increase of 102% over the previous year.

In accordance with our aim to continuously improve operations
at Blanket, the following infrastructure, process and equipment
investment programmes were undertaken during
the final quarter of 2011:

Considerable work on the refurbishment of the 14, 18 and 22
Level underground haulages continued throughout Q4 and this
is expected to be completed by the end of Q1 2012.
This programme is essential to support and sustain our
increased underground production.

The installation of an automatic cyanide measuring and dosing
system on the CIL circuit was commissioned.
This installation is providing both better control over, and a
detectable reduction in, cyanide usage per tonne of ore milled.

Certain rectification and maintenance work on the 825m deep
No4 Shaft was commenced during November 2011.
This work is expected to be completed by the end of February
2012 and once completed will allow Blanket to increase the
speed of the No4 Shaft Winder, thereby increasing hoisting
capacity.
As noted in the Q3 MD&A, this work may have an adverse
effect on gold production in the first quarter of 2012.

A Belt Scale was installed on the No1 Conveyor Belt so that
all ore tonnages delivered from various ore sources such as
the 14 Level mid-shaft loading station, Lima, and in due
course the satellite properties such as GG and Mascot, can
be individually and accurately measured.
The re-programed computerised recording system is expected
to be commissioned during early February and the system is
then expected to facilitate further metallurgical optimisation.

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