Replies to post #3226 on Caledonia Mining Corporation (CMCL)

[mortalmyth]

NyBob, thanks for the post. I like seeing the Zim indigenous partners agreeing to the medium term growth plans for Blanket and look forward to finding out more details about the No.6 Winze project.

The analyst said that now the indigenisation process is now complete, the new board has refocused on growth and approving a capital investment programme that includes the No.6 Winze development project at the Blanket mine.

This has the potential to increase production by 70 per cent to around 70,000 ounces per annum from 2015, he noted.

Also, as in one of their investor presentations (see below link, Charts 9, 13 & 14), Caledonia should now be assured to make full use of Blanket's 1,800tpd milling capacity (equating to the 70,000oz per annum gold production level). So, with Blanket, the two already in-work GG and Mascot (which has Eagle Vulture, Mascot and Penzance mines) satellite projects, and now the No. 6 project added into the mix, the 2015 production levels should produce significant revenues, especially if the POG gets up into the potential ranges being discussed by Sinclair, Armstrong, etc..

http://www.caledoniamining.com/pdfs/CALPres04182012.pdf

Anyway, the bottom line, I like what I'm seeing. Have a good one.