Caledonia Min Regulatory News (CMCL)

19 Mar 2007 16:13

Caledonia Mining Corporation19 March 2007 Caledonia Mining Corporation Caledonia Announces NI 43-101 Report on the Nama Project in Zambia Toronto, Ontario - March 19, 2007: Caledonia Mining Corporation ("Caledonia")(TSX: CAL, NASDAQ-OTCBB: CALVF, AIM: CMCL) is pleased to announce the filing ofan Independent Technical Report, compliant with the specifications andrequirements of the Canadian National Instrument (NI) 43-101, for the Anomaly"A" area of the Nama Cobalt and Copper Project. The report can be viewed onhttp://www.caledoniamining.com/technical.php and on SEDAR at www.sedar.com and,in the U.S.A., on EDGAR. NamaCaledonia is the 100% owner of the Nama Project, which covers a number ofpolymetallic oxide deposits containing cobalt and copper, located on thenorthwestern flank of the Zambian Copperbelt. ResourcesThe NI 43-101 report concluded that Anomaly "A" of the Nama Project has apotentially economic resource of cobalt and copper with lesser quantities ofnickel down to a depth of more than 210 metres below surface. An IndicatedResource amounting to 43.7 million tonnes at grades of 0.055% cobalt and 0.1%copper in an oxidized open-pittable deposit has been defined. The resourcecontains an estimated, in situ, 53 million pounds of cobalt and 96 millionpounds of copper to a depth of 200 metres below surface. The evaluation is basedon a total of 160 drill intersections with a maximum hole spacing of 150 metres. Indicated Resources in the Anomaly "A" Block Tons Grade (% metal) Cobalt Copper Nickel 1 9,139,000 0.0446 0.1028 0.0133 2 11,366,000 0.0613 0.0288 0.0067 3 4,305,000 0.0490 0.0730 0.0309 4 18,846,000 0.0572 0.1463 0.0086Total 43,656,000 0.055 0.099 0.011 Some of the mineralized bodies comprising the Anomaly "A" resource, as definedby the report, remain open-ended on strike and/or down dip. The resource ofAnomaly "A", on its own, is considered sufficient for an initial two yearsproduction in terms of the existing signed letters of intent for long termproduct purchase agreements. Additional PotentialIn total 16 cobalt anomalies have been identified in the Nama Project area, ofwhich 5 have been explored to varying extents. As a priority, a drilling programto investigate the extensions to Anomaly "A", in addition to Anomalies "C" and"D", is currently being considered with a view to defining an additionalresource in the near future. The remaining 11 anomalies, with similar potentialto the above anomalies, all require follow-up drilling and geological fieldprograms. Proposed Metallurgical ProcessMetallurgical testwork conducted to date has provided a proposed metallurgicalflow sheet. A further bulk sample has been taken from Anomaly "A" to enhance andrefine the metallurgical processes and cost parameters for producing amarketable and economically viable cobalt product. On the basis of thistestwork, it is anticipated that the design of a pilot plant will be finalizedenabling Caledonia to conclude long term product purchase agreements based onthe letters of intent. Stage 1 of the production process will be theconstruction of a pilot plant which will serve as an ongoing metallurgical testfacility. The "Qualified Person" for the purposes of Canadian securities laws, Mr. DavidGrant BSc., MSc., Pr Sci. Nat., CGEOL, FGS, FGSSA, FSAIMM, has reviewed thisrelease and is satisfied that it is an accurate reflection of the findings ofthe Independent Technical Report prepared by Applied Geology Services C.C., ofwhich Mr. Grant is the Principal Member. For more information, please contact:Stefan Hayden Alex Buck / Nick BiasPresident and CEO, Caledonia Mining BuckBiasTel: +27 11 447 2499 Tel: +44 7932 740 452 Jeremy PorterSeymour PierceTel: +44 20 7107 8000 Further information regarding Caledonia's exploration activities and operationsalong with its latest financials may be found at www.caledoniamining.com. Certain statements included herein are "forward-looking statements". Managementcautions that forward-looking statements are not guarantees and that actualresult could differ materially from those expressed or implied in theforward-looking statements. Important factors that could cause the actualresults of operations, exploration or development programs, or the financialcondition of the Company, to differ include, but are not necessarily limited to,the risks and uncertainties discussed in documents filed by the Company with thevarious regulatory authorities having jurisdiction. This information is provided by RNS The company news service from the London Stock Exchange