Caledonia Min Regulatory News (CMCL)

16 Apr 2007 14:00

Caledonia Mining Corporation16 April 2007 Caledonia Mining Corporation Caledonia Announces Additional Resource at Nama Cobalt Project in Zambia Toronto, Ontario - April 16, 2007: Caledonia Mining Corporation ("Caledonia")(TSX: CAL, NASDAQ-OTCBB: CALVF and AIM:CMCL) is pleased to announce that anadditional Indicated Resource has been identified at the Anomaly "C" area on theNama Cobalt and Copper Project in Zambia. Nama Caledonia 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 Zambia Copperbelt. Resources This new estimate which is in addition to the resource reported in Caledonia'sPress Release of March 19, 2007, has identified a potentially economic resourceof cobalt with lesser quantities of copper and nickel in the Anomaly "C" area. The resource lies within four blocks within the target area to a depth of 150meters, the full depth extent of which has not yet been determined. Theevaluation is based on 73 drill holes collared on 13 section lines. The maximumhole spacing is 300 meters. Indicated Resources at Anomaly "C" Resource blocks Tonnes % Co % Cu % Niin Anomaly C Block C3 41,637,000 0.0505 0.0173 0.0195Block C2 North 526,000 0.0245 0.0134 0.0126Block C2 South 32,511,000 0.0350 0.0053 0.0180Block C1 3,544,000 0.0261 0.0029 0.0131Totals 78,218,000 0.043 0.012 0.019 The estimate was prepared to NI 43-101 by Mr. David Grant BSc, MSc, Pr Sci Nat,CGEOL, FGS, FGSSA, FSAIMM who is the Independent Qualified Person for thepurposes of Canadian securities regulations for the Nama project. Mr. Grant wasfollowing-up on a recommendation made in his Technical Report for the Anomaly"A" resource, which can be viewed at http://www.caledoniamining.com/technical.php Indicated Resources at Anomaly "A" (as reported March 19, 2007) Resource blocks Tonnes % Co % Cu % Niin Anomaly A Block A1 9,139,000 0.0446 0.1028 0.0133Block A2 11,366,000 0.0613 0.0288 0.0067Block A3 4,305,000 0.0490 0.0730 0.0309Block A4 18,846,000 0.0572 0.1463 0.0086Totals 43,656,000 0.055 0.099 0.011 Combined Indicated Resources at Anomalies "A" and "C" Anomaly Tonnes % Co % Cu % Ni Anomaly "A" 43,656,000 0.055 0.099 0.011Anomaly "C" 78,218,000 0.043 0.012 0.019Totals 121,874,000 0.047 0.043 0.016All estimates where prepared at a 0.02% cobalt cut-off Additional Potential As previously reported 16 cobalt anomalies in total have been identified in theNama Project area of which 5 have been explored to varying extents. As apriority a drilling program to investigate the extensions to Anomaly "A", inaddition to Anomalies "C" and "D" is currently being considered with a view todefining an additional resource in the near future. The remaining 11 anomalies,with similar potential to above anomalies, all require follow-up drilling andgeological field programs. Technical Report As required by Canadian regulations a Technical Report, compliant with NationalInstrument (NI) 43-101 specifications, is being prepared by Mr. Grant to definethe Resources of both Anomaly "A" and Anomaly "C" at the Nama Cobalt Project.This report will be filed on SEDAR and on the Caledonia website withinforty-five days of this press release. For more information, please contact: Stefan Hayden Alex Buck / Nick BiasPresident and CEO, Caledonia Mining buck-biasTel: +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