Caledonia Min Regulatory News (CMCL)

14 Aug 2007 14:00

Caledonia Mining Corporation14 August 2007 Caledonia Mining Corporation CALEDONIA'S BLANKET MINE RESUMES UNDERGROUND OPERATIONS AFTER SHAFT EXPANSION IS COMMISSIONED August 14, 2007: Caledonia Mining Corporation ("Caledonia") (TSX: CAL,NASDAQ-OTCBB: CALVF, AIM: CMCL) is pleased to announce that underground miningoperations resumed at its Blanket Mine in Zimbabwe on July 26, 2007. Althoughthe facilities have a capacity of 600 metric tons per day only 380 - 400 tpd arebeing produced for the time being due to power outages and shortages. The Blanket Mine planned a shutdown of 90% of its underground operations onFebruary 15, 2007 to allow for stripping and re-equipping of the No. 4 shaft(main production shaft) in order to complete the shaft re-equipment from 6 leveldown to 24 level. This was anticipated to have taken 90 days withre-commissioning planned for June. However this programme was delayed due to thechallenging operating environment in Zimbabwe. During the shutdown period tailings sands were transported to the mine forfurther gold recovery. This project was stopped in late June as the high gradetailings had been exhausted and recoveries from other lower grade tailings hadbecome marginal due to high costs of transportation caused by excessiveinflation in Zimbabwe. Ceasing production in late June reduced the operational losses incurred byBlanket Mine during this period of low gold production. By the end of June the shaft equipping had reached 18 level and as this wasbelow the mid-shaft loading bins, a decision was taken to re-activate 14 levelloading chute so the mine could get back to its 600 metric tons per dayproduction level. The further shaft equipping down to 24 level is continuing andshould enable Blanket Mine to reach its production goal of 1,000 metric tons perday by the end of 2007. For more information, please contact: Stefan Hayden, President & CEO Alex Buck Jonathan WrightCaledonia Mining Buck-bias Seymour PierceTel: +27 11 447 2499 Tel: +44 7932 740 452 Tel: +44 20 7107 8000 Further information regarding Caledonia's exploration activities and operationsalong with its latest financials may be found at www.caledoniamining.com. This information is provided by RNS The company news service from the London Stock Exchange