Caledonia Min Regulatory News (CMCL)

8 May 2007 13:57

Caledonia Mining Corporation08 May 2007 Caledonia Mining Corporation "Caledonia" or "the Company" Caledonia Announces the Phase 3 Drilling Program at the Nama Cobalt Project in Zambia and the Filing of a further NI 43-101 Technical Report Caledonia Mining Corporation (TSX: CAL, NASDAQ-OTCBB: CALVF and AIM: CMCL) announces the Phase 3 drilling program at the Nama Cobalt Project in Zambia. The Company has also filed on SEDAR and its website (www.caledoniamining.com) the National Instrument 43-101 Technical Report for Anomalies "A" and Anomaly "C", which have a combined total resource of 121,874,000 tons at a Cobalt grade of 0.047% (see pressrelease dated April 2, 2007). 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 Zambia Copperbelt. The Drilling ProgramThe Phase 3 Drilling Program will commence in June 2007 and will consist ofadditional diamond and reverse circulation drilling of anomalies "A", "C" "D","E" and "F". This program is expected to be completed by December 2007 at anestimated cost of US$2.3 million, and Caledonia anticipates reporting theresults of this drilling program in the second quarter 2008. The objective of the Phase 3 Drilling Program is to further enhance thegeological confidence at anomalies A and C, as well as prove up an additionalresource tonnages at increased geological confidence at anomalies D, E and Fwith a view to publishing a NI 43-101 resource statement for anomalies A, C, D,E and F in 2008. Metallurgical Testwork Update on Anomaly "A"The metallurgical testwork is well advanced and is now focusing on verifying thehydrometallurgical aspects of the proposed process. It is anticipated that thiswill be completed by second quarter 2007. Following completion of this testwork,an independent pre-feasibility study will be prepared to verify the Company'sinternal project economics and should be completed by the end of the fourthquarter 2007. The NI 43-101 Technical Report was prepared by Mr. David Grant BSc, MSc, Pr SciNat, 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 For more information, please contact: Stefan Hayden Alex Buck / Nick Bias Jeremy PorterPresident and CEO, buck-bias Seymour Pierce LimitedCaledonia Mining Tel: +44 7932 740 452 AIM Nominated AdvisorTel: +27 11 447 2499 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. 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