Caledonia Mining Corporation
OTC Bulletin Board : CALVF
TSX : CAL
AIM : CMCL

Caledonia Mining Corporation

November 10, 2006 16:24 ET

Barbrook Placed on Temporary Care & Maintenance

TORONTO, ONTARIO--(CCNMatthews - Nov. 10, 2006) - Caledonia Mining Corporation ("Caledonia") (TSX:CAL)(OTCBB:CALVF)(AIM:CMCL) has placed its Barbrook Mine in South Africa on temporary care and maintenance as a result of damage caused by employees of a labour brokerage company during an illegal industrial action.

The administrative and security buildings were damaged, but the metallurgical plant and mining infrastructure and equipment are unaffected.

The Company is formulating claims for major compensation against the labour brokerage company which supplies labour to the Mine.

The Company's Board is, with input from South African management, considering its options regarding the future of the Barbrook Mine. The effect on earnings during the fourth quarter is expected to be negligible.

Further information regarding Caledonia's exploration activities and operations along with its latest financials may be found at www.caledoniamining.com.

Certain statements included herein are "forward-looking statements". Management cautions that forward-looking statements are not guarantees and that actual result could differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause the actual results of operations, exploration or development programs, or the financial condition of the Company, to differ include, but are not necessarily limited to, the risks and uncertainties discussed in documents filed by the Company with the various regulatory authorities having jurisdiction.

Contact Information

  • Caledonia Mining
    Stefan Hayden
    President and CEO
    +27 11 447 2499
    Website: www.caledoniamining.com
    or
    buck-bias
    Alex Buck / Nick Bias
    +44 7932 740 452