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

Caledonia Mining Corporation

April 16, 2007 09:01 ET

Caledonia Announces Additional Resource at Nama Cobalt Project in Zambia

TORONTO, ONTARIO--(CCNMatthews - April 16, 2007) - Caledonia Mining Corporation ("Caledonia") (TSX:CAL)(OTCBB:CALVF)(AIM:CMCL) is pleased to announce that an additional Indicated Resource has been identified at the Anomaly "C" area on the Nama Cobalt and Copper Project in Zambia.

Nama

Caledonia is the 100% owner of the Nama Project, which covers a number of polymetallic oxide deposits containing cobalt and copper, located on the northwestern flank of the Zambia Copperbelt.

Resources

This new estimate which is in addition to the resource reported in Caledonia's Press Release of March 19, 2007, has identified a potentially economic resource of 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 150 meters, the full depth extent of which has not yet been determined. The evaluation is based on 73 drill holes collared on 13 section lines. The maximum hole spacing is 300 meters.



Indicated Resources at Anomaly "C"

---------------------------------------------------------
Resource blocks
in Anomaly C Tonnes % Co % Cu % Ni
---------------------------------------------------------
Block C3 41,637,000 0.0505 0.0173 0.0195
---------------------------------------------------------
Block C2 North 526,000 0.0245 0.0134 0.0126
---------------------------------------------------------
Block C2 South 32,511,000 0.0350 0.0053 0.0180
---------------------------------------------------------
Block C1 3,544,000 0.0261 0.0029 0.0131
---------------------------------------------------------
Totals 78,218,000 0.043 0.012 0.019
---------------------------------------------------------


The estimate was prepared by Mr. David Grant BSc, MSc, Pr Sci Nat, CGEOL, FGS, FGSSA, FSAIMM who is the Independent Qualified Person for the purposes of Canadian securities regulations for the Nama project. Mr. Grant was following-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
in Anomaly A Tonnes % Co % Cu % Ni
-----------------------------------------------------------
Block A1 9,139,000 0.0446 0.1028 0.0133
-----------------------------------------------------------
Block A2 11,366,000 0.0613 0.0288 0.0067
-----------------------------------------------------------
Block A3 4,305,000 0.0490 0.0730 0.0309
-----------------------------------------------------------
Block A4 18,846,000 0.0572 0.1463 0.0086
-----------------------------------------------------------
Totals 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 0.011
----------------------------------------------------------
Anomaly "C" 78,218,000 0.043 0.012 0.019
----------------------------------------------------------
Totals 121,874,000 0.047 0.043 0.016
----------------------------------------------------------
All estimates where prepared at a 0.02% cobalt cut-off


Additional Potential

As previously reported 16 cobalt anomalies in total have been identified in the Nama Project area of which 5 have been explored to varying extents. As a priority a drilling program to investigate the extensions to Anomaly "A", in addition to Anomalies "C" and "D" is currently being considered with a view to defining an additional resource in the near future. The remaining 11 anomalies, with similar potential to above anomalies, all require follow-up drilling and geological field programs.

Technical Report

As required by Canadian regulations a Technical Report, compliant with National Instrument (NI) 43-101 specifications, is being prepared by Mr. Grant to define the 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 within forty-five days of this press release.

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