Caledonia Mining Corporation

Caledonia Mining Corporation

March 08, 2005 12:54 ET

Caledonia Mining Corporation: Mulonga Plain JV Exploration Work Program Update


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CALEDONIA MINING CORPORATION

TSX SYMBOL: CAL
OTC Bulletin Board SYMBOL: CALVF

MARCH 8, 2005 - 12:54 ET

Caledonia Mining Corporation: Mulonga Plain JV
Exploration Work Program Update

TORONTO, ONTARIO--(CCNMatthews - March 8, 2005) - Caledonia Mining
Corporation ("Caledonia")(TSX:CAL)(NASDAQ-OTCBB:CALVF)is pleased to
report that Motapa Diamonds Inc. ("Motapa"), the operator of the Mulonga
Plain Joint Venture in Western Zambia, has recently advised Caledonia of
the exploration program for the period ending February 2006. This
program is fully funded by Motapa.

Caledonia holds a 40% interest in three prospecting licences which cover
approximately 3.3 million hectares and are sub-divided into two project
areas, Mulonga Plain and Kashiji Plain, collectively making up the
Mulonga Plain Joint Venture.

Mulonga Plain Project Area

Motapa has received preliminary data from the 5,000 line km airborne
gravity Falcon® survey conducted during November and December 2004.
The cost of this survey was fully funded by Motapa. Preliminary
interpretation has identified 71 gravity anomalies to be prioritised as
candidates for follow-up evaluation. Additional interpretative work is
required for further screening of these anomalies. A drilling budget of
US$520,000 has been allocated for the Mulonga Plain project area in
anticipation of these interpretations, and the work plan anticipates
drill testing between 10 and 15 targets commencing in late July or early
August of this year.

Kashiji Plain Project Area

Laboratory work on samples collected in the Kashiji Plain project area
in 2004 is ongoing. Until these analyses are completed, budget
allocation and planning for the Kashiji Plain project has been deferred.

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

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Contact Information

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