25th Apr 2007 14:00
Caledonia Mining Corporation25 April 2007 Caledonia Mining Corporation Caledonia's Blanket Mine Continues Uninterrupted Production and Expansion Toronto, Ontario - April 25, 2007: Caledonia Mining Corporation ("Caledonia")(TSX: CAL, NASDAQ-OTCBB: CALVF, AIM: CMCL) wishes to announce that production atits Blanket Gold Mine in Zimbabwe continues uninterrupted. This is contrary toreports in the press and electronic media that the Blanket Mine is one of theZimbabwean gold mines which has suspended production due to the non receipt ofpayments for gold delivered and sold, as required by law, from the Zimbabweanauthorities. However, unless Blanket receives payment for gold alreadydelivered, and prompt payment for future gold deliveries, it will have tosuspend operations due to the lack of cash flow. The mine continues the ongoinginteractions with the Zimbabwean authorities who have given assurances that thesituation will be addressed shortly. Blanket, having foreseen the cash flow problems of acquiring dry cyanide, hascompleted the installation and commissioning of a 63m(3) liquid cyanide storagefacility. Blanket now enjoys the flexibility and considerable cost savings ofthis portion of the expansion project. Based on present costs, this facility hasa payback of approximately 6 months. Production at the Blanket Mine has however been reduced due to a combination oflate payments for gold delivered and for planned technical reasons. Moreparticularly, the No. 4 shaft - the main production shaft of the Blanket Mine -has been temporarily closed in order to complete the shaft equipping which ispart of the previously announced work to expand production of the Blanket Minefrom the present rate of 25,000 ounces of gold per year to 40,000 ounces peryear. Underground production from No 4 shaft will resume at 600 tonnes per dayby the end of June 2007, and the shaft will then be equipped from the 585 metreabove mean sea level (AMSL) to the 302 metre AMSL level. For more information, please contact: Stefan Hayden Alex Buck / Nick Bias Jeremy PorterPresident and CEO Seymour Pierce LimitedCaledonia Mining Corporation BuckBias AIM Nominated AdvisorTel: +27 11 447 2499 Tel: +44 7932 740 452 Tel:+44 20 7107 8000 Further information regarding Caledonia's operations, exploration activities,and 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 ExchangeRelated Shares:
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