TORONTO, ONTARIO — (Marketwired) — 05/13/13 — Caledonia Mining Corporation („Caledonia“ or the „Company“) (TSX: CAL)(OTCQX: CALVD)(AIM: CMCL) is pleased to announce its operating and financial results for the first quarter 2013 („Q1“ or the „Quarter“). All results are reported in Canadian dollars unless otherwise indicated. Caledonia owns 49% of the Blanket Mine in Zimbabwe. Operational and financial information set out below is on a 100% basis unless indicated otherwise.
Operating Highlights – Blanket Mine, Zimbabwe
Financial Highlights
Exploration Highlights
Commenting on the 2013 Q1 results, Stefan Hayden, Caledonia President and Chief Executive Officer said: „The first Quarter of 2013 represented a further quarter of solid performance; with the daily production rate ahead of expectations and a resulting Gross Profit of $9.0 million. The increase in cost per ounce was largely due to lower production, which means that Blanket-s fixed costs were spread over fewer ounces of gold. As production increases from 2014 onwards, I expect that our average cost per ounce of gold produced should reduce somewhat.
„Supported by the Company-s strong cash position, development and exploration activity at Blanket continues at pace and we are moving towards achieving our targeted increase in production. Production is expected to increase to approximately 48,000 ounces in 2014 with further increases to the target of 76,000 ounces of gold from 2016 onwards.
„Exploration at Blanket-s satellite projects also continues and we are encouraged by the results evaluated so far. Exploration work at GG continues to identify mineralisation and by the end of 2013 we hope to start transporting stockpiled ore from Mascot to Blanket for processing.
„As a low-cost producer with a robust balance sheet, Caledonia is well-positioned to continue to implement its growth strategy, notwithstanding the current volatility in the gold price.“
The full Report & Accounts, including the Management Discussion and Analysis for the quarter ended 31 March, 2013 are available from the Company-s website and from SEDAR.
Annual General Meeting
The Notice of Annual Meeting, Management Information Circular, Proxy Form, Voting Instruction Form and the Annual Report to Shareholders have been mailed to the registered shareholders of the Company. Shareholders of record on April 19, 2013 will be entitled to receive notice of the meeting and to vote at the Annual Meeting. These documents are also available on the Company-s website at . The Annual Meeting will be held at the office of the Company-s Toronto Solicitors (Borden Ladner Gervais LLP) 44th Floor, Scotia Plaza, 40 King Street West, Toronto, Ontario, on Friday, May 31, 2013 commencing at 10:00 a.m.
Contacts: Caledonia Mining Corporation Mark Learmonth +27 11 447 2499
Newgate Threadneedle Beth Harris/Adam Lloyd +44 20 7653 9850
CHF Investor Relations Jeremy Hill +1 416 868 1079 x 238
Numis John Prior/Jamie Loughborough/James Black +44 20 7260 1000
WH Ireland Adrian Hadden/Nick Field +44 20 7220 1751
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