TORONTO, ONTARIO — (Marketwire) — 11/14/12 — Caledonia Mining Corporation (the „Company“) (TSX: CAL)(OTCQX: CALVF)(AIM: CMCL) is pleased to announce its operating and financial results for the third quarter 2012 („Q3“ or the „Quarter“) ended September 30, 2012, which are reported below in Canadian dollars.
Operational Highlights
Financial Highlights
Nama Base Metals Project, Zambia
Indigenisation
Commenting on Caledonia-s performance, Stefan Hayden, President and CEO, said: „The third quarter of 2012 showed a substantial improvement in gold production at the Blanket Mine in Zimbabwe. Gold production in the quarter was 12,918 ounces – 12% higher than the preceding quarter and 33% higher than the third quarter of 2011. This was the highest quarterly gold production ever achieved by Blanket Mine since its first recorded production in 1906, and whose previous owners include Falconbridge and Kinross Gold.
Increased gold production, further improvements in gold recoveries and continued close attention to costs contributed to a reduction in average operating costs from US$547 per ounce of gold produced in the preceding quarter to US$508 per ounce of gold produced. Blanket is now one of the lowest cost gold producers in both Africa and the world.
The strong operating performance is a testament to the hard work of the management and employees at Blanket and shows the benefits of Caledonia-s investments in the Blanket Mine.
Following the implementation of indigenisation, Blanket, as a highly profitable and cash-generative gold producer and with Caledonia-s financial, technical and administrative support, is well-positioned to implement its growth strategy. Work continues at Blanket-s satellite development properties and on the deeper level development and exploration at the Blanket Mine. In addition, work has also commenced on a new development project at Blanket Mine, the No. 6 Winze, which is expected to give rise to an approximate 70% progressive increase in production, commencing in three to four years.
As expected, the implementation of indigenisation at Blanket resulted in a large non-cash accounting charge which adversely affected our reported profit. This charge, which is a non-recurring item, had no impact on Caledonia-s strong cash generation. Details of the highly complex accounting for indigenisation is set out in the unaudited consolidated financial statements for the Quarter, which are available on Caledonia-s website.
Work continues at the Nama base metals project in Zambia. I expect that Caledonia will be in a position to issue a resource and reserve statement by the end of June, 2013, as previously advised.
Caledonia-s financial position continues to improve. With almost $25 million of cash on hand Caledonia has sufficient cash resources to invest in its existing projects and also in potential new opportunities.“
Caution Regarding Forward Looking Statements:
Information included in this release constitutes forward-looking statements. There can be no assurance that future exploration will identify mineralisation that will prove to be economic, that anticipated metallurgical recoveries will be achieved, that future evaluation work will confirm the viability of deposits that may be identified or that required regulatory approvals will be obtained.
Dr. Trevor Pearton, BSc Eng. (Mining Geology), PhD (Geology) FGSSA, VP Exploration, is the Company-s Qualified Person as defined by NI 43-101. Dr. Pearton is responsible for the technical information provided in this Release.
Further information regarding Caledonia-s exploration activities and operations along with its latest financials and Management Discussion and Analysis may be found at .
Contacts: Caledonia Mining Corporation Mark Learmonth + 27 11 447 2499
Canaccord Genuity Limited Andrew Chubb/Sebastian Jones + 44 20 7523 8350
Newgate Threadneedle Beth Harris / Josh Royston +44 20 7653 9850
CHF Investor Relations Jeremy Hill +1 416 868 1079 x 238
