Caledonia Mining Second Quarter Results 2005.TORONTO -- Caledonia Mining Corporation ("Caledonia") (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :CAL)(OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CALVF)(AIM:CMCL CMCL Cedar Mill Community Library (Portland, OR) )is pleased to announce its key financial and operating results for the second quarter ended June 30, 2005. The financial results are reported in Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents except where otherwise stated. Operational Highlights Barbrook Gold Mine - Gold production increased by 85% to 1,712 ounces of gold, (Q1: 925 ozs) following continued metallurgical met·al·lur·gy n. 1. The science that deals with procedures used in extracting metals from their ores, purifying and alloying metals, and creating useful objects from metals. 2. plant improvements. - Doubling the treatment capacity of the metallurgical plant to 15,000 tonnes per month is currently being designed. Construction is scheduled to start prior to September 30 and expected to take 3 to 4 months. - Decision on the construction of a Biox(R) plant deferred until this plant expansion is completed and has been assessed. - Economic gold grades have been intersected in the Taylors ore body between 10 and 7 levels in an area previously considered to be barren of gold mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. . - Senior management changes including the appointment of Patrick Smith Patrick Smith is the name of
Exploration - Drilling commenced on the Grasvally platinum property in May and 3,192 meters drilled during the quarter. - The planned drilling programs on the Rooipoort platinum property have been completed with 1,227 meters drilled during the quarter. - Reconnaissance mapping commenced at the Eersteling Gold Project in June to follow-up results from the recent geophysical survey Geophysical survey refers to the systematic collection of geophysical data for spatial studies. Geophysical surveys may use a great variety of sensing instruments, and data may be collected from above or below the Earth's surface or from aerial or marine platforms. . - Testing by Mintek of the Nama "A" anomaly ore largely completed. Test work to further optimize the overall cobalt recoveries and concentrate grades will be completed during the third quarter. - Approval obtained from the Environmental Council of Zambia for an amendment to the existing Environmental Brief to allow pilot plant operations at the Nama Cobalt Project. Corporate - In June Caledonia listed on the London Stock Exchange's AIM Market, ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors "CMCL", and placed a small float of shares into the AIM market in conjunction with a financing. - The financing on AIM raised Pounds Sterling 1.57 million (Cdn$3.54 million) before expenses. - A Letter of Intent was signed with a cobalt refinery for the long-term supply of cobalt concentrate from the Nama Project, on condition that the testwork and commercial process is satisfactory. For the quarter ended June 30, 2005 Caledonia recorded an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $1.4 million ($0.005 per share) compared with an operating loss of $1.4 million ($0.005 per share) in the same quarter of 2004. The net loss after all expenses, a change in the application of the accounting policy regarding amortization, ongoing exploration and assay costs, Nama test work costs, and exchange losses was $3.3 million ($0.011 per share) for the quarter ended June 30, 2005. Previously reported results, which excluded amortization, were a net loss of $1.4 million ($0.005 per share) during the same period in 2004. Reviewing the quarter, Stefan Hayden, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "I'm pleased to report the performance trend at Barbrook has continued, with gold production up by 85% to 1,712 ounces, despite the mining of a lower grade section. This was necessary due to the geometry of the ore zone and the mining sequence, and the mining of a higher grade area will recommence Re`com`mence´ v. i. 1. To commence or begin again. 2. To begin anew to be; to act again as. He seems desirous enough of recommencing courtier. - Johnson. v. t. 1. To commence again or anew. in August. The doubling of the metallurgical plant capacity to treat 15,000 tonnes per month is currently being designed. The recent completed access of a mineralized min·er·al·ize v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es v.tr. 1. To convert to a mineral substance; petrify. 2. To transform a metal into a mineral by oxidation. 3. zone that was previously considered to be barren should enable Barbrook to effectively double monthly gold production sooner than originally planned. Construction of the plant expansion will start late in the third quarter and is expected to take 3 to 4 months. The cost estimate of the plant expansion will be released once the design has been finalized. At Grasvally, immediately upon receiving the New Order Prospecting Right we mobilized drill rigs to commence a drilling program. To date, 3,192 meters have been drilled and we anticipate reporting drill results to shareholders during the third quarter. At Nama, the testing of "A" anomaly ore sample was largely completed with Mintek carrying out additional work to optimize the overall cobalt recoveries and concentrate grades. We have also taken the first step towards developing the project with the signing of a Letter of Intent with a large cobalt refinery. The discussions with the refinery are ongoing regarding the next phase of their metallurgical testwork, which is expected to be completed during the third quarter. Provided that a commercial process is satisfactory, the details of the long-term offtake Off´take` n. 1. Act of taking off; specif., the taking off or purchase of goods. 2. Something taken off; a deduction. 3. A channel for taking away air or water; also, the point of beginning of such a channel; a take-off. agreement will then be finalised and a pilot plant will be built as soon as practical at Nama with technical assistance from the refinery. In anticipation of this, Caledonia has received approval from the Environmental Council of Zambia for an amendment to the existing Environmental Brief to allow for mining operations to feed the pilot plant. Discussions with a growing number of large end-users continue. Turning to our exploration projects, a number of programs commenced during the quarter at Grasvally, Kirkerk, Nama and Eersteling, which will be completed during the third quarter, the results of which will be reported to shareholders before the year-end. In short, I believe Caledonia has made a good start in the first half of 2005 as we have already achieved a number of our stated 2005 objectives. The second half of the year is expected to be exciting and rewarding for Caledonia. I anticipate a further increase in gold production from Barbrook which should be favourably impacted by the plant expansion. Ongoing development of the Nama Cobalt Project, the Rooipoort Platinum Project, and the Mulonga Plains Diamonds Joint Venture drilling which will commence during the third quarter, should contribute to Caledonia's further growth and success". Caledonia Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial was published on August 12, 2005 and is available on the company's website: www.caledoniamining.com. Further information regarding Caledonia's operations, exploration activities, press releases and financials may be found at www.caledoniamining.com. Certain statements included herein are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ". Management cautions that forward- looking statements are not guarantees, and that actual results 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 programmes, or the financial condition of the Corporation, to differ include, but are not necessarily limited to, the risks and uncertainties discussed in documents filed by the Corporation with the various regulatory authorities having jurisdiction. Caledonia Mining Corporation (TSX:CAL) (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :CALVF) (AIM:CMCL) |
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