Caledonia Mining Signs A Letter Of Intent With A Cobalt Refinery To Supply 3% Of Total Annual World Production.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)(NASDAQ-OTCBB:CALVF) is pleased to announce it has signed a Letter of Intent with a large cobalt refinery (the "Refinery") as the first step towards an agreement for the long-term supply of cobalt concentrate from its Nama project in Zambia. The Refinery is seeking an additional, reliable cobalt feedstock feed·stock n. Raw material required for an industrial process. Noun 1. feedstock - the raw material that is required for some industrial process raw material, staple - material suitable for manufacture or use or finishing source as soon as possible in order to increase production by 1,500 tonnes per annum Per annum Yearly. (equivalent to about 3% of total world production) of cobalt metal in various forms. The Refinery is currently conducting preliminary testwork on ore and concentrate samples from Nama, which is expected to be completed by mid July 2005, along with a report and budget for the development of a commercial process. Provided the 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 be finalized See finalization. and a pilot plant will be built as soon as practical at Nama with technical assistance provided by the Refinery. Commenting on the announcement, 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. of Caledonia said, "I am delighted with the progress we are making at Nama. We believe Nama will be an important and reliable supplier to the worldwide cobalt market and, to this end, we are in negotiations with other cobalt refiners and large end-users to secure further non-exclusive, long-term offtake agreements." Caledonia will now proceed to have the independent Resource Estimate prepared by Watts Griffis McOuat upgraded to a 43-101 Resource statement. Note to Editors: Caledonia holds exclusive rights to five contiguous exploration licences in northern Zambia which make up the 1,150 sq. kilometres Nama Cobalt Project in Zambia. The Project has been extensively explored since 1996, and in 2004 a mini-bulk sample confirmed an economic cobalt concentrate could be produced. Further information regarding Caledonia's exploration activities and operations along with its latest financials may be found at www.caledoniamining.com. 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) |
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