Caledonia options platinum and diamond prospects

Caledonia Mining (CAL-T) has optioned two properties that are prospective for platinum and diamond deposits in South Africa’s Northern Province.

Caledonia has the option to acquire 50% of British Virgin Islands-based Sutherland Services’ interests in the 2,318-ha Pruissen property and 3,109-ha Vier-En-Twintig Rivier property.

Sutherland has a 90% interest in Pruissen and a 96% interest in Vier-En-Twintig Rivier.

Caledonia will manage and fund exploration and development at the properties on behalf of Sutherland.

If any portion of the mineral rights on either property are exploited or sold, the proceeds will be equally split between Caledonia and Sutherland and Caledonia will pay Sutherland US$500,000 in cash or shares. Caledonia will also recover half of its exploration costs.

The project covers a portion of the Bushveld igneous complex. Caledonia intends to fast-track exploration for platinum. Two samples of kimberlite from the Pruissen property have already been sent to Canada for diamond analysis.