Caledonia discovers new cobalt deposit

In Zambia, Caledonia Mining (CAL-T) has discovered a second cobalt deposit.

The discovery lies 11 km northwest of the company’s Nama licence, which occupies 180 sq. km on the northern boundary of the Zambian copper belt.

Twenty of 23 holes intersected cobalt mineralization on a 2.6-sq.-km grid area, with results generally lower that those encountered on the original discovery. Twelve holes encountered mineralization ranging from 0.02% to 0.04% cobalt and up to 0.1% copper. The most significant hole intersected 21 metres grading 0.04% cobalt and 0.1% copper.

The latest results from the original Nama discovery include eight holes drilled to a depth of 129 metres. Cobalt grades range from 0.02% to 0.31%, with five of the eight holes ending in mineralization. Copper values in the same holes ranged from 0.02% to 0.44%. The most significant intersection, hole 37, encountered 97 metres of 0.08% cobalt and 0.12% copper, including 18 metres grading 0.31% cobalt and 0.27% copper.

Geochemical sampling is under way, and Caledonia plans to extend the 10,000-metre program.

Meanwhile, production has resumed at Caledonia’s Barbrook gold mine in South Africa, following the discovery of additional underground reserves.

The company plans to produce 2,000 oz. gold per month by year-end, increasing to 2,660 oz. per month by the third quarter of next year when the plant reaches full capacity of 25,000 tonnes per month.

Minable reserves stand at 632,000 tonnes grading 4.47 grams gold per tonne, with a undiluted resource of 249,000 tonnes grading 7.32 grams. These reserves will support a mine life of more than two years.

The inferred resource stands at 12 million tonnes grading 5.79 grams gold (containing 2.25 million oz.), and the company has initiated a feasibility study to double production to 50,000 tonnes per month.