Caledonia Mining Corporation (CAL-T, CALVF-O, CMCL-L) released its first national instrument 43-101 compliant indicated resource for a portion of its Nama cobalt and copper project to little fanfare from the market.
After announcing an indicated resource of 43.7 million tonnes grading of 0.055% cobalt and 0.1% copper and 0.01% nickel, the company saw its shares fall roughly 5% to 10 on 163,000 shares traded.
Those numbers compare with a non-compliant indicated resource released in 1997 of 7.4 million tonnes grading 0.079% copper for the same anomaly, known as anomaly A.
That anomaly occurs on Caledonias100% held Nama Project which lies on the northwestern flank of the Zambian Copperbelt.
The company describes the anomaly as oxidized and open pittable and says the resource contains an estimated, in situ, 53 million lbs of cobalt and 96 million lbs of copper.
Caledonia made 160 intersections in its drill programs and says that the resource extends down to a depth of more than 210 metres below surface.
While the company says some of the bodies remain open on strike and/or down dip the resource as it currently stands would be sufficient for two years production.
In all 16 cobalt anomalies have been identified at Nama five of which have been explored.
Caledonia plans to drill with an eye towards defining extensions to anomaly A, as well as the anomalies known as C and D.
It says the remaining 11 anomalies require follow-up drilling and geological field programs.
The company also says it plans to construct a pilot plant to run metallurgical testing on ore from the project.
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