Can-Cal

BHP World Minerals, a division of Broken Hill Proprietary (BHP-N), will join Caledonia Mining (CAL-T) in exploring the Kalimba copper-cobalt properties in the Zambian copperbelt.

BHP can earn an initial 30% equity interest in the properties by spending US$2.5 million during the first four years. It can then increase that to 50% by spending an additional US$4 million, bringing the total to US$6.5 million. By completing a feasibility study, BHP can boost its interest further still, to 75%.

Caledonia has drilled 350 shallow reverse-circulation holes in the Nama and Ngosa areas. This work outlined a resource of 950 million tonnes grading 0.029% cobalt-equivalent.