JUNIOR MINING SPECIAL — Caledonia makes application for

Toronto-listed Caledonia Mining has applied for three prospecting licences in Zambia covering a total area of 2,930 sq. km.

The largest licence, the Kadola, covers more than 2,250 sq. km and is prospective for cobalt and copper. This area covers the southern extension of the famous Zambian copper belt and contains about 225 km of the Roan geological series, which hosts most of the deposits.

Caledonia is primarily interested in the numerous cobalt anomalies that were identified in the late 1960s. Interest in cobalt is being revived, largely as a result of the recent collapse of the Zairean mining industry and the increase in price to the US$25-per-lb. range.

In addition to cobalt, numerous copper anomalies have been noted in the area and several prospects, with reserves of up to 800,000 tonnes grading 0.95% copper, have been reported.

The Nama licence covers 180 sq. km along the Zaire border, to the west of Chililabombwe. This area is also highly prospective for cobalt and copper, with a geologically inferred reserve of 150,000 tonnes grading 0.8% cobalt present on one portion of the property.

The last licence, Musonweji, covers 500 sq. km of the Musonweji River basin, close to the borders of Angola and Zaire. Government records show that 80 diamonds have been found in the area, the largest being 0.39 carats. Caledonia’s objective will be to locate the source of these stones and evaluate the alluvial diamond potential of the river basin.