Have A Look At This African Miner

May.3.15

In a continuation of the last report about Eco Oro Minerals EOM I thought it maybe best to keep being on an upbeat tone here. After all no one has to tell you how bleak the mining sector is right now so any good news or bright spots will always make your day a bit more rosey.

Years ago I use to do a lot of swing trading and because I was familiar with mining stocks vs, tech stocks, I would always seem to gravitate towards mining stocks. There was an old saying that it was best to stick with what you know so for better of worse I would seem to follow those rules. One of the smaller stocks that I would trade because it was active and would trade a lot of stock was a small explorer/miner called Caledonia Mining CAL. The stock would trade always close to a million shares a day and it was priced around the 30 cent area if I am not mistaken. So the potential to make a few bucks over a few days trading was always there as it would run up a few cents and then fall back down. As time went on the company did a roll back of it's stock and then the trading sort of dried up. That however never stopped the company from doing what it does and mining gold is what it does best.

Caledonia has a portion of one gold mine and that gold mine is the Blanket Gold Mine in Zimbabwe Africa. The mine operates at a depth of approximately 750 meters below surface and produced approximately 45,500 ounces of gold in 2013. In November 2014, Caledonia announced a revised investment plan for the Blanket Mine in terms of which production is expected to increase to approximately 80,000 ounces of gold by 2021 following the investment of approximately US$70m, all of which is expected to be funded from internal cash generation and existing cash resources.

The Blanket Mine is located in the south-west of Zimbabwe approximately 15 km west of Gwanda, the provincial capital of Matabeleland South. Gwanda is 150 km south east of Bulawayo the country's second largest city and 196 km northwest of the Beit Bridge Border post with South Africa, and 560 km from Harare, Zimbabwe's capital city. Zimbabwe has a long history of mining and there are known occurrences of over 40 minerals in Zimbabwe, mainly gold, nickel and copper but also including coal, diamonds, PGE's and chromite.

Zimbabwe has been a gold producer for over 100 years. Gold production in Zimbabwe reached a peak of 29.7 tonnes in 1999, at which time it was ranked as the 16th largest gold producer in the world. Gold production fell to only 3.5 tonnes in 2008 and by the end of 2008 all the gold mines in Zimbabwe had been forced to close due to the failure of the Reserve Bank of Zimbabwe ("RBZ") to pay for gold which, under the prevailing regulations prior to February 2009, required all gold producers to sell gold to the RBZ. On January 28, 2014 Caledonia announced that as a result of new regulations introduced by the Zimbabwe Ministry of Finance, all gold produced in Zimbabwe must now be sold to Fidelity Printers and Refiners Limited ("Fidelity"), a company which is controlled by the Zimbabwean authorities and which is now responsible for the final refining and marketing of all gold produced in Zimbabwe. Accordingly, all of Blanket's production has subsequently been sold to Fidelity. Blanket receives 98.5% of the value of the gold within a maximum of 7 days of a sale to Fidelity. Blanket has received all payments due from Fidelity under these new arrangements in-full and on-time.

This year the company issued a press release stating: Caldonia has declared dividend No. 8, this being a dividend of 1.5 cents on each of the company's common shares. 1.5 cents is not a lot but for gold prices being what they are and how the market is today this is a postive note for sure.

Caldonia has about 52 million shares O/S with a 52 week high and low of $1.20 and .59 cents.

As always, use Due Diligence and see our Disclaimer and be sure to sign up for our free news letter located on the right hand side of this page.

GAdams