Caledonia Nama Cobalt and Copper Projects - Caledonia Nama Limited, 
a wholly owned subsidiary of Caledonia, 
holds four contiguous Large Scale Mining Licences, which 
cover approximately 800 square kilometres on 
the northern extension of the Zambian Copperbelt.

The northern boundary of Caledonia's licence areas 
is the Congolese border and the eastern boundary is 
with licences areas that are held by a joint venture between 
Vale and African Rainbow Minerals where a new copper mine (the 
Konnoco mine) is currently under construction.

Prior to the 2011 programme, exploration activities had defined 
three main styles of mineralization in the Nama Licence area:


NAMA neighbor; African Rainbow, Vale start building $380m Zambia copper mine 

Konnoco Zambia, the joint-venture (JV) company 
owned by South Africa-based African Rainbow Minerals (Arm) and 
Brazilian miner Vale, has started construction on the $380- 
million Konkola North copper mine project. 

The JV partners on Friday announced that they viewed the project 
as an early development for a copper growth strategy in Africa. 

The mine, which will have a design throughput of 2,5-million tons 
a year of ore to yield 45 000 t/y of contained copper in 
concentrate, was Arm’s first venture on the African continent 
outside South Africa. 

“The new copper mine that we are building in Zambia with our 
partner Vale is significant because it adds a new exciting 
commodity to our diverse commodity portfolio and is also our 
first investment in Africa,” said Arm chairperson Patrice 

Arm would house the project under a new division, Arm Copper. 

The concentrator plant at Konkola North 
would be commissioned within the next 27 months, with 
the project expected to reach full production by 2015.

The mine has an expected life of 28 years, but the JV partners 
have started a further three-year exploration programme on an 
additional exploration area that could potentially double output 
at the mine to 100 000 t/y of copper in concentrate. 

Last year, Arm CEO Andre Wilkens indicated that the group would 
aim to produce at least 100 000 t/y of copper in five years. 

Arm already mines coal, manganese, iron-ore, platinum, nickel and 
chrome and sees copper as a “very good commodity” to be in. 

Vale Inco now just 'Vale' 

NAMA neighbor; Nickel-miner Vale Inco will trim its name down to just Vale, 
the Brazilian-owned group said on Thursday. 

Rio de Janeiro-based Vale, the world's second-largest mining 
company, bought Canadian nickel-miner Inco in late 2006.

The global nickel business will continue to be headquartered in 
Toronto, Vale nickel CEO Tito Martins said. 

“Our nickel business today is larger than it was in 2006, when we 
first invested in Inco and we are building on that investment 
every day,” he added. 

Vale's nickel unit has more than 11 000 employees worldwide and 
net sales in 2009 of $3,26-billion, accounting for 13,6% of 
Vale's overall global revenue.

Nama Base Metals Project, Zambia 

The 2012 drilling programme continued with the objectives of 
further identifying and defining extensions of the mineralised 
zone identified in 2011 and increasing the confidence level of 
the information on this mineralised zone.

As at October 25, 2012, 30 holes and 8,400 metres of drilling had 
been completed and three rigs are currently working on the site. 

To date, an area of copper mineralization has been defined as 

current identified strike length of 1.3 km and 
a dip extent of 900 metres; 

mineralisation intersected at depths from 98 to 579 metres; 

thickness of mineralized zone varies from 10 to 27 metres; 

average copper grade of 0.52%; and 

possible extensions of the mineralized zone to the west and 
to depths below 580 metres will be drill tested in future. 

The 2012 drilling programme is expected to be completed shortly 
following which the drill results will be analysed and 

Caledonia expects to issue an NI 43-101 compliant 
copper resource and reserve statement by June 30, 2013.

Caledonia will continue to manage its cash resources so that it 
retains the financial capacity to progress this project as fast 
and as far as possible without requiring third party involvement 
or equity funding. 

• RE: the information on this mineralised zone - 
As at October 25, 2012, 
30 holes and 8,400 metres of drilling had 
been completed. 
This is more than previously planned and reflects the 
commencement of the complete in-fill drilling program. 

The 2012 drilling programme will be completed shortly 
following which the drill results will be analysed and 

Caledonia expects to issue an NI 43-101 compliant copper 
resource and reserve statement by June 30, 2013. 

• the commencement of cobalt production by June 30, 2013; 
the submission of an updated copper sulphide mineral resource and 
reserve statement and as 
sociated feasibility study and program of operations 
by June 30, 2013; and 
the commencement of copper sulphide resource exploitation by 
March 31, 2015.

• Caledonia’s Board has approved a proposal which it believes 
will address the requirement of the Zambian government that 
cobalt production commences by June 30, 2012. 
This proposal will be discussed with the Zambian authorities and, 
once ratified, will be communicated to investors. 

• Caledonia has sufficient cash resources to cover all of the 
exploration costs budgeted for 2012 and 2013.

Caledonia will continue to manage its cash resources so that it 
retains the financial capacity to progress 
this project asblue fast and as far as possible without requiring 
third party involvement or equity funding. 
God Bless