(CALEDONIA MINING CORPORATION LOGO)
CALEDONIA MINING CORPORATION
NEWS RELEASE
2002 FINANCIAL RESULTS AND GENERAL UPDATE
MAY 16, 2003, IMMEDIATE
Caledonia Mining Corporation ("Caledonia") of Toronto (TSX: CAL and
NASDAQ-OTCBB: CALVF) is pleased to announce its financial results for the fiscal
year ended December 31, 2002 with the comparative performance highlights. The
results are reported in Canadian dollars.
Caledonia also provides a general update and reports on the winter exploration
program on the Kikerk Lake joint venture with Ashton Mining of Canada Inc.
("Ashton").
PERFORMANCE HIGHLIGHTS:
Caledonia continues to remain largely debt free and continues to focus its
efforts on advancing its assets and adding shareholder value. Caledonia intends
to extend this focus to include the addition of income producing assets in order
to fund its activities and further acquisitions.
2002 2001 2000
---- ---- ----
FINANCIAL - $ THOUSANDS
Net Income (Loss) before write-downs (1,754) (1,195) 7,412
Net Income (Loss) after write-downs (4,331) (1,195) 7,412
Assets 24,767 24,973 25,063
Current Liabilities 1,336 2,701 2,556
Long Term Liabilities 1,280 1,813 1,813
Shareholders' Equity 22,151 20,459 20,694
SHARE INFORMATION
Shares Outstanding (Thousands) 221,795 165,202 148,202
Earnings (Loss) per Share (0.02) (0.01) 0.08
The 2002 Annual Report has been filed on SEDAR and will be mailed to
Shareholders on May 20th, and has been posted today on our website at:
http://www.caledoniamining.com .
The Annual Meeting of Shareholders will be held at 09:30 in Toronto on June 24,
2003.
KIKERK LAKE
The Kikerk Lake property is located in the Coronation Gulf region of Nunavut and
hosts the diamondiferous Potentilla and Stellaria kimberlites, identified on the
property in 2001 and 2002 respectively.
The winter portion of the 2003 program announced by Ashton and Caledonia on
March 7, 2003 has been completed and three electromagnetic anomalies associated
with indicator mineral dispersions and underlying lakes approximately one km
west of Potentilla were tested by drilling. At one anomaly, two angle holes
drilled at inclinations of 46 degrees and 65 degrees from
horizontal intersected approximately 0.6 m and 0.3 m of kimberlite respectively.
This anomaly is located about 1.2 km west of the Stellaria kimberlite associated
with a two km long linear structure. No kimberlite was intersected at the other
two anomalies.
Exploration on the Kikerk Lake property will continue during the summer and
field activities will include follow-up on a number of unexplained indicator
mineral and geophysical anomalies through heavy mineral sampling, ground
geophysical surveys and prospecting.
Exploration on the Kikerk Lake property is governed by an option and joint
venture agreement among Ashton, Caledonia and Northern Empire Minerals Ltd.
Ashton has a 52.5 percent interest in the property and has exercised its option
with Caledonia to increase its interest to 59.5 percent. Northern Empire has a
30 percent joint participating interest and is funding the current program.
Ashton as operator of the programs is responsible for the design, conduct,
verification and quality assurance of the analytical results.
GENERAL UPDATE
The Barbrook Gold mine in South Africa has been returned to commercial
production and mined tonnage continues to increase. Both Barbrook and the 96%
owned Eersteling Gold Mine have received their permanent mining authorizations
from the South African Department of Minerals and Energy ("DME"), who have also
issued Eersteling with a Prospecting Permit for the Rooipoort Platinum Project.
At Eersteling, prior to commencing the dewatering of the first three shafts,
water levels and samples have been taken from the surrounding farm boreholes and
discussions are being held with the DME and the Department of Water Affairs
regarding the storage and subsequent use of this pumped water by the mine.
A comprehensive desk study on Rooipoort, based on airborne geophysics and the
down dip drilling on the adjacent farm undertaken by Anglo Platinum has been
completed. This study has confirmed the likely presence of both the Merensky and
the UG-2 platinum group metals on the property. A ground geophysics program will
commence in early June and subject to these results will likely be followed
immediately by a drilling program.
FOR FURTHER INFORMATION PLEASE CONTACT CALEDONIA MINING CORPORATION:
S. E. HAYDEN JAMES JOHNSTONE CHRIS HARVEY
Chairman, President and CEO V-P Operations and COO Technical Director
South Africa Canada Canada
Tel: (011-27-11) 447-2499 Tel: (1-905) 607-7543 Tel: (1-905) 607-7543
Fax: (011-27-11) 447-2554 Fax: (1-905) 607-9806 Fax: (1-905) 607-9806
Further information regarding Caledonia's exploration activities and operations
along with its latest financials may be found on our website
http://www.caledoniamining.com