Caledonia amd Q2 2004

[karlhenrik]

Here is a link to Q2 2004 www.caledoniamining.com/finance/cal04_Q2.pdf

It worries me that in spite great effort in trying to increase the gold output in the Barbrook Gold mine the revenue frpm sales was only Can$ 30 000 and the operating cost Can$ 1396 000. The company states that the output has increased during July and August, but not how much. Do you think they ever will manage to get to break even? If you think so, when ?
regards,

[AJrWennerGren]

karlhenrik welcome to Caledonia Mining ~

Caledonia Mining has come a long way,
is still debt & hedge free and have been
able to increase mining assets values,
profitable production should soon
be achieved ~

Without any bank/sters taking the creme
and to higher gold prices without
the gold be given away to
manipulated low bank/sters
prices ~

The Barbrook ore types, the higher gold
grades associated with the refractory
arsenopyritic ore zones and lower gold
metallurgical recoveries associated with
these highly refractory ore types,
Barbrook has commissioned Goldfields
of Johannesburg South Africa to carry out
an economic study for the design and
installation of a
full-plant Biox® process of gold recovery.

Goldfields are internationally recognised
for their expertise and experience in
the bacterial oxidation of refractory gold
ores such as those found at Barbrook.

Caledonia believes that the Goldfields Biox®<br>technology, successfully used since 1988 at
the Barberton Mines complex, located next
to Barbrook, will be amenable to all of
the different ore types at Barbrook.

Previous test work showed over 90% gold recovery
on samples of the Barbrook
flotation concentrate.

The implemented envisaged Biox® plant will
be engineered and sized to take
refractory-ore concentrates from
Caledonia's other mines
and outside ores for
toll processing.

The 100% owned Barbrook Mines Limited
("Barbrook") is located near the town of
Barberton in the Mpumalanga province
of the Republic of South Africa.

Pretoria and Johannesburg are
approximately 375 km to the west.

Barberton is the natural and historic center
of the Barberton goldfield in
the Mpumalanga province.

The town has a history of mining dating back
more than 100 years.

Barbrook's mining licence covers an area of
approximately 43 square kilometres (10,625 acres),
extends for a distance of about 28 km along strike,
and is the consolidated mining area
of about 20 old gold mines.



www.caledoniamining.com/prp_bar3.html


The total mineral resource at Barbrook Gold Mine
is 10.8 million tonnes containing about
1.95 million ounces of gold today,,,
but with the envisaged Biox® plant
the mineral reseve may double all
the total amounts and become
much richer and more profitable?,,,

Barbrook Gold Mine
was latest granted its full
Section 9 permanent mining authorization
in March 2003 for all its different ore types.

Note,,
karlhenrik, Barbrook's mining licence
covers an area of approximately 43 square
kilometres (10,625 acres), extends for
a distance of about 28 km along strike,
and is the consolidated mining area
of about 20 old Gold Mines,,,

and its only one mining asset
(owned 100% of Calvf) of many
Caledonia's Great mining properties ~

dd,,, www.caledoniamining.com
Imo!
Thanks for your interest,

Axel Jr.