Cobalt and Caledonia Mining (CALVF)

Cobalt prices have been on the rise lately. In fact, they have increased from around $15/lb to over $45/lb since November 2006. This chart only shows activity through December 2007, but if you check the current sales price at BHP Billiton, you will see that they are currently making cobalt deliveries at $46.25/lb. Not a bad increase. In a little over a year, cobalt prices have basically tripled. This should be good news for cobalt mining companies or cobalt miners with significant cobalt resources.

(Update 1/10/08, Cobalt price is up to $47.50 today)

One such company is Caledonia Mining (Symbol: CALVF)

CALVF currently trades at U.S. $0.113 per share. Obviously it is a penny stock.

Caledonia has a diverse compilation of properties that include gold, base metals and diamonds.

Caledonia's cobalt property is called the Nama Cobalt Project.

The NI-43-101 technical report concluded that the combined Indicated Resource for Anomalies A and C at Nama is estimated as 121,874,000 tonnes with a weighted average grade of 0.047% Co and 0.043% Cu. The Nickle portion is approximately 0.015%.

This is only one of Caledonia's many properties. This property alone has an estimated resource of 114,561,560 lbs of cobalt, 104,811,640 lbs of copper and 36,562,200 lbs of nickel. At today's prices of $46.25/lb for cobalt, $3.27/lb for copper and $13.26/lb for nickel, this is a total value of $6,126,020,985 U.S. dollars.

Caledonia has fully diluted shares totalling 590,273,165. This would put a value of current resources at $10.38 per share just for the Nama project.

This does not include its currently producing gold mine, the Blanket Mine, that has proven and probable gold of nearly 500,000 ounces with inferred gold resources of nearly as much.

Nor does it include its other gold, diamond, platinum and other base metals projects.

Take a look at this long term chart of Caledonia and you will see it has the potential to explode in price in a short matter of time.



It has had two massive run ups in share price. In 1986 it rose from under $1 to over $7 in just over 1 year. Then in 1994 it rose from under $1 to over $9 in less than 1 year.

The question is, does it have another run coming? I don't know. But, I do own 69,300 shares of CALVF and would love to see it make another big run. Be sure to do your own due diligence as these are numbers that I calculated based on information on Caledonia's web site. Remember to invest at your own risk. Penny stocks can make huge gains but can also make you lose all or substantially all of your investment as well.

Time To Tame The U.S. Mint

This is absolutely sickening. It is definitaley time to question why the U.S. Mint exists, and what is it's law making authority? Since when does the U.S. Mint declare law upon the citizens of the United States of America?

Are you now a criminal for melting down or shipping pennies and nickels out of the U.S.? Who's money is it anyway?


By David Bond, Editor

The Silver Valley Mining Journal


Time To Tame The U.S. Mint

Wallace, Idaho – It's really quite past time to tame the United States Mint. First the SOBs went for Bernard Von Nothaus's jugular by unilaterally declaring the silver Liberty dollars illegal for tender. And now, they propose to tell us exactly what we can and cannot do with our pennies and nickels.
Here is what the Mint said in its 14th December press release:
“Washington, D.C. -- The United States Mint has implemented regulations to limit the exportation, melting, or treatment of one-cent (penny) and 5-cent (nickel) United States coins, to safeguard against a potential shortage of these coins in circulation. The United States Mint is soliciting public comment on the interim rule, which is being published in the Federal Register.
“Prevailing prices of copper, nickel and zinc have caused the production costs of pennies and nickels to significantly exceed their respective face values. The United States Mint also has received a steady flow of inquiries from the public over the past several months concerning the metal value of these coins and whether it is legal to melt them.(Read the rest of the story here)

Are you ready to feel sick? Then read this.....

When I read this, it makes me feel sick. You should feel it too. Unless of course, you like the Treasury department telling you what you can and can't do with YOUR money!! Who do these people think they are anyway?


December 14, 2006


United States Mint Moves to Limit Exportation & Melting of Coins

Interim Rule Goes Into Effect Immediately

WASHINGTON — The United States Mint has implemented regulations to limit the exportation, melting, or treatment of one-cent (penny) and 5-cent (nickel) United States coins, to safeguard against a potential shortage of these coins in circulation. The United States Mint is soliciting public comment on the interim rule, which is being published in the Federal Register.

Prevailing prices of copper, nickel and zinc have caused the production costs of pennies and nickels to significantly exceed their respective face values. The United States Mint also has received a steady flow of inquiries from the public over the past several months concerning the metal value of these coins and whether it is legal to melt them.

"We are taking this action because the Nation needs its coinage for commerce," said Director Ed Moy. "We don't want to see our pennies and nickels melted down so a few individuals can take advantage of the American taxpayer. Replacing these coins would be an enormous cost to taxpayers." (Read the rest of the story here)