Tip by Tom Winnifrith on investment website T1PS.com on 07.10.04 :
"In the mining world, Caledon Resources raced ahead by 0.75p to 5.125p after website t1ps.com upgraded its stance from "hold" to "strong speculative buy." Last time this website tipped Caledon the shares more than trebled in three months before members were advised to sell half their holdings so guaranteeing a three figure return. The website argues that the risk/reward trade-off now looks more attractive than ever and suggests that corporate activity within the subsector (Chinese gold explorers) is about to explode"
http://www.caledonresources.com//
Trades over 300,000 Shares are delayed in reporting by 1 Hour.


On fundamentals ALL exploration companies without resources can be said to be overpriced. The only assets they have which can have a hard-and-fast value assigned to them are their bank balances.
People invest in explorers because they believe that the projects/management/geo team have the potential to develop valuable mineral deposits. The share price usually reflects the market's opinion about this potential.
In the fulness of time, if Caledon discover deposits which can be proved up to contain a couple of million ounces, those that bought at 5p or even 15p will be seen to have been correct (or fortunate!) in their assessment of risk/reward.
Some details below from the recent WHI broker note on Palladex, I am not suggesting for a moment that anyone go buy Palladex this is just for comparative data where you will see the value of a company compared to it's in-situ gold.
Point is where will CDN be once they show one project is as big as they and we hope by giving an estimate by end of 2004 ?

Caledon Overview:
Caledon Resources PLC is a public company listed on the Alternative Investment Market of The London Stock Exchange (trading symbol: "CDN"). Its mission is to become the leading gold exploration company in “The Golden Triangle” of Southern China

Caledon has assembled a multi-talented, technically oriented management team - one of few with in-depth knowledge and experience in China. All members have over 15 years experience in evaluating hundreds of East Asian sediment hosted disseminated gold deposits
Advanced stage gold exploration focussed on under-explored producing gold mines in China - Exploration active on four advanced stage gold projects: Hengxian, Gaolong, Badu and Mojiang
Caledon’s primary focus: Sediment Hosted, Disseminated Gold Deposits (“Carlin-type”). Quoted from the United States Geological Survey (USGS Open-File Report 02–131): “It is likely that many of the Carlin-type Au ore districts in China, when fully developed, could have resource potential comparable to the multi-1,000-tonne Au resource in northernNevada.”

Corporate Summary
Caledon Resources PLC is a public company listed on the Alternative Investment Market of The London Stock Exchange (trading symbol: "CDN") and has been domiciled in the UK since February 2003. The Company’s primary focus is to enhance shareholder value through the opportunistic evaluation of fertile under-explored gold districts, resulting in the exploration, discovery and development of world-class gold ore bodies. The Company is currently focused on project evaluations and exploration for sediment hosted disseminated (“Carlin-type”) gold deposits situated in Southern China, although other styles of mineralisation are being assessed if they have multi-million ounce potential.

Caledon’s principal area of focus is Guangxi Province where it has negotiated joint ventures with The Geological Survey of Guangxi and is in the process of forming additional joint ventures with the Chinese National Gold Corporation.

Caledon has signed a joint venture agreement covering the Longtoushan Gold mine and 350 sq km’s of surrounding tenements in Guangxi Province as well as joint venture agreement covering various exploration areas under the control of The Geological Survey of Guangxi.

In addition, advanced exploration property acquisitions and joint ventures are being evaluated in Guangxi with The Chinese National Guangxi Gold Corporation and other joint ventures are under negotiation in Yunnan and Guizhou Provinces.

In order to exploit this opportunity, Caledon has assembled a team of geologists whose main focus over the past 15 years has been to identify and evaluate gold occurrences and deposits throughout South East Asia on behalf of several major mining companies.

Of the 300 plus gold occurrences and districts identified and screened over the years by Caledon’s team, five distinct gold districts have emerged as top-priority ranked targets, based on their geological similarities with the multi-million ounce gold districts found in the State of Nevada, U.S.A (“Carlin-districts”). The USGS has identified the so called “Golden Triangle”, consisting of the provinces in which the Company is focused (Guangxi, Guizhou and Yunna), as having similar style mineralisation to the Carlin deposits in Nevada.

To date, five highly ranked areas in Guangxi Province have been identified by Caledon’s team. Applications for mineral titles have been submitted on all five districts and joint ventures are being negotiated where applicable.

Recognising the need for foreign mining investment, in parallel with China’s entry into the World Trade Organisation, the country has adopted a number of sweeping changes that have recently been enacted in their mining legislation. In the country’s bid to attract foreign investment and mend the fractured structure of their mining industry, the Chinese government, through powers delegated to the provinces, allows foreign ownership of up to 90% in mineral titles and producing gold assets. In addition, various tax incentives exist to help foreign gold explorers and producers.

Perhaps the most relevant change recently enacted in China, involves the evolution towards complete transparency within the Chinese gold markets. Companies can now buy and sell gold on the Shanghai Gold Exchange, which quotes gold prices in line with the London Gold Fix rates. Additional mechanisms are currently in place to allow for repatriation of profits from Chinese-based, foreign-operated gold mining operations. Further enhancements are expected within the year.

The group now has all of the key primary ingredients in place in order to position the group for maximum returns.

Those key ingredients are:

highly experienced, South East Asia based technical management with proven exploration abilities,
acquisition / title lock on a number of properties hosting potential multi-million ounce disseminated gold deposits, and
an appropriate amount of financing in place allowing the group to conduct a meaningful first-pass exploration program within these districts.
Given the sweeping changes that China’s mining law has recently undergone, Caledon is well positioned to maximise gold exploration opportunities that exist in the country.

It is likely that many of the Carlin-type Au ore districts in China, when fully developed, could have resource potential comparable to the multi-1,000-tonne Au resource in northern Nevada.”

These are not my words, but the words of the US Geographical Survey or the (USGS). To read there full report on Carlin Deposits you need to go to the link -
http://geopubs.wr.usgs.gov/open-file/of02-131/OF02-131.pdf

The Projects
Hengxian Gold Mine - The Hengxian project is a classic example of a sediment
hosted disseminated gold system ("Carlin-type"), with considerable exploration
potential. At Hengxian, gold is being mined in a north-east trending zone
measuring up to 3 kilometres long and up to 800 metres wide. Gold occurs in
steeply dipping, high grade feeder structures (> 4.5 g/t gold avg.), feeding
flat-lying moderate grade (1-4 g/t avg.) stratiform zones. To date, at least
four sub parallel feeder structures have been defined. The gold mineralisation
occurs on a major regional structure that can be traced for more than ten
kilometres away from the existing workings. Access and infrastructure in the
area is excellent - Hengxian is a two hours drive from Caledon's office base
situated in the Guangxi Provincial capital, Nanning.

Previous exploration has been almost entirely focused on shallow oxide zones.
Gold resources at Hengxian are reported to be 310,000 ounces (Inferred category)
grading approximately 4.6 g/t gold - with those resources having been defined by
only a limited amount of shallow focused drilling, concentrated on the surface
oxide zones (0-60 m depth). Exploration to date has only been focused on a small
- 2.5 kilometre long - portion of the entire 10 kilometre long structure,
initiated on obvious outcropping oxidised sulphides.

Summary results from drilling conducted on Hengxian Hill by Caledon's minority
partners, Taifu Mining, defining the near surface limits of the deposit, include
the following:

Section Hole Number Depth (m) Intercept (m) Grade g/t Au
44 ZK 14 13 50.6 2.02
435 ZK 4351 25 10.1 8.0
ZK 4351 49 14.5 5.03
43 ZK 432 45 41.4 6.44
ZK 5 49 31.0 8.8
ZK 19 102 27.0 4.0
425 ZK 251 50 42.5 3.91
ZK 4255 103 29.1 6.93
ZK 4252 72 12.8 6.16
ZK 4252 90 18.6 4.02
415 ZK 152 42 20.7 3.0
ZK153 65 13.9 4.68
41 ZK 16 10 11.1 3.79
ZK 411 33 24.6 4.0

Intervals between known areas of higher grade mineralisation carry significant
disseminated gold mineralisation, typical of such gold deposits. For example,
drill hole ZK19 reported a 27 metre wide interval grading 4.0 g/t gold,
occurring within a much wider down-hole interval reporting a width of 133 metres
grading 3.24 g/t Au.

Gaolong Gold Mine - Gold has been actively mined at Gaolong by Caledon's
minority partners, Guangxi Tianlin Gaolong Gold Mine Ltd Co for over 10 years.
At Gaolong, surface and limited underground mining can be traced in a
semi-continuous manner over a strike length in excess of three kilometres, with
mining widths averaging 10 to 30 m, to a maximum of 60 m wide.

The Gaolong mine itself is ranked in the top two gold producers in the province
and has been cited by the United States Geological Survey (USGS) as having
distinct similarities to the 15+ million ounce Betze ore body situated in
Northern Nevada, USA (USGS OP 02-131).
Results from past drilling performed at shallow depths immediately adjacent to
zones being mined by the Chinese at Gaolong, are a testament to the bulk minable
nature of the Gaolong ore bodies themselves (i.e. Section #30 - 4.1 g/t over
10.8 m, 3.2 g/t over 33.4 m, 4.7 g/t / 31.3 m). The immediate extensions of
these open-ended zones will form the focus of gold exploration to be undertaken
in 2004.
In the 4th Quarter, 2003, Caledon reported results from a preliminary channel
sampling program at Gaolong, as part of the effort to identify drill targets on
the project. The following is a summary of results from this initiative:

Channel # Sampled Width Gold Grade
Channel 1 44 meters 2.5 g/t
Channel 2 10 meters 3.9 g/t
Channel 3 14 meters 2.4 g/t
Channel 4 28 meters 2.7 g/t
Channel 5 22 meters 2.3 g/t
Channel 6 12 meters 3.3 g/t

Badu Gold Mine - Small scale mining is in progress at the Badu Mine, situated 12
kilometres North East of the Gaolong mine. The Badu mining and exploration
tenements are included within the Gaolong master agreement. The GTGGML's
open-pit mining operations at Badu can be traced in a semi-continuous manner for
over four kilometres along strike, with mining widths averaging 20 to 40 m. Gold
is recovered in the heap leaching of oxide ores, with average head grades of 1
to 2 g/t gold. Caledon is aware of only 1-2 shallow drill holes having being
completed over the entire four kilometre strike length.

Mojiang Gold Mine - A letter of intent has been signed regarding Mojiang Gold
mine. Active mining has been underway at Mojiang since the late 1970s by the
Mojiang Mining Limited Company. The mining at Mojiang was based on reserves of
32 tonnes of gold (>900,000 oz) at a grade of 4-6 g/t Au. At present, the
majority of the gold mining operation is focused on gold production from open
pits and underground mining, with plant head grades consistently reporting above
4 g/t gold. To date, approximately 70% of the initial reserves have been mined.
At Mojiang, individual veins, averaging up to 12 metres wide, have been shown to
host grades in excess of 15 g/t. Individual veins sometimes exhibit bonanza
grades (in-excess of 30 g/t gold), typical of such systems. The veins are hosted
in sediments and acid volcanics, near the contact between thrusted Cambrian
sediments and metamorphosed ultra-mafic volcanics belonging to a regional scale
ophiolite complex, within the Red River Suture Zone.
Examples of diamond drill intercepts at Mojiang highlighted from the earlier
Chinese work include:

Section # Drill Hole Mineralised Intercept
Section 50 DDHZ50-6 41.62m @ 3.34 g/t
Section 51 DDHZ51-16 28.22m @ 4.89g/t
Section 52 DDHZ52-10 53.98m @ 2.72g/t
Section 40 DDHZ93-1 7.93m @ 13.67g/t
Section 40 DDHZ93-1A 8.39m @ 9.00g/t
Section 40 DDHZ94-3 12.35m @ 15.05g/t

Contact Information
London Office
18 Upper Brook Street
London W1K 7PU
United Kingdom
Tel: + 44 20 7318 5780
Fax: + 44 20 7318 5781
Stephen Dattels - Chairman
sdattels@caledonresources.com

Donal Douglas - Deputy Chairman
ddouglas@caledonresources.com
George Salamis - Managing Director
gsalamis@caledonresources.com
Manish Kotecha - Company Secretary
mkotecha@caledonresources.com

Real Spread now is 5.75-6.00 pence.

spread is now 5.5p - 6.25p.

Hi Andy, that is the spread on the screen, but if you check online with your broker the spread is much tighter ie. its 5.75-6.00 pence.

Sue,

Comdirect are 5.5 - 6p, so yes better then the spread indicated on the monitor screen.

Barclay's had it at 6.28/6.47 first thing this am...resisted pulling the trigger for 289 profit!

Movement Up, 5.75-6.25 pence, a lot of BUYS just came through.

Chartist. What price did you get offered if you sold? I cant resist like you.

Amberjane:- Barclays were showing bid @ 6.28. I wait till end of week for 7.5 to hit the button :o)...

6.0-6.5 pence, mystery buyer out there.

Price 6.25-6.50 pence, could break 7 pence today.....

The price now appears to have broken out of the long term downtrend - if it can hold and close above it, then the rise could be sustained. And there doesn't seem to be much resistance until 12p, which is where the last lot of support occurred. On the other hand, it has just hit the top Bollinger band - which might indicate a reversal in the short term.

Price 6.0-6.5 pence.

Very good volume again today.

Treeshake 5.5-6.25 pence, top-up opportunity could present itself.

That upper Bollinger band is going to be resistance until it is firmly broken.
The bollinger bands are tightening after a long time which is good news. The lower one has been climbing up and the upper one is coming down. The upper band is currently around 6.3 pence so in essence we need to break 6.3 pence as it stands.

.

All other Indicators looking good otherwise:

1. MACD positive (Blue line above Green line)
2. ROC rising
3. Momentum rising
4. Volume Rising
5. Slow Stochastics Rising
6. Fast Stochastics Rising
7. Full Stochastics Rising
8. RSI perfectly poised
9. Very good volume today and yesterday
10. Lower Bollinger Band moving up since 18 May 2004
11. Upper Bollinger Band coming down.

Need to break 6.3 pence as things stand tonight. Then Investtech should upgrade us from neutral to positive and we should have confirmation of the upward trend. Just like the support was confirmed at 4.80 pence.

This pullback at the open has done some good, the Upper Bollinger Band has stopped coming down and has started straightening out now. Next move by the Upper Bollinger Band will be going up.
this pullback is very good for now for the coming days, as the bollinger bands try to form an upward direction.

(Look at the above charts)

Price 5.25-6.25 pence.

Bid Alert in on at the moment with Junior Mining Companies:

Feature Story



Date : May 27, 2004



Rumours Of Bids Swirl Round Three Junior Mining Companies.

Rumours grease the wheels of markets and there are a number buzzing round London’s mining sector at the moment. Most are constructive; some like the story in the Independent on Sunday tend to be destructive. It claimed that a source within Highland Gold had confirmed that it purchased the Maiskoye gold project in the province of Chukotka from a company called Deerfield Universal and that Roman Abramovich, the owner of Chelsea Football club, is a beneficiary of Deerfield Universal. He also happens to be governor of Chukotka and Russia’s independent Audit Chamber is carrying out an enquiry into public spending in the region. Ergo, claimed the newspaper, there’s something nasty in the wood shed.

Russia, and especially its more distant regions, does not operate exactly like London and Mr Abramovitch is a very successful businessman even if he fell for the old ego trip of buying a football club. Whether or not he spends much time or energy on his role as governor of Chukotka in the Russian arctic is another matter and debates about conflicts of interest carry little weight up there. As far as UK investors are concerned Highland Gold’s lawyers, its brokers Cazenove and its advisers Fleming Family & Partners all must have been persuaded that the deal was kosher. Agreed they were legged over about the fixed assets at the Mnogovershinnoye gold mine which were being leased from the regional Kharbarovsk government. These were put up for sale and the company had to spend many millions of dollars to buy what it had a legal contract to lease. All part of the learning curve in Russia.

Turning to constructive rumours, they are certainly flying round Monterrico Metals since it announced today that it was bringing in HSBC Bank as strategic financial advisor. Names such as Rio Tinto and Xstrata are being mentioned in some quarters as possible bidders. In fact it matters not which company actually puts its money on the table; what matters is that Monterrico Metals has done what exploration companies are meant to do. It has established through the pre-feasibility study and the initial work on the feasibility study, that the Rio Blanco Copper project in Peru can be developed into a significant copper producer. Recent resource drilling further demonstrates that Rio Blanco is a very large copper porphyry system and that is what tempts the majors. Opportunities such as this occur rarely and it is even rarer for a junior to have 100 per cent control. When, not if , a bid materialises at a sensible price the Monterrico team will have made a lot of money for investors and can go on to repeat what it does best – explore.

In a way the same goes for Cambridge Minerals. The company has been beavering away at the Lomero-Poyatos gold polymetallic project in Spain for some time now . Mike Thomsen and Garry Massingill both moved from senior positions in Newmont when the major pulled out of a JV with Cambridge as they wanted to remain involved in the project. By so doing they confirmed that it could prove to be a big one and all the results announced since then from exploration work have confirmed this theory.

A few months back hedge fund managers RAB Capital built up an interest of over 25 per cent in Cambridge through a placing and the story goes that they made clear that they did not think that the Cambridge team was the right one to develop a mine at Lomero-Poyatos. Huge respect was given to the team for its exploration expertise, but a strong suggestion was made – and it is always wise to listen to major shareholders – that a deal should be done with a developer. Two names seem to be in the frame and the company will make no comment on either. One is Oxus Gold and the other Agnico Eagle. The latter does not seem to have done much outside North America, whereas Bill Trew and his merry men have developed mines from darkest Africa to Central Asia.

It makes sense. The Cambridge team could concentrate on Hereward Ventures with some excellent projects in Bulgaria and Serbia. Mike Thomsen has already declared that he sees plenty of potential in them and he is an explorer. If a deal materialises Cambridge will also have fulfilled its role as a junior and can bow out with a profit for its shareholders. It is what is called proactive fund management and it forces difficult decisions.

The last company round which rumours swirl at the moment is Trans-Siberian Gold. The company has got itself into a very interesting position in the Far East of Russia in a very short time. It plans to bring the Asacha deposit on the Kamchatka peninsular into production late in 2005 and the Veduga mine in Krasnoyarsk should follow in 2006 at the same time as the Rodnikova open pit mine which is 60 kms north of Asacha. Between 2007 and 2111 Trans-Siberian Gold intends to produce at a rate of around 275,000 ozs gold and it has some great exploration potential also. The temptation has to be there for a major which has been left behind in the recent rush to buy cheap ounces of gold in the ground in an underexplored continent.

Minews has no special knowledge of who the bidder might be, but that does not matter. Rumours usually prove to be right if the story makes sense as this one does. Doubtless the regulators will leap around looking for insider traders as and when these deals eventuate. There will not be any unless it is now a sin to guess the name of a bidder correctly. But that is usually a pure fluke.

http://www.minesite.com/archives/features_archive/2004/may-2004/rumours270504.htm

Sue Helen, I read this last night it is a near repeat of they story of 3-4 weeks ago it named TSG,PLX and AVM with TSG as the likely bid or tie-up name,the same story with CDN and GFM in china,CDN is the cheaper but GFM as gold assets. I hold CDN and TSG. regards to old J.R. lol.

Hi aldwickk, I wasn't acutally aware of that. Being one of the first into China means that Caledon are going to be on one or to joint development/takeover shopping lists. I would prefer Caledon to firm up Gaolong and Badu before any talk of takeover/joint venture.