Looks like this one is going places.

LONDON (AFX) - Caledon Resources PLC said preliminary tests at its Gaolong
Gold Project Joint Venture in Guangxi, China are highly encouraging and are
further indicative of the gold potential in the Gaolong area.
It added Field work is on-going at Gaolong to further determine the extent
of gold mineralization on-surface, as a lead-up to a drill program scheduled to
begin within the coming months.
George Salamis, Managing Director of Caledon, comments: "We are very pleased
with these preliminary results from Gaolong, which are consistent with our view
of the project's disseminated gold potential.
"These preliminary results form a solid foundation from which our
exploration crews will be further advancing the project towards drilling.
"In addition, drill target definition work has already been initiated on the
company's other projects, such as Longtoushan and Hengxian, where the company
also sees tremendous up-side."
rn

I have noticed this thread has not research notes or interesting comments form the users.....I dont hold shares but due to the 'Gold Rush' and because its 'China' and because a lot of world instituional investors have place their money here. I think it is a spec buy, it is time to buy as the graphs say so. However DYOR.

Caledon Resources PLC
06 February 2004



Caledon Resources Plc

Caledon Initiates Drilling on the Longtoushan Gold Project, Guangxi, China

Two underground diamond drills have arrived at Longtoushan, marking the
commencement of a drilling program.


Drilling has begun from two specially designed underground drill
stations, with the drill holes designed to probe the extent of a large
hydrothermal breccia at Longtoushan.

Caledon Resources is pleased to announce the initiation of drilling at its
Longtoushan gold project, situated in Guangxi Province, China. The commencement
of the first six drill holes at Longtoushan marks the start of a drill program
to be conducted over the next several months using two drill rigs. The objective
of this first phase of drilling is to further define the open-ended lateral
extents of gold mineralized zones which are currently the focus of small scale
underground mining on the project by Caledon's partner, the Longtoushan Gold
Company (LGC). Two underground diamond drill rigs were transported to the site
and set up within two specially designed underground drill chambers.

At Longtoushan, LGC are currently mining a series of hydrothermal breccia zones
extending over a strike length of 1.2 kilometres, with several zones being mined
over widths of up to 30 metres. Caledon has verified that mined gold grades in
selected areas of the underground workings report grades of up to 20 g/t.
Extensive areas of hydrothermal brecciation carrying lower grade gold values,
peripheral to the currently mined areas, clearly demonstrates that the
mineralised system has the potential to host additional major gold ore-bodies.

At present, the lateral and depth extents of the mineralized ore bodies are not
well known and thus are the focus of the drill program going forward. In
addition, Caledon plans to test the depth extent of the Longtoushan ore body
that to date has only been mined in a shallow manner on three levels by the LGC.

George Salamis, Managing Director of Caledon reports: 'Getting the drill rigs
mobilised into China did take more time than originally anticipated. However,
now that the rigs are on-station, we look forward to testing the lateral extents
of the Longtoushan ore body in this our first drill program since the inception
of Caledon in March 2003'. Mr. Salamis adds: 'In addition to Longtoushan, drill
target preparation work is already well underway on Caledon's other advanced
gold projects in China, including Gaolong, Badu and Hengxian'.

For further information, please contact:

Stephen R Dattels (Executive Chairman)
sdattels@caledonresources.com
George Salamis (Managing Director)
gsalamis@caledonresources.com
Donal Douglas, Manager Investor & Institutional Relations
ddouglas@caledonresources.com

This information is provided by RNS
The company news service from the London Stock Exchange

Today's RNS. That explains the price drop then. Or does it?
The seller still has 8,000,000 shares though.

4.88p today....is there any potential in this share? Please advise.

go to the other CDN thread this one the old one