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

Sue, simply outstanding. Do you have a target price range and timeframe in mind?

sue,

Is that a free site?

The download says it's free, but what about the date?

Thanks Fonty...I will be more than glad to pass on my expertise during the summer months. Thanks Joe....My target price was 10 pence by 19 June...though think it will be the first week of July by when the price should be at these levels as things stand at the moment which we have to note...RAB picking up the 12 million shares at 5 pence last week came out of the blue so hence the revised prediction. Then again I think the price could get to 10 pence by 19 June if my TA keeps to the timeframe which it is giving me...I am only able to make these predictions by observing the TA every single day and during most of the trading sessions...hope the need for spectacles doesn't come.

Some more good news today is that I can confirm we have support built at 5.25 pence....

Hi Andy, if it is www.bestcharts.com you are referring to...then it is completely free. You only have to download their software from the main introduction page..once you have downloaded the software run the normal setup process. Therafter lauched BestCharts and at the top of the screen you can type in the ticker symbol of the stock.

P.S. I always do the Technical Analysis myself...just use TA tools available for confirmation.

SH,

Many thanks, will give it a try tomorrow.

Morning Sue, do you now what price Rab paid for the the first 12m.

Cath - 12,274,779 @ 5p time 12:26 0n 28-05-04 (see trades on 28th)
Cheers Mike...

Sorry Chartist it was the price of 10.75m Rab held before he made he made the small 12m top up

Thanks SueHelen, I understand that RAB acquired their second 12 million directly from Regent.

THE WALL STREET TRANSCRIPT
JULY 2003.

Caledon Resources Plc
Listed on AIM (Alternative Investment Market of the London Stock Exchange)
Symbol: CDN
TWST: Let's begin with brief historical sketch and just bring
us up to date with how you see the company positioned as we speak.
Mr. Dattels (Executive Chairman): The predecessor company
initially went public as an internet company in December of 2000 in the art
antiques business with a magazine to be launched in the United States. But
like a lot of internet projects, the internet side of the business was not providing
worthwhile cash flow to the company and the magazine, due to economic
conditions was not successful. As a result, we elected to close all our
businesses down and preserve cash in the company. That gave me an opportunity
to restructure the company into the mining business, which is my
STEPHEN R. DATTELS, aged 55, (Executive Chairman, Caledon Resources PLC) is a seasoned senior mining executive
with offices in London and Toronto. He was an executive director involved in Barrick Gold Corporations formative years
from 1982 to 1987. During his employment with Barrick in the mid 1980s, he was Executive Vice President, Corporate Finance
and a director of the company. He played a key role in the equity and debt financings of Barrick in the early 1980s,
which saw it grow from a capital base of US$10 million to a market capitalisation of over US$2 billion when he left in
early 1987. Since 1987, Mr. Dattels has financed a number of mining ventures, most notably International Gold Resources
Corporation, which he brought from inception through to its sale for stock in 1996 to Ashanti Gold Fields Company, valued
at the time of sale at approximately C$130 million. He has also financed a number of junior exploration companies
actively involved in exploration in Indonesia and Mongolia. In March 2002, as Chairman of International Pursuit Corporation,
Mr. Dattels participated in arranging the financing of the acquisition of two U.S. mines producing 200,000 ozs. of
gold per annum, now called Apollo Gold Corporation, a Toronto Stock Exchange listed company. In 2002, Mr. Dattels was
involved in financings in Royal Standard Minerals Inc., Guyana Gold Fields Inc. and European Minerals Corporation. Mr.
Dattels has a law degree from The University of Western Ontario.
GEORGE G.SALAMIS, aged 36, (Managing Director, Caledon Resources PLC), has over 15 years experience in the mining
industry. His particular expertise is in identifying and evaluating mining investment opportunities where he has a
track record of adding value to mining assets. His career has involved management of field exploration and feasibility
programs, business development mandates, financing initiatives and promotional and investor relations mandates. Mr
Salamis is currently vice-president and a board member of Riddarhyttan Resources AB, where he had a senior role in the
exploration and feasibility study conducted on Riddarhyttans multi-million ounce gold project. He has also had responsibility
for several financing mandates, securing over US$15 million in equity financing for the company. Mr Salamis was
previously a senior geologist at Cameco Gold and at Placer Dome Exploration.
C O M P A N Y I N T E R V I E W
R E P R I N T E D F R O M J U N E 2 0 0 3
C O M P A N Y I N T E R V I E W C A L E D O N R E S O U R C E S P L C
historical expertise over the last 23 years. By 2002 mining had started a
resurgence. It is basically a cyclical industry. My view is that we are at an
early stage of a new cycle, the previous five years being a disaster for the
mining business. I therefore initiated a search for worthwhile mining projects
and came upon an opportunity in South East Asia, where I had some
experience before. We put a talented group together, managed on the
ground by a geologist named Paul Ingram, and then brought in George
Salamis as Managing Director of the company. My goal was to exploit what
I saw as a very good opportunity for a small company to make inroads into
what is the most exciting new exploration area for major mining companies
Southern China. This is largely as a result of a discovery made by a company
called Southwestern Resources in Yunnan Province. That company, in
a space of three months, had its capitalization go up four times by virtue of
a very early stage discovery. What was interesting about that particular discovery
was that Southwestern had a lot of surface work done by the Chinese
"artisinal" miners who exposed a large number of mineralized systems
and, unlike a lot of areas of the world, it is actually fairly easy to do exploration
work in the region. In the case of all this smaller scale Chinese mining
activity going on, it allows an exploration company to follow-up on the
work the local Chinese had done. It is highly unusual for a mining company
to be given an opportunity to get an early stage exploration property and
bring it to the point where the market could recognize significant value in
that short space of time. The current group that I was given an opportunity
to finance, consisting of George Salamis, Paul Ingram and Bruce Harris,
had about 15 years experience in South East Asia. They were all highly
qualified professionals and they had been backed by major mining companies
in the past. Historically speaking, once the South East Asia mining expenditures
collapsed after the Bre-X fiasco in 1996-97 most companies
pulled away and exploration expenditures went to such a minimal level that
nothing meaningful was being done in the region. As a result, I financed
Caledon, raising 1.25 million, put a team together and now we've got an
opportunity to acquire a whole series of high quality gold exploration properties
in Southern China, principally in Guangxi Province. What we have,
in my view, is an exciting opportunity to come up with discoveries similar
in potential magnitude to the Southwestern Resources' discovery, albeit
with a completely different geological model that being the sediment
hosted disseminated gold deposit model, often loosely referred to as the
"Carlin-style" gold deposit model. So I think it would be worthwhile to let
George Salamis address what we have put together in China, but basically
that is the rationale for what we are doing.
TWST: Can you give a backdrop to how you became involved
in Southern China?
Mr. Salamis (Managing Director): First off, by way of background,
my partners, Paul Ingram, Bruce Harris, and I are geologists, with
the common thread of having all worked together in the past, exploring for
sediment hosted disseminated gold deposits, or "Carlin-type" deposits in
East Asia. That exercise was largely funded in the mid-90 by Cameco Gold,
the gold-arm of Cameco Corp, which is the largest uranium producer in the
world. Prior to the evaluation initiative, Paul's group had conducted many
years of evaluation work in the region, all of it spent looking for sediment
hosted disseminated gold opportunities. Thus in total, both prior to and during
the Cameco exercise, well over 300 potential gold project were visited,
a lot of rock was broken, a lot of air miles logged, and a lot of dirt track miles
were covered in 4-wheel drives, etcetera. Out of the 300 or so projects that
we looked at throughout Asia, five areas floated to the top and all five areas
were located in what's termed the Golden Triangle, consisting of Guangxi,
Guizhou and Yunnan Provinces in Southern China. Immediately following
that accelerated evaluation exercise in the mid 1990's, gold fell out of bed,
the Bre-X disaster occurred in March of 1997, prompting Cameco to state
that they were basically not interested in going forward in tackling some of
these fantastic opportunities. As a result, Bruce and Paul tucked those ideas
in the backs of their minds, kept a watching brief on the area and maintained
open communications with our Chinese partners during the period of "Nuclear
Winter" in the gold mining industry. The concept of tackling Southern
China again, was given a rebirth of sorts late last year when Steve approached
us for gold project ideas. We always had the intention of moving
these projects forward and, given the positive changes that the Chinese had
made to their mining legislation and the return of interest to mining exploration,
we felt that the timing was right. It is a new day for China now. The
wall of bureaucracy that all mining companies, including ourselves, had hit
in the mid-90s no longer exists. Deals are current being struck with the
provinces, whereas before one had to deal all mineral titles through the Central
Government in Beijing. The issue of foreign ownership of mineral assets
has actually been written into their new mining code. So it is a new day for
China and a lot easier to deal with the system, mining and exploration wise.
In completing the various joint venture deals on gold projects with our Chinese
partners, we believe that what we have is akin to being handed the keys
to the Carlin Gold District, as it looked thirty or forty years ago before it had
produced well over 30 million ounces: disseminated carbonate-hosted gold
deposits, at or near surface, basically untouched. The Chinese have mined
oxide zones, basically bits and pieces of these deposits for several thousands
of years, but they can only mine and extract gold using limited mining and
exploration technology in addition to limited working capital. So if one approaches
this from a more "modernistic" point of view using access to foreign
capital and modernized mining and gold extraction technology, of
course one would be looking at an entirely different scale of operation and
potential cash flow on some of these gold deposits. Again we feel that we
have a lock on almost an entire province and most of the premier sediment
hosted disseminated gold prospects associated with that province.
TWST: How were you able to get a lock on this and beat
out some of the bigger companies?
Mr. Salamis: We were one of the only groups to maintain contacts
in Southern China during the dark days of the gold cycle. Then we
were one of the first groups to head back into Southern China in the last
year. All of the major mining companies had been through China up to that
point, and they all had hit the same wall of bureaucracy as we did in the
mid-90s. That scared most of them off, but we hung in there. With China
getting into the WTO and certain modifications that they made to the mining
laws in the last few years, we jumped on the opportunity to get back into
China. So we were one of the first ones back in. Our sources in China have
heard that several major mining companies are coming back into China as
we speak because the rules and regulations have changed, because of less
bureaucracy, etc. So we're not going to be alone for very much longer, but
we feel that we've got a good lock on some quality gold exploration projects
that nobody will be able to pass up in a few years time.
TWST: Are you comfortable then that this is now a pretty
stable environment?
Mr. Salamis: Yes, very much so.
C O M P A N Y I N T E R V I E W C A L E D O N R E S O U R C E S P L C
TWST: What is the next step? What are the main objectives
for you over the next year and what should investors look for to
gauge your progress?
Mr. Salamis: The next few months is going to require us to go
through our entire roster of exploration projects that we've been allocated
under the various Joint Ventures we have with our Chinese Partners, such as
the Chinese National Guangxi Gold Corporation. These are large tracts of
exploration ground, all hosting an abundance of surface gold expressions
and actual gold deposits. We are going to go through a detailed process of
ranking and prioritization. We feel very strongly that there are one or several
multi-million ounce gold targets sitting within our joint venture tenements.
It's just going to be a matter of ranking and picking the best ones. Our view
is to have the projects float to the top based on technical merit and results and
then work them up to a drill stage. We are actually very close to that point
now on some of the ground. As Steve mentioned earlier on, the Chinese have
done the entire first pass gold exploration effort for us in their surface workings,
small scale mining, etc. We know where the gold is; it's not like we
have to fly large airborne surveys or do costly blanket geochemical studies
to home us in. Paul has a number of drill-ready targets on a lot of these tenements
that are ready-to-go. So we fully expect to be drilling one or several
of these projects by September or October of this year and hopefully be at a
resource definition stage in a year's time on at least one of them.
TWST: You said multi-million ounce deposits. Is it too
early to be more specific?
Mr. Salamis: First-off, I know that multi-million ounce gold deposits
"don't grow on trees", since I've worked on several of them in the past
with Placer Dome, Cameco and others. Our team all knows what they look
like, how rarely they occur in the earth's crust and how much sweat, dedication,
focus and luck is required to find them. Having said that, I think if
we come out of the gate with one or more million ounce gold deposits we'd
all be extremely happy, given how rare they are. And some of these of
course given what has been found and mined in the Carlin District of
Nevada over the past 30 to 40 years have the potential to be very big.
TWST: Financially, how long will you be able to drill?
Mr. Salamis: The exploration program that we have put together
is budgeted out until February of next year. I believe we have twoand-
a-half to three thousand meters of drilling allocated to that budget.
Of course the drilling is not all going to go on one project; the first pass
of drilling will be allocated to the top priority projects. So, yes, we are
funded for the rest of the year.
TWST: Are you embarking on any fund raising activities?
Mr. Dattels: Future fund raising will depend, of course, on our
technical success demonstrated in the field and, to some extent, by the number
of other opportunities that we are currently evaluating in China that are
unbudgeted. Our Chinese partners are very happy with our performance
thus far and have been showing us a number of other gold projects outside
of the scope of our current JV. We're going to bring out some news about
the prospects that we have, some of which have a lot of activity already taking
place on them, and they are large mineralized systems. So given the
need, we definitely will raise more money. Our stock has tripled since we
brought it out. There's just so much interest in China and, as George was
mentioning, we are going to be the principal exploration mining company
in Guangxi Province. Therefore I think with that interest we can raise institutional
money without significant dilution to our shareholders.
TWST: How would you assess investment interest in gold?
Mr. Salamis: We've witnessed a significant, positive trend-shift
move in gold over the last year. I think last year gold was up 15% and everybody
expected post-war that gold would actually retest the low 300's. But
the decline of the US dollar, the prospect of deflation, and the huge current
account deficits the US has been running, has brought a lot of new investor
demand into gold and we're now seeing gold up over 360 again. On the equity
side, we've witnessed a lot of institutional demand for gold shares, with
the retail investment demand showing a slow but steady increase having
been absent for so long. As much as anything else, gold and gold equities
are a great hedge. What is clear is that the investment appetite has been at
the senior and mid-tier mining company levels and really hasn't filtered
down to a great extent into the ranks of the exploration companies. My view
is that if this investor demand continues, you will see that demand filter
down into the more aggressive mining companies who are levered to discoveries
like the companies that are into China. There are several other
companies that have done well on the exploration side. But this is a phase
that in the early 1990s was very much in vogue, when there was a tremendous
amount of institutional and retail capital available for junior mining
companies and companies with good exploration properties. If that comes
back, this company is as well-positioned as any to take advantage of it.
TWST: Does the investment community have a good understanding
of your opportunities?
Mr. Dattels: Yes, it does. Until the recent changes in the mining
laws, China was not considered by the major mining companies to be
a place to go. But the mining laws have changed and this discovery made
by Southwestern has suddenly created a resurgence of interest by the majors
into China. There is a lot of institutional capital gain that's been
made on the Southwestern story and the institutions are looking for other
investment options. Funnily enough, the SARS outbreak, which started
in Guangdong, close to our own back-yard, has actually kept some of the
major mining companies out of areas we were interested in and a number
of advanced exploration properties have now fallen in our lap as a result.
So I think we can generate a lot of interest. Because of the leverage
that our company represents on a relative basis, having a modest valuation
of some 5 million, and with the potential we've got, I think we will
be able to raise the capital we need. But we are going to do it in small
amounts so as not to over dilute the company.
TWST: Would you be a potential acquisition target for one
of the larger players?
Mr. Dattels: Once we accomplish the task of delivering a series
of technical successes and discoveries to our shareholders, I'd have to say unequivocally
"yes", the major gold producers will be regarding us in that light.
TWST: At this stage, is there a basic challenge or concern
that could potentially arise and present an obstacle?
Mr. Salamis: There is a challenge and it's a positive challenge.
Paul and his crew are currently evaluating so many additional, fantastic gold
project opportunities as we speak most of which are outside of the scope
of our current JV's and applications. We've developed such an excellent relationship
with our Chinese partners that they're showing us a number of excellent
potential opportunities, relatively obscure projects that nonetheless
have fantastic potential, most of which sit under the radar screen of the majors
and junior explorers. The challenge now is to "separate the wheat from
the chaff", so to speak, ranking, prioritizing and making the decision to "goC
O M P A N Y I N T E R V I E W C A L E D O N R E S O U R C E S P L C
to-guns" on the best projects in the portfolio. That's the biggest challenge
right now. Again, we view this situation like being handed the keys to Northern
Nevada thirty or so years ago and the challenge now is for us to pare
down the list and move the top projects to the drill-ready stage and beyond.
TWST: How many people do you have on the ground in
China?
Mr. Salamis: We have three ex-pats geologists and technical
staff on the ground in Guangxi, but perhaps it's unfair to call them ex-pats
because they've been living and working in Southeast Asia for the past 15 to
20 years. So they know how to operate on the ground; they know how the
system works. We're also slowly bulking up our team of Chinese geologists
and technical assistants and finding that there is a great deal of talent to be
found locally. Agood mix of foreign and local technical talent, and the cross
fertilization that comes with the process, is usually a key element in gold discoveries.
We've just set up an office in Nanning, the capital of Guangxi
Province The flight connections in and out Nanning are excellent; internet
and phone communications work extremely well; Steve and I receive daily
cell phone calls from Paul and his team while they are literally on-site at the
projects. So I'd have to say that everything is very well set up for us.
TWST: Are you likely to add more people to the team or
do you have the right team in place now to go ahead and execute on
all of this?
Mr. Salamis: I think Paul and his crew have all the ex-pat support
that he needs for now. The team is largely in-place and already active
on the ground. As I mentioned, we're in the process of bringing on
some local technical talent, geologists and field technicians that will
compliment the entire team effort.
TWST: We've really looked out to the next 6 to 12 months, but
is there a longer term vision of where you'd like to take the company?
Mr. Dattels: There is. I had a lot of success previously taking an
exploration project to final feasibility and, in my view, that's what this company
is best suited to do. Our goal is to take our best projects; to run with
them as far as we can on an exploration and feasibility basis; this represents
the best value for our investors since the highest dollars are paid for advanced
gold resources and particularly minable reserves at a final feasibility
stage. So our strategy would be to take as many properties as we can to
that stage, advance the others concurrently so as to preserve the blue sky potential
of the company, and then sell the most advanced assets off to a mining
company a company with mining experience. In the alternative, at
this stage we would entertain an offer to acquire the whole company. We are
gold explorers, not gold miners this is a different skill set thus there's
no sense in reinventing the wheel for our shareholders. That's our five year
plan because we have a large number of opportunities that are going to take
us that length of time to advance them. Would you not agree, George?
Mr. Salamis: I would agree.
TWST: What's the next bit of news flow an investor should
be looking out for?
Mr. Dattels: The news events will be the actual granting of mineral
licenses together with the formation of new joint ventures and at that
stage we would be able to provide information publicly about the properties
that we have in addition to the existing information we've provided to date.
Surprisingly, the information that we have is such that we have at least two or
three drill ready prospects. For example, one of our properties has small scale
mining activity on an area that extends over five kilometers long. So it is not
that difficult for investors to come up with a speculative concept of what
could be there. Once we start our preliminary work, we would release news
about field results leading up to our drill campaign. Ultimately the big value
will only be created through drilling and that will be about six months off.
TWST: What are the summary points, the three or four
compelling reasons for investors to take a close look at your company
today?
Mr. Salamis: First and foremost, a portfolio of properties in
Southern China that rivals any "dream portfolio" that one could ever assemble
in the world's most prolific gold districts in the State of Nevada, hosting
almost identical geological characteristics. In fact, I think the geological potential
of these districts in Southern China surpasses that of Northern Nevada
on the basis that most of these areas remain basically virgin and untested.
Two, I think equally important is the fact that we have a very solid, focused
exploration team, lead by Paul Ingram. They all know what the big sediment
hosted disseminated gold deposits, or Carlin-style deposits, look like. And
they have the added bonus of having accumulated a wealth of past experience
in China and throughout East Asia no culture shock, they know how
the system works, etcetera. People often underplay the importance of the
team but it's just as important as the properties being explored. And the third
point is just valuation. Right now valuation is what-it-is: quite low relative
to the quality and gold potential of the projects that we have in our portfolio.
Mr. Dattels: I think that we are offering investors the opportunity
to position themselves in a company that could discover a multi-million ounce
deposit or deposits because of the quality of the exploration properties that we
expect to acquire, explore and develop. There is a lot of risk associated with
early stage exploration in Southern China both technically and politically but
I just don't know where else in the gold business you can get leverage like this.
TWST: Thank you.
STEPHEN R. DATTELS
Chairman
44 (0) 797 0697 215
GEORGE G. SALAMIS
Managing Director
(519) 856 0888
Caledon Resources PLC
18 Upper Brook Street
London W1K 7 PU
United Kingdom
Website: www.caledonresources.com
2003 The Wall Street Transcript, 67 Wall Street, NYC 10005
Tel: (212) 952-7400 Fax: (212) 668-9842 Website: www.twst.com

Hi Cath, I am not sure at what price RAB acquired the first holding of approx. 11 million shares. Can't find anything on the news releases last year... Though out of the 213 million shares in issue roughly 47% are held by institutional investors.

.

sue not heared you on the cfp thread for a while thought you might have sold out
lol
but looks like your still in

Thanks Sue i was curious to no if he paid less than 5 or more.

Waiting for the China gold explosion

Based on figures provided in Chengs presentation, the Chinese had the equivalent of about US$1.2 trillion parked in individual bank deposits and the country had one of the lowest gram per capita consumption levels of 0.16, compared with 0.73 in India and 1.41 in the US. Cheng suggests that with a deregulated market, however, gold demand is set to accelerate in conjunction with WGC marketing initiatives and could catch up to other commodities, which were experiencing astonishing growth rates.

In addition, he anticipates foreign participation in the (heavily subsidised) gold mining industry in China will be boosted by the removal of regulatory barriers.

i can tell your keen on this stock,,what is it with ladies & diamonds,,what is it they say ???woman and diamonds never one without the other never a more true statement,,,,sue helen can you tell me ,,why is it when a divi cheque lands through the letter box,,,,,the wife thinks its hers.

HELP ! I thought i was investing in a gold mining share not diamonds.

lol!

Prefer Gold than Diamonds...family thing.

With regards to the conference in New York on Wednesday and Thursday which George Salamis attended: His reply by email on how it went;

"There was lots of encouraging feedback from my talk. Current investors seem to be satisfied at the results that we've generated so far. New potential investors seem very keen on the story but that mentioned that access was a bit
of a problem (buying AIM listed stock in North AMerica is difficult and
expensive).

Again, most of the questions in New York centered around "when are you going to secure a listing in North America that would stimulate buying in your
stock?".

Level 2...2 v 1. 6.25 on the offer price should be forthcoming....