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

One must also take into account even though the china economy may slow down, the bigger picture is that demand outstripps supply. There are other economies growing to like India, Brazil, Mexico and the newly awaking asian tigers. All consumers of Raw material. Also now investors can buy gold bullions as a form of investment ( a source of security during bad economic cycles) So Gold is back in fashion

Positive development today....lower bollinger band has ticked up again, MACD has got up to 0.2 (highest since February).

The lower Bollinger Band ticking up again today is a bullish signal...

Positive developments today:

1. Lower Bollinger band has ticked up again (from 4.60 to 4.80 pence)
2. MACD has risen to -0.2 ( highest since February )
3. Momentum has ticked up (consolidating above zero )
4. ROC has ticked up

Real Spread is 5.34-5.70 pence...

Online BUY price has increased to 5.80 pence now from 5.70 pence.

Real Spread is 5.34-5.80 pence.

Gold Rises a 3rd Day London on Weaker Dollar, Iraq Instability
June 8 (Bloomberg) -- Gold rose for a third straight trading day in London as the dollar reached a two-month low against the euro, making the dollar-denominated metal cheaper to buy with the European currency.

The dollar fell after two car-bomb explosions in Iraq killed five people, three weeks before a new government is due to take power. Terrorist concerns and the unstable political situation in Iraq also helped boost gold's allure as a haven.

``Short-term direction will continue to be closely influenced by the dollar,'' James Moore, an analyst at TheBullionDesk.com in the U.K., said in an e-mailed report. ``The volatile geo-political situation will add a degree of background support.''

Gold for immediate delivery in London rose $1.40, or 0.4 percent, to $395.30 an ounce at 9:01 a.m. in London. The euro advanced 0.2 percent, to $1.2343, after earlier reaching $1.2355, the highest since April 2.

The euro is up 5.4 percent over the past year, compared with gold's 9.4 percent gain. Last year, the European currency and the metal both jumped 20 percent as euro holders snapped up cheaper gold and others bought it as a hedge against further dollar declines amid political instability.

Gold often rises in times of turmoil because it is seen as a secure investment. Prices jumped 5.4 percent on Sept. 11, 2001, the day terrorists flew hijacked airplanes into the World Trade Center and the Pentagon in the U.S.

A bomb that exploded yesterday in the center of the northern Iraqi city of Mosul killed four people and injured nine, Agence France-Presse cited police as saying. Another went off outside the main U.S. military base in the northeastern town of Baquba, killing one soldier and injured three, the news service said.

Among other metals for immediate delivery in London, platinum climbed $4, or 0.5 percent, to $836.50 and ounce and palladium advanced $1, or 0.4 percent, to $242.50. Silver was unchanged at $5.91 an ounce.



To contact the reporter on this story:
Laura Humble in London lhumble@bloomberg.net

To contact the editor responsible for this story:
Stephen Farr in London at sfarr@bloomberg.net

Last Updated: June 8, 2004 04:17 EDT

http://quote.bloomberg.com/apps/news?pid=10000086&sid=a0izKZKPzCmc

Level 2 : still 2 v 2 ....need some buys to move forward...that upward trend is just round the corner now, (Need to Break 6 pence).

Looking at the drilling results maybe if they find some gold that is in sufficient quantity/tonne to be economically viable to extract would help boost the sp. Other gold miners who are extracting at the 20 - 35 g/t level could be a better route to take for decent profits. However with general gold market and ramping the share I am sure a few quid will be made, just get out quick and don't hope for a long run on the returns - unless lady luck shines and they suddenly find a massive deposit somewhere.

Hi Cairo...I'm only going along with my TA at the moment as the price was well above 10 pence...it did not come down on any bad news but because of a distressed seller who has finished now...Hence there is no reason why the price should not go back up...even the guardian expect the shares to rise now as in between the seller selling there has been upbeat news about drilling...

I'm just saying that we have the go ahead now...where as we didn't last week...Buyers will come in due course along with news...but even with news and buyers our price previously would have been restricted...Not anymore of course.

To add;

There is someone lurking to BUY 2.5 million shares in CDN and IgIndex ringing their clients up for stock...without news TA is very useful, and in this case it is pedicting some very good rises. Ofcourse if news comes, TA goes out of the window.

sueHelen,
what is TA please??

Hi Snakey...TA stands for Technical Analysis. Investtech have confimed for me today that we have support built at 5.20 pence now as well.

Small drop today with the price closing at 5.00-5.75 pence..Buyers will come back in when the offer hits 5.5 pence...Support at 5.20 and 4.80 pence is there...Some drilling news should be forthcoming as I gather.

Downside is non existence apart from the usual .25 pence drops on some days between 5.25-6.0 pence....Plenty of upside is there...keep your nerves in these times of lack of interest.

Let's hope the drilling news sparks some more volume trades. Need a bit of positive news to kick start things.

Level 2... 3 v 1..the strongest and best it can get...lacks buying volume at the moment.

All the mining shares finished heavily down today....some took the opportunity to buy some at 5.0 and 5.2 pence...The second 100,000 trade at 5.0 pence was a buy.

The mining shares are volatile but it is worth the wait for when the news comes. Some drilling news should be forthcoming which should provide fresh buying impetus...

Our TA has changed from really positive at the end of last week...to just desirable now...which will mean we will stay around 5 pence until the news comes or the TA improves again.

It could also be a dead cat bounce!!

trancso...one liners like the one you keep writing can backfire...just like the one you wrote in BGY last night only to see BGY rise 10% at one stage today.

I think it's a buying opportunity to top up. The volumes are unexciting and more volatile for CDN. Need some positive news but still cant see much downside if any from 5 pence.

joe,
you`re right and with suehelen`s analysis and price support basis, Caledon share price is now ready for a steady and serious incline.
best of luck to all
snakey

Sue:

What is the company website? favourites but site seems to have expired.

Still holding after the price drop? RSI does not look encouraging though. Will it hold to 5.20p