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

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

You will find a very useful website of the company at:-
http://caledonresources.com

The price should be able to hold here...the offer may drop to 5 pence...but the support at 4.80 pence is quite strong which should prevent further falls. The spread is too discouraging at the moment.

SueHelen
Do hold any GFM or TSG in your portfolio? if you look over the trades of TSG for the last 3 months or more you will see that one buyer as bought 400,000+ in trades of 10,000 - 25,000.

RNS Number:7310Z
Caledon Resources PLC
14 June 2004



Caledon Resources Announces Strategic Relationship and Private Placement
Financing
with Golden China Inc.

* Golden China Inc: New resource merchant bank set-up in North America, aimed
at
investing in China-focused gold exploration companies.

* Strategic Financial Partnership: Golden China brings a wealth of added
benefits to
the strategic relationship including mining and investment contacts in China
and Asia.

* Use of Proceeds: Private placement to raise 2 million pounds sterling. The
use of
proceeds will be aimed at further advancing exploration on Caledon's
projects in southern China

Caledon is pleased to announce that it has entered into arrangements for a
private placement financing with a new Toronto, Canada and China based mining
merchant bank - Golden China Inc ("Golden China"). Golden China was recently
established to take advantage of investment opportunities in the precious metals
industry in the People's Republic of China (PRC). Golden China has been
established by Kingsway International Holdings Limited (TSX: KIH), a leading
Hong Kong based provider of international financial services, to take advantage
of Kingsway International's North American expertise in mining and mining
finance, its "on-the-ground" presence in China and its relationships and access
to opportunities in the Chinese marketplace.

The private placement will rais-e 2 million pounds sterling. The use of proceeds
will be aimed at further advancing exploration on Caledon's projects in southern
China in addition to the further evaluation of other strategic acquisitions.

Following successful completion of its Initial Public Offering, Golden China
will purchase no less
than 2 million pounds sterling in Caledon shares at a Subscription Price to be
the lesser of:

a) the volume weighted average of the daily trading price of Caledon shares
for the 20
trading days immediately preceding the closing date of the financing
agreement, or

b) 6.5 p.

Each common share purchased by Golden China also entitles it to a full warrant
exercisable for a period of 18 months commencing on the closing date. The
exercise price of each warrant will be 125% of the initial subscription price.

Upon completion of the transaction, Golden China will hold no less than 11.7% of
the issued and outstanding shares in Caledon on a fully diluted basis.

The private placement also entitles Golden China to name one member to Caledon's
Board of Directors.

Stephen Dattels, Chairman of Caledon, remarks: "Golden China and its management
have taken a bullish view on the prospects for large gold discoveries in China,
hence their investment in Caledon". Mr. Dattels adds: "This financing
arrangement has been in the making for some time, with Golden China's technical
teams conducting thorough due diligence and we are pleased to have them as
strategic partners in Caledon".

George Salamis, Managing Director of Caledon remarks that: "The benefits to
Caledon with respect to this strategic partnership, including further exposure
to potentially lucrative mining finance and project acquisition opportunities in
mainland China and Hong Kong are immeasurable. We look forward to working with
Golden China and Kingsway, both on the ground in China and at board level, to
the successful benefit for all Caledon shareholders."

On behalf of the board,

Stephen R Dattels George Salamis
Executive Chairman Managing Director


Caledon Resources Pic is a junior precious metals explorer quoted on the
Alternative Investment Market of the London Stock Exchange (AIM: "CDN"). The
company has amassed a portfolio of four advanced stage gold exploration projects
situated in Southern China's "Golden Triangle" region. All sites are actively
being mined by the company's Chinese partners on a small scale, in geological
settings typically associated with disseminated, multi-million ounce ore bodies.
Management believes that the potential for discovery remains high in the
immediate vicinity of the small scale mining, through the application of Western
exploration techniques and philosophies.
------------------------------------------------

For further information, please visit our website at www.caledonresources.com or
contact:
--------------------------------------------------------------------------------


Stephen R Dattels
sdattels@caledonresources.com

George Salamis
gsalamis@caledonresources.com

Donal Douglas, Investor Relations
ddouqlas@caledonresources.com




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

END
MSCEALKLFFELEFE

Price 5.25-5.50 pence, up 10.00%.

Price 5.25-5.75 pence....

SueHelen, what are the indicators reading? Things seemed to be slipping back into neutral last week, but now were on the move again - any read on the drivers and outlook? Thanks...

Hi Joe....I will duly provide an update on the TA tonight...

Price 5.0-6.0 pence, up 10.0%.

This share is not going to make 9p sue helen any time soon.

We are still waiting for the TA.Hope to get some of your views today regarding cdn.thanks.

We are still waiting for the TA.Hope to get some of your views today regarding cdn.thanks.

when are the TA's

TAKEN FROM T1PS.COM

Caledon - Strategic Partnership...er Fund Raising
Caledon Resources (CDN) has announced a "strategic relationship" with Golden China, a recently formed Toronto based investment bank set up to do business with the PRC. Cutting through the waffle about strategic benefits, blah, blah, blah, etc the bottom line is that GC will stump up 2 million for Caledon to further its exploration programme at the lower of 6.5p or a price based on the volume weighted average share price in the 20 days proceeding the conclusion of this deal. GC also gets to subscribe for a full warrant exercisable at 125% of the issue price.

Bottom line...this is a dilutive funding necessary because Caledon's drilling progress has been slower and less successful than planned. There is still great potential upside in Caledon which is why (having locked in gains with a top slice at 12.5p some months ago) I will stick with a "hold" stance at 5.25p now. But my patience is being tested and I'd prefer the next news from Caledon to involve drill bit success.

The current price at the moment? 5.25p, Golden china are prepared to pay 6.5p.

Current shares = 213 mln x 5.25p = 11.18 Mln M/cap

Golden China shares = Approx 31 mln x 6.5p = 2 mln

= 13.18 mln/244 mln shares = 5.4p


----31 Million shares will be coming to the market in light of yesterday's RNS. With the news out yesterday the price will be staying at this level until the new shares come onto the market.

---When news comes TA does go out of the window.

When can we expect the new 31 million shares to come into the market

George Salamis, Managing Director of Caledon remarks that: "The benefits to
Caledon with respect to this strategic partnership, including further exposure
to potentially lucrative mining finance and project acquisition opportunities in
mainland China and Hong Kong are immeasurable.

This could be the first placing with more finance options to come further down the road.

I wouldn't think that Golden China would be prepared to opt in on 10m at this stage so 2m may be a starting point to ensure that CDN have the financing available to prove at least 1 of the 4 remaining projects.

If CDN fail then they lose a max of 2m but if they succeed then Golden China make a big profit and future financing for more acquisitions etc becomes available. hopefully without further dilution as Golden China will be a partner holding at least 11.7% at this stage.

DYOR (Do your own research as always) please.

There will be another announcement in due course stating that Golden China have acquired x number of shares at x price...and when the new shares will be admitted to the market.

DYOR.