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

ajren, I don't know if you have seen this?

http://www.investmentu.com/home.cfm?id=p

Scottie..thanks for site as I did not know it.Will have a good read tomorrow.

I found the site very interesting - thanks!

Hi Scottie.Just dropping in to say the site you mentioned is great rgds

Thanks ajren. I agree with the sentiments there, it's the time to invest in gold shares - the dollar is weak, terrorism is seriously on the move, ----- all the indicators are saying put your money somewhere safe.

Great news:-

Nov 19-today

....covering the Mojoing....area .... in South East Yunnan province S.China.
.....the company considers....area has exceptional potential for the discovery
of major gold deposit.Up .38 after this
Also,ref treads GOLD and LINK TO 24 HOURS,GOLD PRICE

Gold prices should hit a high of $435/oz in 2004, supported by increased investment demand, a weaker dollar and geo-political tensions, global investment bank Dresdner Kleinwort Wasserstein said yesterday.

Just an Opinion---I would prefer to use a crystal ball than their view...as
NO ONE knows what will happen tomorrow/next week/month e.g another 9/11 plane
attack terrorism.

Ajren - you can have my crystal ball - cheap - it doesn't seem to work anymore. Maybe a pendulum would work better.

We made a mistake as a gold ball is what we need -- price going so high. ajren

y.e. changed to Dec 31 to comply with China subsidiary.We need info on subsidiar
rgds aj

Ref tread : gold breaks through 400 dollars.rgds aj

Yeah but only because the Dollar is falling!
Price of gold in sterling hasn't changed - unless anyone else knows any different!

Caledon Resources PLC
30 January 2004


Caledon Resources plc ('Caledon' or the 'Company')

Final audited group results for the
seventeen month period ended 31 December 2003

Highlights

Caledon Resources Plc is a China-focused gold explorer, possessing an attractive
portfolio of advanced stage exploration projects in Southern China.

Our objective is to create shareholder value through the acquisition, discovery
and development of world-class precious metal ore bodies leveraged by our
company's corporate management and technical skills.

2003 Achievements:

April: Floated Caledon on the Alternative Investment Market of the London
Stock Exchange.

May: Established China base, obtained Chinese business license.

May - September: Secured the rights to four advanced stage gold assets in
Southern China.

March-September: Successfully promoted the company in Europe and N.
America, completed several financings - built an attractive European and North
American share holder base.

2004 Objectives:

Complete first-pass field exploration and drill target definition work on the
Hengxian, Gaolong, Badu and Longtoushan gold projects

Complete first pass drill program on the Hengxian, Gaolong, Badu and
Longtoushan gold projects

Advance one or more successful gold projects to a resource definition stage
by the end of 2004

Continue to evaluate opportunistically gold projects in China/Asia

Continue pro-active promotion and marketing in Europe and North America.


Chairman's Statement

It is with pleasure that we report to our shareholders in this, Caledon's first
annual report. Caledon Resources has established itself as a prominent London
AIM listed company, focused on gold exploration in Southern China.

2003 has been a year of growth and success for Caledon. Having reversed the
exploration projects into Finelot Plc in April 2003, Caledon's management has
proceeded to successfully grow the company on several fronts:

Establishment of a Chinese operating subsidiary and acquisition of
a Chinese business license.

Founding of a highly skilled exploration team and operating base
situated in Nanning, the capital of Guangxi Province.

Successful acquisition of four advanced stage exploration projects
in Southern China, all focused on near-surface disseminated gold potential
immediately adjacent to existing small-scale gold production.

Financed Caledon's growth through a series of equity financings at
progressively higher prices.

Established a European institutional and retail shareholding base.

A Year of Growth and Recognition

2003 was a year of growth. Within mining investment circles Caledon Resources
has established a niche as one of the important gold explorers in southern
China.

The Caledon exploration story has been well presented to the investment
community through a focus on its key projects and has achieved positive research
coverage by several firms.

Acquisition and Exploration: Building Blocks of Future Growth

Whereas 2003 was a year of corporate re-structuring of Finelot and exploration
portfolio building, we view 2004 as being our year to deliver on the promise of
major gold discoveries on our projects in China. As we advance all of our
recently acquired gold projects to a drill stage, through further field work and
target definition, we are confident that we can deliver on one or more gold
discoveries for our shareholders by the end of 2004.

In addition, because of the goodwill that we have built with our mining partners
in China, Caledon is continually being exposed to new potential acquisition
opportunities. As such, we will continue to pursue our policy of enhancing
shareholder value through the opportunistic evaluation and value driven
acquisition of additional precious metal projects in 2004.

A fundamental improvement in gold

With respect to our business in general, our expectation is that the gold price
will remain strong, providing shareholders with further opportunities for
substantial gain. Gold's performance, in recent years has been fuelled by -
amongst other factors - a weakening US dollar, increased investment demand for
gold, decreased global production and reduced producer hedging. We believe that
these trends are likely to continue in the years ahead and bode well for
increased gold prices in the future.

As has historically been the case during all gold upward cyclical periods,
maximum leverage in the gold markets will continue to be provided by gold
focused exploration stocks.

Management

None of Caledon's success would have happened without the dedication and effort
of the Company's key operating and staff managers. Caledon's Chinese operations
are headed by Paul Ingram along with his team members including Bruce Harris,
Steve Morgan and others.

On the corporate side, George Salamis, Caledon's Managing Director is an
experienced exploration geologist and mining executive who is capable of
marketing the Company's Chinese exploration story while having the technical
skills to assist with operations.

Vision of the Future

In short, Caledon is poised to add resource ounces in 2004 through its upcoming
drill programmes on its advanced stage exploration properties and possibly
through additional acquisitions.

In closing, we would like to thank our shareholders - institutional and retail
alike, on both sides of the Atlantic Ocean - for their support provided in 2003.
Our mandate in 2004 is clear: to successfully deliver on our promise of gold
discoveries in China. Rest assured that we will be working hard to fulfil that
mandate.

Sincerely,

Stephen R. Dattels
Executive Chairman

27 January 2004


Review of operations
'......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......' Quoted from the United
States Geological Survey (USGS Open-File Rep 02-131)

A Year of Gold Project Acquisitions: Maximum leverage, diminished risks

The year 2003 was marked by a period of accelerated growth for the company,
underpinned by the acquisition of four advanced stage gold projects in Southern
China: Hengxian, Longtoushan, Gaolong and Badu.

At Caledon, we recognise that gold exploration does have its risks - and thus
our management's philosophy is that of a safer strategy focused on diminished
risk and maximum leverage for our investor. This philosophy relates to the
acquisition of exploration rights that surround or are positioned immediately
adjacent to existing mining operations. So goes the adage; '...the best place to
find a new mine is in the shadow of an existing one...'

In short, our view is that the near surface gold mineralised zones currently
being mined on a small scale by our minority partners in China, have the
potential to grow substantially, through the application of modern exploration
techniques and philosophies.

Technical Report; SRK Engineering

SRK Engineering, one of the world's leading mining and exploration consulting
firms, was engaged in late 2003 by the company to complete a Technical Report
describing the Company's various gold projects in China.

Completion of the Technical Report involved a site visit, due diligence and a
thorough analysis of Caledon's advanced gold projects situated in Guangxi
Province, Southern China. Dr. Jean-Francois Couture, Principal Geologist and
author of the report, has highlighted many attributes related to Caledon's
Guangxi gold projects and field crews involved in the exploration.

As a general comment regarding Caledon's gold projects, Dr. Couture writes:

'On each project, only limited exploration has been carried out since the
beginning of mining operations........In particular, (past) exploration work has
focused on near-surface oxide ore targets. The depth and lateral extensions of
known gold zones remain poorly tested and offer excellent potential for
additional discoveries.'

Commenting on the expertise of Caledon's Guangxi-based exploration team, Dr.
Couture adds:

'..... Caledon, through its subsidiary Blackwatch, has assembled a very strong
exploration team in China. Exploration work in China presents logistical, social
and cultural challenges that could potentially hamper the success of any
exploration program. In the opinion of SRK, the ability to deal with these
challenges is as important as the merit of exploration projects themselves.
Blackwatch personnel have demonstrated the capacity to deal with such issues.
This undoubtedly represents a significant positive asset to Caledon...'

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.

Longtoushan Gold Mine - The current operators, the Longtoushan Company, are
mining a series of hydrothermal breccia zones extending over a strike length of
1.2 kilometres, underground and limited surface mining, with several zones being
mined over widths of up to 30 metres. 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 at
Longtoushan has the potential to host additional major gold ore-bodies.

Summary results from underground sampling performed by the Chinese include the
following:

Mine Level Stope # Continuous Channel Sample: Grade and Width
380 m CD-10 5.17 g/t over 30 m
380 m CD-8 3.02 g/t over 40 m
380 m CD-6-8 3.81 g/t over 19 m, incl. 5.1 g/t over 9 m
540 m CD-17-1 6.47 g/t over 31 m, incl. 10.51 g/t over 14 m
540 m CD-0-1 4.04 g/t over 18 m, incl. 6.12 g/t over 8 m
580 m CD-19-01 3.8 g/t over 32 m, incl 5.0 g/t over 9 m
580 m CD-19 4.34 g/t over 23 m, incl. 7.95 g/t over 8 m

Longtoushan is the first project scheduled to be drilled in early 2004. Drill
stations have been set-up underground on the mine to act as a platform to probe
the strike extensions of zones that are currently being mined by the Chinese.

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.

Exploration Tenements: Guangxi: In addition on existing small scale mine
production, Caledon, through its wholly owned subsidiary Blackwatch Resources,
has applied for a number of exploration licenses in Guangxi province. The
majority of the tenements under application are situated along the Youjiang Rift
- the most prolific gold hosting structure in Guangxi province. All tenement
applications - Jiaoman, Long An and Shanglin - are host to an abundance of gold
showings and past producing small scale gold mines, all of which display classic
sediment hosted disseminated gold characteristics.

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

Financial Review

During the period, the Company changed its year end from 31 July to 31 December.
Accordingly, the attached financial report relates to the 17 month period 1
August 2002 to 31 December 2003. The comparative period reflects the accounts of
the Group's previous activities operating a contemporary art gallery and its
quarterly magazine 'FINE.' These operations have now been discontinued and have
been treated accordingly.

Overview

On 11 April 2003 the Company re-organised its share capital and raised 1M net
of costs in a placing and open offer, changed its name to Caledon Resources plc,
shifted its business focus and strategy to that of gold exploration in China and
acquired Blackwatch Resources (BVI) Ltd. Through this, it has entered into a
number of gold exploration agreements with various entities in China.

Liquidity and Capital Resources

The Company finished the period on a strong financial footing as a result of
four private placements with institutional investors during the period. These
financings including the above placing an open offer netted approximately 3.1M
to the Company and the working capital position at year end stands at 1.8M.
Should the opportunity present itself and optimal conditions be present, the
Company will seek additional financings during the 2004 financial year.

Results of Operations

The Company incurred a net loss of 1.4M for the 17 month period ended 31
December 2003 compared to a net loss of 0.5M for the year ended 31 July 2002.
Of the loss incurred in the current year, 527,000 related to exploration
expenditures incurred in China; 816,000 related to general and administrative
costs and 60,000 related to discontinued operations. Losses in the comparative
period related largely to discontinued operations.

The Company incurred a loss per share of 1.24p for the period ending 31 December
2003 compared to a loss per share of 1.80p for the year ended 31 July 2002.

George Salamis
Managing Director
27 January 2004

Group profit and loss account for the 17 month period ended 31 December 2003

17 month
period to Year ended
31/12/2003 31/7/2002
------------- ------------------ -------- ---- --------
'000 '000
------------- ------------------ -------- ---- --------

Turnover - Discontinued 7 175
operations
Cost of goods sold - Discontinued (7) (154)
operations -------- --------
Gross profit - Discontinued - 21
operations
------------- ------------------ -------- ---- --------
Administrative expenses - Continuing operations (816) (177)
- Acquisitions (527) -
-------- --------
- Total continuing (1,343) (177)
operations
- Discontinued (60) (202)
------------- operations -------- ---- --------
------------------
(1,403) (379)
------------- ------------------ -------- ---- --------
Operating loss - Continuing operations (816) (177)
- Acquisitions (527) -
-------- --------
- Total continuing (1,343) (177)
operations
- Discontinued (60) (181)
------------- operations -------- ---- --------
------------------
(1,403) (358)
Loss on termination of
operations - (104)
Interest receivable and
similar income 15 15
Interest payable and
similar charges (7) (1)
-------- --------
Loss on ordinary
activities before
taxation (1,395) (448)

Tax on loss on ordinary activities - -
--------
--------
Retained loss for the
financial period (1,395) (448)
======== ========

Loss per share - basic
and diluted (1.24p) (1.80p)
---------------- --------------- -------- ---- --------

There were no recognised gains and losses other than those reported in the
profit and loss account above and therefore no separate statement of total
recognised gains and losses has been presented.

Group balance sheet as at 31 December 2003
December 2003 July 2002
----------------------------- --------- ---------
'000 '000
Fixed assets
Intangible fixed assets 266 -
Tangible fixed assets 79 10
--------- ---------
345 10
========= =========

Current assets
Stock - 18
Debtors: amounts falling due after one year 8 -
Debtors: amounts falling due within one year 200 171
Cash at bank and in hand 1,806 168
--------- ---------
2,014 357

Creditors: amounts falling due within one year (200) (199)
--------- ---------

Net current assets 1,814 158
--------- ---------
Net assets 2,159 168
========= =========

Capital and reserves
Called up share capital 2,680 2,491
Share Premium 5,275 2,078
Other reserves (91) (91)
Profit and loss account - deficit (5,705) (4,310)
--------- ---------
Total equity shareholders' funds 2,159 168
========= =========

Group cash flow statement
17 month
period to Year ended
31/12/2003 31/7/2002
---------------------------- -------- --------
'000 '000

Net cash outflow from continuing operating activities (1,344) (877)
-------- --------

Returns on investments and servicing of finance
Interest received 15 15
Interest paid (7) (1)
-------- --------
Net cash inflow from returns on investments and
servicing of finance 8 14
-------- --------

Capital expenditure and financial investment
Purchase of tangible fixed assets (86) (1)
-------- --------
Net cash outflow for capital expenditure and
financial investment (86) (1)
-------- --------
Cash outflow before financing and liquid resources (1,422) (864)
-------- --------

Management of liquid resources
Movement on deposits (1,057) -
-------- --------
Cash outflow from liquid resources (1,057) -
-------- --------

Financing
Issue of ordinary shares 3,426 -
Cost of issue of shares (354) -
-------- --------
Cash inflow from financing 3,072 -
-------- --------

-------- --------
Increase/(decrease) in net cash in the period 593 (864)
======== ========
---------------------------- -------- --------

NOTES:

1. The financial information for the period ended 31 December 2003 is
audited and was approved by the Board of Directors on 27 January 2003. The
audited group financial information incorporates the audited financial
information of the Company and all its subsidiaries for the financial period
ended 31 December 2003.

2. The financial information set out above does not constitute the
Group's statutory accounts for the period ended 31 December 2003 and the year
ended 31 July 2002 but is derived from these accounts. Statutory accounts for 31
July 2002 have been delivered to the Registrar of Companies in England and
Wales, and those for 31 December 2003 will be delivered following the Company's
annual general meeting. The auditors have reported on the 31 July 2002 accounts;
their report was unqualified and did not contain statements under section 237
(2) or (3) of the Companies Act 1985.

The figures included in this announcement have been prepared on the basis of the
accounting policies set out in the 31 December 2003 financial statements.
Policies in respect of the new operations are:

Goodwill and intangible assets

Goodwill represents the difference between the cost of acquisition and the fair
value of the identifiable net assets acquired. Goodwill arising on acquisitions
is capitalised in accordance with FRS 10 and amortised on a straight line basis
over their useful economic lives which for Blackwatch Resources (BVI) Ltd is 5
years.

Exploration and evaluation

During the initial stage of a project, costs are charged to the profit and loss
account in the year the costs are incurred. Expenditure on a project after it
has reached a stage at which there is a high degree of confidence in its
viability is carried forward and transferred to tangible fixed assets if the
project proceeds. If a project does not prove viable, all irrecoverable costs
associated with the project are written off. If an undeveloped project is sold,
any gain or loss is included in operating profit, such transactions being a
normal part of the Group's activities. Where expenditure is carried forward in
respect of a project which may not proceed to commercial development for some
time, provision is made against the possibility of non development by charge
against profits over a period of up to seven years. When it is decided to
proceed with development, any provisions made in previous years are reversed to
the extent that the relevant costs are recoverable. At 31 December 2003, all
projects were at an early stage of exploration and hence all exploration costs
have been expensed.

3. Loss per ordinary share

The loss per share of 1.24 pence (2002: loss 1.80 pence) has been calculated on
the basis of the loss of 1,395,000 (2002: loss 448,000) and on 112,879,790
(2002: 24,911,857) ordinary shares, being the weighted average number of
ordinary shares in issue during the 17 month period ended 31 December 2003. Due
to a loss being made all share options and warrants are antidilutive.

4. Copies of the published accounts of the Company have been sent to all
shareholders and will be available during normal business hours from the offices
of Caledon Resources plc at 18 Upper Brook Street, London, W1K 7PU.

For further information, please visit our website at

www.caledonresources.com
or contact:

Stephen R Dattels, Executive Chairman - sdattels@caledonresources.com
George Salamis, Managing Director - gsalamis@caledonresources.com
Donal Douglas, Investor Relations - ddouglas@caledonresources.com
Caledon Resources PLC
18 Upper Brook Street., London W1K 7PU
Tel: +44 (0) 20 7318 5780
Fax: +44 (0) 20 7318 5781



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

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