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

single high volume sell of 6.75 million checked momentum..good buying opps. should recover by clsoe

The buys outnumbered the sells... I think MMs are playing here.... hold tight in case. So far 16 mio shares traded.... very high.

recovered from oversell as predicted - the MMs over compensated but overall momentum is still positive - any ideas on the 6.75m trade?

Hi Xmortal,

Phew just been catching up on all the posts...good work guys. Whatever gave you the impression that I had sold out. I have been away on my holidays for the last week or so with my university friends hence I was unable to post anything on these threads after learning that I had passed my BSc degree as well as my friends passing the course as well.

I'll try and catch up with whats happening at the moment with CDN tonight or tomorrow morning.

I should be online from tomorrow again.

PS. I did post a fairly conclusive summary before I left my holidays...just amazed with what it seems panic last Tuesday on a red day it seems after reading all the posts and not many comments on the good blue days.

xxx.

SueHelen - it's truly a great pleasure to have you back in the fold on this one. I personally never doubted that you had sold up - well, only briefly in a moment of investment anxiety. Congrats on the degree!

I have the detail on the major trade today (below). As for the TA, I'm sure SH will provide a much more comprehensive summary but to my untrained eye all the indicators seem very bullish and the upper MA envelope broken through today...a volatile day given the trading environment but recovered well and plenty of upside from here on.

Caledon Resources PLC
29 June 2004


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

The Company announces that Watson Island Development Corporation, today sold
6,750,000 ordinary shares in the capital of the Company, taking its holding to
nil. The shares were sold at a price of 5.25 pence.


Watson Island Development Corporation is a company controlled by Sebastian
Taylor who is a member of the concert party. The sale of the above shares
decreases the total number of shares held by the concert party to 43,569,913,
representing 20.4% of the total issued share capital of the Company.

Hi Joe...thanks for the congrats. I received a 2:1 for my degree...I suppose not everyone can have a first...out by 2.3% otherwise I would have got a first.

PS. Will try & catch up on the news releases tomorrow and provide a summary tomorrow evening.

All the great achievers in life get 2:1's. Firsts are always eyed with deep suspicion. It's an amazing accomplishment when you consider how much time and concentration you have had to invest in the research shared here and on other posts. Not sure you ever get time to sleep..anyway look forward to the post tomorrow.

RNS Number:2836A
Caledon Resources PLC
29 June 2004


Caledon Resources Plc ("Caledon" or the "Company")

Exercise of Options


The Company announces today that certain employees of the Company have exercised
options over ordinary shares of 0.1 pence each in the capital of the Company
under the Company's share option scheme.

Details of the options exercised as follows:

Number of options Exercise Price
416,666 2p
416,666 3p

Accordingly, application will be made for 833,332 ordinary shares of 0.1p in the
Company, which will rank pari passu with the existing ordinary shares, to be
admitted to trading on the Alternative Investment Market. Admission will become
effective and dealings are expected to commence at 8.00am on 6 July 2004.

Enquiries

Caledon Resources Plc: Tel: 020 7318 5780
Stephen R Dattels, Executive Chairman
Donal Douglas, Investor Relations




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

END

Hello Sue Helen,

This is an email sent from my friend who works for Placerdome in Canada. I asked him to analysed the results on African Eagle Gold. This note should serve as a reference to understand CALEDON RESOURCES drilling repost due out , I believe in July.

'The results aren't too bad, however they are a bit on the low side. The thickness of the instersects are good. Whether or not the grade is economic depends on quite a few factors, the most important are the depth, continuity and the metallurgical characteristics (that is how difficult it is to extract the gold from the rock). Sulfide ores are usually more costly to extract the gold and need higher grade, Oxide ores are generally cheaper to extract the gold and can be economically feasible at lower grades. I suppose a general rule of thumb would be a minimum of 1.5 g/t Au for an open pittable (shallow) deposit that has good metallurgy.

These intersects look like they are on the low side - 1.3 - 2.0 g/t. However they have reported higher grade within the intervals of 2.2- 2.7 g/t. over significant intervals. These results are interesting. You should note that they drilled five holes and have only reported the results on three holes. Of the three holes 2 of them are potentially economic. It is difficult to assess the results without a map showing the drill hole locations. If they can establish continuity of the higher grade intersects in holes 8 and 12. It would have a good chance of being economic.


THIS IS THE IMPORTANT BIT WE NEED TO LOOK FOR:

Whether or not the grade is economic depends on quite a few factors, the most important are the depth, continuity and the metallurgical characteristics (that is how difficult it is to extract the gold from the rock). Sulfide ores are usually more costly to extract the gold and need higher grade, Oxide ores are generally cheaper to extract the gold and can be economically feasible at lower grades. I suppose a general rule of thumb would be a minimum of 1.5 g/t Au for an open pittable (shallow) deposit that has good metallurgy.

thought I'd bring this back to the top- it's been ticking up nicely this week, let's hope it keep's going.

What happened one minute 6.12 and now back to 5.75.!? MMs are having a laugh.

Hi Joe and others,

I think this may be the end of the rally now for the short term. The price will settle at these levels (between 5.00-6.00 pence) which is what I suggested two weeks ago as well when the strategic relationship with Golden China was announced. If we read back to that RNS we see that Golden China will not be paying more than 6.5 pence for their investment of 2 million pounds. Though this is only a short term thing until another announcement comes from the company stating that Golden China have acquired x number of shares a x price and maybe some drilling news then we will be able to push forward pass 6 pence.

With regards to yesterday's RNS about the 6.75 million sell. That was Watson Ireland who has been the distressed seller who has been selling since January which I mentioned when I started this thread. I think they have finished but I am unable to back up with that with facts.

Besides that, the upper bollinger band is still around 6.20 pence so we will need more news to push forward pass the 6 pence level.

I am not analysing other TA at the moment as it is irrelevant with the placing being carried out in the background.

PS. Thanks for the information Xmortal...sounds interesting. Will see if I can use that to analyse drilling news that has already come from other mining companies and see the relevance.

This snippet was in today's Guardian Newspaper, it seems that they were 2 * 6.75 million trades yesterday, one was a buy for that amount which someone bought straightaway from the seller :

Caledon Resources firmed 0.5p to 5.87p after brokers finally found a home for a large line of stock owned by a friend of company chairman Stephen Dattels. With that overhang cleared, market makers believe Caledon could now enjoy a strong run.

http://www.guardian.co.uk/business/story/0,3604,1250250,00.html

Does this mean we might break through the 6p barrier sue helen

Hi thesaurus, no not yet. That snippet caused the price to rise again today but the price fell off late in the day. Not until the annoucement comes from the company that Golden China have acquired x number of shares at x price. See my post 367.

Hi Sue Helen. Congrats for your recently achieved degree! What do you study if I may ask? I've been following your comments on several shares. You are doing great.

Hi hlyeo98...thanks. I have just completed a BSc in Computation at UMIST in Manchester. Graduation next Tuesday, I'm going to cry...I've had such a lovely time at university.

SueHelen - will you be doing the Didsbury dozen to celebrate ?

Congratulations Sue Helen and have a fantastic graduation and look forward to our future success.

-------News that Golden China have acquired x number of shares at x price should be coming next week as the 20 trading days are up early next week since the announcement of the strategic relationship. I reckon it will be somewhere around 5.50 pence.

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.


Hi Flinny, you've lost me there.

I look forward to Fonty. Thanks again.