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

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.

I'm getting a bit seasick - why the volatility? I expected a relatively calm period prior to the Golden China placement!?

SueHelen nice to have you back hope you have had a good graduation and a rest. I am holding this one for a long term - this sector is doing well which will help. All the best.

Hi Joe, the volatility at the moment is because in the background details of the price and number of shares Golden China will acquire is happening. Volatility should be reduced once the Golden China RNS comes.

relevant to CDN

Buy Golden Prospect at 27.75p
Argues bear raider Evil Knievil of t1ps.com

I am famous - or should I say infamous - as a shorter of stocks. That is to say, selling shares that I don't own hoping that they will collapse and then as ordinary investors gnash their teeth and wail, I buy back and collect the lolly. If you are looking for a good short right now, Jarvis is - even at 24.5p - free money all the way down.

But I also dabble with buying shares and though I say so myself I am rather good at it. There are some fools out there who base their investments on following fund mangers - so called shrewdies. I am of the view that there are more shrewdies in the penguin pen at London Zoo than there are in the City and Golden Prospect rather proves my point.

A couple of years ago when this company had net assets of 10p a share (of which half was cash) two "shrewdies" sold their entire holding at 4p or less. Yours truly lapped it up and now has a notifiable interest. Indeed I have kept buying (to a high of 36p) and with the shares at 27.5p I am more than a few lunches ahead.

Run by the wise old coot Malcolm Burne, Golden Prospect invests in an array of small mining companies and its net assets are currently worth - I believe - just under 40p a share. In addition it has direct stakes in a couple of exploration projects which I suspect are worth another 4p per share or so.

But gold and thus gold shares will go higher. The idiots in charge of the west (Bush, The Wicked Witch and her consort Mr Blair, and the fools from Euroland) think that the answer to all our problems is to print more of their paper currencies and are doing so with wild abandon. No more gold is being produced by God. Hence basic economics dictate that gold must appreciate against currencies whose worth is being devalued by the day.

Since gold mines are operationally geared to the price of gold, another $100 on the gold price (which will in time happen) will cause gold shares to soar and with it so will the NAV of Golden Prospect. Before I even start to sell this share I would expect the NAV to hit 80p and the shares to see 60p. It may take a couple of years but I am a patient man.

Legendary bear raider Evil Knievil outlines all his trading positions on EvilCast - a fortnightly webcast available only on website www.t1ps.com. The website also features the tips of Tom Winnifrith who also recommended this share at just 5.25p. For more details click here

Thanks SueHelen. I'm hanging on in there.

Hi Fonty, I had a such a lovely time at my graduation today, it was wonderful, though there were some tears in my eyes as I was saying my goodbyes.

Hi Joe, the Golden China RNS should be coming next week

Hi Xmortal, thanks for that.

and up 7.45% with this news.... so i think we should see some kind of upward trend from now on.

Caledon Resources PLC
08 July 2004



July 7, 2004

Update on Exploration Activities

Promising Results from Badu Field Sampling

Field exploration active on several fronts - drilling is expected to
commence at Gaolong/Badu by the end of July, 2004 and Hengxian
thereafter

Advanced field project evaluations encouraging

Caledon Resources is pleased to provide an update on the various
active exploration programs in China. Exploration work is on-schedule and
on-budget at Gaolong, Badu, Hengxian and Mojiang in preparation for the next
phase of drilling to commence sometime within the next 4 weeks.

In the past several weeks, Caledon's field crews have collected over 400
samples in the field at the various projects in preparation for the next
phase of drilling.

A reverse circulation drill rig is scheduled for the Gaolong and Badu projects
in Northwest Guangxi province by the last week of July 2004. A minimum of 2000
metres of drilling, with the possibility of extension, is planned for both
projects. Preparations are also underway to initiate a second phase of drilling
at the Hengxian gold project.

Badu Sampling - Phase 1 Drilling Preparations

Recent field work, conducted in preparation for upcoming drilling, has
identified a number of important gold bearing structures at Badu. Disseminated
gold occurs in over twenty separate occurrences on the field, spread over a
total area of ten square kilometres.

The assay results are encouraging.

Samples have been taken across a major structural deformation zone extending for
over three kilometres in strike length, and consist of channel samples collected
across the structure.

Results spread along two kilometres of the zone include:

Channel # Width (m) Gold Grade (g/t)
Channel 1 10.0 7.01 (incl 13.72 g/t over 2 m)
Channel 2 12.0 3.25 (incl 5.1 g/t over 4 m)
Channel 3 5.0 3.72
Channel 4 8.0 1.36
Channel 5 8.0 2.04
Channel 6 10.5 1.15

Sampling has defined a shallow dipping zone (40o) of gold mineralisation with
an observable average thickness of 80 metres. Within this zone, structurally
deformed sedimentary units have been selectively replaced with disseminated gold
mineralisation (Au-As-Sb) showing all the hallmarks of classic Carlin-style
disseminated gold mineralisation.

In addition to the encouraging results from Badu, other sampling results
obtained to date from the Gaolong project areas, situated less than 15
kilometres away, have highlighted significant widths of economic gold
mineralisation in recent surface sampling campaigns (examples from past press
releases: 3.10 g/t Au over 25 metres, 2.87 g/t Au over 15 metres, 2.48 g/t over
44 metres, 3.85 g/t over 10 metres, 2.73 g/t over 28 m). Individual 2 metre
sample runs in other areas of the Gaolong tenements have run as high as 18.75 g/
t of gold.

Hengxian: Phase 2 Drill Preparation

Further preparations are underway to initiate a second phase of diamond drill
work at the Hengxian project, with drilling expected to be initiated this
summer. The drilling will be carried out using large diameter diamond drilling,
firstly to verify earlier RC drilling results and to improve recoveries, and
also to test the major gold bearing structure at depth.

Mojiang: Field Sampling

At the Mojiang project in southern Yunnan, Caledon geologists have completed the
first pass of detailed mapping and sampling and are currently awaiting assay
results. Drilling of the Mojiang property is planned for later this year.

On behalf of the board,

Stephen R Dattels George Salamis
Executive Chairman Managing Director



For further information, please visit our website at
www.caledonresources.com

Yes good news Xmortal.

down to 11% today.... I think the MMs are at it again, back to their old games. The b/o is tight 4.50 - 5.00

Dont forget that there was director dilling few weeks ago and the encouraging news on their drilling issued yesterday. Hold tight I'd say. Volumes are low... Can someone tell me what is the buys/sells ration so far

Holding very tight here!