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

Yes i toped up with 50k at 5p today Sue.

Gold price touched $436 today.

Opened a new position in this one, Tom Winifrith in the last couple of days says 'his source' indicates that some kind of corporate action is not very far off.

The rising POG will obviously help this.

cheers GF.

PS, anyone else think the oil speculators will now jump ship and board the good ship GOLD?.

Don't think any PET holders will jump ship untill they get they contracts news, also to much going on off the falklands[ DES and FOGL.].

Heard they are shorting DES this afternoon, source was from t1ps.com one of their financial reporters. Flagged it up on the celebrities board at around 2pm.

cheers GF.

Moved up over the last two sessions.

cheers GF.

I dont think news is far away.

Hoping your right John.

cheers GF.

Thought I should join the party.goal

Dropped to 4.5-5.5, buying opp, won't last at this level.

Added again. Good opportunity.

cheers GF.

Well done GF great opportunity,they certainly like to keep us guessing.

my problem is I keep adding in the dips on CDN and forgetting to sell but it's all small beer so far anyway. Far too many already but added a few more again today..let's hope an RNS is on it's way

CDN has taken a 19% stake in Afcan Mining Corporation,has placed a further 10,575,000 shares to raise 475,875.

Here's the RNS...

Caledon Resources PLC
19 November 2004


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

Completion of Placing to raise gross proceeds of 475,875 and a Strategic
Investment in Afcan Mining Corporation ('Afcan')



Caledon raises 475,875 in a private placing bringing to a total of 4.5
million the funds raised in November 2004

Caledon to invest $Cdn 5.96 million (approximately 2.69 million) in Afcan
Mining Corporation

Afcan Mining: 85% owners in the Tanjianshan Gold Project hosting Indicated
gold resources of 579,000 ounces and inferred resources of 175,000


Caledon Private Placement

The Directors of Caledon are pleased to announce that following the completion
of a placing of 90,422,225 ordinary shares at a price of 4.5 pence as announced
on 8th November 2004, the Company has placed a further 10,575,000 ordinary
shares at the same price of 4.5 pence. The gross proceeds from the placing were
approximately 475,875 and 447,323 after expenses. This takes the total amount
raised from private placements in November 2004 to approximately 4.5m.

Application will be made for the 10,575,000 ordinary shares, the subject of the
placing, which will rank pari passu with the existing ordinary shares, to be
admitted to trading on AIM. Admission will become effective and dealings are
expected to commence at 8.00 am on 26 November 2004.

Investment in Afcan

The Directors of Caledon are pleased to announce that it has made a strategic
investment in Toronto Stock Exchange ('TSX') listed Afcan Mining Corporation
(TSX:AFK) through private placements. Under the terms of the placing, Caledon
has closed in escrow a private placing of approximately 19% of the issued and
outstanding shares of Afcan (on an undiluted basis). The proceeds of this
placement in Afcan, amounting to approximately $Cdn 5.96 million (2.69 million
approx), will be used to help fund the construction of Afcan's gold mine in
China.

Caledon has subscribed to 23,852,117 units of Afcan representing 19% of the
issued and outstanding shares of the company post-closing on an undiluted basis
and 26% on a partially diluted basis assuming exercise of its warrants. Each
unit is priced at $Cdn 0.25 and consists of one common share and one half
warrant. Each two half warrants entitle Caledon to purchase one common share at
a price of $Cdn 0.375 per share on or prior to 19 November 2006, or such other
later date following receipt by Afcan of the approval of the TSX to the issuance
of the units. The shares and the warrants to be issued as part of the units will
be subject to a 4 month hold period from the closing date.

Afcan - Tanjianshan Gold Deposit - Qinghai Province, PRC

Afcan are 85% owners in the Tanjianshan Gold ('TJS') project situated in Qinghai
Province, Western China. The project is currently the focus of a bankable
feasibility study that the Afcan directors believe will enable Afcan to achieve
the status of gold producer by mid-2006. As of February 2004, total resources at
the project (Indicated Category - JORC) currently stand at approximately 579,000
ounces of gold at an average grade of 5.79 g/t gold. In addition, TJS also hosts
a further 175,000 ounces of gold grading 4.9 g/t of gold in an Inferred (JORC)
category.

TJS - Access, Infrastructure and Mining Permits

There is currently infrastructure on site to support small scale operations.
This infrastructure will be upgraded or replaced as required to accommodate the
new plant. Water will be pumped from a nearby river and a 20MW coal-fired power
station is currently under construction 25 km from the TJS project. The site has
a sealed road within 12 km and a fibre-optic connection to the national
telephone grid.

On September 21st, 2004, Afcan announced that the Chinese Ministry of Land and
Resources, had approved the transfer of the mining licence for the Jinlonggou
deposit at the TJS Project in China, from the Qinghai Dachaidan Jinlong Mining
Development Co., to QDML, the 85% AFCAN owned joint-venture company.

TJS - Mining, Metallurgy and Pre-feasibility Economics

The objective of the ongoing bankable feasibility study is to study in a
detailed manner, the potential economics of bulk open pit mining and limited
scale underground mining on the TJS gold deposits. The company has undertaken
extensive metallurgical test-work from bulk samples collected on-site. The
results of this test-work programme show that two-stage roasting provides a
recovery of 90.1% for the sulphide material. A 'whole-of-ore' leach process will
be required for the oxide material present (approximately 15%) in the ore. There
is currently a fully permitted small scale roaster operating on the project by
Afcan's Chinese partners.

The conclusions drawn from previous scoping studies demonstrate that the TJS
project has the ability to reach a production level of 110,000 ounces per year
over a 10 year period, based on the current Indicated drill resource. These
scoping study estimates are based on the existing Indicated resource base and
the directors believe that the resource base will grow based on Afcan's 2004
drilling results.

TJS - Exploration Potential

Caledon's site visits and studies conducted on the project have highlighted
significant upside on the project, both in proximity to the existing indicated
resources and at a distance from the current resource boundaries within the
company's 341 km2 concession. As such, Caledon's management believes that a mine
life well in excess of 6 years will be achievable from the additional 2004
drilling programme. Currently, there are an additional 23 anomalies on the
licence area that are being actively explored using several drill rigs.

Part of Caledon's due diligence focused on Afcan's mine building and operating
abilities. The Caledon board has concluded that Afcan's team of mining engineers
and geologists, given their past track record of successfully building mines,
have the wherewithal to successfully build and operate TJS to its fullest
capacity.

Commentary

George Salamis, Managing Director, stated: 'Caledon's management has conducted
an examination of Afcan and their TJS deposit and have concluded that it is host
to several highly robust and potentially bulk minable ore-bodies, all hosting
significant upside potential for further resource and reserve additions. Both
Afcan and Caledon possess many points in common including a steadfast belief in
the gold potential of China and the willingness of the Chinese authorities, both
at the provincial and state levels, to facilitate foreign companies in their
quest for the discovery and development of major gold ore bodies in China'.

Stephen Dattels, Chairman, added: 'We look forward to working with Afcan's
management towards the successful development of one of China's larger
foreign-owned gold mines, developing one of the country's most high-potential
gold districts'.

On behalf of the board:

Stephen R Dattels George Salamis
Executive Chairman Managing Director

Evening Standard :

Caledon Resources was a late casualty, shedding 0.5p at 5p after news of a further private placing* by the group and the acquisition of a stake in a Canadian-listed mining group.

The mining exploration firm said that, following the completion of its private placing of 90.42m at a price of 4.5p each announced on November 8, the firm has now placed a further 10.575m shares at the same price, raising a further 447,323 after expenses.

http://www.thisismoney.com/20041119/nm84868.html

Good business I reckon.

cheers GF.

Have we got a 19% stake in Afcan,or do we own 2.69m worth of shares shares in them. What do you think Sue.

Strategic alliances in China like this will enable CDN to deliver cost and expertise synergies...badly needed in such a fragmented playing field and a key to improved shareholder value..that's what late Friday's RNS amounts to. Also management are true to their word of seeking consolidation. So yes, a good deal I think. Let's hope it's regarded as such when the markets open on Monday. I for one expect we'll see a reversal of Friday's drop.

Looks very interesting. Could be a lot more news to come if the signals from Winnie on t1ps.com are anything to go by.

cheers GF.