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

China's gold market posts shining growth
CHEN YAO,China Business Weekly staff
2004-05-18 07:10



For most Chinese, gold means more than a durable jewellery-making material and investment vehicle.

The lustrous, yellowish precious metal has long been a symbol of wealth, elegance, royalty and power.

"Chinese people simply feel gold is better when shopping for jewellery or when considering making investments,?said Zhang Yongtao, deputy secretary-general of the China Gold Association.

The "gold-is-better?mindset is the main reason for China's gigantic demand for gold, and the reason overseas producers are jumping into China's lucrative, fast-growing market, he said.

China's gold market is expected to experience robust growth this year, as international gold prices are rising and the country's top regulators are planning to slash import tariffs and the consumption tax on gold merchandise, industry experts said.

China is poised to lower, "by a large margin,?the gold import tax rate from 38 per cent, as the country is accelerating the opening of its gold market, Zhang told China Business Weekly.

China terminated, in April 2001, its tight control over the buying and selling prices of gold. The nation's first gold exchange, in Shanghai, opened in 2002.

The People's Bank of China (PBOC), the nation's central bank, lifted, in March, licensing restrictions related to gold processing, production, wholesaling and retailing.

PBOC officials said local and joint-venture gold jewellery makers no longer have to obtain permits from the central bank to start gold-related businesses.

China's top taxation authorities are considering eliminating the 5-per-cent consumption tax on gold ornaments, he said.

The country began charging the consumption tax on gold, at a rate of 10 per cent, in 1993, when gold was classified as a "luxury merchandise.?

In 1994, China readjusted the tax rate to 5 per cent to boost listless domestic demand as the international gold price tumbled.

"The 5-per-cent consumption tax should be abolished as soon as possible, as regulators no longer consider gold to be a luxury merchandise, and they are encouraging the hoarding of gold,?Zhang said.

Although tax cuts on gold imports would affect domestic gold prices in the short run, China's gold jewellery market would grow, Zhang predicted.

Anglo American Plc, the London-based mining giant, reported, earlier this year, the company's combined sales of platinum, gold and diamonds in China were worth approximately US$1 billion last year.

The firm predicted surging demand in China this year.

Chow Sang Sang, the Hong Kong-based jewellery retailer that entered the Chinese mainland's market in 1997, said it would welcome elimination of the tariffs.

About 40 per cent of the company's gold jewellery are foreign-brands.

Many international gold jewellery makers, anticipating the possible tax rate cuts and coveting China's huge market potential, have been trying to partner with Chinese jewellery retailers in recent months, he said.

Jewellery sales in China have rocketed to 100 billion yuan (US$12.08 billion) from 100 million yuan (US$12.08 million) in the past two decades, as many well-off Chinese have adopted Western styles and fashions.

"The wedding season in China generally begins on May 1. That is one of the busiest days of the year for holding weddings. Overseas gold jewellers clearly hope to strengthen their foothold before that,?he added.

Gold ornaments ?which have become less popular in recent years as shoppers started buying items made of platinum, diamonds, pearls and jade ?still play an integral role in Chinese weddings: They are given as gifts to wish couples financial security.

China's jewellery market was virtually dominated by gold ornament sales from 1982 to 1991. Since 1992, however, jewellery made with other precious metals and stones have gained popularity.

China's gold output last year reached a record 200.6 tons. That was more than double the country's gold output, of 100 tons, in 1995.

China last year became the world's fourth-largest gold consumption market, even though the country's per capita consumption of the precious metal was 0.16 gram, much less than the world's average of 0.7 gram.

Gold prices in China will increase, as international gold prices continue to hover around US$420 per ounce, almost a 15-year high, said Gao Rukun, an expert with the China Gold Economic Research Centre.

The weak US dollar has helped boost China's trade of gold to other countries, while declining consumer confidence in the US economy and rising global oil prices are causing investors to turn to gold for stability, she said.

Gold prices began to rise in China after the nation opened the Shanghai Gold Exchange in 2002. Gold trading prices started at 83 yuan (US$10.03) per gram two years ago and have since reached 112 yuan (US$13.53) per gram.

That increase was more than 30 per cent.

Soaring gold prices have lured commercial banks, anxious to boost their intermediary businesses, and individuals, seeking alternative investment channels, into the market, Gao said.

Investment-oriented trading accounted for 40 per cent of the transactions last year in Shanghai's gold exchange. That was up 10 percentage points over 2002.

Bank of China, one of the country's largest State-owned lenders, recently launched its gold trading agency service, which is aimed at individual investors.

Some other major commercial banks plan to open similar businesses.

PBOC Governor Zhou Xiaochuan encouraged, earlier this year, the establishment of a gold futures trading platform so that gold production and processing enterprises could hedge their risks.

"Gold reserves at the two deposits are estimated at over 1,000 kg" !!!!


China Gets Licences to Produce Gold in Russian Far East
Source: BBC Monitoring Asia Pacific
Publication date: 2004-05-21


Text of report by Russian news agency ITAR-TASS
Birobidzhan, 21 May: (?Sinda) and Silin, two Chinese state-owned companies from Heilongjiang Province, have been issued licences to develop two gold deposits in the Jewish Autonomous Region.

Gold reserves at the two deposits are estimated at over 1,000 kg, the regional natural resources department told ITAR-TASS today.

Before starting gold production, Chinese specialists have to carry out thorough geological prospecting. The licences are valid for five years.

The estimated reserves of gold dust and metallic gold in the region total over 300 t, the department's chief geologist, Aleksandr Kuzin, has said

Gold soaring, at $US 385.70, up 7.60.

A very dull day...any idea what things we should look out for next week sue helen

Hi thesaurus,

A dull day maybe, but the price will not fall from these levels, which is more important at the moment as the price tries to go onto an upward trend. If you look at the indicators things are getting nicely poised, RSI is rising, MACD has gone positive, lower bollinger band is turning upwards after a long, long time.

Indicators are still turning positive thesaurus.

150,000 buy reported at 5.65 pence.
150,000 buy reported at 5.75 pence.

I expect a 100% gain from all my stock picks and this one is no exception. 8-9 pence should be reached by 19 June 2004.

An established support at 4.80 pence is firmly in place now which was not there prior to this week.

thanks for this information sue helen, seems promising. I didnt take todays dullness as future potential, just simply lack of patience on my part.....just out of interest other than CDN and CFP what are your other interests???

Oil DOWN = Gold UP ????

G7 Ministers Urge OPEC to Boost Oil Production
VOA News
23 May 2004, 12:40 UTC


Finance ministers from the seven leading industrialized nations are urging OPEC to increase oil production to lower soaring energy prices and protect global economic recovery.
G7 ministers - representing the world's biggest consumers of oil - issued the call after talks Saturday in New York City, urging the Organization of Petroleum Exporting Countries to follow a proposal by Saudi Arabia to increase oil production by 2.5 million barrels a day.

Oil prices are likely to dominate the second day of talks Sunday, when the ministers also are expected to finalize the agenda for next month's G7 summit in Sea Island, Georgia, in the southern United States.

Earlier, OPEC oil ministers meeting informally in Amsterdam expressed concern about high oil prices, but failed to agree on a proposal to increase production.

The president of the cartel, Purnomo Yusgiantoro, denied OPEC is to blame for the spike in prices, which have shot up to more than 40 dollars a barrel. He said high prices are a result of increased demand, bottlenecks in production, and geopolitical tensions.

OPEC ministers are expected to take up the issue again when they meet early next month in Lebanon.

Current oil prices are significantly higher than the long-term price range of between $22 and $28 per barrel agreed by the cartel to stabilize oil prices.

OPEC consists of Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

The Group of Seven comprises Britain, Canada, France, Germany, Japan, Italy, and the United States.

Positive market sentiment next week ?

updating with further comments on oil, US economy)
NEW YORK (AFX) - US Treasury Secretary John Snow said the OPEC's oil price
target of an oil price of 22-28 usd per barrel is an appropriate level for oil
prices.
The OPEC target range "seems appropriate to me", he said at the G7 finance
ministers' meeting.
Snow said adequate supplies of oil are "vital" but he said the G7 meeting
did not discuss specific price levels and Russia, which attended the meeting,
did not committ to increase its output by any particular amount.
In a statement G7 finance ministers called on OPEC to boost oil production
and bring prices.
"Low oil prices would be a benefit to the whole world economy," they said.
"We welcome the announcement by some oil producers to raise production
targets and we now call on all oil producers to take action to ensure that world
oil prices return to a level consistent with lasting global economic prosperity
and stability, particularly for the poorest developing countries," they said.
UK Chancellor of the Exchequer Gordon Brown said the significance of Saudi
Arabia's call for higher output should not be underestimated.
"There has been progress as a result of the Saudi Arabian announcement," he
added. "Supply is the issue that I think most people know has got to be
addressed now."
He said the G7's call for increased oil production represented a strong
message ahead of the June 3 OPEC meeting in Beirut.
Meanwhile, Snow said he was pleased by clear signs of progress in the US
eocnomy.
"The industrial sector is now clearly on the rise," he said.

Something else to help push the Gold price up ....

INTERVIEW - Ready, steady, gold for Pakistan commodity exchange


Fri May 21, 2004 8:16 PM By Amir Zia
KARACHI (Reuters) - Pakistanis' passion for gold will find a new outlet in the coming weeks when the country's first commodity futures market opens for business in mid-July.

After that the National Commodity Exchange Ltd plans to roll out contracts for cotton-yarn, wheat and rice, to tap billions of rupees worth of business currently conducted in largely unorganised markets, Managing Director Assim Jang told Reuters.

Jang said a key reason for choosing gold to start with was that Pakistanis understood its value.

"Here people know the value of gold which almost behaves like a currency," he said. "In India, futures trading also started with gold. It is a good contract to train our people and test our system."

Pakistan is a big gold importer with official consumption of between 30 and 40 tonnes a year, but far more is being smuggled in the country, analysts said.

Gold jewellery is most popular among Pakistani women and is bought by almost every family -- especially to adorn brides. It is also seen as a major asset for savings.

CURBING HOARDING

Once the exchange introduces trading in agricultural commodities analysts expect the scourge of hoarding to fall sharply. Jang said the exchange aims to eliminate the role of middle-man.

"Farmers will be the main beneficiaries as they will get a direct excess to the market."

In Pakistan, where agriculture accounts for 24 percent of the GDP, farmers often are forced to sell their harvest cheap.

Jang said the exchange was working with a foreign funded non-government organisation, the National Rural Support Programme (NRSP), which would provide finances to farmers against the futures contracts.

Farmers will send their crop to the NRSP, which will sell it to people who want to take delivery against exchange contracts, Jang said. A pilot project has already been launched.

The NRSP, set up in 1991 as a non-profit organisation to undertake development activities in the rural areas of Pakistan, has around 200,000 farmers enrolled in its programme, he said.

International pre-inspection companies were being hired to issue quality-certificates against the goods, he said.

Jang said winning the acceptance for future's trading in the market remains a huge task.

The exchange -- being set up at a cost of around 180 million rupees, and which will provide online technology -- plans to start a series of seminars to educate its members and investors, he said.

Futures trading is new to Pakistan, and the exchange will run mock trading sessions in June, before opening in earnest in July.

New York Institutional Gold Conference & Diamond Expo
Preliminary CONFERENCE AGENDA

Thursday, June 3, 2004

8:30 am Advanced Gold Projects in Southern China
George Salamis, Chief Executive Officer
Caledon Resources PLC

http://www.iiconf.com/ny04/NY_PROGRAM.pdf

http://www.iiconf.com/ny04/

World's Largest Natural Resource Investment Conference...
Held annually in the world's financial center, this conference attracts portfolio and fund managers, investment specialists and financiers that, together, control billions of dollars of investment capital. New York is also one of the highest density areas in the US for high net-worth individual investors, and home to many participating industry analysts and Newsletter Editors.

This conference, offering opportunities in gold, metals and minerals, is open to both professional and private investors. Participants are typically well-informed, experienced and already successful in resource investment. Conference sponsors represent the entire spectrum of investment opportunities, from new explorers and junior developers to large-scale producers.

WHO WILL ATTEND AND WHY?

Professional and private investors attend this annual conference to meet with established producers, promising new explorers and highly respected financial analysts. The industry's most important recent developments and opportunities are presented and pursued in this highly charged professional arena.

WHO WILL SPONSOR AND WHY?

Sponsors return to this conference year after year to nurture relationships forged with analysts, portfolio and fund managers, investment specialists and financiers, sophisticated private investors and fellow mining executives. Held in the financial heart of the world, this is the industry's most effective forum in which to raise capital.

Some rumours flying about (vague talk at the moment), 16-18 pence mentioned as a possible offer:

Rumours elsewhere of an offer between 16p and 18p for Caledon Resources ... as we know these are just rumours but ....
Many rumours will fly when the New York conference(1st week of June 2004) is on but the share price will show whether there is any substance to them !
I could definately see Newmont being interested as they really want to get into China and have stated that quite recently but more likely a Joint Venture than a buyout as the risk would be less for them to earn-in in stages a bit like Mano's recent Joint Venture with BHP with their percentage rising in stages right through to production.

Like oil companies need to look many years ahead for future reserves so do gold miners.Gold is much rarer than oil as can be seen by the price and harder to find. A company like Caledon with potential large reserves in a low cost production country must at least be considered as a target by some of the larger miners, especially if they have no current interests in China.
Let us not forget that Caledon also have good relations with their chinese counterparts and it is acknowledged by the management.This enviable position, in such a difficult enviroment,has led to Caledon being offered other opportunities which any suitor must consider an asset beyond any provable reserves.Caledon have a lot to offer any joint venture initiatives I believe.

Suprised that with all this,the share price is still stationary today...

Hi thesaurus, you just need to be patient for a few more days as the volume starts to build and indicators start turning positive. If you look at the above charts you will see that the price has been in a long downward trend which I think is now over. The price should move into an upward trend soon.

Volume has been low today, 2*50,000 buys reported of any significance.

Hong Kong (Platts)--24May2004
Two gold producers in East China's Shandong province are preparing for
listings in Hong Kong, the China Daily reported Monday. The two companies are
Shandong Laizhou Gold Mining Co Ltd and Zhaoyuan Gold Co Ltd. Shandong Laizhou
Gold Mining said it expected to go public in Hong Kong as early as next year.
The producer was launched last December with a registered capital of Yuan
90-mil ($10.8-mil) by Shandong Laizhou Gold Mining Corp and other four
domestic investors. It now has a production capacity of 2.2mt/year of gold.
Meanwhile, Zhaoyuan Gold Co Ltd, a newly-formed joint venture in Zhaoyuan in
Shandong, said it planned to launch an initial public offering on the Hong
Kong Stock Exchange in October. The joint venture was set up earlier this
month with a registered capital of Yuan 530-mil. Zhaoyuan Gold controls a 55%
stake of the joint venture and the rest is held by Shanghai Yuyuan Tourist
Store Co, Shanghai Fuxing Industrial Investment Co, Shenzhen Guangxin
Investment Co and Shanghai Laomiao Gold Co.

Zhaoyuan Gold Corp aims to double its gold output to 31mt/year and become one
of the world's top 30 gold producers next year. "Listing is a new fund-raising
channel for China's cash-starved gold industry," said Luo Pengfei, a metal
analyst with CITIC Securities Co. Currently, there are three listed companies
in the industry - Zhongjin Gold Co Ltd, Shandong Gold Co Ltd and Zijin Mining
Co Ltd. Both Zhongjin, based in North China's Tianjin Municipality, and the
Shandong gold firm went public in Shanghai last year. Zijin, based in East
China's Fujian province, issued stocks in Hong Kong last year. "The fragmented
industry needs capital to produce more gold to satisfy mounting domestic
demand for the metal and to create bigger conglomerates through mergers and
acquisitions," Luo told China Daily. Gold output in China reached 45.31mt
during the first quarter of this year, up 5.12mt or 12.74% from a year
earlier, according to the China Gold Association.

The Chinese government plans to create 12 internationally-competitive gold
conglomerates through mergers and acquisitions by 2005. These conglomerates
are expected to control two-fifths of the total gold output in China and half
of the industry's total profits by then. Currently, there are some 1,200 small
gold miners across China. The gold industry's profits totaled Yuan 550.1-mil
from January to March this year, jumping 47.87% from the same period of last
year, the gold association said. "We will assist more domestic gold firms to
go public overseas to raise money for the industry's development," said Cheng
Fumin, president of the association. State investment in the industry has been
declining as a result of the metal's dwindling weight in China's foreign
exchange reserves and gold market deregulation. Sources from the State
Development and Reform Commission said that the central government will put
Yuan 100-mil into gold prospecting this year, which is down from Yuan
2-bil/year more than 10 years ago.

Another 1 million sold by Watson Ireland at 4.5 pence at close. By my reckoning he only has 1.5 million left now. Hence the price did not go up today thesaurus.
All waiting for Watson Ireland to clear out, then once confirmed people will begin piling in, so now is the time to buy ahead of a likely stampede.


The guardian reported on 13 May 2004 the shares were held back despite an upbeat drilling report.It was suggested that this was due to 4m shares being sold by a founder shareholder and that the price was expected to rise once a home had been found for them.It was further suggested that the directors would buy 2m of these......

thanks for the posts sue helen...

Even more Rumours:

This was on ADVFN. Not sure what 'City' the poster is refering to though.



dawnyb - 24 May'04 - 17:39 - 3257 of 3258


News around the city is that deal has been struck with large US company for a takeover @ 17p. RNS due Weds.

Ignore the last post. I don't believe it carries any substance.

More to the point we should be getting ready for the price to rise now as the seller could have finish now with his final one million sell at close today. In addition, if the directors have taken the final approx. 1.5 million off him then that would provide a good boost. The spread should become more attractive if he has finished now.

Isn't Wigan classed as a city these days? It's probably Wigan.