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

sue no cfp today then
finishe your exams

If you dont mind me asking - how do you know these are buys? Are you in for longer term or thinking of selling on your 10% profit? 'Well' done.

Hi amberjane, trades over 75,000 shares are delayed in reporting by 1 hour hence if you look at the time of the trade then you will see that the offer price was at 5 pence at the time of the trades.

There is an abudance of good news to come from the company in the coming weeks/months. I will be holding these for the medium term. The price has hit the bottom for which I was waiting for on Monday. If you look at all my stockpicks I try to recommend stocks when they are at the bottom. The price has fallen from 16 pence at Christmas to what it is now because there has been a big seller. According to press reports last week, the seller has now nearly finished. China is booming!

Hi deadfred, yeah finished my first exam now, will try and get back home now. 2 more exams to go.

Further tick ups, Price 5.0-6.0 pence, up 15.7%. Should be another good day tomorrow.

100,000 BUY reported at 5.5 pence after close from an hour ago.

Commodities

Date : May 19, 2004

Now It’s Getting Serious.

By Rob Davies


The major mining shares have now given up the bulk of the gains they made in the last quarter of last year and Antofagasta’s recent promotion to the FTSE 100 looks like being a very short lived affair indeed. As equities incorporate an element of future discounting in their valuation it might be thought that this does not bode well for the underlying commodities. The performance of base metal prices over the last week would tend to support this view. Nickel lost US$225/tonne to close at US$10,765, a long way down from its high of over US$17,000. Copper declined too, but its fall of US$65/ tonne is modest and still leaves the metal trading at US$2,700 a tonne. The other major metals moved in a similar fashion with both aluminium and zinc recording losses of about US$42 leaving these two metals trading at US$1,590 and US$997/ tonne respectively.

All these prices are perfectly acceptable for most mining companies and will allow them to generate a reasonable profit, but not an outrageous one. That begs the question of why the mining shares have fallen so far, so quickly. In part it is a bit like asking why little Johnny fell off the top of the wardrobe. He shouldn’t have been up there in the first place. Mining shares had got very expensive and the only was down. It just needed a trigger.

At the end of last year mining shares had become proxies for investment in China and their ratings had soared to levels more associated with the heady valuations of banks and brewers in The Third World during the emerging market boom of the late nineties. Investors bought mining shares last year as a way of participating in the rapid growth of China rather than investing in direct Chinese equities with all their uncertainties. Now that China is taking active steps to slow down its economy the hot money has decided to move on. The fact that their chosen vehicles included mining shares was just force of circumstance.

Although the changes to economic policy in China may have some impact on commodity demand the other two factors that drove metal prices up are still in place. The first of these is low level inventory levels and the second is capital discipline. Apart from aluminium all the base metals appear to have low stock levels as recorded by published data. There may be some stockpiling by arbitrageurs and speculators but these are unlikely to change the ratios of consumption to inventory levels drastically. By historic standards these remain mostly good for this stage of the business cycle.

The second factor is probably more important though. The consolidation of the mining industry over the last few years and the steady reduction of state involvement has meant that capital is employed in mining only where it can earn a return over and above a set hurdle rate. Mining does not now suffer the financial incontinence that seems to currently plague airline investors. If a project cannot earn its capital it is closed. The announcement last week that the Windimurra vanadium pentoxide mine is to close despite record high prices of $6/lb is just the latest example of that. The mine only opened in 2001, but has never made a decent return. It is decisions like those that will ensure the mining industry remains a good place to invest.

http://www.minesite.com/archives/commodities/2004/may-2004/serious190504.htm

"If a project cannot earn its capital it is closed"
"It is decisions like those that will ensure the mining industry remains a good place to invest"
Longtoushan ?
Just speaks volumes for the quality of our management who didn't spend any more time and money on a project after a small amount of drilling showed low grades ....

Very interesting chartists view on the mining sector due for a bounce soon at

http://www.advfn.com/cmn/fbb/thread.php3?id=5485524&from=12378

if anyone's interested (FAR3 thread).

Mining issues were at the forefront of the advance as concerns of a Chinese interest rate hike also receded.
The mining sector was at the forefront of today's gains after China's central bank effectively ruled out an imminent rise in interest rates, soothing concerns that higher borrowing costs would lower the country's rampant demand for metals.

http://www.thisismoney.com/20040519/nm78400.html

Some Technicals:

1. Price has crossed ten day moving average
2. RSI has started to rise
3. MACD has done the cross-over and is now positive
4. Support build at 4.80 pence
5. Resistance at 7.50 pence.

Market forces

--------------------------------------------------------------------------------
Beijing boosts mining sector

Neil Hume
Thursday May 20, 2004
The Guardian

After a prolonged period of underperformance, mining stocks rallied yesterday after China decided to rule out an immediate increase in interest rates.
The mining sector has taken a pasting over the past three months, lagging the FTSE 100 by 16%. This has been primarily due to concerns that China's booming economy, which has been sucking in most of the world's raw materials, was headed for a hard landing.

Those fears eased yesterday after the country's vice-premier Huang Ju said measures taken to gently cool the economy were proving effective.

That news saw investors pile back into the sector. Chilean copper group Antofagasta led the way, rising 62p to 898p - the best performance in the FTSE 100. Antofagasta was also boosted by news that chairman Andronico Luksic had purchased 20,000 shares.

Xstrata jumped 41p to 669p, Anglo-American improved 65p to 11.37, BHP Billiton rose 25.5p to 462p and Rio Tinto moved up 56p to 12.82 after its chief executive said he was optimistic demand from China would remain strong.

http://www.guardian.co.uk/business/story/0,3604,1220613,00.html

Market report
By Yvette Essen (Filed: 20/05/2004)

Miners ahead on China news

Bears scrambled to cover their positions in mining stocks yesterday after China ruled out an immediate rise in interest rates, easing fears of a sharp slowdown in industral demand for commodities.

The sector, which has tumbled over the past couple of months on worries about the Chinese economy, improved 3.5pc.

http://www.money.telegraph.co.uk/money/main.jhtml?menuId=243&menuItemId=2839&view=&grid=M3&targetRule=1&_DARGS=%2Fmoney%2FMenu%2FSideMenuItemsFrag.jhtml.1_A&_DAV=-1&secureRefresh=true&_requestid=46918

Real spread is 5.35-5.88 pence.

Can sell 150,000 online at 5.35 pence.
Can buy 75,000 online at 5.88 pence.

is this A short term or long term

Hi thesaurus, I have a 8-9 pence target in the short term on these and I will be holding until then at the very atleast. I bought another 50,000 shares at 5.625 pence just before the close yesterday.

This is the absolute bottom for the price now. The price has fallen due to a big seller who has now indefinetely finished. Further, positive newsflow is due from the company in the next few weeks/months. There can't be a better time to get into these. In addition, there was a report in the guardian newspaper last week that the due to the big seller the price was where it was. They expect the price ro rise once the seller has gone.

China is taking over as the most dominant force in the economy and I am sure Caledon Resources will greatly benefit. If you are unsure have a look at their web site, supplied in the header post. A very well layed out website with all the details that an investor would one want to look at.

2 EXAMS to go???

FTSE 47 points down finally takes its toll on CDN. Price 4.75-5.50 pence.

I HAD TWO EXAMS LEFT...I have now finished no more exams for me. Thanks for the info above

i we talking weeks or a couple of months for your short term target

Four weeks is the timeframe I am looking at thesaurus. Holidays started early for you, lucky one.

The real spread is 5.0-5.4 pence, seems the market makers are trying to accumalate stock. They have been paying a big premium to the bid in the last couple of days for stock.