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

Come on CDN I want adrenalin!

Yup a good start to the morning this one and BPRG looking good for big break outs.

cheers GF.

THe current 5.87 deals are buys, not sells as indicated.

iturama, this seller is causing a lot of problems with the sp,have you any thoughts on when we will get Caledons own drilling report.

John,
No I don't. I will ask George.
Meanwhile, be assured that the Hatu resource is excellent and the CDN investment in DYG is very sound. The mkt cap of DYG is, as yesterday, only US$12M, fully diluted with all outstanding options and warrants. That works out at only $7 per oz of gold announced in todays drill resource. At 80%, it is still less than $9.
A rule of thumb most large companies use is a replacement cost of $30 per oz. My own estimate is that a company wishing to buy that resource would need to stump up the better part of $50 per oz in a mixture of cash & stock.

John,
Expect the latest drill report for Mojiang to come out within the next week. When it does, remember that Mojiang, like Hatu, is open pit and non refractory. With grades between 1 and 2 g/t they can literally be licences to print money at the prevailing gold price. Even at $400 per oz, you can reasonably expect an operating profit of the order of $250/oz with a deposit like Hatu.

Just been informed an RNS a good one at that is likely to be out very soon.

cheers GF.

iturama thanks for that i cant wait, today was a bit disappointing.

Can't force these things. It can take some time before the latent value of a company is acknowledged. If there is also a big seller in the wings, that may also have to be worked through. It will come right. Once holding above 7p, it should progress quickly.

iturama yes the big seller is causing more problems than all the gold in China lol.

Caledon Resources PLC
24 January 2005





18 Upper Brook Street. London W1K 7PU England
Telephone +44 (0) 20 7318 5780 Facsimile +44 (0) 20 7318 5781

Press Release

January 24, 2005

Caledon Resources plc ('Caledon' or 'the Company')
Extensive Widths of Economic Gold Grades Intercepted at Mojiang

Drilling demonstrates exceptional continuity and consistency of gold
grades over widths of up to 72 metres
Higher grade subsections of gold include 16 metres grading 4.3 g/t, 4
metres grading 8.56 g/t, 20 metres grading 4.34 g/t
Several holes bottomed in grades in excess of 1 g/t
Open-ended strike length of over 650 metres identified in current drilling
operations

Caledon is pleased to announce results from its on-going drill programme at its
Mojiang gold project, situated in Yunnan province. These results are in respect
of the first 7 drill holes completed to date on the 16 hole - 1006 metre reverse
circulation (RC) programme at Mojiang. Notwithstanding the fact that the initial
phase of drilling was performed for reconnaissance purposes, all seven of the
initial holes successfully intersected the targeted zones of gold
mineralisation.

All holes reported consistent economic gold mineralisation over widths ranging
from 16 metres to a maximum of 72 metres, highlighting stacked, sub-horizontally
orientated gold mineralised zones associated with low sulphidation epithermal
style quartz veins and related breccias. The widely spaced holes assayed to date
cover a surface strike length of over 650 metres near the crest of Mojiang Hill.

Of further importance is the fact that three of the seven holes managed to
bottom in economic gold mineralisation, reporting grades of 1 g/t or better in
the very last four metre wide sample of each hole. In these instances, the
depths obtained in the RC drilling of these holes reached the maximum depth of
penetration and performance limit of the rig itself.

The following is a table of assay results obtained from the first seven of
sixteen drill holes.

Hole Id from to Intersection

MJRC001 0 54 54 m @ 1.11 g/t
MJRC002 0 20 20 m @ 0.91 g/t
MJRC003 0 72 72 m @ 1.92 g/t
including 0 16 16 m @ 4.30 g/t
including 12 16 4 m @ 8.56 g/t
MJRC004 0 38 38 m @ 1.58 g/t
MJRC005 0 16 16 m @ 1.25 g/t
including 28 64 36 m @ 1.01 g/t
MJRC006 0 48 48 m @ 1.28 g/t
MJRC007 0 20 20 m @ 4.34 g/t


In summary, the results further illustrate the wide and coherent nature of the
Mojiang epithermal gold deposit and are consistent with results obtained in past
mapping and sampling conducted by the Company in 2004. In addition to being
step-outs on known gold mineralisation, these holes also helped to verify the
results obtained from past drilling conducted in the vicinity by Caledon's
Chinese partners.

Three of the remaining nine un-assayed holes were re-drills of holes that did
not get through to the targeted mineralisation owing to poor ground conditions.
The results for the remaining 6 holes are expected out within the next few
weeks.

Mojiang Drill Results: Significance

Caledon's drilling has been conducted in proximity to areas which have been
mined in the past or are currently being mined on a small scale by our Chinese
partners, the Mojiang Mining Limited Company ('MMLC').

Since a significant number of drill holes assayed to date have bottomed in ore
grade rock, the true thickness of the stacked, sub horizontally orientated
epithermal quartz reefs is not yet known but very likely greater than that
intersected in the current drilling. It is noteworthy that the average zone
thickness intercepted by Caledon in the first seven holes is 43.4 metres with
the lower limits of the zones yet to be tested due to depth performance
limitations on the reverse circulation rig.

The apparent vertical extent of the sub-horizontally stacked quartz reefs
measured from the top of the upper most open pit workings on Mojiang Hill, down
to the lowest underground mine workings and adits day-lighting in the valley
below is over 150 metres (vertical).

To our knowledge Mojiang has never been studied as a potential large scale
open-cut mine, oriented along the crest and western flank of Mojiang Hill. In
light of the geometries intercepted in the recent drilling, such a study may be
warranted in the future.

With respect to the gold metallurgy at Mojiang, Caledon has yet to carry out
preliminary test work on its samples, such as standard bottle roll testing and
column leaching. However, MMLC has historically mined and processed free-milling
non-refractory gold ore, from surface and at depth, using conventional
Carbon-in-Pulp technology. This type of conventional technology permits the bulk
processing of low grade ore material at relatively low cost, compared to
refractory ore treatment. This treatment methodology is employed on a much
larger scale at several well known and profitable Western mining operations
around the world.

Deal Structure

In December 2004 Caledon, through its wholly owned subsidiary Blackwatch
Resources Limited, converted a LOI into a joint venture ('JV') agreement with
the Mojiang Mining Limited Company, this JV allows Caledon to earn a 70% stake
in the Mojiang mine concession (7.2 km2) and new tenements within Mojiang County
on an exploration spend, the details of which were announced on 17 December
2004.

Mojiang Geology

The Mojiang project and mine site area is situated 240kms South West of Kunming,
the capital of Yunnan. Mojiang can be easily accessed via a new major highway
from Kunming, which is approximately a four hours drive. The main target area is
the Mojiang mine, an active gold mine producing gold from a number of small
open-pit and underground operations.

Mojiang has produced approximately 300,000 ounces over the last ten years. At
present, the majority of the gold mining operation is focused on gold production
from open pits. The Mojiang gold zone occurs over a strike length of 3,100
metres and ranges in width from 50 metres to 200 metres.

The near surface mineralisation at Mojiang is hosted in a thick zone of breccia
formed at the thrusted contact between serpentinised ultramafics (Cambrian age)
and siltstone and sandstone (Triassic age). Near surface, epithermal veins occur
within this zone but make up a small percentage of the overall
volume. Individual veins displaying classic 'crack-seal' and colloform
epithermal textures have been mined from underground, 100 to 200 metres below
the surface.

Ore zones associated with low-sulphidation epithermal deposits are typically
localised in structures, but may also occur in permeable lithologies.
Upward-flaring ore zones centered on structurally controlled hydrothermal
conduits are typical. Large (> 1 m wide and hundreds of metres in strike length)
to small veins and stockworks are common with lesser disseminations and
replacements. Vein systems can be laterally extensive with high-grade ores
commonly found in dilational zones in faults at flexures and splays.

Commentary

George Salamis, Managing Director, reports 'We are pleased with these initial
results from our reconnaissance drilling at Mojiang' and adds; 'In light of the
extent of continuous and apparently non-refractory gold mineralisation which was
intersected in our drill sections, in addition a strike extent encountered of
well over 650 metres, we are eager to return to Mojiang for a second round of
drilling. We expect to resume drilling at Mojiang following the end of Chinese
New Year holidays in late February.'

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

Good news, still digesting this report.

cheers GF.

Can anyone show better gold exploration results coming out of any other AIM listed company?

iturama, looks very good,why the poor response?

Doubt it, but then again that always doesnt make for rising price appeciation.

cheers GF.

John,
Simple, not enough people buying! If it had been a more fashionable stock it would have been ahead 30% by now. The stock seems to need some serious long term investors and; or a Shares mag tip to launch it. I find it silly that a company like African Gold, for example, has a higher mkt cap. It will come right once more people appreciate its true potential. That can~t be far off.

couldn't resist the low hold down on good news, just brought my first load. If the price is still held down next week I am sure the buying will increase and an obvious lift. We might have to e-mail share mag ourselves.

watcher

Its really a brilliant time to top up essentially a cheap price for such good results. I can't see that the market will sit on its hands on this one for too long.

Chris

T1ps.com are following it and giving it plenty of promoting.

Beginning to think a lot of speculators were caught in this one last time it had its big run up and are now selling on any good news/price rise. In other words stale bulls.

cheers GF.

Probably right, GF. Some spring cleaning going on. Out with the old, in with the new.
It was overbought before, but is now consistently reporting good results. Needs to rid of itself of some baggage that was investor, rather than company, inflicted. On the other hand, I've not seen any real selling this morning. Perhaps MM's are holding an unusually large stock.