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

Dodging around by market makers,and when a `buy` is a `sell`.

I have just bought 20,000 CDN @6.09,the moneyAM computer recorded it as a `sell`.I also just bought 20000 TED this was also recorded as a sell @6.21.
You probably all know how the computerized system generates buys/sells,and thus it can only be reliable for some instruments traded,irrespective of spread size.

The market makers are usually the ones,as they are ducking and diving,who produce these abnormalities.Roll on `real` trading !!!

There is a piece on Caledon in this weeks Investors Chronicle.

Morning iturama, would it be possible to print the piece.

Heard about it second hand, John. Still have to read the article myself. Understand it says something along the lines of investors will be well rewarded if the company achieves what it has set out. Could probably say that about most companies. Give you the exact words when I can.

Morning iturama, read it on aol Sunday papers tips, all it said was investors will be well rewarded.

I see that the AOL summary of the IC article is "speculative but with potentially huge rewards". More bullish than I was first led to believe, but I would agree with the comment.

6.7million in to trades at 5p maybe thats the end of the seller it might move up now.

Might be the case, John. Something seems to be brewing.

iturama,yes i believe there is something brewing.I received an email from George yesterday evening just what was in the RNS, i mailed him back to congratulating him on promotion at 20:50 got a reply at 20:59 he was still in the office,think he will be good for us.Did you get some MDW?.

seems a bit quiet on this one since recent good news

Caledon Resources plc ('Caledon' or 'the Company')
Commencement of Phase-2 Drill Program at Mojiang, Second Drill Rig Added

Caledon Resources is pleased to announce the commencement of the Phase-2 drill
program at the Mojiang gold project in south-western Yunnan province. The
Phase-2 program is designed as a follow-up to the Company's highly successful
Phase-1 drill program which was completed in January, 2005 (see January 24th and
January 27th press releases for results).

In the previous program, all 16 drill 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.

This current drill program will utilize two drill rigs consisting of one reverse
circulation rig ('RC') and one combination RC-diamond core rig. The RC rig will
be used on a reconnaissance basis to test near-surface zones of mineralization
where gaps occur in the current knowledge base within the zone itself. Step-out
drilling is also planned along strike, at a distance from where the 650 metre
long zone has been identified.

The combination drill rig, capable of better depth penetration using diamond
core, will be used to extend a number of the existing drill holes which bottomed
in economic grade gold during the Phase-1 program. The combination drill rig
will also be put to work testing deeper targets within Mojiang Hill where small
scale high grade zones have previously been mined by the Chinese.

The Phase-2 program calls for the completion of at least 20 holes, for a minimum
meterage of 3000 m. Given the extensive road and drill pad building which will
need to be undertaken for this current phase of drilling, it is expected that
the Phase-2 drill program will take at least 8 weeks to complete.


On behalf of the board:

Robert Alford George Salamis
Chairman Chief Executive Officer

Worth stepping back and looking where we are at this point in time:
CDN's Market cap is currently 18.18M.
CDN has a strategic investment in Afcan mining which has just reported (4 March) on its Tanjianshan gold project feasibility study and expects to be in production sometime in 2006 at a production rate of around 150,000 oz per year.That is a good sized operation.
http://www.afcan-mining.com/pressreleases/english/2004/2005.03.04%20Afcans%20Feasibility%20Study.pdf
CDN's investment in Afcan amounts to 23.852M shares (and the right to half that amount by way of warrants at $Cdn0.375) which give a book value today of 4.42M ($Cdn0.44 per share). This excludes the potential for a +17% gain on the warrants at today's share price.
CDN also has a strategic investment in Dynasty Gold which has recently reported a + 1M oz resource at its Hatu project and, to my mind, looks capable of producing even more gold per year than Tanjianshan, and at a lower operating cost. Cracking potential.
The CDN investment in Dynasty amounts to 4.5M shares (plus the right to half that amount by way of warrants at $Cdn0.70)which gives a book value today of only 0.7M.
If the current book values of these projects are taken away from the total MKT cap, CDN's own projects are valued at only 11.73M, which looks ludicrously low given the potential of its projects.
The projects include Mojiang where pretty spectacular near surface, non refractory,results were announced recently and a second phase of drilling is in progress, as well as Hengxian, Badu and Gaolong, where successful results on low grade, low cost, bulk mineable open pit targets have been reported.
All in all a very much undervalued stock compared to its peers on AIM.

iturama
Good post and very well reasoned.
I,ve been building a position in this Co over the past 12 months and I feel,(for what its worth)that it should soon break out of its sideways trading range given all the positive news building.
Stevie

Hi iturama, very good post, the last news we had from Hengxian, Badu and Gaolong, was the 29/11/04 should we not be due for an up date from one or all.

I failed to mention that the current shareholding in Afcan represents 19% of that company's issued share capital on a non diluted basis, and 26% on a partially diluted basis in the event that the warrants are exercised.
In the case of Dynasty, the figures are roughly 16% and 25% respectively.

For the benefit of those that might have missed it, I have copied the last drill results from Mojiang:

Further High Grade Gold Intercepts from Mojiang

Drilling continues to demonstrate continuity and consistency of gold
grades at Mojiang
Higher grade subsections of gold include: 20m @ 46.67 g/t Au, 10 m @
12.28 g/t , 4m @ 9.67 g/t
Phase 2 drilling is currently in the planning stages


Caledon Resources plc ('Caledon' or 'the Company') is pleased to announce
further results from the Mojiang Gold Project in Yunnan Province in addition to
those already announced on 24 January 2005. The results continue to highlight
consistent and broad zones of epithermal-style gold mineralisation on the
project, with bonanza grades reported in some instances.

The following table lists all of the remaining results from the Phase 1 drill
programme, which consist of 16 shallow Reverse Circulation drill holes for a
total of 1006 metres

Hole Number From To Intercept
---------- ------- ------ ---------------
MJRC008 0.00 32.00 32 m @ 1.25 g/t
---------- ------- ------ ---------------
MJRC009 26.00 44.00 18 m @ 1.16 g/t
---------- ------- ------ ---------------
MJRC010-A 0.00 4.00 4 m @ 0.91 g/t
---------- ------- ------ ---------------
MJRC010-A 16.00 26.00 10 m @ 12.28 g/t
---------- ------- ------ ---------------
MJRC010 0.00 16.00 16 m @ 0.78 g/t
---------- ------- ------ ---------------
MJRC010 16.00 36.00 20 m @ 46.67 g/t
---------- ------- ------ ---------------
Including 16.00 20.00 4 m @ 184.50 g/t
---------- ------- ------ ---------------
including 24.00 28.00 4 m @ 28.04 g/t
---------- ------- ------ ---------------
MJRC011 0.00 16.00 16 m @ 1.44 g/t
---------- ------- ------ ---------------
MJRC011 44.00 48.00 4 m @ 1.64 g/t
---------- ------- ------ ---------------
MJRC012-A 8.00 12.00 4 m @ 9.67 g/t
---------- ------- ------ ---------------
MJRC012 0.00 18.00 18 m @ 1.79 g/t
---------- ------- ------ ---------------
MJRC013 0.00 28.00 28 m @ 1.39 g/t
MJRC013-A 0.00 21.00 21 m @ 1.40 g/t
---------- ------- ------ ---------------

Caledon's exploration management is in the process of fully compiling the
geological and assay data from this first-round of drilling. In light of the
excellent results on this first-pass reconnaissance drill programme, the Company
is currently in the planning stages of a follow-up drill programme to commence
by the end of February, 2005.

Mr. George Salamis, Managing Director, reports 'It is premature to assess the
Mojiang drilling results to date as definitive that a commercial ore deposit has
been identified. We are, nevertheless, highly encouraged and are now reassessing
the future drill programme in light of these exciting results. The recent
drilling has been limited by the depth constraints of our reverse circulation
drill rig which has an average penetration limit of approximately 75 metres. Mr.
Salamis adds; 'Phase 2 drilling is in the planning stages and will likely
include the addition of a second rig capable of drilling to greater depths'.

3x100,000 buys.

Fantastic post iturama. I bought in Sept 04, Oct 04 and again 3 weeks ago. Do you think it is worth buying in again.

1s.
If you compare CDN's own projects and mkt cap with some of its peers such as AFG and AFE, then CDN wins hands down. However, there is no doubt that the first two command better market sentiment and their stock prices move up much quicker on favourable exploration reports.
CDN will be the better buy in the long term, in my opinion, but you may have to wait a bit to get the most out of it. If you think 12 months or more, CDN is probably the best investment. If you like a punt, and intend to get out quick, look elsewhere.

Be interesting to see how AFE responds to todays news release. It is making progress but do the results from its best project, Miyabi, stack up against those of CDN and its strategic partners?

Afcan Mining Corp. confirms that at a meeting of the board of directors of the company, on March 8, the following decisions were made:


to immediately start the detailed design and construction of the Tanjianshan project; and
to spend $2.5-million (U.S.) on exploration in 2005.

The design will be done by BGrimm, a leading Chinese design institute that has recently completed the conceptual design of the project. It will be supervised by GBM-Mec Ltd. of the United Kingdom. Afcan has also appointed GBM as its owner's representative for the design, procurement and construction of the project.

Subject to financing, the first gold pour is expected in the second quarter of 2006.

At the same board meeting, the 2005 exploration budget was approved as follows:


$1-million (U.S.) on extending the current orebodies to add additional ounces to the project;
$1.25-million (U.S.) on the four exploration licences which contain 23 known geochemical anomalies; and
$250,000 (U.S.) on regional exploration.

The program is being carried out under the supervision of Phil Fillis, an independent geological expert and qualified person for Afcan.