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

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.

eeeeeeemmmmmmmmmmm????

You've lost me.

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 ?
No doubt everyone will have their own idea and I hope you're thinking what I'm thinking .... CDN's current MCap is 11.2m ....
-------------------------------------------------------------------------------

In order to give an indication of the value associated with the Company’s licence areas, an analysis of the gold “in-situ” against a company’s market capitalisation. This derives the stockmarket’s current “valuation” of the company’s ground.

Company............Total Moz of Au Share Price (pence) Market Cap (m) US$/oz
Celtic Resources..... 16.7 – 31.20 .............506.50 .........177.88 10.3 – 19.2
Highland Gold............... 25.00 .............262.50 .........392.22 22.6
Oxus Gold....................11.67 ..............61.25 .........133.25 15.6
Palladex..................... 3.30 ..............29.75 ...........19.2 11.2
Peter Hambro Mining .........12.37 .............467.50 .........299.19 43.5
Trans Siberian Gold.......... 3.20 .............134.50 ..........38.40 21.6

Here is Merril Lynch views on gold.

PARIS (Reuters) - Once the darlings of the market, gold funds have posted significant falls in the last month but according to Merrill Lynch Investment Managers recent gold price falls are simply a correction in an upward trend.

"We're very confident gold is going to remain in a rising trend," Evy Hambro, manager of the Luxembourg-based $1.8 billion Merrill Lynch International Investment World Gold fund told Reuters on Friday.

His fund was down 15.85 percent during April, according to fund research firm Lipper, but is still showing a 54 percent gain in the year to April compared with an average for the precious metals sector of 30.9 percent.

The gold price has tumbled in recent weeks to around $381 an ounce from $426.25 at the end of March due to the recovery in the U.S. economy and the dollar.

Gold is often used as a hedge against the dollar so its change in direction has led speculators to unwind their gold positions.

The fall has hurt French funds invested in the precious metals sector. According to Lipper, this was one of the worst performing fund sectors in April with an average fall of 15.48 percent.

Nevertheless, Hambro remains positive on gold and said there were a number of factors, on both the demand and supply side, supporting a strong price.

"The supply of gold is continuing to fall, there have been few significant gold discoveries in recent years and most of the current mines have been producing gold for around 20 years," he said.

The price of gold hit a low of $252 an ounce in September 1999 because of uncertainty over central bank sales of the yellow metal. Since then, central banks have agreed to cap their selling and at the same time investor demand for gold has risen, from 400 tonnes in 2002 to 900 tonnes in 2003.

Hambro said he expects investor demand to remain strong as more institutions consider gold as a tool for diversification.

Regulations by the Chinese government restricting gold purchases are also being lifted allowing the gold market in China, the fourth largest in the world, to open up.

"Our view on gold is that it's trading too low relative to trading capacity. There's a deficit and that has to be positive for prices," said Hambro.

Hi Xmortal, I have not forgot about your questions on my other threads. I will come back to you on them at the end of next week. Rather occupied with my revision at the moment...2 exams to go....

"The gold market probably has the best recipe for higher prices than it has had in over 20 years"

Gold May Rise on Concern Inflation Will Outpace Rate Gains
May 24 (Bloomberg) -- Gold futures may rise for a second straight week on expectations that inflation will accelerate, according to a survey of 29 traders, investors and strategies.

Twenty respondents from New York to Sydney on Thursday and Friday advised buying gold, which becomes more appealing for some investors when inflation erodes the value of fixed-income assets, such as bonds. Five recommended selling, and four said they would hold the precious metal.

Gold has risen 3.7 percent since reaching a six-month low May 10, on mounting concern that the Federal Reserve won't raise interest rates enough to curb inflation. Consumer prices in the first four months of the year rose at a 4.4 percent annual rate compared with 3 percent during the same period last year.

``The gold market probably has the best recipe for higher prices than it has had in over 20 years,'' said Gregory Orrell, who manages $115 million including gold stocks as the president of Orrell Capital Management Inc. in Livermore, California.

``You've got inflationary pressure, especially with high oil prices,'' Orrell said. ``You've got geopolitical tension and you have a Fed'' whose ``ability to raise rates and stay in front of inflation is limited'' by the burden higher interest rates pose to rising consumer debt, he said.

Gold for June delivery rose 2.1 percent to $384.90 an ounce last week on the Comex division of the New York Mercantile Exchange, the highest closing price in more than two weeks.

High Energy Prices

Energy prices reached records last week. Crude oil rose to $41.85 a barrel on May 17 and is up 38 percent in the past year. The retail price of gasoline at U.S. pumps topped $2 a gallon on average for the first time ever.

``With crude oil still in a moon shot rally, you have to stay long gold,'' said Frank McGhee, head trader at brokerage Alliance Financial LLC in Chicago.

The Organization of Petroleum Exporting Countries on Saturday delayed until June 3 a decision on whether to boost output because of concern that high oil prices will slow global economic growth. In 1990, when oil surged above $40 a barrel during the buildup to the Persian Gulf War, inflation reached a nine-year high of 6.25 percent and gold reached a one-year high of almost $424.

``The big question is whether or not stubbornly high oil prices will remain and thus fuel inflationary fears, which would boost gold prices,'' said Ron Cameron, an analyst at brokerage Ord Minnett Group Ltd. in Sydney. OPEC's plans for production ``will be critical to the short-term direction of oil prices and hence the dollar and gold prices,'' Cameron said.

Consumer Prices

U.S. consumer prices minus food and energy were 1.8 percent higher last month than in April of last year, the biggest year- over-year increase since January 2003. Gold futures surged to $873 an ounce in 1980, when U.S. consumer prices rose 12.5 percent from the previous year.

The yield on the 10-year Treasury note, among the securities most sensitive to inflation, has risen to 4.75 percent from an eight-month low of 3.65 percent on March 17.

Gold, sold in dollars, may also get a boost from a falling U.S. currency that increased the metal's appeal as a hedge against other dollar-denominated assets, traders said. The metal last week ended a seven-week slump as the dollar had its first weekly decline against the euro in three weeks.

The metal has dropped 11 percent from a 15-year high of $433 an ounce on April 1 after expectations the Federal Reserve will raise its benchmark interest rate from a four-decade low of 1 percent sent the dollar to a five-month high against the euro.

Dollar Peaking

``The dollar is pretty much at the peak and is gradually going to weaken,'' which will help gold, said Vincent Malanga, president of New York-based LaSalle Economics Inc., which invests $30 million in commodities including 10 percent in gold futures. ``The dollar is overestimated the degree to which interest rates are going to rise.''

The market had expected an increase of one percentage point this year, though the Fed is likely to raise only half of that because of high consumer debts, said Malanga, who expects gold to trade between $375 and $425 over the next three months.

Traders have driven up the yield on the December Eurodollar futures contract 91 basis points to 2.48 percent since the end of March, suggesting that they expect the central bank to raise its overnight rate to at least 2 percent by year-end. The contract settles at the three-month London interbank offered rate, or Libor, which has averaged 0.23 percentage point more than the Fed's benchmark interest rate in the past 10 years.

`Measured' Actions

The Fed on May 4 said a ``measured'' pace may be adopted for interest-rate increases. The Fed, which cut interest rates 13 times since January 2001 to revive growth, probably will opt for a boost of 0.5 percentage point this year to 1.5 percent, based on a survey of economists at the largest bond-trading firms.

Sixty-one percent of the 75 traders, investors and strategists surveyed Friday from Tokyo to New York recommended buying the yen versus the dollar, compared with 31 percent last week while 33 percent said to buy the euro versus the dollar, compared with 23 percent a week ago.

Hedge funds had reduced their holdings in gold futures contracts since April 6 by 81 percent as prices fell, the Commodity Futures Trading Commission said Friday.

Hedge funds and other large speculators bought 27,513 more contracts than they had sold as of Tuesday, down 28 percent from a week earlier and the smallest ``net long'' holdings since April 29 last year, the commission said. On April 6, speculators had held 144,253 gold contracts, the most since at least February 1983.

``The metal seemed oversold at the moment,'' Orrell said. ``The Fed cannot stem the inflationary pressure because of the high debt level.''

Rising interest rates increase the cost of servicing debt for U.S. consumers, who stepped up borrowing by $5.7 billion in March for the 12th straight increase. All consumer debt totaled $2.023 trillion at the end of March as Americans took advantage of low rates to finance purchases of cars and other goods.

'Gold could hit $1 000/oz'
--------------------------------------------------------------------------------

Absa Corporate & Merchant Bank’s (ACMB) chief financial markets strategist, Craig Zaayman, yesterday went against the consensus by saying that he envisages a gold price of $800/oz or even $1000/oz, given current international developments.

Zaayman was speaking at ACMB’s financial market analysis presentation in Johannesburg.

“Demand for gold is outstripping the production of gold by about 55% a year,” Zaayman said.

“Over the last ten years, this figure has averaged around 45% a year.”

This view is more bullish that to other analysts who, while agreeing the weak-dollar environment will persist, and that the dollar gold price will remain firm, are less optimistic on the price level.

Observers last week told Mining Weekly Online they expect that gold will trade within the $370 to $430/oz range in the medium term.

http://www.miningweekly.co.za/min/sector/gold/?show=50848

Movement today, up 4.7%. Price 5.0-5.75 pence.

A lot of 50K block BUYS have been reported this morning around 5.75 pence.

.

Price 5.25-6.0 pence, up 9.5%. Could break 6 pence today......

Price 5.50-6.25 pence, up 14.2%.

Keep 'ramping' Girl it worked with all your others! ;