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

Something is brewing. MM's are looking for stock.

Yyyyeesss

The Eldorado shares and warrants, plus the Dynasty shares, are worth 7.25M in todays terms. CDN market cap is 13M which, excluding cash reserves, values its projects and blue sky at less than 5M.
In comparison, AFG has a mkt cap of 14M, with very little to show for it, while AFE has a mkt cap of 16M with, maybe, a gold resource of circa 500k oz.

July 21, 2005

Dear Gold Investment Friends,

Attached you will find the my updated report on China's gold industry, as well as my updated report on Caledon Resources.

Probably the most important recent development is Sino Gold, China's largest foreign gold producer, having been issued the Mining Licence for its Jinfeng Gold Project in Guizhou Province.
This is the first mining licence granted to a foreign company and re-enforces the belief that China offers an excellent opportunity to invest in quality gold assets in an increasingly predictable investment framework.

Other important news is Eldorado's friendly offer to acquire Afcan Mining, that recently completed a bankable feasibility study on its Tanjianshan (TJS) Project - Qinghai Province, that will allow the Company to become a major gold producer in China in 2006.

While gold exploration by foreign exploration companies has been strongly expanded in the last few years, China's national gold industry, lead by the China Gold Group contributing 20% of total gold production and 30% of the total gold resources, is emerging as well.

Interesting to follow are strategic equity investments from one company into another. Being named the Merchant Banking Strategy, Caledon (see attached updated report) will have the ability to make equity placements in undervalued private Chinese advanced stage project owners; and have the ability/first right to take these private Chinese companies public in the capital markets London/Toronto.

Caledon will also have the ability to do further equity placements in what is sees as undervalued western juniors operating some highly prospective projects in China as a starting point for its bid to consolidate the fragmented Chinese gold sector.

Caledon's first strategic investment was a 19% equity interest in Afcan Mining, now being taken over by Eldorado and showing a 6-month return on its investment of more than 60%.
Caledon also made a 15% strategic equity investment in Dynasty Gold.

In addition, Caledon has a 70% equity interest in Mojiang Mining, the largest gold producer in Yunnan Province.

At a market capitalization of just Cdn$ 29.2 million ( 13.3 million), I consider Caledon as one of the most attractive investment opportunities in China's emerging gold industry.

With kind regards,


Marino G. Pieterse
Goldletter International
info@goldletterint.com

Iturama, thank you for sharing this information with us...I've held Caledon shares for a year now & I'm very frustrated with them, I have almost sold them on countless occasions, I think I should have done! what really matters is the markets reaction to the news & over the year I have held them the reaction has been negative. Regards goal.

Goal. It has been a frustrating time but CDN does have some solid underlying assets - which is more than can be said for many AIM stocks.
The updated report mentioned in my 742 follows:-

July 2005 Update
Caledon Resources Plc. (4.25 p.)
London AIM Code : CDN
H+L prices (12 months) : 6.88-3.38 p.
Issued Capital : 311.9 million shares
Options/Warrants : 15.5 million
varying 1.25-3.5 p.
Market capitalization : 13.3/Cdn$ 29.2 million
First price target: 6p
Company overview
Caledon Resources Plc (Caledon) is a public company, listed on the London AIM Stock Exchange and has been domiciled in the UK since February,2003. The company 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 East Asia on behalf of several major mining companies.
Of the 300 plus gold occurrences and districts identified and screened over the years, five distinct gold districts have emerged as top-priority ranked targets, based on their distinct geological similarities with the multi-million ounce gold districts found in Nevada (Carlin-districts).
The five highly ranked areas in Guangxi Province have become the focus of Caledons exploration efforts in China. With the potential extent of gold mineralization recently identified, Caledon has submitted applications for mineral titles on all five districts.
Caledons four brownfields projects are: Gaolong, Badu, Hengxian, all three in Guanxi Province, and the Mojiang Project in Yunnan Province.
In November 2004, Caledon announced its new Merchant Banking Strategy that has been implemented in parallel with its exploration strategy, which puts more emphasis on more advanced stage exploration in China. With the new strategy Caledon will have the ability to make equity placements in undervalued private Chinese producers/advanced stage project owners; and have the ability/first right to take these private Chinese companies public in the capital markets London/Toronto.
In addition, Caledon will have the ability to do further equity placements in what it sees as undervalued Western juniors operating some highly prospective projects in China as a starting point for its bid to consolidate the fragmented China gold sector, such as Afcan Mining and Dynasty Gold.
Goldletter International 2 July 2005 Update
In November 2004, Caledon made a strategic investment in Afcan Mining Corp. (TSX: AFK) through a private placing of 23.85 million units priced at Cdn$ 0.25, consisting of one common share and one half warrant, representing approximately 19% of the issued and outstanding shares on Afcan (on an undiluted basis) and 26% on a partially diluted basis assuming exercise in warrants.
The proceeds of this placement in Afcan, amounting to approximately Cdn$ 5.96 million ( 2.69 million) were destined to help fund the construction of Afcans Tanjianshan Gold Mine in Qinghai Province, China.
On May 31,2005, Eldorado Gold Corp. (TSX - ELD) announced their intention to bid for all of the issued and outstanding shares and warrants of Afcan at a share exchange ratio of 1 share of Eldorado in exchange for 6.5 shares of Afcan, valuing each Afcan share at approximately Cdn$ 0.42.
Caledon is supporting the offer by Eldorado showing a 6-month return on its investment of more than 60%.
The Company plans to use the proceeds from this transaction, estimated to be over US$ 10.5 million at the moment, to fund further exploration in China. Caledon may also use the proceeds to pursue its Chinese consolidation strategy and merchant banking growth avenue, completing further equity investments in undervalued Western juniors and in private Chinese mining ventures.
In December 2004, Caledon made a strategic investment in Dynasty Gold Corp. (TSX DYG) through a private placement of 4.5 million units at a price of Cdn$ 0.41 per unit, consisting of one common share and one half warrant, representing approximately 15% of the issued and outstanding shares of Dynasty. The proceeds of this placement in Dynasty, amounting to Cdn$ 1.84 million, were destined to help fund exploration of Dynastys projects in Xingjiang, Gansu and Qinghai provinces. At Dynastys Haitu Gold Project, Qinghai Province, a resource of 1.2 million ounces of gold has been recently identified.
Overview of projects
In November 2003, Caledon through Blackwatch Resources signed a Letter of Intent (LOI) covering the Mojiang gold mining operation situated in south-western Yunnan Province, Southern China. Caledon has the right to earn a 70% equity interest in any new tenements in adjacent countries.
A full-form agreement is currently being finalised, leading to the formation of a CJV Company.
Under the terms of the agreement with the Mojiang Mining Limited Company (MMLC), Caledon can earn a 70% equity stake in the Mojiang mine concession (7.2 km2) and new tenements with Mojiang County, as well as a 90% interest on exploration ground to be acquired in defined counties in southern Yunnan Province.
In return, Caledon has to spend US$ 1 million on exploration over a 3-year period and completion of a feasibility study. MMLC has a 30% interest, of which 15% is carried to the commencement of production and 15% is participating in any future development and production scenario. The project will be funded 100% by Caledon during the exploration
phase.
The Mojiang project and mine area is situated 240 kilometres southwest of Kunming, the capital of Yunnan and hosts the largest gold producer in Yunnan, and Caledon considers that the area has exceptional potential for the discovery of major deposits The Mojiang gold zone occurs over a strike length of 3,100 metres and ranged in width from 50 metres to 200 metres. The main target area is the Mojiang mine, an active gold mine
since the late 1970s producing gold from a number of small open-pit and underground operations. The mining of Mojiang, was based on reserves of 32 tonnes of gold (> 900,000 ounces) at a grade of 4-6 g/t gold.
With remaining gold reserves of approximately 250,000 ounces Mojiang has produced approximately 300,000 ounce over the last ten years. Individual veins, averaging up to 12 metres wide, have been shown to host grades in excess of 15 g/t gold. Individual veins sometimes exhibit bonanza grades of (in excess of 30 g/t gold), typical of such systems.
70% equity interest in Mojiang Mining, the largest gold producer in Yunnan Province
Goldletter International 3 July 2005 Update
The Phase-1 drill program, completed in December 2004, consisted of 16 shallow reverse circulation drill holes for a total of 1006 metres. All drill holes reported consistent economic gold mineralization 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.
Results included 46.67 g/t gold over 20 metres, including 184.50 g/t over 4 metres, 12.28 g/t gold over 10 metres (MJRC 10-A) and 9.67 g/t gold over 4 metres (M) KC012-AS. The widely spaced holes assayed to date cover a surface strike length of over 60 metres near the crest of Mojiang Hill.
On May 10, 2005 Caledon reported that 2,252 metres of RC drilling over 960 metres of diamond drilling were completed in the Phase-2 drill program. Wide zones of gold mineralization continue to be intersected with localised bonanza grade sections. Assay highlights are: 63.70 g/t gold over 6 metres, 1.96 g/t gold over 41metres, 1.91 g/t gold over 48 metres, 17.25 g/t gold over 16 metres and 10.02 g/t gold over 8 metres.
The Phase-2 program has exceeded all expectations, intercepting similar grades and widths, in addition to extending the limits of the targeted corridor of mineralization well beyond the 1 kilometre mark. As also was the case in Phase I, the recent drilling also identified selected sections hosting bonanza grade mineralization, in same instance in excess of 50 g/t gold over economic widths.
In May 2003, Caledon Resources announced that its 85% controlled Sino-Foreign Co-operative Joint Venture Company (CJVC), Blackwatch Resources China Ltd., had been granted a business license for mineral exploration in China. Caledons partner for the joint venture company is China National Gold Guangxi Corporation (CNGGC). This is the foremost mining and exploration group in Guangxi Province and it has demonstrated a strong willingness to assist the CJVC in attaining its goals.
The official granting of the business license followed completion of a Joint Venture Agreement with CNGGC as well as approvals from the Guangxi Ministry of Foreign Trade and Economic Cooperation (MOFTEC) and the Guangxi State Planning Committee.
Under the terms of the CJVC that was signed in Nanning, China, in March, Caledon through its wholly owned subsidiary Blackwatch) will hold 85% of the CJVC through to
commencement of gold production. After commencement of production, CNGGC will be paid 112,000 (US$ 196,000) per annum for the first four years, to a total of 448,000 (US$ 784,000). Thereafter, the operation profits of the CJVC will be distributed on a 90:10 basis.
Blackwatch is the manager and operator of the CJVC.
Prior to the formation of the CJVC, Blackwatch conducted an extensive reconnaissance program through Guangxi Province, on both a local and regional scale. The CJVC will now focus on gold targets already identified from Caledons earlier work, as well as the establishment of joint venture with other mining groups in Guangxi. The CJVC has established a fully functional exploration office inthe capital of Guangxi Province, Nanning, and has key personnel in place.
China National Gold Guangxi Corporation Joint Venture
Guangxi is located in the Southwest of China having a total area of 23.67 million square kilometres. It also is host to excellent infrastructure, with major road networks, railways, waterways and two major seaports. The Province hosts numerous disseminated gold deposits and the CJVC will be targeting known deposits as well
as new areas considered to have strong potential for the discovery of major gold deposits.
Early May 2005, Caledon reported that Butler Developments Corp. (TSX.V BTD) intends to exercise its option to acquire Caledons existing Guangxi Province gold projects through the acquisition of all shares of Blackwatch Resources, a wholly owned ubsidiary of Caledon. The projects include Hengxian, Gaolong and Badu. As onsideration, Butler will issue to Caledon 4.0 million of its common shares at a deemed price of Cdn$ 0.10 per share equivalent to 34%% of the total capital of Butler on an undiluted basis.
If, following its issuance of all the shares, Butler prepares a technical report in a form compliant with Canadian NI 43-101, which identifies a measured mineral resource on any of the projects of mote than 2.0 million ounces of gold, or gold equivalent, Butler will issue to Caledon an additional 4.0 million shares.
If any such report identifies a measured mineral resource of less than 2.0 million ounce, but more than 500,000 ounces of gold or gold equivalent, the number of additional shares will be reduced proportionally.
In August 2004, Caledon signed a Cooperative Joint Venture (CJV) agreement with Chinas Chenghua Industrial Corporation Limited (Chenghua). Based in Beijing, Chenghua is a large industrial group with diverse ownerships interests in several sectors including mining, chemical production and property development. Chenghua has access to over 20 advanced exploration and mining projects throughout China.
The projects are the subject of the CJV on which Caledons team is currently conducting due diligence and evaluation work.
Under the terms of the agreement, Caledon has a right to 80% of the CJV with Chenghua retaining a 20% interest, of which 10% is contributing. Once finalised, the company holding the rights to the CJV will explore on defined projects introduced by Chenghua.
Corporate / Finance
In November 2004, Caledon raised approximately 4.5 million by placing approximately 101 million shares at a price of 4.5 pence per share.
Goldletter International, P.O. Box 266, 1900 AG Castricum, the Netherlands ● Information and investment comments are independently and thoroughly researched and believed correct. No guaranty of absolute accuracy can be given however. ● Investment decisions are fully made for own risk. ● tel.:+31-251-320735 fax: +31-251-321110 ● www.goldletterint.com ● e-mail: info@goldletterint.com

Investment recommendation:
Caledon continues to pursue a balanced growth strategy in China one combining joint venture exploration deals on existing properties together with the evaluation and pursuit of new joint venture opportunities and equity interests in China-focused gold explorers (publicly traded junior companies and private Chinese interests alike).
Caledons first strategic investment in Afcan will show a return of approximately 70% with cash proceeds of approximately Cdn$ 13 million. This is equivalent to 1.90 pence per share and represents almost 50% of Caledons total market capitalization.
The Companys flagship asset is a 70% equity interest in the Mojiang Mine , the largest gold producer in Yunnan Province with remaining gold reserves of approximately 250,000 ounces.
In addition, Caledon entered into joint venture agreements with China National Gold Guanxi Corp. and Chengua Industrial Corp., which are expected to lead to a flow of highly prospective properties.
At a current market capitalization of 12.2 million (Cdn$ 26.6 million), including the value in Eldorado shares of approximately Cdn$ 13 milllion from the sale of its equity interest in Afcan, we consider the shares of Caledon substantially undervalued.

Our first price objective is: 6.0p.

July 25, 2004

Caledon Resources Intercepts Further High Grade at the Mojiang Gold Project,
Yunnan, PRC

Limited and wide spaced diamond drilling programme completed at Mojiang
targeting deeper zones of gold mineralization, below recently reported near
surface intercepts

The programme successfully identified wide and sometimes high grade
zones up to 200 metres below surface, assaying up to 15.36 g/t over 18
metres

Scope to increase resource potential now extended beyond the previously
identified near surface zone of gold mineralization

Caledon Resources plc ('Caledon') is pleased to announce assay results from
a recently completed diamond drill programme, designed to test deeper
targets located on the Mojiang gold project, situated in SW Yunnan.
Previous shallow drilling at Mojiang, conducted between January and June,
2005 had successfully identified a relatively flat lying, near surface zone
of gold mineralization, over a strike length in excess of 2 kilometres and
hosting an average zone thickness of approximately 40 metres. Past drilling
also identified selected sections of epithermal-style bonanza grade
mineralisation, in some instances in excess of 50 g/t gold over economic
widths.

The objective of this most recent reconnaissance diamond drill programme was
to test for parallel zones and 'feeder' structures at depth below the
recently drilled surface mineralization. Previous drilling had tested down to
an average depth of 75 metres, whereas this most recent diamond drilling
programme probed depths of up to 200 metres below surface.

The drill programme, completed on a wide spaced basis relative to previous
drilling, successfully identified gold potential at depth. This success was
highlighted by a combination of large low grade gold intercepts and selected
high grade gold intercepts in areas which were previously unknown to host gold.
This new information, in combination with known data compiled from proximal
underground Chinese workings, opens up further scope for resource potential at
depth on Mojiang.

Herewith, a summary of the significant results from the recent diamond drill
campaign, which amounted to 1060 metres drilled in 7 drill holes.

Hole No From (m) To (m) Interval (m) Au (g/t)

MJDDHS001 60 62 2.0 2.35
MJDDHS001 120 122 2.0 1.59
MJDDHS001 140 166 26.0 1.01
inc 142 144 2.0 2.04
inc 164 166 2.0 2.47
MJDDHS002 112 120 8.0 3.46
inc 112 114 2.0 8.16
MJDDHS002 164 166 2.0 1.61
MJDDH003 148 162 14.0 0.53
MJDDH003 186 188 2.0 1.72
MJDDH004 152 154 2.0 1.38
MJDDH004 198 200 2.0 1.25
MJDDHS006 56.4 60 3.6 2.41
MJDDHS006 74 76 2.0 1.91
MJDDHS006 162 180 18.0 15.38
inc 166 168 2.0 82.80
inc 176 178 2.0 41.00
MJDDHS007 147.3 185 37.7 1.02
inc 155 159 4.0 2.11
inc 165 169 4.0 1.86





This recent drill information is being compiled along with Caledon's existing
drill hole database, which includes our own past drilling and that done by the
Chinese, as a means of completing a more comprehensive geological and structural
model. This model will form the basis for further drill hole targeting, both
shallow and deep, at Mojiang.

George Salamis Caledon's CEO comments, 'We are highly encouraged given that our
hypothesis regarding further gold potential at depth, below our recently
reported near surface results, proved to be correct in this latest round of deep
reconnaissance drilling. The gold potential at Mojiang has been enhanced, now
adding a third dimension - a wide-open depth component - to the overall portrait
on the project'.

On behalf of the board:

Robert Alford George Salamis
Chairman Chief Executive Officer

Is the paint dry yet?

just been tipped by the IC as a BUY and its got golden cross potential imo. someone has posted the IC article at AFN. RAB took up all the overhang last month and news is due end of this month so the IC says.

and reading the article its a main list buy as well and backed up by the RNS about RAB buying loads in October...............................

its moving up now this could be a big one for this month until the news on tests comes and then who knows how high..................

AFX news out

confirms story Mojiang is for free and with over a million ounces its a punt up to 6p imo

I am in on CDN after the IC tip. It looks fine and well run and expectation of good news just around the corner.

A standard drilling report is due at the end of this month (Nov) and although a standard drilling report may not excite people my expectation is more of a general update as well as the drilling report. If you refer back to the Canaccord Note of Jan 2005 they say this

"Outlook - Mojiang
In order to get a better understanding of the projects potential, the company plans to test the depth extensions of the mineralisation by re-entering the RC holes with a diamond drill rig. In addition it expects to follow the extensions of the mineralisation along strike. The company is also considering using an underground rig to test the mineralisation around the workings below the valley floor as well as conducting an initial program of metallurgical testwork. The company is aiming to produce a resource statement for the project by the third quarter of 2005 and believes that the project has
the potential to host more than one million ounces of gold."


It is now past 3Q 05 and delays are expected but would you not say it is reasonable to expect the update in Q4 at the time of the end November drilling update ?

You could say the IC article is being speculative, and I am just trying to read where the writer is coming from, for me I would take the Canaccord reference to a resource figure in Q3 05 (still waiting), I would take the due end Nov 05 drilling update which "will" happen, I would take RAB buying more and raising their stake level in October and make 2+2 = 8 and say expect the resource statement along with the end Nov 05 drilling update.

If anyone wants links to the Canaccord note please take a look at the AFN thread, if anyone has links to a more up to date report, please post it.

Nearly everyone who reads the IC will now have read the article on CDN by Monday morning so we should hopefully see a couple of strong weeks of buying volume. I am in expectation of this mineral resource level coming out end of Nov/early Dec, and the answer to the question of how many million ounces there are at Mojiang. Whichever way the present price of CDN, as pointed out in the IC article is equal to investments and cash, there is no accounting for Mojiang in the price, so with the SP equal to investments and cash, then any positive news on Mojiang this month or next could very well excite this share upwards a large mark.

iturama are you still in ? or here ?

Moving up well today, must be a lot of IC investors buying in. MM's seem short of stock, I hope they are after RAB buying up loads late Sept.

yam114 - 7 Nov'05 -

Minews Story
Date: November 02, 2005

Caledon Resources Seeks Advanced Projects Outside China For Its Chinese Partners

When we last wrote about Caledon Resources earlier this year George Salamis was starting to make his mark on the company after taking over as chief executive from Stephen Dattels. His initial policy was to establish the company as a consolidator of projects in China as well as continuing with its own exploration programmes. The first two companies in which Caledon took shareholdings of just under 20 per cent were Afcan Corporation and Dynasty Gold, both of which were listed in Canada. Afcan was an emerging gold producer in China and owned 85 per cent of the TJS Project at Tanjianshan in Qinghai Province. A bankable feasibility study had been completed on the project and detailed design had commenced.

The problem faced by David Netherway, chief executive at Afcan, was how to raise the development capital. His shares did not have a very high rating despite its success in bringing the project to such an advanced stage so quickly. Everything depended on the response from Caledon and RAB Capital, which was another big shareholder. Both of them, unfortunately, had different agendas to Afcan. They wanted money and were not interested in seeing Afcan move to production. Within a short period Eldorado Gold Corporation, a well funded pure gold company with operations in Brazil and Turkey, made a cash bid for Afcan. It was a blow to Netherway, but he knows what business is all about and is now a director of KazakhGold which is due to list on the London Stock Exchange shortly with a market capitalisation around 500 million.

As a result Caledon took a handsome profit and now has cash approaching 10 million in the kitty as well as its interest in Dynasty Gold and in another Canadian company, Butler Developments Corporation. The latter materialised when Butler decided to exercise its option to acquire Caledons existing Guangxi province gold projects, Hengxian, Gaolong and Badu. For this it paid 4 million shares in Butler which were equivalent 34 per cent of its issued capital. If it comes up with a NI 43-101 compliant measured mineral resource of more than 2 million ozs gold on any one of these projects it will have to pay Caledon another 4 million Butler shares and if it comes up with a resource estimate of more than 500,000 ozs and less than 2 million the number of shares it will have to issue will be proportionate.

Nice deal for Caledon which maintains exposure to success at these projects. Meanwhile Dynasty Gold has been progressing its exploration programme at the Hatu project in Xinjiang province north west China. This is aimed at defining the target potential as well as following up on anomalies already delineated. The latest results from the first two holes show that both encountered gold with interval grades higher than 5 g/t gold. The company is also hoping to enlarge the gold and trace element anomalies at the Red Valley project in Qinghai province and has been awarded a business licence for the Wild Horse project in Gansu.

Caledon itself recently announced that over 4,000 metres of reverse circulation and diamond drilling has been completed on the Mojiang project in Yunnan since January 2005. Field crews are currently directing their efforts towards completing Phase I mineral processing and metallurgical recovery tests, with the aim of determining the potential amenability of conventional gold extraction techniques on the various ore zones at the project. Work is also underway at Mojiang focused on creating a 3-dimensional volumetric solids model of these various gold mineralized zones intersected in the latest drilling campaigns on the property.

All good conventional stuff to be expected of a gold exploration company, but the company has another trick up its sleeve which makes it stand out from the bunch. As it has cash in the till and an AIM listing it has been approached by some powerful Chinese groups seeking advanced projects outside China. They want to get involved in primary production and as Caledon has proved its ability in China it is seen as an excellent front. The sort of situations envisaged are smallish companies with large projects, preferably in base metals. The ratings of such companies tend to suffer as it is known that they will have difficulty in raising the equity proportion of development finance and will be diluted out of existence if they do a conventional JV with a mid-tier partner. It is an interesting opportunity for the company and we await news of the first deal.

I am suprised no one has posted here today with such an excellent RNS this morning !

With a cap of around 12 million gbp, and announced today cash of over 10 million gbp, they surely have a long move upwards coming over the next few months, as the next drilling commences in February, and then results in April stating the detailed cash position are likely to be accompanied by the latest drilling results.

I'm in today for a few hundred thou' anyway

John

SueHelen

Are you going to be on the case soon ?
Await developments.

;o)