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

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)