CDN - Unearthing China's Multi-Million Gold Deposits

I wish a very happy and prosperous New Year to everyone who follows CDN.

Some may argue that the company needs to sell their story in a convincing way to large steadying institutions. However, if we trawl back over the past year there have already been several third party endorsements, albeit of a speculative nature based on nothing more than the way Caledon has conducted itself financially and Mojiang drilling results of the past 12-18 months, which look as if they might lead to a very interesting resource. Work is also underway at Mojiang to create a 3-dimensional volumetric solids model of various gold mineralized zones intersected in the latest drillings.

In the space of just one year the price of gold has increased by 20%, we have seen highly positive notes from House broker Cannacord, I have heard of a full buy recommendation from Investor's Chronicle in September, Caledon was the Goldletter International pick of the month in November and I quote from their article "At a current market capitalization of £11.8 million (Cdn$ 24.5 million), including the equity interests value in both Eldorado and Dynasty Gold, we consider the shares of Caledon substantially undervalued. Our first price objective is 6p." In addition there has also been, I believe, a recent strong speculative buy recommendation from Tom Winnifrith of T1ps.com.

I am fairly confident that these people would not put their necks on the line for no reason. Buying has been understandably sluggish in the face of a flagging share price caused only by forced selling by stale speculative seed ex-bulls and that appears to be the only reason for the decline. The China risk factor has not affected the Eldorado share price and it seems to me the announcement of a proven resource would see the end of the selling - indeed, we would probably find the takeover buyers hungrily circling. Every indicator I look at these days says the share price should rise and thats why I have been trusting my instinct and topping up over the past few months.

I have a feeling 2006 will be Caledon's year. Good luck to all.