Caledon Resources PLC
09 August 2004
18 Upper Brook Street. • London W1K 7PU • England
Telephone +44 (0) 20 7318 5780 Facsimile +44 (0) 20 7318 5781
Project Portfolio Additions: Caledon Resources Completes Two New Deal Agreements
Caledon Resources PLC ("Caledon") is pleased to announce that it has signed a
Cooperative Joint Venture ("CJV") agreement with China's Chenghua Industrial
Corporation Limited ("Chenghua"). Based in Beijing, Chenghua is a large
industrial group with diverse ownership interests in several sectors including
mining, chemical production and property development. Chenghua has access to
over twenty advanced exploration and mining projects throughout China. These
projects are the subject of the CJV on which Caledon's 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.
Caledon has also increased its exposure in Guangxi's "Golden Triangle" region
with the signing of a Letter of Intent to explore 60 square kilometres of
exploration and mining tenements in the region's Baise area. The Baise area
project, situated in northwestern Guangxi province, was identified by Caledon
geologists as having strong similarities to other disseminated gold projects in
the region. Samples taken by Caledon exploration teams, as part of the
preliminary due diligence, have consistently graded in the 2 to 5 g/t gold
range. Previous small scale miners have reportedly encountered and mined gold
grades in excess of 50 g/t from several tenements in the region. To Caledon's
knowledge, the project area has never been drilled.
In the meantime, drilling at Caledon's Badu Gold project is proceeding on
schedule with six out of a scheduled twenty plus holes completed to date.
Samples from a number of the holes were recently prepared and shipped off to
laboratories in Australia for gold analysis. In addition, a second multi-purpose
drill rig, capable of drilling diamond core and reverse circulation, is being
shipped to southern China to join the exploration effort on Caledon's other gold
George Salamis, Managing Director of Caledon Resources reports: "Senior
management of Chenghua are highly experienced, key players in China's mineral
industry. Caledon's alliance with this group is an additional step in becoming
one of the lead players in China's resurging mineral exploration industry". Mr.
Salamis adds: "We are also extremely encouraged by the prospect of future gold
discoveries at Caledon's latest project acquisitions in the Baise area of
Guangxi. Our field geologists are very encouraged by the preliminary results
from the initial due diligence program which mapped what is reportedly one of
the largest gold related hydrothermal alteration systems in the region".
On behalf of the board:
Stephen R Dattels George Salamis
Executive Chairman Managing Director
Caledon Resources Plc is a junior metals explorer quoted on the Alternative
Investment Market of the London Stock Exchange (AIM: "CDN"). The company has
amassed a portfolio of four advanced stage gold exploration projects situated in
Southern China's "Golden Triangle" region. All sites are actively being mined by
the company's Chinese partners on a small scale, in geological settings
typically associated with disseminated, multi-million ounce ore bodies.
Management believes that the potential for discovery remains high in the
immediate vicinity of the small scale mining, through the application of Western
exploration techniques and philosophies.
For further information, please visit our website at www.caledonresources.com or
Stephen R Dattels
Donal Douglas, Investor Relations
This information is provided by RNS
The company news service from the London Stock Exchange