BullMarketRun.com

The BMR Portfolio (Part 1 of 2)

Gold Bullion Development (GBB, TSX-V)

Patience always pays off as Christmas came a little early for Gold Bullion shareholders this week…strong buying poured into the GBB market Thursday and Friday (fund managers positioning for 2011 perhaps?) and the stock hit a new all-time high, closing Friday at 81 cents for a weekly gain of 11 cents…GBB got as high as 83 cents Friday, meeting little resistance at the previous high (September) of 79 cents…we’ve stated this many times before at BMR but it’s worth repeating – the GBB chart is indeed a picture of beauty…it’s hard to find a better looking chart than GBB‘s, besides the CDNX itself…the stock has moved higher 6 of the past 7 weeks and has now increased by over 1,000% since we introduced Gold Bullion to our readers at this exact time last year…investors are anxiously awaiting new drill results from the LONG Bars Zone (last results were November 19) but it’s worth reminding impatient readers that it took Seafield Resources (SFF, TSX-V) 6 months before releasing results from Miraflores that turned out to be spectacular and put the company on the front page of The Northern Miner…what we can discern from the most recent GBB results is that the LONG Bars Zone appears to be widening from north to south which of course is very positive for the geometry of this deposit…it’s our theory that the mineralization GENIVAR is discovering in the northern portion of the Eastern Extension actually begins to the west above the Preliminary Block Model…at this point there’s no question there’s strong new potential for the LONG Bars Zone going north, and Hole #86 (1 gram over 84.6 metres near-surface) shows there is also new potential going south…looking at the drill map on the GBB web site, it’s obvious that GENIVAR has drilled a series of holes northwest of #86 toward Pit #2 East in the Preliminary Block Model to confirm if there is a possible extension of the #2 Vein…to the east, of course, it’s all “blue sky” as Gold Bullion has several kilometres of highly prospective strike length still to explore (LONG Bars Zone 2 is nearly 2 kilometres east of Phase 1 discovery hole #17)…Frank Basa has agreed to an interview with us next week which we’re very much looking forward to…this has been a great year for Gold Bullion and an even better 2011 is a strong possibility…

Cadillac Mining (CQX, TSX-V)

Cadillac Mining is the newest addition to the BMR Portfolio and it enjoyed another powerful week, climbing as high as 45.5 cents and closing Friday at 41.5 cents on the CDNX (42 cents on record volume on ALPHA) for a weekly gain of 8.5 cents or 26%…volume Friday was 1.25 million shares on the CDNX and 437,000 on ALPHA for a combined 1.7 million…CQX is already up 80% since we introduced it to our readers December 9…as we look at the “Big Picture” with this company, we can’t help but think this is really just the beginning of something absolutely huge…the “Perfect Storm” has formed here for a variety of very sensible reasons…first, reading between the lines of Cadillac’s latest news release, the company could be very close to “pulling the trigger” on a precious metals project (or projects) in the Great Basin…CQX also revealed they have been researching opportunities there for the last 2 years – they’ve obviously done their homework and put a lot of thought into this, so the potential for a solid and exciting project(s) seems very high…second, the company holds 7 strategic and valuable claims (164 hectares in total) immediately adjacent to Richmont Mines‘ (RIC, TSX) Wasamac Property where drilling has been ongoing with increasing urgency since last May…Wasamac is a former producer and Richmont is making new discoveries there…more drill results and a new resource estimate are expected in January…what’s particularly interesting is that the principal structure that hosts the Gold mineralization at Wasamac dips northerly toward the 7 claims owned by Cadillac…in addition, from the only hole Cadillac has drilled at its Wasa claims, a hole that they deepened last summer, the company discovered a 300-metre thick altered zone that’s interpreted to be a feeder system typical of those seen under VMS systems in the Noranda camp…it’s clear that Cadillac’s “Wasa” claims, largely untested, hold outstanding potential…it’s a compelling exploration story that could develop in a major way very quickly…third, Cadillac has partnered with Visible Gold (VGD, TSX-V) on over 7,000 hectares of land (excluding “Wasa”) 6 to 30 kilometres west of Gold Bullion’s Granada Gold Property…so not only are Cadillac’s “Wasa” claims in play, but Visible Gold is committed to some major expenditures on CQX’s other properties in the general area…there are many other factors contributing to a “Perfect Storm” for Cadillac including a very attractive share structure, strong management with outstanding mining industry backgrounds, and an intriguing silver property (“Silver Streak”) of considerable merit in the interior of British Columbia (less than 30 kilometres west of the massive Equity Silver deposit)…it’s no wonder that even with the sharp rise in Cadillac’s share price, insiders aren’t selling…the volume surge in Cadillac actually started last May (right around the time Richmont commenced drilling at Wasmac) and has steadily increased in intensity (nearly 14 million shares have traded on the CDNX over just the last 9 sessions)…when record volume comes into a stock, you know that something big is up…that’s clearly the case with Cadillac…the stock has come a long way over the last month but all things considered, the company’s current market capitalization of only $10.4 million is a better bargain than anything you’ll find on Boxing Day…

Currie Rose Resources (CUI, TSX-V)

Currie Rose was unchanged for the week, closing Friday at 37.5 cents…the stock seems to have found a “comfort zone” in the mid-to-upper 30’s with initial assay results still pending from the company’s Sisu River Gold Property at its Mabale Hills Project in Tanzania…the rising 20-day SMA of 35.5 cents is providing strong technical support…we first mentioned CUI to our readers 3 months ago when it was sitting at a dime…we added it to the BMR Portfolio at 16 cents in late October…the company has 2 major projects in northwest Tanzania (Mabale Hills and Sekenke) that are approximately 200 kilometres apart and hold excellent potential…Sisu River, where artisanal miners made a discovery in the fall of last year, is one of several promising properties Currie Rose holds at Mabale Hills and it’s certainly capable of producing a significant discovery…CUI’s intriguing land package at Sekenke, meanwhile, runs in between and surrounds 2 former producing high grade mines…the company has already identified a large structure (12 km by 800 metres) within a shear zone on the margins of a large granite intrusion that hosts numerous vertical quartz reefs of the same type that developed at the nearby former mines…Currie Rose is ready to initiate significant pre-drilling work (high resolution satellite imagery, geophysics, etc.) at Sekenke in order to prioritize drill targets for the spring…the former high grade Sekenke mine was one of Tanzania’s original Gold producers and a significant one but it’s quite possible they missed the main deposit which could actually be on the ground that Currie Rose holds…this is a company with outstanding geological prospects in a country where Gold mining and exploration have really exploded over the last decade…

Richfield Ventures (RVC, TSX-V)

Richfield has been consolidating the last few weeks after hitting a new all-time high of $5.10 in late November…it closed at $4.54 Friday for a loss of 6 cents for the week…the stock has fallen below its 20-day SMA for the first time since October but this does not concern us…the fundamentals are so strong with Richfield that any additional weakness due to technical factors (or some insider selling which retail investors fret over far too much) has to be considered a very attractive opportunity…the primary trend remains up with Richfield and there’s every reason to expect more excellent drill results in 2011…the latest results from Blackwater released last Tuesday were solid but not “spectacular” enough for the market to run this stock to new highs…January could be a different story and then it’s off to the races…RVC is ahead 278% since we introduced it to BMR readers a year ago at $1.20…we believe the company’s objective is to ultimately find a buyer for its potential multi-million Gold deposit at Blackwater…if good drill results continue, we’re confident that objective will be met and the takeover price could be much higher than the company’s current market cap of $175 million…all in all, this is shaping up to be a major deposit which also has silver and copper values…it looks like it’ll be a cold and snowy winter in central British Columbia but Richfield has a fully winterized camp and should be able to drill with at least 2 rigs without any interruptions throughout the harsh months of January and February…

Greencastle Resources (VGN, TSX-V)

Greencastle was off 3.5 cents for the week, closing at 34 cents…the chart we posted Wednesday clearly showed how Greencastle has tremendous technical support in the low 30’s…the next Fibonacci target level is 54 cents, so accumulation at current levels does make a lot of sense…despite the stock’s fall from a recent high of 44.5 cents, VGN is up a whopping 143% since we added it to the BMR Portfolio in mid-October…what triggered the increase is Greencastle’s stepped-up activities in the Gold exploration space…this all started a couple of months ago when the company acquired a substantial land package near Richfield’s Blackwater deposit and then quickly completed a heli-borne magnetic and electromagnetic survey over the property in preparation for a future drill program…Greencastle also just recently announced it’s looking at adding another Gold play to its portfolio, an “advanced” project that would become the company’s fourth Gold property as it also holds Indian Creek and Jewel Ridge in Nevada…in clockwork-like fashion, Greencastle has experienced 3 powerful moves (very sharp spikes) over the last 7 years (late 2003, early 2006 and mid-2008)…2006 was more intense than 2003, and 2008 was stronger than 2006…we’re certain that a very powerful fourth major move in VGN is now well underway, driven by the company’s recent shift in corporate strategy to get much more active in the Gold exploration space, which could ultimately take VGN to new all-time highs…volume has picked up dramatically in this stock since late October which is what one would expect in the early stages of a major move…at 34 cents Greencastle’s market cap is still a very modest $15 million…the company has a large cash position (working capital of $6 million), regular monthly income of over $100,000 from an oil royalty valued at over $5 million by an engineering firm a year ago, and has recently hired two IR companies to tell its story…Greencastle seems primed, in our view, for its biggest run ever in the first quarter of 2011…