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GoldQuest Mining (GQC, TSX-V)

GoldQuest was up three pennies on improved volume last week, closing Friday at 36.5 cents…the stock has been strongly supported by its rising 50-day moving average (SMA), currently at 33.5 cents, since October…it fell just briefly below the 50-day this month before snapping back…that temporary weakness may have been caused by the company’s acceleration of the warrant expiry date from a private placement last April to January 24…a total of 9,465,400 warrants were still outstanding as of December 24 (each warrant is exercisable to purchase one common share at a price of 20 cents per share), meaning as much as $1.9 million could be added to the company’s treasury by that new expiry date which is just one week away…at this point, so close to the expiry date, any additional selling of the stock in order to exercise warrants should be very minimal…technically, GQC is looking healthy and a turnaround in the 20-day SMA appears to be close at hand (the week of January 24 at the latest perhaps)…with impressive precious and base metal exposure, along with major new discovery potential, we’re very excited about GoldQuest’s prospects for this year which is why it’s one of our favorites for 2011…drilling has commenced at the company’s promising La Esandalosa Project in the Dominican Republic and results could build significantly on the recently released 43-101 inferred resource for that project…all of GoldQuest’s properties in the Dominican Republic and its zinc-lead-silver deposit in Spain have us very bullish on GQC going forward…the company, whose largest shareholder is Gold Fields Ltd., is well established in the DR and its property package there is a geologist’s (and an investor’s) dream…they have spent nearly a decade identifying many highly prospective precious and base metal targets, one of them being La Escandalosa (formerly Las Tres Palmas) where an inferred resource of 400,000 ounces of Gold has already been outlined (announced Nov. 16) based on just 25 drill holes at Escandalosa Sur from 2006 through 2010…it’s important to stress the 43-101 was completed on La Escandalosa  at a very early stage and the possibility of a discovery well in excess of a million ounces is possible as this is such an attractive geological target…the deposit is open at depth as well as to both the south and the north toward another discovery of Gold mineralization by the company at Hondo Valle, approximately 1.2 kilometres away…Gold at La Escandalosa occurs as a flat-lying stratiform zone at shallow depth with mineralization interpreted to be part of a larger intermediate sulphidation replacement-style system which has now been defined intermittently over a strike length of 2,100 metres…the source of the mineralizing fluids remains unknown at La Escandalosa, leaving open the possibility of the discovery of mineralization in structural feeder zones or perhaps in a porphyry copper-Gold type system…GoldQuest has many other targets of considerable merit throughout its large DR land package including Las Animas which has a 43-101 inferred resource of 129,000 ounces of Gold, 2.5 million ounces of silver, 106 million pounds of copper and 130 million pounds of zinc…GQC has more drilling to do there as well…in Spain, Goldquest holds the Toral zinc-lead-silver deposit which has an historical (non-43-101 compliant) resource of 5.4 million tonnes grading 9% zinc, 6% lead and 45 g/t Ag…a 43-101 on Toral is currently being prepared…GoldQuest has also acquired a second polymetallic project in the area (Lago, just a 20-minute drive from Toral), and more details are expected upon approval from the Spanish government of a mineral rights application for the property… GoldQuest is up 87% since we added it to our readers near the end of September…

Adventure Gold (AGE, TSX-V)

Adventure Gold fell three more cents last week, closing Friday at 44 cents, but volume was light and the stock remains in a long-term overall uptrend based on technical analysis…while AGE has dropped below its 50-day moving average (SMA), the 50-day continues to rise and the 100-day SMA at 37 cents provides exceptional support…2011 is shaping up to be an active and potential breakthrough year for this young company which intends to be very aggressive on the exploration front…during our recent visit to Rouyn-Noranda we were able to explore in greater detail this company’s projects…as a result we’ll be reporting more on Adventure Gold in the days and weeks ahead as time allows…one of this company’s most underrated assets is its Pascalis-Colombiere Property in the eastern part of the Val d’Or mining camp…a 2,500 metre drill program started there last month and is testing the former L.C. Beliveau Mine at depth (below 300 metres) as well as near-surface parallel Gold structures to the west…Pascalis-Colombiere is just 1.5 kilometres east of Richmont’s (RIC, TSX) operating Beaufor Gold Mine which has produced over one million ounces in its lifetime…it’s safe to assume Richmont will be watching developments at Pascalis-Colombiere with interest…Adventure Gold’s property has significant upside exploration potential…the geological setting is favorable for the identification of new high-grade Gold bearing veins and structures or bulk-style ore shoots…there are many untested areas and excellent potential at depth…L.C. Beliveau was a very profitable former producer…if AGE can prove up something significant through extensions to this deposit, we see a potential deal with Richmont which would be the natural choice to bring the mine back into production…we first mentioned Adventure Gold to our readers in an article September 29, just a couple of days following the company’s announcement that it had acquired land at Granada, when the stock was trading in the low 20′s…we officially added AGE to the BMR model portfolio at 34 cents October 28, so the gain since then is 29%…our interest in Adventure Gold, however, goes far beyond the company’s involvement at Granada, as exciting as that is…they do hold a small but strategic slice of land in the Granada Eastern Extension and also more property west and south of GBB’s Preliminary Block Model area…they’ve already produced some very interesting prospecting results on their land in the west…Adventure Gold has been around only since late 2007 and we are impressed by the company’s solid portfolio of properties (19 in 6 strategic areas in Quebec and Ontario)…also of immediate interest is AGE’s partnership with Lake Shore Gold (LSG, TSX) on the Meunier 144 Property where deep drilling is currently testing the down plunge extension of Gold zones located at the Timmins and Thunder Creek deposits…Lake Shore recently provided an update on this project…the current initial deep drill hole onto the Meunier JV property is continuing and when completed is estimated to provide a deep cut on the projected target area at about a vertical depth of 2,600 metres…this will enable shallower wedge cuts to be considered if significant mineralization is found to be present in this area…the initial deep hole was collared on LSG’s Timmins mine property last August and was last reported at around 1,900 metres in depth….the Timmins deposit straddles a volcanic/sedimentary/ultramafic contact zone within a folded sequence that plunges 54 degrees to the west-northwest toward the Adventure Gold Meunier JV property…if this deep hole succeeds, AGE could absolutely explode…

Seafield Resources (SFF, TSX-V)

Seafield firmed up last week on strong volume and closed Friday at 56 cents, a gain of 6 pennies from January 7 when the CDNX approved its $15 million private placement at 50 cents…we really like the way this stock has traded since December 3 when the company announced a spectacular drill result from its Miraflores Property in Colombia and the stock rocketed to 77 cents…results are pending on nine more holes at Miraflores…given historical results, at least some of these holes should be very good…drilling is also underway at Dos Quebradas, a property we believe gives Seafield its real “blue sky” potential at Quinchia… SFF reported December 8 that the first three holes have been completed at Dos Quebradas which is rich in porphyry targets over a wide area…DQ is just a few kilometres northwest of Miraflores…visual reports indicate that these three holes have similar styles of mineralization to an historical hole drilled by AngloGold that returned an interval of 39.5 metres grading 1.67 g/t Au…the potential of Dos Quebradas is evident from limited historical drilling and was confirmed by Seafield last year through soil geochemical surveys and magnetic surveys which are crucial to discovering hidden porphyries in areas of very little outcrop…Seafield also released results recently from trenching in one location from the southern end of the gold-in-soil anomaly that defines the northern extension of the Dos Quebradas porphyry…1.75 g/t Au was returned over 94 metres…Seafield has an excellent opportunity to develop a multi-million ounce Gold resource at its three major properties at Quinchia (Chuscal is the third property)…with a current market cap of $82 million, SFF still has considerable upside potential…the stock seems to refuse to close below the financing price of 50 cents…

Colombian Mines (CMJ, TSX-V)

Colombian remains quiet and closed unchanged for the week at 87 cents…the stock is currently sandwiched in between its rising 50-day moving average (SMA) at 88 cents and its rising 100-day SMA at 85 cents…a declining 200-day SMA has so far kept CMJ from breaking out with authority but investors just need to be patient…we like CMJ because it’s an experienced operator in Colombia with a large land position (more than 150,000 hectares) covering many excellent geological targets…its flagship property is Yarumalito, just north of Medoro’s Marmato deposit and of course close to Seafield’s Quinchia Project…drilling continues at Yarumalito…just over three months ago the company reported assay results for seven more holes with the best result being a 151-metre section in porphyry from YAR-24 grading 0.64 g/t Au…YAR-14 returned 95.5 metres of 0.70 g/t Au…Yarumalito continues to show promise but these are still early days and much more drilling is required…the company’s El Dovio Property, approximately 100 kilometres southwest of Yarumalito, also has our attention…in November the company announced that recent channel sample results have extended high grade Gold-silver-copper mineralization over a much larger width than indicated by historical information at the 9,300-hectare El Dovio Property…all samples returned significant polymetallic mineralization…six samples contained Gold in excess of 10 grams per tonne, with individual two-meter channel samples assaying up to 25.55 grams per tonne Gold, 66.88 grams per tonne silver and 13.5 per cent copper…CMJ, which reported cash on hand of over $3 million as of July 31, is in good position for a strong 2011…the chart is telling us that positive developments are on the way…CMJ is up 45% since we added it to the BMR model portfolio just over a year ago…

Sidon International (SD, TSX-V)

Sidon continues to build a nice base in the high teens and closed Friday at 19 cents, a 1.5 cent loss for the week…there was news Thursday which gave more encouraging indications from early drilling at the company’s Morogoro East Gold Property in Tanzania…the first six holes have been completed over a strike length of 900 metres…Sidon reported zones of disseminated sulphides of pyrite and pyrrhotite as well as some chalcopyrite and arsenopyrite throughout all six holes over intervals of 30 to 70 metres…visuals are not always reliable but there’s reason to be optimistic that Sidon could be on to something…the company is also trying to develop a placer operation at Morogoro…Sidon remains locked in a very strong long-term uptrend as evidenced by the rising 50, 100 and 200-day moving averages (SMA)…there was some significant news on the Sidon front in mid-December as the company picked up ground (50.5 square kilometres) northeast of Canaco’s (CAN, TSX-V) Magambazi Property, immediately north of Douglas Lake Minerals‘ acquisition which borders Canaco’s property…strategically, this was a smart move on Sidon’s part and helps underpin if not enhance the company’s value…it meant giving up an option, for now at least, to acquire more land adjacent to its Morogoro East Gold Property to the south…given a choice between the two properties, Sidon made the right call in our view though the process appeared a little messy to investors…this company has come a long way since last March when we first introduced it to BMR readers at a nickel, and its new web site is just one more indication of how impressively Sidon has developed and matured…we see exciting possibilities for 2011…the company raised over $1 million through the exercise of options and warrants in November and December…

Excel Gold Mining (EGM, TSX-V)

Excel has been our worst performer over the last three months (it’s down 25% since we added it to the BMR model portfolio in early October) but seems to have stabilized in the vicinity of its 200-day moving average (SMA)…the stock closed Friday at 12.5 cents, a loss of 1 penny for the week…a recent positive development is that MineralFields has sold the last of its current free trading stock (300,000 shares were dumped at 12 cents December 29) which will relieve some selling pressure…MineralFields still has 10 million or so warrants to purchase additional shares but for now they’re out of the market…while there are probably better near-term opportunities on the CDNX right now than Excel, this is a company with a terrific asset –  the Montauban Mining Camp Project, 120 kilometres west of Quebec City – and patient investors with a medium to long-term outlook have a good chance to do extremely well…Excel seems to be following a technical pattern very similar to Sidon which ran hard to 18 cents and then gradually traded down very close to its 200-day SMA before reversing again to the upside…Excel’s 50-day SMA is still in decline and the turnaround for this stock will come only when that reverses which, looking at the charts, could realistically occur within the next month or so…the company continues to drill the Montauban Property which is a former Gold, silver and base metals producer…