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Seafield has behaved as we expected, finding strong support in the .125-.14 range, and strength in the stock this morning suggests a powerful new advance could be imminent.

We’re thinking this morning as well that since it has not been announced yet, Seafield may not be proceeding with the second (smaller) tranche of its recently announced/proposed private placement at .125. That would be fine with us, as it means less dilution at such a low price. It also clears the path for an immediate rapid acceleration in the stock price. We’ll see what happens.

We are in the process of preparing a major article on Seafield, as we mentioned earlier here.

The technical action in Seafield is looking increasingly bullish as the stock continues to show very strong support at and around the 13 cent level. Based on stochastics and the RSI, SFF is nearly as oversold as it was in July, just prior to when it tripled in price from 5 to 15 cents in August. A declining 20-day moving average is also now beginning to flatten out, and we believe it won’t be long before that flips positive and a new up-leg begins from current levels. From a fundamental standpoint, we expect the company very soon to announce the second and final tranche of its recently announced private placement at .125. Once that hurdle is cleared, Seafield will be ready for another major advance and one that will likely take it to new highs.

A reader from British Columbia sent us a very thoughtful email yesterday covering a couple of stocks including Seafield. “Regarding SFF, I like your viewpoint….however, I do not see any disclosure by the company regarding 4 million ounces inferred that CCGC has. How can I confirm this?”, he asked.

BullMarketRun broke the news back in October that the Quinchia Property (held by CCGC, which Seafield has an option to earn a 50% interest in) contains inferred (non-compliant) resources of just over 4 million ounces of gold. This information was indeed not reported by Seafield in its October 1 news release, nor were they under any obligation to report it. The fact that to acquire a 50% interest in CCGC is going to cost Seafield $5 million should alert people to the fact that CCGC is indeed holding some very valuable ground in Colombia, and we have learned through additional reliable sources that they are continuing to assemble a very impressive and strategic land package in that country.

Through some rigorous Internet searching last month, we came across a 67-page geological report on the Quinchia Property which was a fascinating read and confirmed that indeed Quinchia contains four million inferred ounces (non-NI-43-101 compliant) based on drilling to date. There is also a lot of blue-sky potential with this property – mineralized areas that need to be drilled that show considerable promise. Quinchia is a low-grade, high-tonnage, open-pit situation, but we’re certain that CCGC will bring even more to the table which makes Seafield’s relationship with this privately-held company very, very important. CCGC knows Colombia, and no doubt they are also very familiar with any available land packages around Ventana – speculation on our part, but that’s what our job is, to look at the context, connect the dots, and understand all the possibilities. In short, we believe this deal with CCGC is absolutely huge and a game-changer and company-changer for Seafield (obviously the Patersons feel the same way).

In today’s market, with gold setting record highs, we’re constantly on the search for undervalued, high-quality junior gold stocks that offer huge upside potential. We’ve told you all about Kent Exploration which has jumped 25% since our recommendation just over two weeks ago (and has much further to go we believe). Now we’re going to highlight a company that is making a big push into Colombia, one of the hottest areas in the world right now for gold exploration. We suspect some very wealthy people are connected to this play, but the important news is you can jump in alongside them because the general public has yet to catch on to this developing story.

The company we’re referring to is Seafield Resources (SFF, TSX-V) which closed Thursday, November 5, at just 14 cents for a market cap of only $8.4 million. A full article on Seafield is currently being prepared, and will appear on this site shortly, but the stock has pulled back to a strong area of support (.125-.14) and we felt the urgency to get at least some information out on Seafield as quickly as possible given gold’s recent breakout.

Investors know the incredible returns companies like Ventana, Medoro, Galway, Greystar and others have delivered for shareholders lately in the gold hot-bed of Colombia (Ventana hit new record highs this week, and Galway has rocketed to as high as $1.50 from a low of 5 cents early this year). Seafield, we believe, is the next big mover in Colombia. It has all the potential of Galway, if not more, and should be a star performer in the weeks and months ahead.

Seafield Highlights:

• Seafield holds an option to purchase a 50% interest in privately-owned Caribbean Copper and Gold (CCGC) which has assembled and continues to assemble a very strategic and attractive land package in Colombia including the Quinchia Gold Project which has inferred (non-compliant) resources of over four million ounces. CCGC’s connections in Colombia are significant and Seafield stands to benefit immensely, we believe, from this new relationship;

• In Ontario, Seafield holds the very promising Elora Gold Property near Dryden where hole 08-33 last fall intersected 15.5 grams over 6.9 metres. This is a highly prospective property which has yielded very encouraging results in an under-explored gold district that we believe will garner much more attention in the year ahead;

• In Mexico, Seafield’s Picachos Property has clear potential as a significant near-surface, open pit silver-rich resource with gold and base metal possibilities as well. Chip channel and grab samples have included individual values up to 4,975 g/t silver (145 ounces), 8.61 g/t gold (0.25 ounces), 53% zinc as well as 50% lead. A 21-hole drill program in late 2007 intercepted 47.1 metres, starting at surface, grading 83 g/t silver and 0.84% combined zinc-lead; 509 g/t silver over three metres in another hole; and 6.2 g/t gold, 348 g/t silver, and 19.9% zinc-lead in another hole over 1.52 metres. The mineralized zone at Los Cochis (one of four contiguous precious metal districts on the 19,000 acre Picachos property) has a minimum strike length of 500 metres.

The President and CEO of Seafield is Tony Roodenburg, an experienced no-nonsense business type who’s guiding this ship with a very steady hand. Roodenburg has the company in a strong cash position (over $3 million with completion of current financing) and on Monday, Nov. 2, appointed James Paterson as a director. Paterson is a managing partner of Ocean Capital, and his brother happens to be Scott Paterson – the former Chairman and Chief Executive Officer of Yorkton Securities who has deep pockets and an incredible resume (check out www.patersonpartners.com). The fact that James Paterson has been appointed a Seafield director suggests to us that his brother Scott is lurking behind the scenes which could explain Seafield’s recently announced large financing. With the Paterson brothers seemingly both involved here, Seafield looks all the more attractive. Big money appears to have lined up behind this play, and we’re right there with it. They aren’t in this for pennies, and neither are we.

Seafield’s strategy of aligning itself with proven explorers in Colombia gives the company an excellent chance at success. They seem determined to be much more than just an “area play”, and that has to be great news for Seafield shareholders. At just 14 cents and a current market cap of only $8.4 million, we see a strong possibility of substantial share price appreciation with this stock in the weeks and months ahead.

BullMarketRun was the first to catch on to the Seafield “story” this past summer (through Stockhouse postings) when the stock was hovering around the six cent range. Seafield jumped as high as 24 cents in early October, and the recent pullback to a very strong area of support around 12.5 to 14 cents represents an excellent entry point for new investors and a great opportunity for current investors to add to their positions. We expect the company to complete the final tranche of its financing very shortly, so now is clearly the time to be stepping up to the plate rather than chasing this stock later on.

We see a strong likelihood that Seafield will break out massively before year-end and do a “Galway” early in the New Year as the Venture Exchange and gold both power higher.

We will soon be posting a full article on Seafield.