BullMarketRun.com

As expected, gold is powering higher this morning, currently up $16 to $1,153 as of 7:00 am Pacific time…we don’t believe it’ll be long (within a few weeks) before gold tests its record high of $1,225 set early last month…the strength of the Canadian dollar recently is just another indication of the overall direction and trend (up) that we’re going to see in precious metals, oil and commodities in general in the coming months…Gold Bullion Development (GBB, TSX-V) is strong this morning, up one cent to 12 cents…a whopping 336,000 shares traded in the first 10 minutes…National Bank and Blackmont were the main buyers, and National Bank has been a consistent buyer in this market for some time…Gold Bullion is finding some resistance at 12 cents but we expect that wall will be knocked down convincingly this week…the Venture Exchange is up 21 points to 1,626 as of 7:00 am Pacific time…Ventana (VEN, TSX) appears to be on the rebound which bodes well for all the Colombian plays…

The CDNX
As predicted, the CDNX is off to a flying start this month, advancing 84 points or 5.5% to 1,605 the first trading week of 2010. The Venture Exchange is now on a 10-session winning streak and volume is strong, too. This market has clearly entered an explosive new phase that should take it to the 2,000 level sometime during the first quarter – conceivably, even by the end of January if gold and commodities in general really start to go on a tear. That would be a massive one-month jump but not without precedent.

In a market like this, it’s important to “keep your head” and not let emotion force you into a mistake. Yes, it’s a great time to be aggressive. But don’t be chasing stocks, carefully and patiently look for the right entry points, and always stay liquid and have available cash at your disposal to take advantage of the “perfect” opportunity (a major discovery, for example) that may unexpectedly come your way. Try to always buy on weakness (on pullbacks that are against the primary trend), sell into strength and don’t get greedy. Easier said than done. Emotion is your enemy as an investor and a trader. Always remember that.

The Venture Exchange in December was “telegraphing” the end of gold’s correction and the start of another move up, so it wasn’t surprising to see gold gain strength this past week to close at $1,138.00. We fully expect that gold will head higher this coming week, perhaps sharply higher, buoyed by strong technicals including a reversal in its important 14-day moving average. The TSX Gold Index is still at heavily oversold levels based on Stochastics – we have all the makings here of an imminent and very significant upside move.

BullMarketRun.com Portfolio – A Superb Week!

Seafield Resources (SFF, TSX-V)
Seafield was our best performer of the week, jumping 50% to a new 52-week high of 30 cents. Seafield is now ahead 300% after we first initiated coverage on this stock last summer, and we still consider this to be a great hold with more gains – perhaps very substantial – down the road. As we stated Friday, though, traders may wish to lock in profits in anticipation of a minor pullback in Seafield this coming week. The stock is currently technically overbought, based on RSI and Stochastics – it is at levels on both those indicators where it has retreated from before. We expect Seafield will consolidate its recent gains in the week ahead, perhaps providing traders with an attractive re-entry point. Investors are still waiting for details on Seafield’s Colombian gold property acquisitions. We also wouldn’t be surprised if the company arranges a brokered financing in the not-too-distant future to raise additional funds – they have cashed themselves up pretty good over the past few months but we anticipate they will need 10 to 15 million dollars in total to make the impact we would like to see them make in Colombia (this will mean raising an additional $5 million, at least, plus the exercise of warrants). Strong support at 24 cents.

Gold Bullion Development Corporation (GBB, TSX-V)
Gold Bullion had a strong week (up 22%) and hit a new 52-week high of 12 cents. It closed at 11 cents on Friday. This stock is up 47% since we initiated coverage just a few weeks ago. We are not in Gold Bullion, however, for a mere 50% gain. We generally don’t like to speculate on drill results. However, based on historical records, the geology of the area they are drilling, and the company’s news release December 29, we have a very strong hunch that Gold Bullion has an excellent chance of a major exploration breakthrough at its Granada Gold Property along the famous “Cadillac Fault” near Rouyn, Quebec. We’ve gone into detail on this in recent articles. This is a must-own stock at current levels with very limited downside risk and huge upside potential. Strong support at 10 cents.

Colombian Mines Corporation (CMJ, TSX-V)
Colombian Mines had a stellar week, jumping 27% and hitting a new 52-week high of $1.15 before closing Friday at 95 cents. This stock is now ahead 58% since we initiated coverage just over a month ago. This company has a tremendous portfolio of exploration projects in Colombia that it has obtained through the direct acquisition process, and they should be announcing the start of drilling at their Yarumalito Property very soon. This is a tightly-held stock with strong management who are very knowledgeable about Colombia. Still plenty of upside to go in CMJ, we believe, and any pullback should be viewed as an excellent buying opportunity. Strong support at 90 cents.

Kent Exploration (KEX, TSX-V)
We continue to view Kent as a terrific long-term hold. When it breaks out in a huge way, we’re not exactly sure. Kent’s focus in coming weeks and months will be on its attractive package of Australian and New Zealand gold properties. We’re still waiting for assays from the drill program last October at Kent’s Flagstaff Property in Washington state, so the fact we haven’t seen those assays yet tells us they probably aren’t good which is a disappointment. However, Kent is no one-trick pony and its Alexander Gold Project in New Zealand should more than make up for any disappointments from Flagstaff. Kent is also working with Teck on the highly prospective Gnaweeda Gold Project in Australia. With a market cap of only about $6 million, Kent is extremely attractive. The stock is ahead 25% since we initiated coverage last October, and gained 11% this past week after closing Friday at 20 cents. Strong support at the 50-day moving average of 18 cents, and secondary support at the 100-day moving average of 15 cents.

Richfield Ventures (RVC, TSX-V)
Richfield rocketed to a new 52-week high of $1.95 this past week, after the release of encouraging assay results from its Blackwater Project in the Interior of British Colombia, then it promptly and strangely went into reverse to finish the week up just a penny at $1.33 (some cheap private placement stock, 3.3 million shares at 12 cents and 2.8 million flow-through shares at 17 cents, comes free trading this coming week which may help explain the fall, and a new drill program is still a little ways off in the distance). The bottom line, however, is that Richfield is sitting on a world class bulk tonnage deposit that conceivably could be in the order of several million ounces of gold. This is clearly a buy on any additional weakness. We initiated coverage on Richfield at $1.20 last month. Strong support at the 50-day moving average of $1.20, and secondary support at the 100-day moving average of $1.05.

Both gold and the CDNX are currently performing as we had predicted last month…gold dipped to $1,118.50 overnight but staged a strong rebound and is now up $3.00 at $1,133.00 after running into resistance at $1,140, a barrier we expect it will break by next week…the Venture Exchange is looking to rise for the 10th consecutive trading day and break the $1,600 level, still well off our projection of at least $1,950…Seafield Resources (SFF, TSX-V) enjoyed a strong day yesterday, reaching a new 52-week high of 25 cents…we don’t believe its big move has really started yet, though, and traders may wish to lock in profits and re-enter on a pullback if the stock breaks past .25 and goes into the upper 20’s today…Seafield is getting into an RSI zone and Stochastics territory (overbought) where it has retreated from before…our “big picture” outlook on Seafield has not changed, however…Gold Bullion Development Corporation, our next “Seafield“, is trading at .12 this morning, up half a cent…

BullMarketRun.com has another HUGE winner on its hands with Gold Bullion Development Corporation (GBB, TSX-V) which we first uncovered for our readers a few weeks ago when this company was showing the first real signs of coming out of dormancy. The stock is up 53% since we initiated coverage and everyone wants to know, where is this headed?

Our specialty is finding undiscovered gems in the junior resource market that can produce triple digit gains (Seafield Resources, for example, is now up 300%). So a 53% gain is nice, but Gold Bullion has much, much further to go in our view. A major geological story is unfolding here, we believe, as we are taking the position that this company has a tremendous chance of making a very significant discovery at its Granada Gold Mine near Rouyn-Noranda along the famous “Cadillac Fault”.

Gold Bullion hit a new 52-week high yesterday of 12 cents on big volume of nearly 1.4 million shares. The volume surge and accumulation in this stock over the past month has been incredible. Investors have seen what Gold Bullion neighbor Yorbeau Resources (YRB.A, TSX) has done in the last few months (Yorbeau’s market cap has rocketed to $42 million from $13 million since the beginning of September) and are coming to the realization that the Granada Gold Property holds the same potential as Yorbeau’s Rouyn Property.

We have stated this before: The best place to find a new mine is near an old mine. Just ask Aurizon Resources (ARZ, TSX) which very recently released a NI-43-101 Pre-Feasibility Study of its Husco Deposit (two million ounces measured, indicated and inferred) at its Joanna project just 20 kilometres to the east of Granada. Husco had even more humble beginnings than the Granada Mine. In 1948 and 1949, 45,872 tonnes of ore grading 6.58 g/t was mined at Husco in a 100-tonne-per-day operation, yielding 9,000 ounces. In 1973, ore reserves at Husco were estimated to be 955,000 tonnes grading 5.4 g/t. Not much happened with that property until Aurizon took it over in 2006. After drilling nearly 500 holes they had a two million ounce deposit on their hands.

The Granada Gold Mine was first brought into production in 1930. A mill with a capacity of 180 tonnes per day processed 51,476 ounces from 181,744 tonnes of ore averaging 9.7 g/t gold and 1.5 g/t silver up until a fire destroyed the surface structure in 1935. Some significant exploration took place during the 1980’s and 1990’s leading to an A.C.A. Howe Limited all-category estimate (non-compliant) in 1994 of 2.38 million tonnes grading 4.08 g/t gold. Gold Bullion acquired the Granada Mine in 2006 and now for the first time they are drilling it and some of the surrounding area. They have an extensive historical drilling data base to work with and a land package that has increased from under 100 hectares to 2,300 hectares (2 km by 7 km). Approximately 95% of that land package is unexplored, and it’s all in the heart of a prolific gold belt – “The Golden Highway”, as Gold Bullion President/CEO Frank Basa called it in our interview with him last week.

And of course we all know what Osisko (OSK, TSX) has accomplished over the last few years with its discovery of the the Canadian Malartic Deposit (10+ million ounces) 40 miles to the east and on trend with Granada.

“If you’re organized, if you have a good exploration team, you’ll hit it and you’ll develop good resources,” Basa explained to us. “That’s what Osisko did. They took an expired, exhausted mine and took a fresh approach to it. We know that deposit very well. People at Osisko did a phenomenal job tying up a ‘worthless’ property with huge environmental liabilities. I feel even the ounces they’ve reported are a little low. Once they get into production they’ll have more gold. It’s the nature of the Cadillac trend.”

The news that Gold Bullion released December 29 suggests to us that the first round of drilling at Granada went very well. An expanded second round has started, and speculation regarding assays from last month’s drilling is building.

With a strong overall market and an excellent property that we believe is going to deliver in a big way, Gold Bullion has all the makings of a huge success story. And it’s one we’re going to keep following extensively. Its current market cap of only $9.2 million (only 20% of Yorbeau’s) gives Gold Bullion an extremely attractive risk-reward ratio.

Markets are a little soft this morning but gold’s drop of $9.00 an ounce to $1,129 is clearly a profit-taking pullback…gold’s technical strength has improved substantially over the past several days, and the current primary direction is up…Gold Bullion Development Corporation (GBB, TSX-V) is strong this morning, up a penny to .11 on 300,000 shares in the first hour of trading…Gold Bullion is our favorite pick for the month of January and it’s showing why…we’re keeping an eye on Richfield Ventures (RVC, TSX-V) which has pulled back to an area of strong support around $1.30… our other selections are doing well, and both Kent Exploration (KEX, TSX-V) and Colombian Mines (CMJ, TSX-V) have shown solid strength recently…both should be accumulated on any weakness, along with Seafield Resources (SFF, TSX-V)…

Yes, we are continuing to highlight Gold Bullion Development Corporation (GBB, TSX-V) because this is a situation we are genuinely incredibly excited about and we want our readers to make some serious money in the days and weeks ahead by being positioned in this play before the masses jump all over it. Bids are building and this stock is showing all the technical signs of exploding to the upside very soon. Some important fundamental factors, we believe, will ignite that explosion.

Here’s our take on what’s happening right now at Granada:

Company President/CEO Frank Basa knows this property and the former producing Granada Mine like the back of his hand. Basa and Gold Bullion’s geological consultant, Genivar, knew exactly where to drill and what they were looking for – an expansion of the gold resources – in the 11-hole program that took place last month, the first time Gold Bullion has drilled Granada. They have an extensive historical drilling data base to work with (471 holes, 26,000 metres). A non-compliant, all-category estimate of nearly 300,000 ounces of gold exists at Granada (A.C.A. Howe, 1994), so we know that Gold Bullion is not drilling into cow pasture.

In BullMarketRun’s interview with Basa last week, he was – not surprisingly – extremely tight-lipped about those drill holes. But I’m a seasoned reporter and I came away from that interview with an unquestionable impression that Basa, a seasoned miner, is looking forward to assay results from those 11 holes with great anticipation.

Gold Bullion’s December 29 news release speaks volumes about what could be unfolding at Granada:

1. The original 1,000 metre drill program was immediately expanded by another 2,000 metres. When something like that happens, it’s safe to assume they must have liked what they saw in the core from the first 11 holes;

2. They weren’t drilling just within the heart of the Granada Mine – some step-out holes were also drilled;

3. This is really intriguing. We are convinced, based on one sentence in that news release, that Gold Bullion has hit silver, copper and nickel mineralization at Granada (no one has ever recovered nickel from that area, so why nickel would be showing up we don’t know). We base that opinion on the fact that Gold Bullion stated it is assaying specific holes for silver, copper and nickel. That’s “code language”, in our view, for hitting some very interesting mineralization. How significant this turns out to be will be answered in the very near future when those assays come out. Gold Bullion is attending the World Resource Investment Conference January 17 and 18 in Vancouver, and you can be sure they are doing whatever they can to get some results by then which is very possible if these assays are being done on a rush basis.

The Granada Mine will be a low-cost gold producer, and the value per tonne will increase significantly if silver and base metals enter into the equation (Basa is already in detailed discussions with Gekko Systems of Australia on a special processing plant for Granada that can very efficiently recover precious and base metals at the same time and leave a low environmental footprint).

Just to the north of Gold Bullion, Yorbeau Resources (YRB.A, TSX) is getting exciting results from its Rouyn Property (Yorbeau’s market cap has rocketed from about $13 million to $42 million over the last four months). Some 40 miles to the east, of course, on trend, is Osisko’s massive Canadian Malartic Deposit (10+ million ounces).

“It’s like the golden highway, it’s amazing,” Basa explained to me in my 30-minute interview with him last week. “If you’re organized, if you have a good exploration team, you’ll hit it and you’ll develop good resources. That’s what Osisko did. They took an expired, exhausted mine and took a fresh approach to it. We know that deposit very well. People at Osisko did a phenomenal job tying up a ‘worthless’ property with huge environmental liabilities. I feel even the ounces they’ve reported are a little low. Once they get into production they’ll have more gold. It’s the nature of the Cadillac trend.”

Basa is feverishly trying to add to Gold Bullion’s land package which now encompasses an area 2 km x 7 km (about 2,300 hectares). The actual Granada Mine covers approximately only five percent of those holdings, meaning 95% of the Granada Property was unexplored by Gold Bullion when they started drilling last month. Blue sky potential here? Absolutely. Same situation that Yorbeau was in before it hit a couple of sweet zones.

May 19, 2005, is when it all started for Osisko (read the news release below). Is it Gold Bullion’s turn now?

Osisko Exploration Ltd (C-OSK) – News Release

Osisko Exploration releases Malartic drill results

2005-05-19 08:18 ET – News Release
Shares issued 32,061,695
OSK Close 2005-05-18 C$ 0.32

Mr. Robert Wares reports

OSISKO RELEASES FINAL PHASE ONE DRILLING RESULTS FROM MALARTIC

Osisko Exploration Ltd. has released the results from the last four holes of the phase one, 13-hole drill program on its 100-per-cent-owned Canadian Malartic gold property, located in the Abitibi region of Quebec. The program was designed to confirm the potential for a bulk tonnage gold deposit within the F zone, one of five known mineralized zones on the property that collectively contain a significant near-surface historical gold resource (see news as reported in Stockwatch on Nov. 23, 2004, and April 8, 2005).

Results of the last four holes are as follows:

Hole No. From To Length Au
(m) (m) (m) (g/t)

CM05-657 1.0 140.5 139.5 1.16

CM05-658 2.5 165.5 163.0 1.15

CM05-662 5.9 57.2 51.3 1.01
and 115.6 130.2 14.6 1.58

CM05-663 3.0 100.9 97.9 1.70

Holes CM05-682 and CM05-663 were drilled at the western and eastern extremities, respectively, of the F zone and these portions of the mineralized zone were not included in the calculation of the historical gold resource. The F zone historical resource calculation was restricted to the central portion of the deposit and was based on a strike length of 210 metres, widths of 40 metres to 120 metres, and a maximum depth of 105 metres.

All 13 holes of the phase one program were drilled vertically and intersected significant gold mineralization (see news as reported in Stockwatch on April 8, 2005, and May 4, 2005). These results, along with drilling data from the 1980s, confirm that the F zone has a minimum strike length of 415 metres, a width of 65 metres to 100 metres, and a depth from surface varying from about 50 metres to 160 metres. The F zone is subvertical, strikes in an east-to-west direction, and consists of disseminated fine gold and pyrite mineralization hosted by potassic-altered, partly silicified, fine-grained granodiorite porphyry and metasediments.

Osisko management is very pleased with these results, which confirm the porphyry-gold nature of the mineralization and the economic potential of the property. Management is certain that the historical gold resource on the F zone can be significantly increased, given that the strike length of the deposit has been doubled. These factors are important to the company’s objective of defining an economic, bulk tonnage gold deposit on the property that is amenable to open-pit mining.

A drill hole location map is available for review on Osisko’s website. The average grades were calculated using a lower cut-off of 0.5 gram per tonne gold over 10 metres. All reported assays were done by standard 50-gram fire assaying-AA finish at ALS Chemex laboratories in Val d’Or, Que.

Robert Wares, PGeo, president of Osisko, is the qualified person responsible for the preparation of this news release.

Gold is strong this morning, up $11 an ounce to $1,128 at 6:45 Pacific time…a technical indicator we watch closely with gold is its 14-day moving average which could very well reverse to the upside today or within the next few days, further confirming that gold is about to make an assault on its record high…drilling has resumed at Gold Bullion Development Corporation’s (GBB, TSX-V) Granada Gold Property…folks, we have a strong hunch that assays from Gold Bullion’s first 11 shallow holes drilled in December are going to be impressive…the company will be attending the World Resource Investment Conference in Vancouver January 17-18, and we wouldn’t be surprised if President/CEO Frank Basa has some initial assays in hand for that event…folks, there are two powerful dynamics at play with Gold Bullion that give this 10-cent stock such major upside potential – blue sky exploration possibilities, and production capability…while Gold Bullion is finding an even larger resource at Granada, they have the ability, through a custom milling agreement, to put this former producing mine back into production rather quickly at a very low cost (about $325 an ounce)…about 95% of their 2 x 7 kilometre land package (about 40 miles west of Osisko (OSK, TSX) has yet to be explored, and we’re convinced there
could be a motherlode of a deposit there along this terrific gold belt…in short, the risk-reward ratio on Gold Bullion at just 10 cents a share is too attractive to pass up…

Richfield Ventures (RVC, TSX-V), which we initiated coverage on last month at $1.20, reported this morning a 329 metre intersection grading 1.25 g/t at their Blackwater Project in the interior of British Colombia…there’s no question Blackwater is emerging as a world class bulk tonnage deposit conceivably in the order of a few million ounces…the stock ran to a high of $1.95 this morning and is currently trading around $1.80 as of 7:25 am Pacific Time…it opened at $1.75 this morning and from a technical perspective we would like to see it hold at or above that opening price and enjoy a strong close today…with just 30 million shares outstanding, Richfieldhas a market cap of only about $54 million so there is a lot of upside potential here as that gold resource gets better defined…Richfield will be resuming a drill program (10,000 metres) in the near future…another one of our favorites, Gold Bullion Development Corporation (GBB, TSX-V) has been trading between .095 and .105 this morning and is clearly a buy on any weakness…Colombian Mines (CMJ, TSX-V) hit $1.10 this morning – continue to hold…gold is firming up, ahead $4.00 an ounce to $1,125…