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Gold is up strongly this morning, surging $25 an ounce to $1,122 as of 8:00 am Pacific time, confirming our analysis of recent days and weeks that gold’s correction had run its course and that a new up-leg is set to begin…as we pointed out in our CDNX article this morning, the TSX Gold Index amazingly closed the year at its most oversold level, based on Stochastics, since the crash of 2008…the fact that such an oversold level would occur with the Index at 334 suggests we’re likely to see new all-time highs of 400 or better – probably, we think, in the first quarter of 2010…we’re forecasting 1,950 to 2,300 on the CDNX…a couple of our favorite stocks are doing very well this morning…Richfield Ventures (RVC, TSX-V) is up 13 cents to $1.45 while Gold Bullion Development Corporation (GBB, TSX-V) is up half a cent to .095…Kent Exploration (KEX, TSX-V) and Colombian Gold Mines (CMJ, TSX-V) are also positive on the day so far, while Seafield Resources (SFF, TSX-V) is quiet and has yet to trade…the CDNX is flying this morning, up 24 points to 1,545…we expect Gold Bullion and Richfield to be our best-performing stocks this month…the market has yet to catch on to what we believe is an intriguing discovery of nickel and/or copper mineralization in recent drilling at Gold Bullion’s Granada Gold Property, based on the company’s news release December 29…

Gold Bullion Development Corporation:
Discovery In The Making At Granada

At BullMarketRun.com, we are constantly searching for ground floor opportunities in the junior resource sector that offer major upside potential – that 10-cent or less “diamond-in-the-rough” stock that could take the market by surprise and explode 10-fold or better, creating fortunes for those who saw the opportunity, took a calculated risk and jumped in. There’s no better feeling than getting in early on a play that eventually makes it on BNN as the newest darling of Bay Street.

Every company that we have introduced here so far at BullMarketRun.com has increased in share value, the best performer being Seafield Resources (SFF, TSX-V) which has rocketed over 200% since we first initiated coverage at just six cents. It pays, therefore, to take our recommendations seriously. So you want to read this report very, very carefully because we have reason to believe, based on current drilling and a host of other factors, that Gold Bullion Development Corporation (GBB, TSX-V) is potentially on the verge of a major exploration breakthrough at its Granada Gold Property five kilometers south of Rouyn-Noranda in the heart of the Abitibi Greenstone Belt. Could Gold Bullion develop into the next Osisko (OSK, TSX) in Quebec? The geological possibilities certainly exist for that to occur – only time and continued drilling will tell. Anything is possible. Just five years ago Osisko was a fledgling mining company with its stock trading at less than 30 cents. Today it has the 10+ million ounce Canadian Malartic deposit and commands a market capitalization of $3 billion at $8.50 per share.

Just 40 miles to the west of Osisko’s massive open pit Malartic deposit, and on the same “Cadillac Fault”, is Gold Bullion’s Granada Gold Property in northwestern Quebec. Gold Bullion acquired the former producing Granada Mine in 2006 with the goal of re-starting production on a relatively small scale (in 1994, A.C.A. Howe Limited gave a non-compliant estimate of nearly 300,000 ounces of gold in all categories at Granada – 2.38 million tonnes grading 4.08 g/t). The company conducted a successful large bulk sample (better-than-expected grades, excellent recoveries, no complexities in the ore and low costs as an open pit operation) and reviewed all the historical data and mining options with Genivar, its geological consultant (the Granada Mine has a 471 hole historical database from about 26,000 metres of drilling). The original 77 hectare land package was also gradually increased and now covers 2,300 hectares. All this took place between mid-2006 and the fall of 2009, though Granada’s development was slowed down as a result of the 2008 market meltdown and financial crisis.

But as Gold Bullion strengthened itself financially recently and finally started drilling at Granada, and given Osisko’s success and very interesting results from Yorbeau Resources (YRB.A, TSX) which is Gold Bullion’s northern neighbor, a much bigger picture has started to emerge here. There’s an old saying: The best place to find a new mine is next to an old mine. The old Granada Mine represents only about 5% of Gold Bullion’s present landholdings (2 km wide, 7 km long) which are situated along a prolific gold belt. Company President and CEO Frank Basa is feverishly trying to add to that land package and for good reason.

“It’s like the golden highway, it’s amazing,” Basa explained to us in an exclusive BullMarketRun.com interview New Year’s Eve. “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.”

We sense that Basa, who is regarded as an exceptional geologist, is very focused on trying to pull off another “Osisko” at Granada. He has the fire in his belly and the money in the bank now to start making things happen in a big way for Gold Bullion shareholders. The company just finished raising nearly $1.5 million, allowing for a major drill program which started in December and is now set to resume. Now is when it gets really interesting, when investors should begin to get a clearer picture of the serious blue sky potential that Granada enticingly offers.

Gold Bullion announced in a news release last week (Dec. 29) that it has completed 11 holes (1,026 metres) over a strike length of 550 metres at Granada. What we find very encouraging is that rather than waiting for the assays from these 11 holes, they are immediately extending the drill program another 2,000 metres commencing this week. That’s definitely a good sign – they must like what they see. Let’s find that gold and build tonnage as rapidly as possible.

In the same news release, however, a single sentence in the final paragraph was very intriguing and raised our eyebrows: “The company will also be assaying for silver, copper and nickel in specific holes.” We’ve been following the mining industry for many years. Make no mistake, in our view that was a significant and revealing statement offered by Gold Bullion that suggests to us that they may have encountered some unexpected and very interesting mineralization in one or more of the first 11 holes. To the best of our knowledge, nickel has never been recovered in that area. So why would a company go to the expense of assaying for nickel unless they had reason to believe they hit some nickel-bearing mineralization? Gold Bullion has never made mention before of nickel or even copper or silver with regard to Granada. Basa is remaining tight-lipped, but we got the sense he’s clearly optimistic about the 11 shallow holes and is looking forward to assay results and this extended round of drilling with great anticipation.

Basa is contemplating an even more aggressive drill program in the spring, based on results, as well as another significant bulk sample. Some small scale gold production from the Granada Mine could help offset exploration costs in the year ahead (a major advantage for Gold Bullion shareholders) which no doubt will be significant as the company extensively drills its growing land package to determine if a few hundred thousand ounces (non-compliant, Genivar will be producing a 43-101) at the Granada Mine is just the tip of the iceberg.

The Granada Property clearly exhibits some of the same geological characteristics as Osisko’s Malartic deposit, but one only has to look just a little north of Granada at Yorbeau Resources’ Rouyn Property to get a good picture of how things could quickly develop with Gold Bullion. Yorbeau is making increasingly significant discoveries at Rouyn which is only one kilometer from the northern edge of Gold Bullion’s landholdings. Yorbeau’s market capitalization has rocketed from approximately $13 million to $42 million over the last four months (Gold Bullion’s current market cap is only $7.2 million). Yorbeau is even hitting some high grade – on September 23 they reported a 10.35 metre intersection grading 74.67 g/t of gold at their Cinderella zone. “Yorbeau is on the same structure as us,” says Basa. “They did a bulk sample and got the same mineralization.” Like Gold Bullion, Yorbeau will be drilling extensively in the weeks and months ahead so this entire area could become a major focus of investor attention.

Gold Bullion closed Thursday, December 31, at just nine cents. My hands itch in anticipation of where this stock could be headed in the days, weeks and months ahead as a significant discovery, in our view, appears possible and even imminent at Granada. Yorbeau was in the same position as Gold Bullion – more than 90% of their landholdings were unexplored, and when they ramped up exploration they started making some significant discoveries. The geology is in our favor and this has all the makings of something big – very big. The risk-reward ratio is so incredibly attractive with Gold Bullion right now, just as it was with Seafield Resources when we pounced all over it at six cents. Do we sound excited? You bet we are. Given a surging CDNX and a gold price that is expected to hit a new record high in 2010, a nine-cent junior ($7.2 million market cap) with proven gold reserves and 2,000+ hectares of highly prospective ground to explore along Quebec’s famous “Cadillac Fault” is a no-brainer “BUY” with big upside potential. On top of all that, in the search for gold that Gold Bullion believes exists surrounding the Granada Mine, have they possibly encountered silver or base metal mineralization that would have the potential to add to Granada’s value per tonne? This story has legs, folks – serious legs, and we’re going to follow it every step of the way.

Gold Bullion is our #1 pick for an immediate upside move to begin 2010. All the factors we look for that can drive a speculative junior’s stock price are present right now with this company:

1. Financings are closed and approved and the company is cashed up;
2. Major exploration and drilling campaign has started and has been expanded;
3. Growing anticipation of initial assay results;
4. Neighbor (Yorbeau) is enjoying exploration success and drilling simultaneously;
5. Excellent blue sky geological potential and on trend with 10+ million ounce Malartic deposit;
6. Friendly mining district and all necessary infrastructure;
7. IR has been hired which will bring more focus and many more eyes to this play;
8. Stock technical strength – GBB has as bullish a chart as you could ask for with all the moving averages in alignment, neutral stochastics (not overbought), and recent huge volume suggesting massive accumulation;
9. Company President/CEO is heavily invested himself;
10. Strong overall market, so the wind is at Gold Bullion’s back.

Do you think this stock will be sitting at nine cents much longer? Not a chance. A company’s chart speaks volumes – Gold Bullion Development Corporation is on a serious bull market run that likely has a long way to go yet, driven by intense exploration of a very promising property that already has proven gold ounces in the ground. There’s a very decent chance, in our view and Basa’s, that somewhere along that two kilometer by seven kilometer stretch of “Golden Highway”, Gold Bullion is sitting on a motherlode of a deposit – the task now is to find it. We love the risk-reward ratio here and the “feel” of this whole situation. We believe we have found our “diamond in the rough”. Investors at current levels should be very handsomely rewarded.

p.s.

We’re so excited by what’s happening at Granada that we haven’t even mentioned Gold Bullion’s high-grade Castle Silver Mine (another former producer which also contains cobalt) in Gowganda, Ontario. Basa says we’ll be hearing more about Gold Bullion’s plans for this project in the near future.

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The trend is your friend, and right now the trend with the Venture Exchange is on a roll so this is a friend you need to embrace immediately if you haven’t already. A lot of money is going to be made in this incredibly bullish speculative market over the coming few months which is something we have been consistently stating for some time now. We’re anticipating a 30-50% upside move by the end of April. Many of the best stocks will double or triple. Some will jump 10-fold or more. At some point the CDNX will experience a sharp, painful but likely short correction in the magnitude of 20-30%, but that’s not likely to occur until it reaches our target zone between 1,950 and 2,300. And that would be a correction to buy into, in all likelihood, for another leg up. The time for caution is when the CDNX hits 2,000. The time for boldness and aggressiveness is now.

We are making this prediction for a number of reasons.

The action we saw in December with the CDNX was truly remarkable. The Venture Exchange, which has proven to be an incredibly accurate leading indicator, showed amazing resilience as the price of gold dropped by $150 an ounce. Gold fell some 12% but the CDNX held its ground and roared to a new 52-week high of 1,521 to finish the year. Quite simply, it’s in a parabolic uptrend that refuses to break down. What this tells us is that gold and silver and commodity prices in general are headed significantly higher in 2010. The CDNX gave advance warning in July, 2008, of a crash in commodity prices. It’s now telling us we’re in another rip-roaring commodities bull market and inflation, not deflation, is on the horizon (actually, we believe the 2008 crash was merely an interruption in an on-going commodities super-cycle, a theory put forward very convincingly by Frank Holmes). We expect to see continued expansion of the money supply and more fiscal stimulus in most countries in 2010. The Democrats in the United States will continue to spend like drunken sailors to give as much oxygen to the economy as possible, especially with congressional elections coming up in November. At some point down the road, maybe not for a year or two, government and Central Bank actions are going to produce a host of problems. We’ll see higher interest rates and new concerns over debt at all levels – personal, corporate and government. But for now, the runway is clear for the CDNX to take off to heights not seen since 2008.

History open repeats itself, and the CDNX chart at the moment is eerily reminiscent of the 2002-2004 period. From late 2002 to mid-February, 2004, the Venture Exchange ran from 900 to 1,935. A 25% correction set in, which proved to be a buying opportunity. The bull market then resumed its course, more than doubling over the next two years from the 2004 low of 1,450 to the 2006 high of 3,300.

The CDNX was up 91% in 2009. The move was consistent and gradual, however, with a couple of minor 10% corrections (March and July). Typically, a market like this has not topped out until you see a near-vertical spike that’s driven by greed as well as a lot of inexperienced investors who get caught up in the frenzied action. We saw the reverse of this in the fall of 2008 with a downward spike driven by fear and a lot of inexperienced investors who panicked and threw stocks overboard. In short, we are entering a period very opposite of the one we experienced in the summer and fall of 2008.

We’re predicting, therefore, a near-vertical spike in the CDNX which should take it to at least 1,950 where this is some resistance, and more likely the 2,300 area where there is major resistance, before a significant correction sets in. The 2,300 level held on four separate occasions during significant pullbacks through 2006 and 2007. Once 2,300 was breached in July, 2008, it was like falling over a cliff. The game was over and the CDNX went on a precipitous and scary decline all the way down to just below 700.

We expect a powerful move in the CDNX this month in conjunction with a renewed advance in the price of gold which has found very strong support just below $1,100. It’s very interesting to note that the TSX Gold Index is at an oversold level, based on Stochastics, not seen since the crash of 2008. This is clearly a “screaming buy” opportunity in gold stocks across the board. Given how oversold the TSX Gold Index is at 334, we can expect it will break out to new all-time highs (400 or better) in the coming months, as gold and silver push higher, and that will add further fuel to the speculative junior market which will start to look a lot like the dot.com boom we witnessed a decade ago.

Below we have some brief updates and 2010 scenarios for the stocks we have initiated coverage on here at www.BullMarketRun.com, with the exception of Gold Bullion Development Corporation (GBB, TSX-V) which we have reported on extensively separately this morning.

Seafield Resources (SFF, TSX-V)

Seafield has been frustrating at times but nonetheless a star performer for us, closing the year at 20 cents. We initiated coverage on Seafield last summer when it was sitting at just six cents. If you’re a trader, you may have profited considerably from the volatility of this stock and the several moves between about 13 cents and 20 cents over the past few months. We believe 2010 will be a very exciting year for Seafield but investors are anxiously awaiting news on the company’s Colombian property deals with privately-held Caribbean Copper and Gold Corporation. When that news comes, which we anticipate will be sometime this month, we’ll be in a better position to take a more detailed look at Seafield and examine just how far it could run. Some powerful forces are behind this stock and we do believe it will eventually break out to much higher levels.

Richfield Ventures (RVC, TSX-V)

Richfield closed 2009 on a strong note, closing at $1.32. Given our gold and CDNX forecasts, we are extremely bullish on Richfield which has a very significant gold discovery (low grade but high tonnage) in the interior of British Colombia. With the intersections they have reported, Richfield’s Blackwater Project could very conceivably contain several million ounces of gold. Richfield, which just completed a $7.5 million financing, will be commencing a 10,000 metre drill program at Blackwater in the near future and has a current market capitalization of only $40 million. This stock has a great looking chart with all its major moving averages in bullish alignment. Not everyone has caught on to this story yet. We regard the risk-reward ratio here extremely attractive. We initiated coverage on Richfield just recently at $1.20.

Kent Exploration (KEX, TSX-V)

We initiated coverage on Kent last fall at 16 cents and the stock very quickly had a nice run, reaching a high of 24 cents November 3. It closed 2009 at 18 cents, so we’re still ahead on this one. Kent has yet to release results from its Flagstaff Property drilling that concluded just over two months ago, so we’re not sure what to read into that. However, as we have emphasized in our coverage of Kent, this is much more than just a one trick pony. This company has some outstanding properties in New Zealand and Australia which are going to be explored extensively in the weeks and months ahead. Kent has a low market cap ($5 million) and a great deal of upside potential in our view. We believe 2010 will be a breakthrough year for this company, so investors should continue to hold or add to their positions on any weakness. Very strong support at the 100-day moving average of .145. We like this company a lot as well as the leadership of President and CEO Graeme O’Neill.

Colombian Gold Mines (CMJ, TSX-V)

We have done well with Colombian Gold Mines after initiating coverage at 60 cents in early December. This is a very tightly-held stock with a terrific portfolio of projects in Colombia, an area where it has been active for some time. It’s likely the company will begin drilling its Yarumalito Property this month. Colombian Gold Mines closed 2009 at 76 cents. We believe this stock will be a star performer in the months ahead.

Welcome to our site, or at least a sneak preview of it! The final version will look much different than this as we develop a fully-integrated and very unique business, investment and money-management resource site.

An important component of this site is going to be original research on small and undiscovered junior resource companies that offer very real and significant upside potential. We are extremely selective in the companies we feature and put forward to investors – we prefer quality over quantity. Management is the first thing we look at – it’s our #1 criteria – because without superb or solid management, a company with the best properties in the world is either going to underperform or flat-out fail. As simple as that. So we look for superior management guided by strong business ethics and integrity, followed by an outstanding portfolio of projects.

Disclaimer:

BullMarketRun.com is completely independent from any companies we cover. We accept no compensation of any kind from any groups, individuals or corporations mentioned on our site. Our stock coverage is for informational purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. No investment opinion or other advice is being rendered on any stock or company. We strongly recommend that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research before making any investment decisions. The stocks we cover, by definition, are highly speculative and potentially very volatile. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks. We are not Registered Securities Advisors. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.  It should be assumed that BullMarketRun.com writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time.

A new year has arrived…best wishes to all of our readers for a peaceful, joyful, healthy and prosperous 2010!!!!

We will be posting some very important updates by Monday morning including an exclusive story and breaking news on a company whose share price is about to go on a spectacular run beginning next week. If you’re looking to make some money to begin 2010, BullMarketRun is where you want to start.

To receive our upcoming Special Alert opportunity as soon as it is available this weekend or early Monday, simply hit the “Contact Us” link that you will see in the top right corner of this page and let us know you wish to receive this report directly by email just prior to when it is posted online.