BullMarketRun.com

Gold is up $6.00 an ounce this morning, as of 7:30 am Pacific time, to $1,114 with the U.S. dollar retreating after a big move yesterday…the CDNX is off 7 points to 1,517…Gold Bullion Development Corporation (GBB, TSX-V) is showing strength this morning and is up a penny to .105 on volume of 374,000 shares…from a technical standpoint this stock is very healthy at the moment and appears ready to make another assault on its 52-week high of .125…a move past that resistance will clearly pave the way to higher prices…the fundamentals are exceptionally strong here…we’re anticipating additional assay results next week from Gold Bullion’s Granada Gold Property which could further significantly extend the strike length of this growing deposit with mineralization currently measured at 600 metres in length, 150 metres in width, and up to 70 metres in thickness…like Osisko’s Malartic Deposit, Granada is unusual for “Cadillac Trend” situations as it appears it could be a massive surface bulk tonnage, open-pit deposit…grades are in line with Malartic…these are very early days for Gold Bullion but we love the blue sky potential here as this stock’s market cap is still under $10 million…Richfield Ventures (RVC, TSX-V) is holding firm this morning at $1.52 after strong gains the past two trading sessions…Richfield’s Blackwater Project is going to gain more and more attention in the coming weeks and months as potentially one of British Columbia’s biggest-ever gold discoveries, a bulk tonnage find that could prove to be in the order of several million ounces…a 25,000 metre drill program commences at Blackwater in early April, and the speculation in this stock at that time should be intense indeed…its current fully diluted market cap of $60 million could easily climb to $250 million or better as Blackwater is more accurately defined…Seafield Resources (SFF, TSX-V) is up 2.5 cents to 25 cents on half a million shares in the first hour of trading…we’re still waiting for news regarding Seafield’s Colombian acquisitions…many of our readers have accumulated a large position in Seafield since we initiated coverage at 6 cents last summer…our outlook for this stock is as positive as ever but further patience is required…

Gold was down overnight but has reversed course and as of 8:00 am Pacific time is up $13.50 an ounce to $1,120…the CDNX is off four points to 1,514 on some minor profit taking…we’re expecting another round of assay results very soon (early next week perhaps) from Gold Bullion Development Corporation (GBB, TSX-V) as news from GBB’s Granada drilling seems to be coming in two-week intervals…what we’re looking for is a further extension of the mineralization at Granada which remains open in all directions and currently measures 600 metres in length, 150 metres in width, and up to 70 metres in thickness…only six of 25 holes have been reported so far…at BullMarketRun.com, we’ve been ahead of the market on the Gold Bullion story and that’s okay – it’s allowing our readers to accumulate cheap 10 cent stock…a potentially multi-million ounce open-pit, bulk tonnage deposit exists on the 2 x 7 km Granada property which is right along the prolific “Cadillac Trend”, 40 miles west of Osisko’s massive Canadian Malartic Deposit…another bulk tonnage situation we’re following closely is Richfield Ventures (RVC, TSX-V) which is unchanged at $1.45 this morning after a 30-cent jump yesterday…like Gold Bullion, Richfield has tremendous blue sky potential…we’re very bullish on both the short-term and long-term prospects for Kent Exploration (KEX, TSX-V) which is trading at 17 cents this morning…the technicals are looking a lot better on Kent at the moment and the stock appears ready for a run back into the ’20’s very soon…

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.

We’ve been sounding the alarm on Richfield Ventures (RVC, TSX-V) recently, and yesterday it exploded to close at $1.45 – a 30-cent gain on just over half a million shares. Some of our readers loaded up on RVC during recent weakness between $1.00 and $1.15, and they are going to be very handsomely rewarded. The Richfield chart is unquestionably extremely bullish and the stock’s strong technicals are supported by some eye-popping fundamentals. It’s one of two extremely interesting low-grade, high tonnage situations we’re reporting on at BullMarketRun.com, and both could have spectacular runs.

Richfield has “Takeover Target” written all over it – the company’s Blackwater Project in the Nechako Plateau area of central British Columbia has all the makings of a very large bulk tonnage deposit (three million ounces or more potential). Some of the drill results released last September through January of this year were absolutely phenomenal, and included 207 metres of 1.06 g/t Au and 329 metres (from surface) of 1.26 g/t Au. A total of 18 holes were drilled last summer and fall, and 50 more (totaling 25,000 metres) are planned for this next phase which begins in just six weeks. Investors aren’t waiting for the new drill program to begin – they’re starting to pile in now as the realization grows that Richfield could be sitting on one of the biggest gold discoveries mineral-rich British Columbia has ever seen.

It’s not hard to do the math here and come to the conclusion that Richfield’s market capitalization, currently just under $60 million, could easily skyrocket to $250 million or better as additional drilling confirms what many suspect – Blackwater is a world class deposit (potentially a massive open pit operation) that undoubtedly is already on the radar screens of several majors (we see another Canplats in the making here).

Currently, then, Richfield is highly undervalued in our view at just $1.45 per share, and a similar situation exists with Gold Bullion Development Corporation (GBB, TSX-V) which is exploring a potential major bulk tonnage deposit of its own along the prolific “Cadillac Trend” near Rouyn-Noranda, Quebec.

Gold Bullion is trading at only 10 cents a share with a market cap of just $8 million, yet its Granada Gold Property (40 miles west of Osisko’s Malartic Deposit) is showing as much promise as Richfield’s Blackwater Project. Gold Bullion drilled 74 metres of 0.88 g/t Au on a shallow 600-metre step-out hole just recently in its first-ever drill program at Granada, and another shallow hole graded 1.74 g/t over 32.5 metres (assay results are expected soon on 19 additional holes). Sometimes, as Osisko discovered, the best place to find a new mine is near an old mine, and that’s the approach Gold Bullion has taken at Granada, a former producer. The company has staked a large land package around the former mine and we have reason to believe, based on our intense study of the property, that Gold Bullion is potentially sitting on a multi-million ounce deposit or series of deposits.

Here are some additional important points to consider in evaluating Gold Bullion’s potential:

• Only a small portion (approximately 5%) of the Granada land package (2 km x 7 km) has been explored so far by Gold Bullion;
• The company has already conducted a large bulk sample (140,000 tonnes of which 30,000 tonnes was milled onsite) which produced an average gold grade of 1.62 g/t. How many junior resource companies have done a bulk sample of that magnitude?;
• A 90% recovery rate was realized from that bulk sample;
• The waste from that bulk sample, along with stockpile waste from previous Granada operators, graded 1.75 g/t (Granada’s waste is running at a higher grade than Osisko’s resource);
• The Granada property has grown from two vein structures to multiple vein structures;
• In this type of deposit, gold is not just confined to the quartz-carbonate vein network but is also present in significant amounts within the iron-rich sulphized wall rock (the material between the veins). This has been demonstrated by Gold Bullion’s bulk sample and assay results released the past two weeks which show that mineralization is carrying through the length of each hole. This has significant tonnage implications;
• Historical data for the Granada Mine indicates that whatever was drilled and assayed was 35% higher in grade when it was mined and milled;
• Low cost operation with excellent surrounding infrastructure, just six kilometers south of Rouyn-Noranda.

As Osisko and others have proven, a low-grade, high-tonnage deposit can be tremendously profitable to mine (as an open pit) and can deliver huge returns to shareholders. Osisko’s current market cap is approximately $3 billion and the company just released updated numbers for its Canadian Malartic Deposit, showing 8.97 million ounces as an open-pit reserve at an average fully diluted grade of 1.13 g/t.

Could Richfield and Gold Bullion repeat Osisko’s success? Anything’s possible. RVC and GBB both have huge blue sky potential. At the very least these stocks will be market out-performers and will deliver superior gains in the weeks and months ahead.

Gold is taking a bit of a breather this morning and is currently down $5.00 an ounce to $1,113 as of 8:00 am Pacific time…gold ran as high as $1,128 overnight but couldn’t hold those agains…gold is flirting with a key technical area ($1,120 – $1,130) and we believe it’s just a matter of time before it successfully breaks through that resistance on a closing basis, and probably sooner rather than later…the CDNX, which has posted gains for seven consecutive trading sessions, is up 3 more points this morning to 1,523…by the middle of next week we should see a reversal in the Venture’s 20-day moving average which implies a strong finish to the month and a robust start to March…Colombian Mines Corporation (CMJ, TSX-V) has announced a $3 million private placement at 95 cents a share which has cooled off the stock a little bit…the new floor on CMJ is now right around the $1.00 level where we still consider it to be an excellent entry point…we first initiated coverage on CMJ at 60 cents in early December…investors need to be accumulating Richfield Ventures (RVC, TSX-V) which we expect will be one of the best performers on the CDNX over the next few months…drilling is getting set to resume at its Blackwater Property in the Interior of British Colombia where Richfield made an important discovery last summer/fall…$5.00 on this stock is a very real possibility this year as it appears Blackwater could hold at least three million ounces of gold as a bulk tonnage deposit, based on the incredible drill results so far…Richfield is a “no-brainer” buy at $1.15 and on any weakness…there is no sense chasing this at much higher levels next month or later…tuck this stock away for a five or even potentially a 10-bagger from here…Richfield is also a prime takeover target with so many potential ounces in the ground (i.e. Canplats)…we believe that’ll be one of the big investment themes of the year in the junior resource market, majors swallowing up juniors to add ounces to their bottom line…

Markets are strong this morning with the CDNX breaking through the 1,500 level, a very bullish development…as of 7:35 am Pacific time, the CDNX is ahead 20 points to 1,519 while gold is up $16 an ounce to $1,115…gold will really start to fly once it breaks through resistance at $1,120…once the Venture Exchange breaks through its 52-week high of 1,629, which certainly could happen by the end of this month, we expect a near-vertical move to our target zone of 1,950-2,350…some of our favorite stocks are quite strong this morning…Kent Exploration (KEX, TSX-V) is up 3 cents to 18 cents…Colombian Mines Corporation (CMJ, TSX-V) has shot up 10 cents to $1.07 and was as high as $1.15 in early trading…Richfield Ventures (RVC, TSX-V) looks poised for a breakout and this one could go crazy over the next few months as Richfield proves up a multi-million ounce bulk tonnage deposit with 25,000 more metres of drilling at Blackwater…we have a $5 per share target for Richfield which appears to be another Canplats in the making…

CDNX

The Venture Exchange snapped a four-week losing streak with a 44-point weekly gain to 1,499 (the 50-day moving average). The intra-day low of 1,429 Friday, Feb. 5, was the bottom, we believe, of a 19 trading session correction which shaved 200 points or 12.2% off the CDNX 52-week high of 1,629 set January 11. This correction was very similar in both duration and magnitude as the one we saw last June and July. In both instances the market held above its rising 100-day moving average.

The doomsayers have got it wrong. There have been many calls during this period of market weakness for a repeat of 2008 and a catastrophic market collapse right across the board from stocks to commodities. That obviously hasn’t happened yet, and it won’t – at least not anytime soon. As we have stated here repeatedly, the rather extreme bullish divergence between the CDNX, gold and the TSX Gold Index clearly shows that commodities are headed higher, not lower, and any weakness in stocks is a major buying opportunity.

The CDNX is actually higher now (by just over 2%) than it was at its December peak while gold is off 10% and the TSX Gold Index is off nearly 20% – that’s the bullish divergence we’ve been referring to, and it’s the opposite of what we witnessed in the summer of 2008 prior to the collapse in commodity and stock prices. The CDNX, which has consistently proven to be our most accurate and reliable indicator of future overall market activity, remains firmly in a parabolic uptrend with a target zone of 1,950 to 2,300. Huge profits are going to be made in this market over the coming weeks and months.

Gold and silver both appear poised for a major new advance to the upside, an event being telegraphed by the action we’ve seen in the CDNX. Two important factors of note with gold – commercial traders substantially reduced their net short positions (to the lowest levels we’ve seen since last August) after gold fell to $1,040 February 5. And from a technical perspective, a bullish falling wedge pattern has formed in gold which strongly suggests the precious metal is ready to stage a major breakout (a move past $1,120 will confirm this). This is when money is made in the markets.

BullMarketRun.com Portfolio

Gold Bullion Development Corporation (GBB, TSX-V)

Gold Bullion was halted last Monday morning and then released news that it had intersected 74 metres of 0.88 g/t Au in hole #15 at its Granada Gold Property…the significance of this was lost on some market players who a) didn’t read the part that stated this was a 600-metre step-out and b) don’t understand that the grades Gold Bullion is encountering are very mineable and also very similar to Osisko’s grades at the massive Canadian Malartic deposit 40 miles to the east…folks, we are convinced that Gold Bullion is sitting on a multi-million ounce, open-pit, bulk tonnage gold deposit (or series of deposits) at Granada, and continued assay results and drilling are going to prove this out in our view…as last Monday’s news stated, mineralization at Granada remains open in all directions and is now measured at 600 metres in length, 150 metres in width and up to 70 metres in thickness…theoretically, this implies a deposit of 700,000 ounces, a 150% increase over what A.C.A. Howe estimated for Granada in 1994…the size of this property has increased substantially since then, and investors also need to be reminded that Gold Bullion has already conducted a large bulk sample at Granada which graded 1.62 g/t…the grade from Granada’s waste pile assayed 1.75 g/t…the new estimate for Osisko’s open-pit reserve at Malartic is now 8.97 million ounces at an average fully diluted grade of 1.13 g/t…Gold Bullion’s stock price of 10 cents (for a market cap of only $8 million) is an absolute “steal” given how Granada appears to be shaping up…the prolific “Cadillac Trend” has produced numerous multi-million ounce gold deposits and many millionaire investors in the process…we’re not invested in Gold Bullion to make a few pennies per share…this has real potential to make investors several dollars per share if this property delivers the way we believe it could…

Seafield Resources (SFF, TSX-V)

All’s quiet on the Seafield front with no news on its proposed Colombian property acquisitions since mid-November…the stock closed last Friday at 21 cents, down half a penny on the week…this is one of those situations investors just have to be patient with…our advice on Seafield remains the same – accumulate on any weakness…

Kent Exploration (KEX, TSX-V)

Kent continues to be one of our favorites and closed last Friday at 15 cents, unchanged on the week…this stock is stuck at the moment between its 100-day and 200-day moving averages (14 to 17 cents), but we believe it won’t be long before it breaks out again to the upside…drilling begins at Kent’s Gnaweeda Gold Property in Australia in a few weeks, and possibly at its Alexander River Property in New Zealand around the same time…

Greencastle Resources (VGN, TSX-V)

Greencastle fell for the second straight week, closing last Friday at 15 cents, and is a better buy than ever…the first of two wells Greencastle and its private partners drilled in the Cabri area of southewestern Saskatchewan is currently being tested…it’ll take a few more weeks to determine if flow rates are economic…Greencastle has a highly prospective land package at Cabri with the potential, we believe, to deliver numerous producing small wells totaling 1,000 or more bpd…at just 15 cents Greencastle is trading barely above its cash value, and the company also has valuable gold assets along the Battle Mountain Trend in Nevada…

Richfield Ventures (RVC, TSX-V)

Richfield jumped 13 cents on the week to $1.11 after announcing plans to start a 25,000 metre drill program at its Blackwater Gold Property in the B.C. Interior in April…about 40% of that drilling will be for additional exploration while the balance will be for resource definition to produce a 43-101…Blackwater has all the makings of a major bulk tonnage deposit…this is one those stocks you just tuck away for six months or a year and wait for a takeover…

Colombian Mines Corporation (CMJ, TSX-V)

Colombian jumped 6 cents on the week to 97 cents…drilling is now underway (or will be underway very shortly) at its Yarumalito Gold Property, one of several outstanding prospects this company has acquired through the lengthy direct acquisition process with the Colombian mining authorities…the stock’s technical strength has improved significantly over the past week, suggesting higher prices are imminent…

Markets have retreated slightly this morning on news that China is taking additional steps to try to cool its hot growth…gold is off $8.00 per ounce to $1,083 as of 7:50 am Pacific time while the CDNX has pulled back 7 points to 1,486…the CDNX ran all the way up to its 50-day moving average of nearly 1,500 yesterday…from a technical perspective, this market needs to blast through that resistance on strong volume to confirm that the bull is back in charge…we may not get an answer for several days or even a couple of weeks…Gold Bullion Development Corporation (GBB, TSX-V) is showing some strength this morning, up a penny to 11 cents…to show how Gold Bullion’s Granada grades are so encouraging, Osisko came out with an open pit reserve update this week and reported 8.97 million ounces at 1.13 g/t…Granada’s grades are very much in line with Osisko’s Malartic grades, and mineralization is also at shallow depths at Granada…Gold Bullion has much work ahead of it to prove up a large resource at Granada, and we would like to see them undertake a drill program of at least 50,000 metres…we have done endless research on Granada and our contention is this property along the infamous “Cadillac Trend” very realistically hosts a multi-million ounce deposit, nearly a million ounces of which we would already place in the “inferred” non-compliant category…keep in mind this company has already conducted a large bulk sample which graded 1.62 g/t…a large waste pile was also assayed and came out to 1.75 g/t…conservatively, the average grade at Granada should come out to about 1.2 g/t which is right in line with Osisko…there are no metallurgical issues at Granada and recoveries have proven to be high (90%)…assay results on 19 more holes at Granada are yet to come…one of our astute readers has come across an interesting company by the name of Drake Energy Ltd. (DPE, TSX-V) which we suggest readers do some due diligence on…from a technical standpoint, Drake is overbought at current levels and we’re looking for a slight pullback and consolidation prior to another potential major move up with this stock…