BullMarketRun.com

Gold is up $9.00 an ounce to $1,079 as of 7:45 am Pacific time while the CDNX continues to go in the right direction, up 4 points so far this morning to 1,481…we have a growing sense that last Friday marked the end of the CDNX correction which chopped 200 points off this market (1,629 to 1,429) or 12%…further technical confirmation of that, however, is required, and the first important test will be a move past 1,500 on solid volume…Greencastle Resources (VGN, TSX-V) has come out with news on its drilling at Boggy Lake-Cabri in southwestern Saskatchewan with confirmation that it has hit some “zones” as testing begins on the first of two wells to determine if flow rates are economic…this will likely take several weeks…Greencastle has tremendous technical support at its 100-day moving average (.155) and we strongly urge our readers to do their due diligence on this situation and put at least some Greencastle in their portfolios with a six to 12 month time horizon…at current levels, traders and short term investors can likely flip VGN for a decent profit by the end of March…no need to chase…16 cents would be an ideal entry point…we believe Noront Resources (NOT, TSX-V) hit bottom recently at its 300-day moving average of $1.30…Noront is now at $1.47 and a terrific long-term investment in our view…

Gold continues to show some strength early this morning and as of 5:00 am Pacific time is trading at $1,080, up $2 per ounce…technical analyst Clive Maund is bearish on commodities and the overall markets at the moment but admits in an article this morning that there are some conflicting signals and that a potential bullish falling wedge has formed on the gold chart…a major “buy” signal would be triggered if gold were to move past $1,120 an ounce and break out of this falling wedge pattern…we’ll be watching very closely which way the CDNX turns…we’ll have more on this tomorrow, but a move past 1,500 on the Index would be interpreted as technically very bullish and a move below last Friday’s low of 1,429 would be an all-out sell signal…we remain firmly in the bullish camp given the fact the CDNX has so dramatically out-performed gold and the TSX Gold Index over the past two-and-a-half months…we are working on some interesting potential resource numbers with regard to Gold Bullion Development’s (GBB, TSX-V) Granada Gold Property after mineralization length, width and thickness measurements were provided in Monday’s news release…we’ll have more on this soon but we believe Gold Bullion has theoretically nearly tripled the 1994 non-compliant resource estimate of 280,000 ounces for Granada…keep in mind that estimate was based on a confined small area that represents only about 4% of the company’s current land package which has been expanded signficantly around the Granada Mine…

The CDNX is continuing its turnaround with a 12-point gain so far this morning to 1,473 (as of 10:40 am Pacific time)…a key technical test for the Venture, after last week’s sell-off to 1,429, will be to see if it can vault past its 50-day moving average just below 1,500…gold is strong this morning, currently up $14 to 1,075 as the U.S. dollar has taken a heavy hit today…Gold Bullion Development (GBB, TSX-V) is unchanged on the day at .105 which is disappointing given yesterday’s news, but we’re very confident in the progress this company is making at its Granada Gold Property…Gold Bullion should begin to firm as more investors catch on to this developing story…Richfield Ventures (RVC, TSX-V) came out with news this morning, announcing it is planning a 25,000 metre drill program at its promissing Blackwater Project in the Interior of British Colombia beginning in early April…that large program will focus on both exploration and resource definition…Richfield is extremely attractive at current levels ($1.14, up 14 cents on the day) for investors with at least a six-month time horizon…Seafield Resources (SFF, TSX-V) is up a penny this morning to 24 cents on volume of 285,000 while Colombian Mines Corporation (CMJ, TSX-V) – our other Colombian play – is up a nickel to 95 cents…CMJ is expected to start drillings its Yarumalito Property this week…

We’ve all seen what the prolific “Cadillac Trend” can produce: multi-million ounce gold deposits, and company shares that jump 20, 50 or 100-fold. For Osisko (OSK, TSX) it started nearly five years ago when they reported their first hole of 93.9 metres grading 1.01 g/t at the now massive Canadian Malartic Deposit.

Just 65 kilometres to the west of Osisko’s giant deposit, along the same Cadillac Trend in the world-renowned Abitibi Greenstone Belt, is another former producing mine that could very well turn out to be the region’s next major discovery – the Granada Gold Property being explored by Gold Bullion Development Corporation (GBB, TSX-V). As the saying goes, sometimes the best place to find a new mine is near an old mine. That was Osisko’s line of thinking which paid off so incredibly with Malartic, and it’s also Gold Bullion’s approach with Granada under the watchful eye of President and CEO Frank Basa.

Trading in Gold Bullion was halted yesterday morning and for good reason as the company released its most significant news yet from Granada. In this morning’s Special Alert we’re going to unpackage that important news release and show you why Gold Bullion has the very real potential of sitting on something that’s actually quite rare along the Cadillac Trend – a substantial bulk tonnage gold deposit at Malartic-style shallow depths.

At BullMarketRun.com, our specialty is identifying 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.

We first brought Gold Bullion to the attention of investors last December when the stock was hovering around 7 cents. It closed yesterday at 10.5 cents, up half a penny, with heavy trading of just over 600,000 shares – all in the final hour after news was released and the stock resumed trading.

Gold Bullion, which is drilling Granada for the first time after historical drilling of nearly 500 holes over a tight area by previous operators, released assays on three holes yesterday including GR-09-15.

Hole 15 intersected 74 metres of 0.88 g/t between 73 and 147 metres depth (an 8-metre section included 6.34 g/t). What is significant about Hole 15, besides its fairly shallow depth, is the fact it was a 600 metre step-out to the east from holes 09-01, 09-02 and 09-03 (assays from those first three holes were released January 26) in an area that according to our analysis, from publicly available maps, has never been drilled before at Granada. The hole delivered a mineable grade over a good intersection. Just to the west of Hole 15, GR-09-05 assayed 31 metres of 0.92 g/t from 92 to 123 metres.

With assays on six of 25 holes now in, Gold Bullion provided us yesterday with the first solid indication of how Granada is beginning to take shape as a potential economic, open pit, low grade bulk tonnage deposit in these very early days:

“Mineralization at the Granada Property 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.”

The above measurements are impressive at this early stage and we can’t wait to see how this is looking after all the remaining holes (19 in total from drilling in December and January) are in – and after an additional 20, 30 or 40 thousand metres of drilling are completed which we suspect the company will be aiming to do this year.

Here are some additional important points to consider in evaluating the potential of the Granada deposit:

• 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.

“It’s like the golden highway, it’s amazing,” Gold Bullion President and CEO Frank Basa told us in a recent interview when we asked him about the ‘Cadillac Trend’. “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’re reported are a little low. Once they get into production they’ll have more gold. It’s the nature of the Cadillac Trend.”

At 10.5 cents, Gold Bullion’s current market capitalization is only $8.5 million (for comparison purposes, the company’s northern neighbor, Yorbeau Resources (YRB.A, TSX), has also been getting encouraging results from its Rouyn Property – a major 2010 drilling program has commenced there – and is now commanding a $37 million market cap, a three-fold increase over where it was just last August).

At its current stock price, and with promising drill results so far, the risk-reward ratio with Gold Bullion Development Corporation is unquestionably attractive.

It never ceases to amaze us how some people just “don’t get it”…Gold Bullion Development Corporation (GBB, TSX-V) came out with very significant news late this morning regarding its Granada Gold Property near Rouyn-Noranda, Quebec, about 65 kilometres west of Osikso’s massive Canadian Malartic Deposit…the headline writer at Stockwatch (and we’ve seen this many times before) chose the wrong headline by focusing on the 0.8 metre intercept in Hole 15 that graded nearly 2 ounces of gold…what he (or she) should have been drawn to was the fact Gold Bullion did a 600-metre step-out from the first three holes and came up with a very respectable, consistent and mineable 73 metres of 0.88 g/t…as far as we know, analyzing the various maps that are publicly available, there has been no prior drilling at Granada in the area of Hole 15…this is now an ever-increasingly interesting and growing deposit with mineralization open in all directions…dimensions, as stated in the news release, are 600 metres in length, 150 metres in width and up to 70 metres in thickness…assays on only 6 of 25 holes drilled in December and January have been reported…Gold Bullion has already completed an important and very revealing large bulk sample that graded 1.62 g/t, and the waste pile graded even higher – 1.75 g/t….what is beginning to emerge here is the very real possibility of something quite dramatic and unusual along the “Cadillac Trend” – a substantial surface bulk tonnage deposit (shallow depths, mineable grades, low cost, excellent recoveries) of at least 1 g/t…anyone who doesn’t see the potential of this is going to miss out on picking up a highly undervalued 10 cent stock ($8 million market cap) and making an incredible (potentially life-changing) return by showing just a little faith and patience as this company continues to drill its 2 x 7 km Granada land package…Gold Bullion traded for just one hour after release of the news and finished up half a penny to 10.5 cents…as investors digest the significance of today’s news, we expect impressive trading volumes and higher prices in the days ahead…we’ll be posting a more detailed report on Gold Bullion Tuesday morning…the Venture Exchange added 5 points today to 1,461 while both the Dow and the TSE were lower…gold is up $2.00 an ounce as of 5 pm Pacific time Monday…

News is just out on Gold Bullion Development Corporation (GBB, TSX-V) which we are quickly reviewing. In short, what is developing here is exactly what we have been stating repeatedly at BullMarketRun.com since we initiated coverage on this stock at 7 cents in December – Gold Bullion is on track for discovery of a substantial bulk tonnage deposit along the prolific “Cadillac Trend”.

Below is an extremely significant line in this news release (folks, it’s not hard to do the math – what we’re talking about here is the real potential for a multi-million ounce bulk tonnage gold deposit at Granada):

“Mineralization at the Granada Gold Mine 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.”

We are working on calculating accurate tonnage estimates from this, but we’re dealing with something potentially quite large.

Hole GR-09-15 was a 600-metre step-out from the initial three holes and encountered a very mineable grade over a length of 73 metres.

We are working fervently on additional interpretation of this news release and we’ll be posting more information later today. Bottom line – GBB is headed higher.

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.

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