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Gold Bullion Development (GBB, TSX-V) enjoyed a strong day today, closing up 2 pennies to 40 cents on nearly 2 million shares.  The stock was up 2 cents for the week and has traded a whopping 20 million shares over the last 6 sessions since the company’s Preliminary Block Model was released.

The interest in Gold Bullion is intense, and for good reason:  Investors can clearly see the possibility of a multi-million ounce deposit at Granada with drilling set to resume at the LONG Bars Zone sometime next week.

Quite simply, Gold Bullion’s 20,000 metre drill program is going to generate – pardon the pun – MAJOR interest (we don’t just mean a lot of interest, but this will no doubt also grab the attention of the Osiskos and the Aurizons and probably a few others in the neighborhood).  Hmmm.  Might be a good time, pretty soon, for BMR to head back out to the LONG Bars Zone and camp out for a while, don’t you think?  Maybe the Coffin Brothers and a few others will join us…

We know this is serious business but we can’t help but think the coming weeks and months are going to be an incredible amount of fun, especially of course if you’re a Gold Bullion shareholder. Maybe not so much fun if you’re having to split 20,000 metres of core!

So how do things look technically with the stock right now?  We called on our expert, Peterborough John, to give us his updated analysis (see below).   John remains bullish (“GBB is in a very strong uptrend and it’s only a matter of time before we see the next move up”) but the stock seems locked in a consolidation phase at the moment.  Will the start of drilling produce the anticipated breakout?  Quite possibly – we’ll have to wait and see.  An important point about the high volume over the last 6 trading days – analyzing the action, the stock seems to have “tightened up” which means much of the 7-cent private placement shares that became free trading April 23 have likely mostly been absorbed by the market.  That does have bullish implications moving forward.

GBB remains in a very strong uptrend and it's only a matter of time before we see the next move up.

John: Over the last 16 trading days Gold Bullion has moved up from 25 cents to a new all-time high of 42.5 cents in a very orderly manner.  For the past 5 days the stock has been consolidating.

Looking at the chart, we can see that the trading formed an upsloping wedge (blue lines), indicating an imminent pullback.  On April 23 we saw a doji candle formed which was the first indication that the move might be weakening.  On April 26 the stock gapped up to 42 cents at the open, briefly traded at 42.5 cents, then proceeded to gradually weaken – this particular move had run out of steam.

This certainly does not mean the uptrend is finished – far from it.    The stock needed to pause to catch its breath, so to speak.  If we look at the ADX trend indicator, we see the trend strength line ADX (black) is quite high, over 40 and steady, while the +DI (green line) is above the -DI (red line).  This shows the uptrend is still intact and very strong.

For the past 5 days the stock has traded in the range of 36 cents to 42 cents (horizontal green parallel lines).  There is no way to tell at the moment how long this consolidation will take.  But if the stock price breaks above the 42 cent level on a lot higher volume than normal, then we’ll know the next major move up is likely underway.

Outlook:  GBB is in a very strong uptrend and it’s only a matter of time before we see another major advance.  The next Fibonacci target level is 62 cents.

Gold continues its ascent and is up $13 an ounce to $1,180 as of 8:55 am Pacific time…silver is also strong, closing in on $19 while crude oil futures are also firmer at just under $86 per barrel…the CDNX is enjoying a strong final trading day of the month and is currently at 1672, up 12 points…the TSX Gold Index is ahead 11 more points this morning to 362 where it may meet some resistance…this is also the 8th consecutive day the Index has posted a gain, so a near-term pullback is clearly a high risk at this point…we don’t recommend chasing the senior golds at the moment…from a technical perspective, the CDNX continues to look very strong but we’d like to see a breakout to a new 52-week high very soon for a momentum jolt and added confidence that Gold may hit a new all-time high…Gold Bullion Development (GBB, TSX-V) is strong again this morning, up 2 pennies to 40.5 cents on nearly 1.5 million shares through the first 2.5 hours of trading…the stock is clearly tightening up, which means much of that 7 cent private placement stock that became free trading recently has been largely absorbed by the market…drilling is expected to resume next week at the LONG Bars Zone…Sidon International Resources (SD, TSX-V) has hit a new 52-week high this morning of 8.5 cents…the stock is up 70% from when we introduced it about a month ago…what’s driving Sidon is its option to acquire an 80% interest in the Morogoro East Gold Property in Tanzania…Morogoro has tremendous exploration potential and local artisan miners have been doing very well there…Morogoro has extensive high grade showings and could quite possibly make Sidon the next Canaco (CAN, TSX-V)…Canaco’s very promising Handeni Gold Project is 100 kilometres south of Morogoro East…Sidon has broken out technically after overcoming resistance at 7 cents…BMR expects news later today from Kent Exploration (KEX, TSX-V) which is holding its AGM today as well as a vote on its proposed spinoff of Archean Star Resources…we believe both Kent and Archean Star will perform extremely well moving forward…Richfield Ventures (RVC, TSX-V) is off 14 cents this morning to $2.02 for no apparent reason…the stock faces some technical resistance at $2.20 which we’re certain it will overcome…

There are several developing situations which we will be following up in detail later today and over the course of the weekend with analysis and updated charts:

1. GOLD – appears to have overcome resistance around $1,170, up $10 an ounce as of 6:00 am Pacific time to $1,177.  Gold is looking extremely bullish and we’re certain it will make an attempt very soon at a new all-time high;

2. Sidon International Resources (SD, TSX-V) – a stock chart tells a thousand words, and the chart for Sidon – including its massive accumulation for over a month now – is one of the best we’ve seen in a long time.  Sidon also broke through important resistance at 7 cents yesterday.  Fundamentally, the company is changing course with a very attractive gold property in Tanzania (Morogoro East) that could make Sidon the next Canaco (CAN, TSX-V).  We’ll be reviewing Sidon in more detail over the weekend with an updated chart and more pictures and information from Morogoro East;

3. Gold Bullion Development (GBB, TSX-V):  Gold Bullion made a nice reversal yesterday and with drilling starting up again next week at the LONG Bars Zone, expect action to heat up again in GBB;

4. Kent Exploration (KEX, TSX-V):  BMR is expecting news later today from Kent which is holding its AGM today with the shareholder vote as well on its proposed spinoff of Archean Star Resources.

Gold has traded in a fairly narrow range so far today and as of 8:45 am Pacific time is unchanged at $1,165…the CDNX is ahead 2 points to 1662…we’re expecting big things out of Sidon International Resources (SD, TSX-V) after learning more about the Morogoro East Gold Property in Tanzania…it appears Sidon intends to quickly exercise its option to acquire Morogoro which has all the makings of a geologist’s dreams – many high grade showings and interesting formations…little pits can sometimes turn into big mines, and that’s what Sidon is hoping for at Morogoro…local artisan miners have recovered significant amounts of gold from that property which is a flat-lying sedimentary-type horizon that has the same or even better potential than Canaco’s (CAN, TSX-V) Handeni Gold Property 100 kilometres to the south…more gold has come out of the ground than money has gone into the ground in the under-explored Morogoro East region where incredible blue sky potential exists…Sidon has been under massive accumulation over the last month or so, and a major technical breakout now appears imminent…the stock is trading between 7 and 7.5 cents this morning…Gold Bullion Development (GBB, TSX-V) is up half a penny to 37 cents…BMR’s technical analyst said yesterday the “buy range” is 35 to 37 cents on this pullback, and so far he appears to be correct…drilling is expected to resume at the LONG Bars Zone sometime next week…Gold Bullion has made a huge move over the last 2 months but the potential for this stock to go much, much higher clearly exists with further drilling coming up at Granada and a growing realization by the market just how big this deposit could become…everything is on track at Kent Exploration (KEX, TSX-V)…we visited their offices yesterday in Vancouver…expect news from Kent tomorrow regarding its Archean Star spinoff…Colombian Mines (CMJ, TSX-V) has released very encouraging results from the first three holes at its Yarumalito Gold Property including 125 metres grading 0.66 g/t Au and 0.13% copper…we have to concur with CMJ’s statement this morning that “Yarumalito hosts a significant gold/copper porphyry and sheeted vein system with bulk mining potential.”  CMJ ran to as high as $1.43 on the news this morning and is currently at $1.27, up 9 cents on the day…

Gold Bullion Development (GBB, TSX-V) and Seafield Resources (SFF, TSX-V) were each languishing under 10 cents (7 and 6, respectively) when we first introduced them at BullMarketRun.  Gold Bullion is up a stunning 421% in four months while Seafield, despite its recent weakness, is ahead 242% since last summer.

The only other stock under a dime we have featured at BMR is Sidon International Resources (SD, TSX-V) which we introduced at a nickel only about a month ago.  Sidon closed at 6.5 cents yesterday and is giving every indication – technically and fundamentally – that it’s ready to break out in a big way and possibly follow in the footsteps of Gold Bullion and Seafield.

Sidon has signed a letter of intent for an option to purchase an 80% interest in the Morogoro East Gold Property in Tanzania, an African country that has really opened itself up for gold exploration and mining.   Tanzania has gone from just a million ounces of gold reserves a decade ago to over 50 million now.  Morogoro East is in the under-explored eastern region of Tanzania, along a potentially prolific gold belt about 100 kilometres south of Canaco’s (CAN, TSX-V) very promising Handeni Gold Project.

Local artisan miners have been pulling out some phenomenal grades from Morogoro East. “The grades there are higher than what I first saw at Handeni a few years ago,” geologist Laurence Stephenson told BMR recently.  “The gold and formations at Morogoro East are incredibly interesting.”

Stephenson knows Tanzania like the back of his hand and his privately-held company, Kokanee Placer Ltd., has uncovered this potential gem for Sidon.  Below are a few pictures from Morogoro East that show the gold there is indeed very real:

These are 25 kg bags of recovered rock from Morogoro East, each containing 20 to 60 grams of gold.

Gold from a small sample taken from one of the bags picked at random.

Canaco apparently had locals reporting 10 to 20 grams of gold per 25 kg bag – at Morogoro East the numbers are even more staggering.

The Morogoro East Property is a flat-lying sedimentary-type horizon that Stephenson believes holds at least as much potential as Canaco’s Handeni Property, if not more.  The strike length at Morogoro East appears to be longer and the formations seem even more interesting.  At the end of the day, the drill bit will tell the story but there’s no question Morogoro East is an extremely attractive and promising exploration target with many high grade showings.

Sidon has a potential huge winner here and at just 7 cents, where it’s trading at this morning, the upside on this stock could be immense.  We have more to report on Sidon tomorrow.

BMR visited the offices of Kent Exploration (KEX, TSX-V) yesterday and spent half an hour with President/CEO Graeme O’Neill.  As regular readers know, this is a company we have been very bullish about over the last six months.

Kent’s AGM takes place tomorrow when its Archean Star spinoff is expected to be ratified by shareholders with court approval likely next week.  It’s safe to assume Kent will update investors with a news release on that by the end of the day tomorrow.

Financing efforts for Archean Star have gone extremely well.  The dividend Kent shareholders will be receiving – one Archean Star share for every four shares of Kent held – is one of those “no brainer” investment opportunities as we expect Archean Star to perform very well with its highly prospective Gnaweeda Gold Project.

Kent’s focus will turn to its Flagstaff Barite Property and its Alexander River Gold Property in New Zealand which BMR believes has the potential to develop into a 1 million ounce+ deposit.  Kent will also have a small position in Archean Star, but Alexander River and Flagstaff should be strong drivers of shareholder value for Kent.  In otherwords, there’s no reason for Kent to suffer by spinning off its Gnaweeda Gold Project into Archean Star.

At Flagstaff, BMR estimates Kent will generate cash flow this year of at least $1 million which will enable the company to keep stock dilution to a minimum.  Kent currently has only 38 million shares outstanding for a market cap, based on yesterday’s closing price of 22 cents, of just $8.4 million.

Kent continues to be extremely attractive at current levels, especially considering the upcoming dividend in the form of Archean Star shares.

We’ll be updating Kent again over the weekend.

The action in Gold has been very interesting lately and it seems the precious metal is gearing up for a run at its all-time high, set nearly 5 months ago, and perhaps beyond.  At the time of this posting, 5:50 am Pacific time, Gold is down $2 an ounce to $1,163.

John, BMR’s technical analyst, has provided us with a couple of charts this morning as well as some comments.  The first chart combines Gold with the CDNX while the second chart is strictly the CDNX.

John: Today’s weekly chart shows the correlation between GOLD (continuous contract) and the CDNX Index.  GOLD is shown in candle form while the CDNX is a solid black line.  The two indicators, “RSI” and “ADX”, refer to GOLD.

First, let’s consider GOLD.  Looking at the chart we see that since the minor reversal near the end of 2009, GOLD has has a sustainable climb supported by its 20-day SMA (blue line).  From the recent low at the beginning of February, GOLD has systematically climbed and formed a bullish ascending triangle shown bounded by a thin blue horizontal line at $1,165 and a thicker upsloping line.  This thin blue line and the one above it at $1,226.40 form a band of resistance that GOLD must overcome to move to higher levels.  At the moment, GOLD is right at the bottom edge of this resistance.

The CDNX has been climbing in an upsloping channel (green line) in tandem with GOLD and its 20-day SMA.

The top indicator, RSI, is shown climbing in an upsloping channel (orange lines) indicating increasing strength for GOLD.

The “ADX” trend indicator has the black ADX trend strength line turning up and with the +DI (green line) above the -DI (red line), this indicates the trend is bullish and strengthening.

The outlook for GOLD is bullish as shown by the ascending triangle on the chart and the continued bullish movements of the RSI and ADX.

GOLD now has to overcome the band of resistance before it can move to new highs.  If the band is overcome, the expected new initial high will be $1,286.

Below is a chart strictly on the CDNX.  At the moment the CDNX is consolidating in a horizontal channel as shown by the blue lines.  Until it breaks through the top line we cannot assume anything.

The ADX line is going down, showing that the trend is weakening, but the +DI is above the -DI which keeps it bullish.

The RSI is above 50%, so it’s bullish but virtually flat.

The CDNX must break above the top blue line and that will take higher volume.