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Three weeks ago we added a company called Sidon International Resources (SD, TSX-V) to our portfolio.  It has been under extremely heavy accumulation up to 7 cents over the past 23 trading days with a total of 53,183,861 shares changing hands – two-thirds of all the outstanding shares.

Sidon closed yesterday at 5 cents, the price we initiated coverage at.  In a moment we’ll explain why Sidon looks so much like two other stocks BMR readers have made huge returns on – Gold Bullion Development (GBB, TSX-V) and Seafield Resources (SFF, TSX-V) which were introduced here at 7 and 6 cents respectively.

The news we were waiting for on Sidon came Wednesday, signaling the company is going ahead with its option to enter into a formal agreement with Kokanee Placer Ltd. to purchase an 80% interest in the high grade Morogoro East Gold Property in Tanzania – approximately 100 kilometres south of Canaco’s (CAN, TSX-V) Handeni Gold Project.  Sidon announced it’s arranging a private placement of up to $750,000 at 5 cents.  Just like with Gold Bullion at 7 cents and Seafield at 4.5 cents, smart money is positioning itself with Sidon and grabbing as much paper as possible because of the massive potential here.    Tanzania is hot and still has enormous untapped potential even after a significant number of major discoveries over the past decade.

Laurence Stephenson, a long-time and successful British Columbia geologist, runs privately-held Kokanee Placer Ltd. which presented this property acquisiton deal to Sidon.  Stephenson knows Tanzania like the back of his hand and he’s out there again now.  He is hugely bullish on this part of the world for gold exploration and very excited about what he has found for Sidon.

“The grades at Morogoro East are higher than what I first saw at Handeni,” Stephenson explained to us a few weeks back.  “The big companies haven’t had the expertise or the time to look around.  It’s like the wild frontier of the 1860’s.  This area hasn’t had any exploration.  The gold and formations are really interesting.”

The Morogoro East Property is a flat-lying sedimentary-type horizon that Stephenson believes could be drill ready very quickly.  The grades local miners have been scoring are astronomical – 40 to 60 grams of gold per 25-kilogram bag of recovered rock.  Little pits can sometimes develop into big gold mines, and that’s what Sidon will be hoping for here.  There is gold at Morogoro and perhaps LOTS of it including high grade.  Showings are all over the place.  BMR has the pictures to prove it and we’ll be including those in another piece on Sidon over the weekend.

A couple of readers sent us emails recently complaining that Sidon has a lousy web site.  We agree, but we don’t care as it doesn’t matter.  The type of grass roots, home run opportunity companies we present here at BMR often have poor web sites and a few other blemishes, at least initially, because that type of corporate marketing and infrastructure typically follows progress that’s first made on the ground.  When we introduced Gold Bullion in December, its web site was atrocious.  Same with Seafield (their web site is still atrocious).

So what does the chart tell us about this stock?  Sidon’s technicals are EXTREMELY bullish and suggest it’s as low as it’s going to get and likely going higher very quickly.  John, BMR’s technical analyst, gives his views below:

Recent massive accumulation in Sidon can mean only one thing - a big move is in the works.

John: The trading of Sidon International Resources shares has been locked in a horizontal channel for the last 9 months with a range of 3 cents to 7 cents.  This is shown on the weekly chart as two horizontal blue lines.

During this time the shares were being accumulated as shown by the Accumulation/Distribution (A/C) line indicator below the chart.  The level of the line does not matter – it is the slope.  In this case the line is sloping up and is above its upsloping SMA (20).  Thus, even though the trading range has been restricted this A/C line indicates bullish accumulation.

The RSI indicator shows a level between 50% and 70% which is bullish without being overbought.

The ADX indicator shows the ADX line (black) below 20 but rising, indicating a weak trend.  The +DI line (green) is above the – DI line (red), confirming the trend is up.

Over the past 5 weeks more than 70 million shares have been traded and with the volume relatively low this week, we can expect the price to increase from the present level of 5 cents when volume picks up now that the overhang of shares seems to have been absorbed.

When the price breaks above 7 cents the target will be 11 cents.  At the 11 cent and 12 cent levels there will be a hand of resistance (horizontal green lines).

Gold is powering higher mid-day and so too is the CDNX which made an important reversal yesterday after touching its rising 20-day moving average of 1632…Gold is up $13 an ounce to $1,154 as of 8:50 am Pacific time while the CDNX is now at 1660, an 8-point increase on the day after dropping as low as 1632 yesterday…from a technical standpoint it appears the CDNX is now going to take a run at its recent 52-week high of 1691…this bodes very well for Gold Bullion Development (GBB, TSX-V) which is going to be a leader in this market…GBB has traded a whopping 6 million+ shares this morning and is currently up 4 cents to 40 cents…a close above 42 cents today, or in the very near future, is going to raise GBB’s next price target level to the 60 cent area according to BMR’s technical analyst…Richfield Ventures (RVC, TSX-V) is up a nickel to $2.05 and we see great things in store for Richfield as well in the weeks to come as it continues to drill its Blackwater bulk tonnage gold prospect in central British Columbia…Sidon International Resources (SD, TSX) is strong this morning, up a penny to 6 cents on 2 million shares…we’re very bullish on Sidon which announced a proposed private placement of $750,000 at 5 cents this week…

Part 1 of 2

At BullMarketRun we were excited about the potential of the Granada Gold Property and Gold Bullion Development (GBB, TSX-V) almost as soon as we started our research last November.  Around mid-December we introduced Gold Bullion at BMR when the stock was sitting at just 7 cents and bids were about as scarce as a snowman in Florida.    After some encouraging early news from its December/January drill program, Gold Bullion delivered some eye-popping assay results March 1 and everything suddenly changed including of course the stock price and volume.    The Coffin brothers saw something and jumped on the story, giving it added legitimacy. Hits at BullMarketRun started going through the roof.  We hurried out to Granada and spent three days on the ground in the LONG Bars Zone, returning home even more excited and bullish about Gold Bullion (we could almost dig the gold out with a spoon, it’s so close to surface).  And then yesterday after the market close, kaboooooooooom – the company delivers the equivalent of a Hiroshima on any doubters or short sellers with a LONG Bars Zone Preliminary Block Model that lifts this project into a whole new realm.

Are we surprised?  Not really.  Our message with regard to Granada has been consistent all along but we’re screaming even louder from the rooftop this morning:  A potential 5 million+ ounce gold deposit is indeed in the works at Granada and BMR suggests you hang on to your Gold Bullion shares for dear life because by Christmas you might be sitting on a fortune. Just an opinion, not professional investment advice, so take it for what it’s worth.  But our intuition with GBB has been bang-on every step of the way so far.

There was a lot to digest in yesterday’s news.  Below are the highlights as we see them followed by the possible implications in part 1 of this 2-part story:

1. LONG Bars Zone Preliminary Block Model (non-43-101 compliant) outlines potential for 2.4 to 2.6 million ounces of gold within a defined area that excludes the recent northeast discovery as well as a possible new discovery in the southwest portion of the property;

2. Impressive grade estimate within the parameters of the Preliminary Block Model – 1.38 g/t Au to 1.46 g/t Au.  And keep in mind that historical work at Granada has shown that mined grades have usually been higher (quite often 10 or even 20%) than assay results;

3. A number of significant auriferous structures have been identified within a wide, east-west trending zone of shearing, alteration and quartz veining north and east of the Preliminary Block Model;

4. This is not just your regular and simple quartz vein-type deposit – something more interesting and involved seems to be going on here;

5. The possibility of a discovery of silver and base metal mineralization clearly exists at Granada – even if it is low grade, the positive impact on the economics of this deposit could be quite significant.  All factors considered – location, near-surface mineralization and possible silver and base metal credits – Granada has excellent potential to be a very low cost operation if Gold Bullion succeeds here in proving a major deposit;

6. 20,000 metres of new drilling is set to begin almost immediately – “one drill rig (the implication is that more will be arriving) is already scheduled to be on the property by May 1.”  These guys are serious and aren’t wasting any time.

Gold Bullion President/CEO Frank Basa is not the promoter type and even struggles sometimes doing interviews.  He’s not one to make wild claims.  In fact, he’s usually quite cautious and conservative.  Which is why yesterday’s GBB news release carries so much weight and authority.

Even more eyes are now focused on Gold Bullion which in our view clearly has the goods to support a higher market capitalization which currently stands at $38 million based on yesterday’s 36 cent closing price and 105,298,581 outstanding shares.

Expect huge volume and possibly considerable volatility today as the market reassesses Gold Bullion in light of yesterday’s news.  As we stated recently at BMR, the party has just begun with GBB.   We strongly believe that the more the LONG Bars Zone is drilled, the better it’s going to look.  With that in mind we likely won’t see the yearly high on the stock price until the end of the year.

Gold Bullion has become a very significant new player along the prolific “Cadillac Trend”.  And you can be sure the bigger boys in the neighborhood are paying close attention.

Gold Bullion Development (GBB, TSX-V) President/CEO Frank Basa is understandably a very busy man right now, so we thank him for giving us 10 minutes of his time this afternoon after major news was released following the market close regarding the company’s Granada Gold Property in northwestern Quebec.

BullMarketRun will be issuing a special report with our full analysis on today’s GBB news by tomorrow morning.  In short, the LONG Bars Zone – as we were predicting – has delivered in a very big way.

Click on the link below to listen to the full interview with Basa (approximately 10 minutes):

BMR Interview With GBB’s Basa

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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.

BullMarketRun has just spoken with Gold Bullion Development (GBB, TSX-V) President/CEO Frank Basa, recording a 10-minute interview that we expect to be able to post on the site by 4 pm Pacific time.

Gold Bullion’s news release this afternoon was full of all sorts of important details and Basa was able to expand on some key areas in the interview.

Gold Bullion Development (GBB, TSX-V) has not only delivered news following the market close this afternoon but stunning news – the LONG Bars Zone Preliminary Block Model has outlined the potential for 2.4 to 2.6 million ounces of gold (non-compliant) within the parameters of the Model which does NOT include the recent northeast discovery or a potential new discovery in the southwestern section.

We are still digesting the news and we’ll also be attempting to track down Gold Bullion President/CEO Frank Basa for an interview as soon as possible.  More later in a special update that we are scheduling for 3:30 pm Pacific time this afternoon.