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Gold found support just above $1,200 this morning and as of 9:10 am Pacific time is trading at $1,218, down $6 on the day…the CDNX is up 3 points to 1558…Gold Bullion Development (GBB, TSX-V) continues to show strength this morning as it tries for a new 52-week and all-time high…GBB traded at its high of 42.5 cents and is currently at 41.5 on nearly 1.5 million shares…drilling will soon be ramping up at the LONG Bars Zone with confirmation yesterday from President and CEO Frank Basa that a second drill rig is being brought in to focus on the area within the Preliminary Block Model…the current drill rig will explore outside the Block Model, particularly around the northeast discovery area and further east…a third rig may be brought in later for deep drilling within the Block Model…Basa is in New York and Boston this week at the invitation of some American investors…Richfield Ventures (RVC, TSX-V), which also has a potential major high tonnage, low grade deposit on its hands, is up 4 cents to $1.57…the second part of our interview with President and CEO Peter Bernier will be posted later this morning…Richfield’s 25,000 metre drill program continues at its Blackwater Gold Project in central British Columbia…North Arrow Minerals (NAR, TSX-V) is up 2.5 cents to 21.5 cents…the stock has been under accumulation since mid-March and its lithium and diamond properties hold significant potential…NAR is a tremendous opportunity at current levels for patient investors with a timeline of 3-6 months who are looking to add some diversification to their portfolios…NAR’s primary focus is on diamonds and lithium though the company also has some interesting gold and base metal properties…it’s looking more and more likely that results from Kent Exploration’s (KEX, TSX-V) Turnberry Prospect will come in before the proposed spinoff of the Gnaweeda Gold Project into Archean Star Resources…Kent drilled 8 holes earlier this spring at Gnaweeda including five at Turnberry, its most advanced property…Kent is hoping for a repeat of Australian-listed Doray Minerals‘ success just 8 miles to the northwest of Turnberry…Doray recently discovered two major new gold zones at its Andy Well Property…initial results from Turnberry are imminent, meaning any day now…

When I contacted Gold Bullion President and CEO Frank Basa today for a quick interview, I was basically just looking for a general update on company affairs but ended up instead with some gold nuggets of information which was a pleasant surprise.    Basa is certainly not the “promoter type” but he’s clearly getting more accustomed to interviews. More interestingly, I sensed in him today the highest level of excitement and confidence he’s displayed since my first interview with him in early January.  So what’s going on?

• Phase 2 drilling and other exploration/geological work must be proceeding well.  A second rig is on its way to the LONG Bars Zone and will focus on the area within the Preliminary Block Model.  This will allow the current rig to drill exclusively outside the Model.  A third rig will likely arrive by July for some deep drilling.  Gold Bullion is getting very aggressive and Basa also stated, “It appears our strike length is way beyond this LONG Bars Zone that we have, which is about 1.1 kilometres long.”  Has GENIVAR discovered something new?  Basa remained coy about that, stating essentially that a news release will be issued when the company has gathered all of its information.

• Basa is in New York and Boston this week at the request of certain American investors.  Interest in Gold Bullion is deepening and broadening in much the same way the LONG Bars Zone seems to be.  Basa is also headed off to Europe soon.

• Rumors are now flying around of analysts, brokers and newsletter writers converging on Granada for site visits in the near future.

• Is this stock being over-hyped?  Not at all.  In fact, I would argue it isn’t getting enough publicity – perhaps that’s about to change.  This is a major mining exploration story unfolding – possibly the next Osisko or even better in terms of deposit size – and any investor who doubts that is likely to have some very serious regrets in six months or even in a month or two.

Situations like this don’t come around very often in an investor’s lifetime.  My advice is very simple:  Sit Back, Stay LONG and Enjoy.

Jon, Editor, BullMarketRun

Gold Bullion Development (GBB, TSX-V) went in the opposite direction of the overall markets today and our technical analyst, whose track record on this stock has been almost perfect, is calling for a major GBB breakout as early as tomorrow.  You can read John’s analysis below the updated chart:

The chart indicates we can expect GBB to soon break above the recent high of 42.5 cents.

John: On a day when all North American markets displayed a lot of red ink, Gold Bullion Development (GBB, TSX-V) not only showed resilience but strength to close at 39.5 cents, a 1.5 cent increase from Friday’s close.

Looking at the chart we can see that GBB traded in the range of 36.5 cents to 39.5 cents on lower than average volume of 743,000 shares.

On the chart I have drawn a bullish “Cup with Handle” pattern (blue lines – cup, black lines – handle), similar but smaller than that shown on the YRI chart last week.  YRI broke upward the very next day.  This pattern can be of any size over any time frame.

Friday’s candle was a doji (indecision) but today we have a very bullish white candle with a shaven top, thus overcoming the indecision.

The volume has decreased in the last 3 days as we would expect when a stock is in consolidation.

The RSI is turning up and is above 50% – bullish.

The Slow Stochastics has the %K (black line) above the %D (red line) – bullish.

The ADX trend indicator has the ADX trend strength (black line) flat (due to consolidation pattern) and above the +DI (green line) which is above the -DI (red line) – a bullish orientation.

The chart indicates that we can expect GBB to break above the recent high of 42.5 cents with a near-term target of 50 cents, perhaps as early as tomorrow.

Gold Bullion Development (GBB, TSX-V) is ramping up its exploration efforts at the Granada Gold Property with another drill rig on the way shortly to the LONG Bars Zone – a very positive development that was confirmed to us this morning in a short interview with President and CEO Frank Basa.  BMR contacted Basa this morning for a general update on developments at Granada, and we also learned he’s off to New York later today for a series of meetings in the U.S. to begin sharing the Gold Bullion story with American investors.

Gold Bullion’s aggressiveness with Granada is extremely bullish and underlines the point we’ve been emphasizing since December – a major gold discovery is in the making here.  With many investors still unaware of Gold Bullion or the growing and potential magnitude of this near-surface bulk tonnage open-pit deposit, those who are positioned in this play now stand to benefit handsomely in the weeks and months to come.  There’s a strong possibility in our view of the current 20,000 metre drill program expanding considerably.

To listen to our interview with Frank Basa this morning, please click on the link below:

BMR Gold Bullion Interview With Basa

Gold is holding steady and is trading up $2 an ounce to $1,233 as of 7:35 am Pacific time…the CDNX is off 9 points to 1584…Richfield Ventures (RVC, TSX-V) is in the $1.50’s this morning – a very attractive buying zone – where it makes sense to accumulate…Richfield is developing the Blackwater Project in central British Columbia that could host a multi-million ounce bulk tonnage gold deposit…the company is in the midst of a 25,000 metre drill program at Blackwater where mineralization starts near the surface…Gold Bullion Development (GBB, TSX-V) is relatively quiet and unchanged at 38 cents…Sidon International (SD, TSX-V) has apparently closed its recently announced private placement, putting it one step closer to acquiring the highly prospective Morogoro East Gold Property in Tanzania…Sidon, Gold Bullion and Seafield are the only stocks at BMR we’ve introduced under a dime and of course GBB and SFF both exploded…Morogoro gives Sidon smiliar potential…Sidon is at 6.5 cents this morning, down half a penny…the stock has been under very heavy accumulation over the past couple of months…we’re expecting news this week from Kent Exploration regarding its spin-off…assay results are also imminent from its Turnberry Prospect which was drilled earlier this spring…Turnberry is part of the large Gnaweeda Gold Project which is being vended into Archean Star Resources…Kent closed at 19 cents Friday and has been fairly quiet over the last week or so…North Arrow Minerals (NAR, TSX) is up a penny to 21 cents…NAR is strongly supported by a rising 100-day moving average at 19 cents…the company is currently drilling its Beaverdam Lithium Project in North Carolina which holds excellent potential, but its 100,000 acre position at Lac de Gras is what really gives the company its huge blue sky appeal…diamond legends Gren Thomas and Dr. Chris Jennings are teaming up once again to see if they can repeat their Diavik success through North Arrow…Jennings has identified 70 high priority kimberlite targets on North Arrow’s landholdings and a major drill program will commence this summer…Seafield Resources (SFF, TSX-V) is unchanged at 20.5 cents…Seafield ended a deep correction last week and some consolidation at current levels can be expected before it pushes higher…we expect Seafield to commence drilling in Colombia later this month…

CDNX and Gold

The CDNX rebounded with all markets this past week and finished at 1593, a 44-point gain for the week or 2.8%…the Venture’s weekly gain matched that of the TSX while the Dow lagged behind at 2.3%…the Nasdaq jumped 5.3% while the TSX Gold Index, which continues to outperform the CDNX this month, was ahead 6% with Gold reaching a new all-time high of $1,250…the CDNX lost 33 points Thursday and Friday but the drop doesn’t concern us as it was on low volume and the market was correcting somewhat after a powerful move Monday through Wednesday…the Index jumped nearly 100 points after the Friday, May 7, low of 1537 which we believe was the bottom of a very short correction…consolidation around 1600 this coming week, or a move through last week’s high of 1633, would be extremely positive for this market as it rebuilds from a sharp 9% pullback over just six trading days…Gold’s move to a new record high was no surprise after Monday’s announcement of the $1 trillion EU-IMF bailout plan…the sovereign debt crisis has become a currency crisis and Gold is rising even in the face of a stronger U.S. Dollar…when the world finally comes to the conclusion that the United States is nearly as much of a fiscal basket case as the PIGS (Portugal, Ireland, Greece and Spain), the Day of Reckoning will arrive for the U.S. Dollar and it too will sink like the Titanic and Gold will be on its way to $2,000 an ounce…Obama will do everything he can to keep things looking rosy in the U.S. through the November congressional elections but the Americans could very easily face a major debt crisis of their own by 2011…

The BMR Portfolio

Gold Bullion Development (GBB, TSX-V)

We stated this on Friday and it’s worth repeating – Gold Bullion has been so incredibly resilient over the past couple of weeks that we can’t help but conclude a major new breakout is imminent…hard evidence of that came from massive new buying from Jordan Capital this past week…Jordan was “first on the scene” with Gold Bullion last December under 10 cents and their appetite for this stock continues to grow…Gold Bullion closed the week at 38 cents, a 2-cent jump, and the stock’s support in the mid-30’s was extremely encouraging…as the market gets more and more comfortable with the idea of a multi-million ounce bulk tonnage, open-pit gold deposit at Granada, this stock can be expected to reach much higher levels especially with Gold performing so well…

Richfield Ventures (RVC, TSX-V)

BMR interviewed Richfield President and CEO Peter Bernier this weekend and the first part of that interview was posted this morning on our web site…a major new gold camp appears to be forming at Richfield’s Blackwater Project, 150 kilometres south of Prince George, BC, in the Nechako Plateau…like with Gold Bullion’s Granada Property, the possibility of a 5 million+ ounce gold deposit at Blackwater is very real and Richfield is now on its third hole in a 25,000 metre drill program…BMR added Richfield to its portfolio last December at $1.20…the stock roared to a 52-week high of $2.25 last month but has pulled back into a strong zone of support between $1.50 and $1.70 where it is considered a very attractive speculative buy…Blackwater also contains silver and despite some rather incredible intersections so far, including over 350 metres of 1.25 g/t Au in BW-59, Bernier believes the best is yet to come as drilling moves further south and geologists search for some rich feeder systems at depth…mineralization starts near the surface at Blackwater and the mineralized zone currently measures 800 metres by 500-600 metres…back-of-the-envelope calculations suggest Blackwater could contain anywhere from 4 to 8 million ounces…with a current market cap of just $44 million, it’s obvious Richfield holds some very serious blue sky potential…the stock completed a significant intra-day reversal Friday to close the week at $1.62…

Sidon International (SD, TSX-V)

BMR is expecting big things out of Sidon in the near future as the company continues to make progress on its option to acquire an 80% interest in the high grade Morogoro East Gold Property in Tanzania…Sidon has completed its recently announced $750,000 financing – it was apparently over-subscribed – and is now waiting for Exchange approval on that… Morogoro will give Sidon a new focus and the best project it has ever had…the stock has excellent liquidity and closed Friday at 7 cents, an increase of half a penny for the week…

Seafield Resources (SFF, TSX-V)

This was a watershed week for Seafield which on Thursday traded a whopping 10 million shares, shattering the previous single day volume record for this stock of just over 3 million shares…Seafield ended a deep correction and Thursday’s volume suggests important new players are now in this market…the stock gained 3.5 cents on the week to 20.5 cents…its 10-day moving average (SMA) has turned positive and its 20-day SMA should do the same in the near future…clearly, Seafield bottomed out at 16 cents May 6…fundamentally, exploration is ramping up considerably this month at the company’s gold properties in Colombia…now is a good time to get positioned in Seafield as we expect this stock to enjoy a strong summer…

Kent Exploration (KEX, TSX-V)

All’s quiet at the moment on the Kent front but that’s expected to change very soon…the stock was up 1.5 cents on the week to 19 cents but on light volume…we do expect to hear news this coming week regarding the spin-off of its Gnaweeda Gold Project into Archean Star Resources…Kent shareholders will receive 1 share of Archean Star for every 4 shares of Kent they hold…what’s interesting is that drill results from the Turnberry Prospect at Gnaweeda are imminent…Kent drilled a series of holes there in March…Turnberry is an advanced staged property and some very good assay results from there are quite possible…it’s in the northern section of Gnaweeda, less than 10 miles to the southwest of Doray Minerals’ Andy Well Property which has produced some recent spectacular results…Kent also drilled 3 holes at its Bunarra Bore Zone in the southern part of Gnaweeda…Kent has posted some interesting looking drill core from the first hole at Bunarra on the Archean Star web site (www.ArcheanStar.com)…

North Arrow Minerals (NAR, TSX-V)

North Arrow has been under accumulation for 2 months now and for good reason…the possibility of Gren Thomas and Dr. Chris Jennings (founders of the rich Diavik deposit) making another huge diamond discovery at Lac de Gras with North Arrow is very conceivable…using his proprietary technology, Jennings has identified 70 high priority kimberlite targets on North Arrow’s landholdings which are on trend with Diavik and comprise 100,000 acres…North Arrow is also currently drilling its Beaverdam Lithium Project in North Carolina…NAR closed Friday at 20 cents, a loss of 1 penny for the week, but interest has definitely picked up in this play and higher prices we believe are just around the corner…

Colombian Mines (CMJ, TSX-V)

Colombian firmed up nicely this past week but on low volume…the stock jumped 20 cents to $1.10…CMJ fell as low as 87 cents during the market pullback and then rebounded, demonstrating the importance of watching for major support levels and buying into weakness…early results from CMJ’s Yarumalito Gold Property are very encouraging…the company also announced the optioning of 2 of its properties this past week, one of them to Yamana Gold…CMJ has a deep and valuable portfolio of grass roots projects in Colombia and we view the stock as a solid long term hold…

Greencastle Resources (VGN, TSX)

Greencastle continues to be the only weak link in the BMR Portfolio…the stock closed Friday at 13 cents, a half penny increase over the previous week…volume has really dropped off in Greencastle…the stock is clearly a very good buy at current levels (it’s trading essentially at cash value) but determining when VGN is going to wake up out of its slumber is impossible to say…the company has valuable assets in oil and gold and a very strong balance sheet with approximately $5 million in cash…

Gold discoveries in British Columbia are nothing new – this province is blessed with abundant resources of all types – but what’s happening at Richfield Ventures‘ Blackwater Project 150 kilometres southwest of Prince George is highly significant and stirring an immense amount of interest.  We saw this coming back in December which is why we added Richfield to the BMR Portfolio at $1.20.  It roared to a 52-week high of $2.25 last month but the recent market weakness has pulled it back into a very strong area of support between $1.50 and $1.70, presenting a great opportunity for investors to either add to current positions or enter for the first time.

Richfield is following up a very successful 18-hole program last fall with a 25,000 metre drill program that started last month.  The potential for at least five million ounces at Blackwater is very real – one only has to take a quick look at the intersections below to realize that a world class bulk tonnage deposit is the making here:

455 metres     1.03 g/t Au    4.30 g/t Ag

207 metres     1.06 g/t Au    5.00 g/t Ag

148 metres     1.26 g/t Au     5.04 g/t Ag

133 metres     1.02 g/t Au     8.20 g/t Ag

Richfield’s President and CEO is Peter Bernier who leads a highly qualified and focused team that BullMarketRun expects will make Blackwater a huge exploration success and the company a strong takeover candidate.  Richfield’s market cap of only $44 million is perhaps only 15% of a potential takeover price, so despite the stock’s climb from just pennies a share last year there’s still a lot of room for investors to profit handsomely if drilling continues to produce favorable results.

“I don’t think people quite understand the size of this deposit and the mineralization we’re getting at depth.” – Bernier.

BMR spoke at length with Bernier this weekend and below is Part 1 of our very interesting conversation with Richfield’s President and CEO:

BMR Interview With Peter Bernier (Part 1)

More with Bernier on Tuesday.  While Richfield is certainly a highly speculative stock (that’s what we focus on here at BMR), the company’s results to date have been remarkably consistent and have correlated extremely well with historical work on the Blackwater properties.  We view the risk-reward ratio at this particular time, therefore, to be highly attractive.  The blue sky potential with this stock is immense, especially given the current takeover environment and Gold’s move to record highs.

Richfield Ventures (RVC, TSX-V) has an emerging world class bulk tonnage gold deposit in central British Columbia that some “majors” are keeping a close eye on.  A 25,000 metre drill program started last month at Richfield’s Blackwater Project and about a dozen other companies have picked up ground around the area which is going to make for a very interesting summer of exploration.

With intersections like 361 metres grading 1.25 g/t Au (from 7 metres to 368 metres), Richfield indeed has something potentially very big on its hands – possibly one of the largest gold discoveries B.C. has seen in many years.  The stock hit a 52-week high of $2.25 last month (it traded as low as two-and-a-half cents last year) and has pulled back to a strong zone of support, closing this week at $1.62.  With just 27 million shares outstanding, Richfield’s market cap stands at only $44 million – FAR, FAR  below what this company’s takeover price might be if they prove up the 5+ million ounces Blackwater very conceivably holds.  The recent market pullback has made Richfield more attractive than ever.  The stock made an important technical reversal today, suggesting a new upleg is now underway.  With Gold climbing to new record highs and the possibility of a summer of more sizzling assay results from Blackwater, now is an ideal time to be positioned in Richfield.  This is a company with strong management and all the right ingredients to bring maximum value to shareholders.

As an investor we suggest you do your due diligence on Richfield, if you have not done so already (Richfield was added to the BMR Portfolio last December at $1.20), and get familiar with this company in a hurry.  We have just interviewed Richfield President and CEO Peter Bernier and we’ll be posting Part 1 of that fascinating conversation Sunday morning.