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Gold is enjoying a strong day, up $16 an ounce to $1,246 as of 7:15 am Pacific time…this brings Gold within less than $10 of its all-time high…Gold bulls definitely have the near-term and long-term techncial advantage at the moment…it will be interesting to see how Gold performs through the rest of the month if stock markets strengthen as we believe they will…the trend has clearly reversed with the CDNX…its 20-day moving average has ended a 6-week decline, reversing to the upside…other technical indicators also suggest a bullish move is imminent with the CDNX…the Index is ahead 11 points this morning to 1473…companies with very good assay results, aggressive exploration programs and strong cash positions will be rewarded handsomely in this market as demonstrated by Fire River Gold (FAU, TSX-V) which came out with news yesterday on its Nixon Fork gold mine project in Alaska…the technicals on Fire River are bullish and this will be an interesting stock to watch in the coming days and weeks…FAU is currently up a penny to 55 cents after a powerful move yesterday…Gold Bullion Development (GBB, TSX-V) is quiet so far this morning, trading up a penny to 56 cents…Richfield Ventures (RVC, TSX-V) has strengthened to $1.10 this morning…Richfield has been in a horrible slide since early May, losing about half its value, but it’s underpinned by exceptionally strong support at $1.00…drilling has been slow so far at Blackwater but it’s expected to pick up in the near future with the addition of a second rig…

Markets are quiet across the board this morning…Gold is off $1 an ounce to $1,233 as of 8:20 am Pacific time while the CDNX is down 1 point to 1461…there’s a little profit taking in the major markets after yesterday’s 200+ point moves…Gold Bullion Development (GBB, TSX-V), which hit another new all-time high yesterday, has pulled back slightly this morning which is certainly healthy from a technical point of view…the stock has advanced sharply over the last 8 trading days from a low of 41 cents June 3…GBB is off 2 cents this morning to 55 cents…Sidon International Resources (SD, TSX-V) is up another half penny to 6.5 cents after announcing yesterday they’ve filed a NI-43-101 technical report on the Morogoro East Gold Property in Tanzania…Sidon has signed a letter of intent with a private company for an option to acquire that highly prospective property…Sidon is now waiting for approvals from the CDNX on its recently completed private placement and the paperwork it has filed with the Exchange regarding Morogoro…the stock has been under very heavy accumulation since March…Kent Exploration (KEX, TSX-V) has stabilized following the recent announcement of its proposed $600,000 private placement…Kent is currently off half a penny to 11.5 cents but has clearly found a strong area of technical support…we’d like to see the closing of the PP as soon as possible before commenting further on Kent…Richfield Ventures (RVC, TSX-V), interestingly, has just touched its rising 300-day moving average at just below $1…the stock is technically heavily oversold and due for a rebound…we remain very bullish on the prospects for Richfield’s Blackwater Gold Project…drilling has been slow at Blackwater and early Phase 2 drill results have not been “stellar” which helps explain the stock’s sharp fall recently but the selling appears to have been overdone…

Gold Bullion Development (GBB, TSX-V) continues to shine and reached another new all-time high yesterday of 59 cents on very strong volume.  John updates the near-term technical outlook for GBB in the chart and analysis below:

John: Gold Bullion Development continued its steady climb yesterday, closing at 57 cents for a 3-cent gain after reaching an all-time high of 59 cents on total volume of 2.5 million shares.  This company continues to attract investors in ever-increasing numbers with its potential for developing a world class open-pit, bulk tonnage gold deposit.

The 6-month daily chart shows that GBB has been climbing in an upsloping fashion since the beginning of March.  It has moved from a low of 41 cents June 3 to a high yesterday of 59 cents – an increase of 18 cents or 44% in just 8 trading days.  That is remarkable.

On the chart I have shown the next Fibonacci target level to be 62 cents.  This does not mean the stock price will stop at this value but it is expected to at least pause at this natural level of resistance.

We also see this climb is taking the share price close to the resistance of the top line of the channel.

Looking at the indicators, we see the RSI is well into the overbought region but it still has room to move up (i.e., above 90%).

The ADX trend indicator shows the ADX trend strength (black line) is climbing, indicating the existing trend is getting stronger.  The trend is bullish of course because the +DI (green line) is above the -DI (red line).  Additional strength is shown by the +DI climbing and the -DI falling.

One point to keep in mind is that when the trend starts to weaken as the share price hits resistance, you will see the +DI peak and start to reverse before the ADX line weakens.

The Chaikin Money Flow (CMF) Histogram indicator is well above the zero line which shows the buying pressure is continuing.

Outlook: The chart and indicators show that GBB will probably continue its upward climb in the near future but could encounter resistance starting around 62 cents.

Gold is up $6 an ounce to $1,227 as of 7:50 am Pacific time this morning…the CDNX, after reversing to the downside during the day yesterday, is 6 points higher at 1459…technically, in BMR’s view, the CDNX is on the cusp of a significant move to the upside which should be confirmed by the end of the week…several technical indicators are suggesting this including an imminent reversal in the CDNX’s 20-day moving average which has been in decline for 6 weeks now…a strong market through the last half of the month and into at least early July seems highly probable at this point…the yearly low of 1393 May 21 was clearly an important bottom…Gold Bullion Development (GBB, TSX-V) continues to make new highs…this is such a compelling geological story which is just starting to get the recognition it deserves…GBB is up another three cents to 57 cents on volume of 800,000 shares…other opportunities in the BMR Portfolio we like over the short to medium term are Sidon International (SD, TSX-V), Seafield Resources (SFF, TSX-V) and North Arrow Minerals (NAR, TSX-V)…Sidon is up a penny to 6 cents on news the company has filed with the Venture Exchange a 43-101 technical report on the Morogoro East Gold Property in Tanzania…Sidon has also filed the option agreement regarding the property and the private placement as well and will issue a news release once the CDNX reports back to the company…all is quiet with Seafield at the moment but we’re certain that won’t last much longer…Seafield closed a $3 million private placement last Friday and we have every reason to believe the company is going to aggressively drill and explore its highly prospective gold properties in the Quinchia District of Colombia beginning shortly…Seafield’s Elora Gold Property in Ontario may also come into play soon with Manitou Gold (MTU, TSX-V) currently drilling the former Big Master Mine immediately adjacent to Elora in the Gold Rock mining camp of northwestern Ontario…North Arrow Minerals (NAR, TSX-V) closed yesterday at 18 cents and hasn’t traded yet today…BMR is very excited about the prospects for this company which will be drilling its very promising Lac de Gras diamond property this summer…North Arrow has considerable exploration upside and is led by mining legend Gren Thomas who is one of the best in the business at grassroots exploration…

Gold is off $8 an ounce at $1,219 as of 9 am Pacific time this morning but the CDNX continues to build on its momentum from late last week…on much stronger volume today the Venture is up 4 points to 1464 in sympathy with the major markets which are enjoying a good day…Gold Bullion Development (GBB, TSX-V) hit a new all-time high this morning of 54 cents…as of 9 am the stock is ahead four pennies at 53 cents on just over 700,000 shares…the chart for GBB, as outlined by our technical analyst over the weekend, continues to look very powerful…Sidon International Resources (SD, TSX-V) is showing renewed strength this morning…Sidon is up a penny to a nickel on nearly a million shares…the company continues to wait for approval from the CDNX on a recently announced proposed private placement and a letter of intent regarding an option on the highly prospective Morogoro East Gold Property in Tanzania…a company we’re watching closely that is not yet in the BMR Portfolio is Manitou Gold (MTU, TSX-V) which was listed on the Venture Exchange just a few months ago…Manitou has raised over $5 million (a flow-through PP at 75 cents for nearly $3 million was approved by the CDNX Friday) for exploration of its properties in the Gold Rock mining camp in northwestern Ontario…they are currently drilling the former Big Master Mine which has many high grade showings and was a small producer for brief periods in the early 20th century…Manitou holds a large land package in that area which we believe is very attractive…armed with $5 million in its treasury, this company has a very aggressive exploration program lined up…Goldcorp Inc. (G, TSX) holds slightly more than 10% of Manitou’s nearly 27 million outstanding shares…Manitou is trading at 41 cents this morning…there’s not a lot of liquidity in this stock at the moment but that could certainly change in a hurry as drill results are released and more people become aware of this recently listed company…Seafield Resources (SFF, TSX-V), whose Elora Gold Property is immediately adjacent to Manitou’s Big Master Mine, announced the completion of an over-subscribed $3 million private placement Friday…Seafield should have a very active summer with a substantial drill program underway shortly at its gold properties in the Quinchia District of Colombia…Seafield has consolidated nicely just below 20 cents and technically appears ready to start climbing higher again after dropping from a yearly high of 35.5 cents in February to a low last month of 16 cents…Seafield is unchanged at 17.5 cents this morning…oversold Richfield Ventures (RVC, TSX-V) is down 2 more cents to exactly $1…Kent Exploration (KEX, TSX-V) is unchanged at 11 cents with a strong bid at 10.5…Kent is also technically oversold and should strengthen if it’s able to close its recently announced proposed private placement which would raise $600,000 at 10 cents…

CDNX and Gold

The CDNX is showing signs of powering higher as illustrated in John’s updated chart and analysis posted earlier this evening.  For the week the CDNX was off 5 points to 1460.  It found strong support just above 1440.  The 1393 yearly low set May 21 is looking more and more like a very important bottom.  The CDNX’s 20-day moving average, which has been in decline for about 6 weeks now, appears poised to reverse to the upside by the end of the upcoming trading week which would confirm a new bullish trend.  Look for increased volume and higher prices in the week ahead.  Gold surged to a new record high this past week, just above $1,250, before pulling back to close the week in the upper 1220’s.  Technically and fundamentally, Gold is looking very strong right now and it’s likely just a matter of time before it makes a decisive move through resistance around $1,250 and runs to at least $1,300 and eventually much higher for reasons we have already detailed (debt, loss of confidence in currencies, etc.).

The BMR Portfolio

Gold Bullion Development Corporation (GBB, TSX-V)

Gold Bullion’s chart is a picture of beauty – it really is…and a picture tells a thousand words…GBB continues to climb, slowly but surely, and hit a new 52-week high last Tuesday of 52 cents on 3 million shares…the stock closed the week at 49 cents for a 6-cent jump over the previous Friday…drilling continues around-the-clock at the Granada Gold Property near Rouyn-Noranda, Quebec, where the company is conducting definition drilling within the Preliminary Block Model and exploratory drilling outside the Block Model…publicly available information from the Quebec Ministry of Mines shows that historical work at “Aukeko” and “Austin-Rouyn” (approximately 2.2 and 3.5 kilometres east of the Block Model, respectively) significantly expands the exploration potential of the LONG Bars Zone which has a current strike length of 1,100 metres…an east-west trending zone of shearing, alteration and quartz veining (with intrusions of syenitic feldspar porphyry) extends almost directly east of GR-10-17 (Gold Bullion’s easternmost hole drilled to date) for at least several kilometres…the deposit at Granada is open in all directions with the best potential going east and within the Preliminary Block Model itself at depth (>300 metres)…

Seafield Resources (SFF, TSX-V)

Seafield announced the closing of a nearly $3 million private placement Friday…significant “new players’ seem to have entered the picture with Seafield given the oversubscribed PP and the 10 million share day we saw May 13…in situations like this, we often see news and a strengthening of the share price soon after Exchange approval is granted on the PP…technically, it’s highly likely that Seafield bottomed out at 16 cents May 6…the stock closed at 17.5 cents Friday, up half a penny on the week…drilling starts soon at the company’s Quinchia District gold properties in Colombia…armed with approximately $5 million now in the bank, Seafield is likely going to be very aggressive in its exploration efforts…Colombia is a focus of attention for Seafield but ongoing exploration at a gold property in northwestern Ontario could have a significant impact on the stock as well…most investors aren’t aware that a newly-listed company called Manitou Gold (MTU, TSX-V) is drilling the former Big Master Mine which is immediately adjacent to Seafield’s highly prospective Elora Gold Property…initial drill results are imminent out of Big Master which has many high grade showings…interestingly, Manitou also just completed a $3 million financing (also announced on Friday) and they too now have $5 million in their treasury…

Kent Exploration (KEX, TSX-V)

Kent has had a rough few weeks after the Australian government unveiled a proposed “super tax” on producing mining companies…under pressure it appears they are now revising that ridiculous proposal…one of Kent’s 3 flagship properties (the Gnaweeda Project) is in Australia and the proposed spinoff of Gnaweeda into Archean Star Resources is now on hold due to investors’ current uneasiness with Australia…Kent announced a proposed private placement financing of $600,000 last Thursday which would significantly improve its balance sheet…hopefully Kent can complete that financing as soon as possible and move forward with its Alexander River (New Zealand) and Flagstaff (Washington State) projects until there’s more certainty and clarity with the mining and exploration sector in Australia…Kent closed at 11 cents Friday, a 1.5 cent drop for the week…Kent’s stock price has been down or unchanged in 10 of the last 11 trading sessions…technically, Kent is very oversold and due for a bounce back up…interestingly, the stock filled a gap this past week (10.5 cents) from last October…

Richfield Ventures (RVC, TSX-V)

Investors didn’t seem too excited with Richfield’s latest drill results and drove the stock down to a weekly close of $1.02, a 23-cent drop from the previous week…the stock has been in a steady free-fall since the first trading day of May when it touched $2.05…Richfield reported on 3 holes last Tuesday…BW-62, collared 117 metres northwest of discovery hole BW-59,  intersected 123 metres grading 1.09 g/t Au within a wider interval of 175 metres of 0.88 g/t Au…two other holes near BW-59 (east and northeast) did not deliver very favorable results…this is not unusual in the process of proving up a major deposit – some poor holes and some excellent holes can be expected…the theory is that the best potential for the Blackwater Project could be on its 100% owned lands to the south of BW-59…drilling has been progressing rather slowly at Blackwater which may be another reason for the weakness in the stock…a bigger camp and a second rig have now been approved…the stock is very oversold technically and is sitting just above its rising 300-day moving average where it should find strong technical support…

North Arrow Minerals (NAR, TSX-V)

North Arrow was up half a penny on the week to 17.5 cents…drilling at the company’s Beaverdam Lithium Project should be drawing to a close…2 of a planned 8 to 10 holes were completed by the end of the first week of May…North Arrow’s next major exploration activity will be the drilling of kimberlite targets at its Lac de Gras diamond property in the Northwest Territories…this is when things should get really interesting with North Arrow as Dr. Chris Jennings, one of the world’s foremost authorities on diamond exploration, has identified 70 high priority kimberlite targets (using proprietary technology) on North Arrow’s landholdings…only 1 of those 70 targets has ever been drilled before…the Diavik deposit, one of the richest in the world, trends right through the centre of North Arrow’s property…the ratio of kimberlite pipes to economic pipes is the highest in the world at Lac de Gras, so it’s really just a numbers game for Jennings and North Arrow President and CEO Gren Thomas who together discovered the Diavik deposit nearly two decades ago…

Sidon International (SD, TSX-V)

We remain very bullish on Sidon which is now waiting for CDNX approval on a private placement and a letter of intent/option for the possible purchase of the Morogoro East Gold Property in Tanzania…Sidon closed unchanged at 4.5 cents this past week, just above its rising 300-day moving average…Morogoro East is a highly prospective property in a very favorable jurisdiction for mining and exploration…

Colombian Mines Corporation (CMJ, TSX-V)

Colombian Mines closed up 6 cents at 90 cents this past week…more drill results are pending from CMJ’s Yarumalito Gold Property in Colombia…encouraging assays on 3 holes were reported last month…technically, Colombian is holding up well…it has found strong support at its rising 200-day moving average of 80 cents…given the promising potential of Yarumalito and a large package of other highly prospective early stage projects in Colombia, the long-term outlook for this stock continues to be very positive…

Greencastle Resources (VGN, TSX-V)

It was another quiet week for Greencastle which closed down half a penny to 12 cents…Greencastle remains in the BMR Portfolio because the stock represents excellent long-term value with the current price matching its working capital…Greencastle is generating at least $100,000 per month in cash flow from its Primate oil royalties and holds some solid gold properties along the Battle Mountain/Carlin Trend in Nevada…the time to buy Greencastle is always when it’s trading at or just below its cash value with the goal of selling into strength when it makes its inevitable move higher into the 20’s and possibly beyond…given its strong cash position and regular monthly cash flow, Greencastle has a very attractive risk-reward ratio at current levels…

Despite general weakness in the overall markets the past couple of weeks, the CDNX has held above the yearly low of 1393 set May 21 which confirms our view that 1393 was an important bottom with a strong upside move on the horizon.  BMR’s technical analyst sees some very bullish signs as explained with the updated chart and analysis below:

The immediate outlook for the CDNX is very positive.

John: There were some significant technical developments with the CDNX this past week.  Not only did it find support but there are signs of a possible bullish reversal.

Looking at the chart we see that on Tuesday the Index found support at the top green horizontal line.  It tested and held this level Wednesday and Thursday.  Then on Friday we saw a modest but nonetheless bullish move to the upside.

The major resistance lines are shown in blue while the support levels are in green.  There are at the same levels as previous charts.

For this to develop into a major move up, the volume must increase.  Volume was relatively low the past two trading days.

Looking at the indicators:

The RSI has moved up from just below 30% to the 40% level, a bullish sign.

The Slow Stochastics has the %K (black line) turning up at the 19% level and the %D (red line) turning down.  This is bullish with a possible crossover expected this coming week.

The Chaikin Money Flow (CMF) indicator is still slightly bearish but is heading upward to the zero line and perhaps above.  This is bullish.

The 20-day moving average (SMA), which has been in decline now for about 6 weeks, appears poised to reverse to the upside by the end of this coming week which is also a very bullish sign.

The outlook for the CDNX right now is very positive.  The coming week will be a good test for confirmation of a bullish turnaround.