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BMR Portfolio (continued)

Sidon International (SD, TSX-V)

Sidon pulled back early in the week but found strong support at 10 cents, as BMR’s technical analyst predicted, and roared higher Thursday and Friday to close the week at 16 cents, a 4-cent increase over the previous Friday…there is clearly a lot of interest in the high grade Morogoro East Gold Property in Tanzania that Sidon has an opportunity to purchase outright in an option agreement with a private company…Sidon was the most active stock on the CDNX Friday, trading a whopping 9.7 million shares (Gold Bullion was the 2nd most active with 4.5 million), after an 8 million share day Thursday…Sidon is currently trading in a zone of resistance up to 17 cents – more huge volume will be required to overcome that resistance either immediately or a little further down the road…we added Sidon to the BMR Portfolio back in March at just a nickel and we took some heat for that from certain quarters as the company has not had a great track record in terms of advancing projects…but Sidon has never had a project with such blue sky potential as Morogoro East which is in an under-explored, highly prospective region of eastern Tanzania along the same geological belt (or a parallel belt) as Canaco’s (CAN, TSX-V) extremely promising Handeni Project which is the focus of a lot of investor attention right now…often with these early-stage situations like Sidon (Gold Bullion and Seafield too when we first introduced them) you see certain blemishes (horrible web sites, projects in the past that may not have panned out, etc.) but you need to look beyond that try to envision how the company’s future may unfold with a really attractive project that it can focus on and develop – something with real merit and a lot of potential sizzle…going forward, we believe Sidon will be able to raise the money necessary to explore and develop Morogoro East and will also beef up its “people infrastructure” which is critical – the right people on the ground (as Gold Bullion and Seafield have) to  move the project along successfully and unlock all of its potential…Sidon is very speculative, like many of the other companies we follow, but the geological potential of the area that Morogoro East covers cannot be disputed…could Sidon become another Canaco?…yes, anything’s possible, just like Gold Bullion is now starting to show Osisko-style potential…

Richfield Ventures (RVC, TSX-V)

Richfield enjoyed a great July…it bottomed out at 90 cents early this month and has since risen 68% with Friday’s close of $1.51…Friday’s trading was very important technically – the stock finally blasted through resistance at its 200-day moving average ($1.35) and its 50-day SMA has swung positive after a decline that started in early May…looking at RVC’s chart, you can see how it formed a classic bottoming pattern through June and July…the company provided a drilling update on its Blackwater Gold Project at the beginning of the week and reported excellent intercepts in 3 out of 5 holes released:

BW-64: 1.57 g/t Au over 260 metres

BW-65: 0.88 g/t Au over 198 metres

BW-68: 1.51 g/t Au over 227 metres

The drill results showed continuity of grade and expand the size of the mineralized area, enlarging it to the east and south from the Dave zone…Blackwater has the potential to host several million ounces of gold, along with some copper and silver, and with a second rig arriving on the property next month, the pace of drilling will pick up considerably which has been an issue since the 25,000 metre program started in April…

Seafield Resources (SFF, TSX-V)

Seafield continues to languish but the fundamentals of this story are too good for that to continue much longer…the stock closed Friday at 15.5 cents, a 1-cent loss on the week…volume has dried up a lot over the last couple of weeks which is actually a good sign – there aren’t a lot of eager sellers around current levels…the company has been drilling its Miraflores Property at Quinchia in Colombia since near the end of June…each hole is taking approximately 7 to 10 days to complete, according to Seafield’s IR department, which means the first 3 or 4 holes have likely been completed… at Miraflores, Seafield is conducting infill dilling in order to boost the current 43-101 inferred resource of nearly 800,000 ounces to a million ounces – a 25% increase…drill results from the first couple of holes could be out as early as mid-August…by the end of August or early September, Seafield should be able to commence drilling at Dos Quebradas (with a 2nd rig) which has a lot of interesting showings and an Anglo in-house non-compliant estimate of 800,000 ounces…Seafield also has the very promising Chuscal Property which could complete a “triple play” for SFF at Quinchia and realistically provide a total resource of anywhere between 3 to 5 million ounces in that area…Seafield has a very good chance of proving up 2 million ounces by year-end and that in itself should give the stock a significant boost…there’s excellent underlying value here at 15.5 cents which puts Seafield’s market cap at just $15 million…the company is well financed…

North Arrow Minerals (NAR, TSX-V)

North Arrow’s time has not quite arrived yet but is drawing closer, providing investors with an opportunity to continue to accumulate positions in advance of an expected start to diamond dilling at Lac de Gras by early September…the company is currently ground-truthing targets laid out by Dr. Chris Jennings who identified 70 high priority kimberlite targets on North Arrow’s property through proprietary technology…the nearby Diavik diamond deposit trends right through the middle of North Arrow’s property where the belief is that kimberlite pipes do exist – the only question is, will they be economic?…exploration of this highly prospective property is in the best hands possible – Jennings is unquestionably one of the sharpest in the world at diamond exploration, and he and North Arrow President and CEO Gren Thomas teamed up of course to find one of the world’s richest kimberlite pipes at Diavik in the early 1990’s…they know what they’re doing and they’re very confident they can make another major discovery…  approval of North Arrow’s drill permit is the only thing standing in the way at the moment – a decision on that is expected during the last half of August….North Arrow also has other attractive projects in its portfolio including the Beaverdam Lithium Property in North Carolina…the stock closed Friday at 16.5 cents on low volume, a drop of 1.5 cents for the week…

Kent Exploration (KEX, TSX-V)

Kent has raised nearly a million dollars over the last month or so, putting the company on a much more solid footing…the stock declined half a cent on the week to 12 cents on low volume…from a technical perspective, Kent has suffered some significant damage recently…its 200-day moving average, just below 17 cents, is now beginning to decline and that’s going to create a lot of overhead resistance…we’re concerned that a drill permit has not yet been received for the company’s Alexander River Gold Project in New Zealand, and we’re not certain what the plan is for Gnaweeda in Australia after the Archean Star Resources proposed spin-off hit a major snag…the Flagstaff Barite Property in northeastern Washington State holds potential but production has yet to commence…Kent has good long-term possibilities but this company has been BMR’s biggest disappointment of the year, though it’s down only 25% from when we introduced it last fall…that’s why it’s never wise to put all your eggs in one basket…

Colombian Mines Corporation (CMJ, TSX-V)

CMJ came out with news Friday, announcing it’s expanding its drill program at its Yarumalito Gold-Copper Project in Colombia which has been delivering encouraging results…the stock  has been trading in a tight range lately and seems to be building a nice base of support in the immediate vicinity of its rising 300-day moving average just above 60 cents…Colombian closed Friday at 64 cents, down 1 penny on the week…with Yarumalito and a very large portfolio of grassroots projects in Colombia, CMJ does offer considerable upside potential…we added CMJ to the BMR Portfolio late last year at 60 cents and it climbed as high as $1.62 in March…the company is making progress on the ground in Colombia even though the current share price is near its low for the year…

Greencastle Resources (VGN, TSX-V)

For long-term investors, Greencastle at 12 cents is about as safe as any investment you can find and also offers the possibility of a very significant upside move…that’s why President and CEO Tony Roodenburg has been an active buyer of the stock recently to add to his already significant holdings…Greencastle is generating over $100,000 a month in royalties from the Primate oil field in Saskatchewan and also has gold properties in Nevada, a coal property in Manitoba and shale gas interests in Quebec…it’s impossible to say when Greencastle will start moving again, so this is an investment only for patient investors who are prepared to wait until sometime in 2011 to see something develop here…

The BMR Portfolio

Gold Bullion Development (GBB, TSX-V)

Gold Bullion was the second most active stock on the CDNX Friday (right behind another BMR gem), gaining 3 cents on volume of 4.5 million shares to close the week at 58 cents…for the week, GBB was up 9 cents or a very respectable 19%…its 10 and 20-day moving averages, which were in decline for much of the month, have now swung positive which bodes well entering the month of August…all of GBB’s moving averages are now once again in bullish alignment…for those investors who may have been expecting a much more dramatic move in Gold Bullion today, following yesterday’s stellar exploration news from Granada, our advice is to keep focused on the “Big Picture” that’s clearly unfolding here and let this “play itself out”…day-to-day moves can sometimes be unpredictable for different reasons…a lot of dynamics can be at play in this type of situation and the market has to digest information…the bottom line, in our view, is that Gold Bullion is on track for a huge discovery at Granada…this is speculation on our part but there is a strong case for the LONG Bars Zone containing at least 5 or 6 million ounces…assay results from the east-northeast area, where significant zones of altered feldspar porphyry have been intersected in each and every hole as well as visible gold in many of those holes, will go a long way toward confirming that prediction of at least 5 or 6 million ounces…some of the core must look outstanding as GENIVAR has already confirmed that the geological structure of the LONG Bars Zone extends east of Phase 1 discovery hole GR-10-17, and Gold Bullion reaffirmed in yesterday’s release that mineralization at Granada remains open in all directions and appears broad-based and near-surface…analyzing previous news releases, the pace of drilling in the east-northeast has picked up by approximately 40% per day (from 100 metres per day to 140 metres per day) over the last two weeks which is another bullish sign indicating a sense of confidence and urgency on the part of GENIVAR…in otherwords, they keep hitting the right kind of structures…they are also drilling down to 350 metres vertical depth in some cases and they wouldn’t be doing that unless they were seeing the right stuff…this is an extremely compelling geological story and what has developed so far could very well be just the tip of the iceberg…there is still LONG Bars Zone 2 to explore, 1500 metres east of GR-10-78, plus much more prospective ground…the Preliminary Block Model with a potential non-compliant resource of 2.4 to 2.6 million ounces is looking very solid…stellar assay results were released yesterday on Holes 33 and 41 – the best assays so far from Granada…these holes were drilled in areas where only limited historical drilling has taken place…with a market cap of just $71 million and a possible multi-million ounce open-pit deposit on its hands, in the world’s best jurisdiction for mining and exploration, Gold Bullion’s upside potential is truly enormous…

Part 3 in our Week In Review And A Look Ahead will be posted by noon Pacific time tomorrow as we look at the other 7 companies in the BMR Portfolio including current high-fliers Sidon International (SD, TSX-V) and Richfield Ventures (RVC, TSX-V)…

CDNX and Gold

BMR was bang-on in terms of predicting a turnaround a couple of weeks ago in the CDNX…the Venture Exchange jumped 32 more points this week to close at 1427 and has moved up in 13 of the last 16 trading sessions…the bottom of a nasty 2-month slide came July 6 when the CDNX fell as low as 1343…the 20% correction from the spring high was very normal within an ongoing bull market by CDNX historical standards…the pattern the entire year so far has been strikingly similar to that of 2004 (which also bottomed in July) as we illustrated in a very important article July 16…from late July, 2004, through December, 2004, the CDNX gained 25%…for more details on the technical validation of the CDNX’s reversal, please refer to John’s excellent article that was posted this morning…at BMR we believe we are blessed with an exceptional technical analyst…the CDNX will face some near-term resistance around 1450 and it won’t likely be straight up to the moon from here, but the bottom line is that this market is looking very strong for the balance of 2010 and by September things could really kick into high gear…what has been particularly impressive and revealing about the CDNX over the past few weeks is that is has been climbing in the face of weakness in Gold, though Gold had a very good day today…the CDNX has proven to be a very reliable “leading indicator” of a lot things including the direction of Gold…the strength in the CDNX over the past few weeks is a strong clue that Gold has either already bottomed or is very close to hitting a bottom…the yellow metal closed today at $1,181, up $15…more chopiness in Gold can be expected in the near term but there is clearly very strong technical support between $1,140 and $1,160 where physical buying will also come into play…if Gold can hold support over the next 2 or 3 weeks and form a nice base, that should set the stage for a renewed advance by late August/early September which kicks off a period of season strength for Gold…

The action in the CDNX over the past few weeks has been extremely encouraging and our technical analyst is convinced that the early July low of 1343 was indeed the bottom of a 2-month slide that knocked the Index down 20%.  Historically with the CDNX,  this was a very normal correction within an ongoing bull market.  A reversal in the CDNX has been validated as John explains in detail below.

As of 11:30 Pacific this morning, at the time of this posting, the CDNX is up 2 more points to 1424.  John’s chart update and analysis below is based on yesterday’s close of 1422:

The reversal of the CDNX has taken place and has been validated. I expect we will see continuing strength for the remainder of the year. This is a very bullish scenario.

John: Yesterday the CDNX gapped to 1413 at the open, closed the gap down to 1410, and then climbed steadily through the day to close at 1422, its high for the day.  For 7 of the past 8 trading sessions the CDNX has demonstrated upside strength to provide further proof that a bottom was reached during the first week of July.

Looking at the 6-month daily chart, we see the support (green line) at 1347 and the next major resistance level (blue line) at 1445.  We can also see the “M” formation which is a bearish pattern after which the Index fell to form a bottom.

The bottoming pattern was a “W” formation and this bottom was validated when the level broke above the middle of the “W” (short horizontal green line) and continued to climb.

The SMA-13 (dotted blue line) has turned up after being in decline since the beginning of May.  The Index is now trading above the SMA-13 in the upper half of the Bollinger Bands which is very bullish.

The SMA-50 (red line) is still declining and the CDNX is just below and may encounter a little resistance when they meet.

Looking at the indicators:

We see that the RSI(7) has just entered the overbought region but this is nothing to worry about as it can stay above 70 for a considerable time.  On one previous occasion (see thin green vertical line) the RSI went above 70 at the beginning of the bullish rally and stayed there until the Index started to decline.  The RSI shows increasing strength – bullish.

The volume has been declining until yesterday but the Index was rising.  This is a bullish sign when coming off a bottom but note that when approaching a high, a bullish rally will fail unless the volume continues to increase.

The MACD Histogram is above the zero line and is increasing, and the MACD line and its signal line are both just below zero but are climbing – bullish.

The ADX trend indicator shows the +DI (green line) has just crossed above the -DI (red line).  This makes the strong statement that the trend is now bullish for the first time since the beginning of May.  The trend strength indicator is lowish at 28 and points down but this will change as the trend strengthens – bullish.

Outlook: The reversal of the CDNX has taken place and has been validated.  I expect we will see continuing strength for the remainder of the year.  This is a very bullish scenario.

Gold is showing strength today…as of 9:15 am Pacific the yellow metal is up $10 an ounce to $1,177, near its high of the day…Gold has traded in a range today between $1,166 and $1,179…the CDNX is up a point at 1423…BMR’s technical analyst has just completed an updated chart and analysis for the CDNX which we will be posting shortly…John’s outlook is very bullish…he’s also very bullish with regard to the technical condition of Gold Bullion Development (GBB, TSX-V) and an updated chart for GBB will be posted later today after the market close…Gold Bullion is up 4 pennies as of 9:15 am Pacific time to 59 cents…it gapped up to 62 cents and traded as high as 64…it also successfully tested technical support (former resistance) at 57 cents which is very bullish…the company came out with stellar news yesterday regarding its Granada Gold Property in northwestern Quebec, 40 miles west of Osisko’s (OSK, TSX) massive Canadian Malartic Deposit…not only did Gold Bullion deliver the best assay results yet from Granada (two excellent holes within the Preliminary Block Model), but a major discovery appears to be in the works in the LONG Bars Zone eastern extension…GENIVAR, which is overseeing the exploration program, has confirmed that the LONG Bars Zone geological structure extends to the east of Phase 1 discovery hole GR-10-17…Gold Bullion has clearly stated the “visuals” from the eastern extension are looking extremely positive – many of the 27 holes drilled in that area in Phase 2 have encountered visible gold and ALL of them have intersected significant zones of altered feldspar porphyry (favorable for gold mineralization)…the law of averages dictates that there is a good probability that a few of these holes, at least, could be outright spectacular and by that we mean the possibility of 150-200+ metres over 1 g/t Au…at 59 cents, Gold Bullion’s market cap is only $73 million which theoretically puts a value of $30 on each potential ounce outlined within the Granada Preliminary Block Model (non-compliant resource potential of 2.4 to 2.6 million ounces as confirmed by Gold Bullion April 22)…the valuation per ounce for the Block Model seems fair at this point (it will increase substantially with a 43-101 if the ounces are proven up) but the market doesn’t yet seem to fully comprehend the immense potential of this project going east, especially with the core observations that GENIVAR has made for the first 27 Phase 2 holes in that area…in addition, 1500 metres east of GR-10-78 – which encountered large alteration and intrusive zones to a vertical depth of 350 metres in addition to some visible gold – is LONG Bars Zone 2 which features a kilometre-long zone of gold-bearing structures that will be drill-tested later this year…the case for a significantly higher GBB valuation can clearly be made, and as yesterday’s news is digested over the next few days we expect a very interesting start to the month of August for Gold Bullion…GBB is the second most active stock on the Venture Exchange today…the most active is another BMR gem that we discovered in March when it was trading at just a nickel…Sidon International (SD, TSX-V) is up a penny to 14.5 cents on over 5 million shares…investors are clearly bullish about the prospects for Sidon’s high grade Morogoro East Gold Property in Tanzania…Colombian Mines Corporation (CMJ, TSX-V) has just come out with news regarding its Yarumalito Property which we are reviewing…the stock is up 5 cents to 67 cents…

Gold Bullion Development (GBB, TSX-V) delivered the baseball equivalent of a towering three-run home run over deep centrefield this afternoon: two absolutely stellar holes from within the Preliminary Block Model, and an ever-growing eastern extension where a major discovery clearly appears to be in the works.

Let’s get right to it and review the key information that was released shortly after Gold Bullion closed at 55 cents today:

1. Major Developments in the LONG Bars Zone East-Northeast Discovery Area

• For each and every Phase 2 hole so far (27 in total) in the east-northeast to intersect “significant” zones of altered feldspar porphyry with quartz veining (in addition to visible gold in many of these holes) is unusual and extremely encouraging.  Suffice to say, a few spectacular drill results could easily emerge from this area.  Basa’s statement (very strong words):  “We’re drilling for structure and we’re finding it consistently throughout the entire east-northeast.”

• GR-10-78, collared 250 metres east of Phase 1 discovery hole GR-10-17, was drilled to a vertical depth of 350 metres and encountered “large” alteration and intrusive zones along with VG.  Sounds like Hole 78 could even be better than Hole 17 – and do these holes just keep getting better going east?;

• Phase 2 drilling in the east-northeast is going at least twice as deep as Phase 1 drilling with “very encouraging” showings below 150 metres vertical depth.  Granada, much like Osisko’s Canadian Malartic, could be mined as an open-pit operation down to at least 300 metres vertical depth.  Given historical information from Granada and the nature of the “Cadillac Trend”, Gold Bullion could very easily hit some nice grades at depth, further enhancing the economics of this project;

• The drill map on Gold Bullion’s web site shows how GENIVAR has covered a wide area in the east-northeast with Hole 83 in progress, just south of GR-10-78;

• The pace of drilling in the east-northeast has picked up considerably over the past 2 weeks, suggesting GENIVAR is liking what it sees and is getting more aggressive;

• GENIVAR, never quick to rush to judgement, has now confirmed – without even seeing any Phase 2 assays from the east-northeast – that the LONG  Bars Zone geological structure does extend east of GR-10-17;

• Publicly available historical maps and information, obtained by BMR through the Quebec Ministry of Mines, confirm not only the immense potential of LONG Bars Zone 2 – 1500 metres to the east of GR-10-78 – but how LONG Bars Zone 2 could connect with LONG Bars Zone 1 through a very pronounced east-west trend that has a similar geological signature to the current area being drilled;

• The east-northeast extension of course is NOT part of the Preliminary Block Model potential non-compliant resource of 2.4 to 2.6 million ounces;

• The mineralized system at Granada “remains open in all directions and appears to be broad-based and near-surface” – ideal conditions for a potential large open-pit operation;

• Pending assay results from Phase 2 drilling in the extension area should keep the market on the edge of its seat – the coming days, weeks and months are going to be very interesting indeed.

2. Preliminary Block Model – Two Stellar Holes

It’s a very encouraging sign that the first four assayed holes from Phase 2 drilling include the two best results Gold Bullion has produced so far at Granada.  What this demonstrates, we believe, is that GENIVAR has a much better handle on the location and orientation of the fault structures at Granada (“late northeasterly-trending sigmoidal faults also host high grade gold mineralization” – 2006 Granada Technical Report available at Sedar) which is one reason we believe Phase 2 drilling will be even more successful than Phase 1 drilling.

GR-10-33, collared 100 metres north of Pit #2 East, was drilled to the southeast at minus-65 degrees in order to “test the LONG Bars Zone northeasterly trending fault structures”  and returned 123.5 metres grading 1.07 g/t Au.  This is the longest intersection of mineralization grading more than 1 g/t Au that Gold Bullion has encountered so far at Granada.

Sixty metres west of GR-10-33, GR-10-41 returned an interval of 75 metres of 1.50 g/t Au – significantly better than the previous best hole from within the Block Model (GR-10-12) which graded 0.91 g/t Au over 82.7 metres.

It’s important to point out, as Gold Bullion did in its release, that Holes 33 and 41 are in an area where very little historical drilling has taken place.

Holes 27 and 28, north of Pit #1 and the waste pile, weren’t nearly as stellar as 33 and 41 but nonetheless showed continuity of mineralization.  Holes 27 and 28 tested new areas in the northwest where four other holes were also drilled.

Keep in mind that the drill core grade in this type of deposit, as Basa has pointed out repeatedly, will almost always underestimate the actual gold content.  Gold Bullion’s large 2007 bulk sample clearly demonstrated this important point – the mill grade significantly exceeded the drill core grade.  Basa:  “Our 30,000 tonne bulk sample in 2007 graded 1.62 g/t Au and has given us a high degree of confidence in terms of what our grade would be in the event this potentially large deposit were to go into production.”

Could the Preliminary Block Model ultimately prove up more than 2.4 to 2.6 million ounces?  Absolutely.  In this case the “blue sky” is a few hundred metres down, maybe more, where hardly any drilling historically has taken place.

3. Moving Forward

• Phase 2 drilling is approximately 60% complete (12,000 metres);
• An even larger Phase 3 program will commence soon after Phase 2 finishes which will probably be around the end of September;
• Gold Bullion is building roads leading out to LONG Bars Zone 2 which is expected to be drill-tested later this year;
• Infill and definition drilling will continue within the Block Model pursuant to a 43-101 resource estimate.

A steady stream of assay results should start flowing sometime in August, at least that’s our assumption as there has now been almost three months of non-stop drilling.

At BMR we don’t give price targets or “buy recommendations”.  Everyone should always do their own due diligence as we have.  But suffice to say, today’s news from Gold Bullion is a game-changer which will give the company an even wider and more intense following.  To say that Gold Bullion has attained a new level in terms of its potential and respect goes without question.  GBB is the furthest thing from a stock promotion.  It’s the “real McCoy” with Osisko-style possibilities.  Aggressive and entrepreneurial junior gold explorers like Gold Bullion with significant discoveries make the Canadian junior resource market the most exciting and potentially rewarding market there is.

We first introduced Gold Bullion to BMR readers seven months ago, when the stock was sitting at just 7 cents, because we did our homework and believed wholeheartedly in the geological dynamics of the Granada Gold Property which is strategically positioned along the famous Cadillac Trend.  This has been an under-explored property with tremendous potential ever since it was first discovered in the 1920’s and mined for gold and silver in the early-to-mid 1930’s.  Gold Bullion’s drilling, as succcessful as it has been, has really only just scratched the surface of what is now a nearly 50 square kilometre land package surrounding the former mine.  We encourage our readers to continue to “THINK BIG” with Granada as the very best, we believe, is yet to come from this extremely compelling geological story.

2:00 pm Pacific

Gold Bullion Development (GBB, TSX-V) has just come out with a major news release including initial assay results (4 Preliminary Block Model holes) from Phase 2 drilling at its Granada Gold Property in northwestern Quebec.  There is a lot to review in this eye-popping release and we will be posting a more detailed analysis later today.  Below is a quick summary of our thoughts so far:

Two of the holes are absolutely stellar – the best yet at Granada – but as impressive as those numbers are, what is even more significant – and what is undoubtedly going to stir up discussion about Gold Bullion’s potential as the next Osisko – is what appears to be unfolding in the east-northeast extension where (quoting directly from the news release),  “Each and every hole drilled so far (north, south, east and west of Phase 1 discovery hole GR-10-17) has intersected significant zones of altered feldspar porphyry (favorable for gold mineralization) with quartz veining.  Visible gold has also been observed in many of these holes including GR-10-78, which just became the easternmost hole drilled to date by Gold Bullion at Granada.  GR-10-78, collared nearly 250 metres east of GR-10-17, was drilled to a vertical depth of 350 metres and intersected large alteration and intrusive zones.”

A total of 6,055 metres of drilling in 27 holes has been completed in the east-northeast area in Phase 2.

Folks, the bottom line is this: What is unfolding in the east-northeast discovery area is something potentially bigger than even Frank Basa himself ever imagined.  GENIVAR, which is normally very guarded in what it states, has also confirmed – without even seeing Phase 2 assays from this area – that the LONG Bars Zone geological structure extends east of GR-10-17.  They have obviously seen some tremendous looking core and they appear to be drilling this area very aggressively at the moment.

Gold Bullion has received assays on four holes from within the Preliminary Block Model and two of them are the best the company has delivered yet at Granada:

GR-10-33 (100 metres northeast of Pit #2 East, drilled to the southeast):

• 123.50 metres of 1.07 g/t Au and 74 metres of 1.41 g/t Au within a wider interval of 152.50 metres grading 0.88 g/t Au.

GR-10-41 (60 metres west of GR-10-33):

• 75 metres of 1.50 g/t Au and 20.65 metres of 4.98 g/t Au within a wider interval of 149.35 metres grading 0.83 g/t Au.

Holes 41 and 33 were drilled in an area of the Preliminary Block Model where only limited historical drilling has taken place.

The “big picture” with Granada has just gotten a lot bigger.  This is proving to be everything we thought it was, and then some.  More later.

Gold continues to be choppy and has traded in a range of $1,159 to $1,170 so far today…as of 8:30 am Pacific time, Gold is down $1 an ounce to $1,160…Copper has climbed to a 12-week high ($3.28 U.S. per pound) which is an encouraging sign as far as the world economic picture is concerned…the CDNX is up another 3 points to 1414…the Index has posted gains in 11 of the past 14 trading sessions and its 20-day moving average is set to swing positive which bodes well for the month of August…what has been most impressive about the move in the CDNX over the past few weeks is that it has occurred while Gold has travelled in the opposite direction…being a reliable leading indicator, the CDNX is likely telling us that Gold is nearing a bottom and should strengthen significantly in the near future…Gold is entering a period of seasonal strength which normally begins by about mid-August…Gold Bullion Development (GBB, TSX-V) is unchanged at 53 cents…it’s a “wait and see” game for investors with GBB as the company continues to aggressively drill the LONG Bars Zone with initial assay results expected in the near future as stated in the most recent news release (which was quite bullish in its tone) July 13…Gold Bullion has been gaining some technical strength recently which is certainly an encouraging sign…Sidon International (SD, TSX-V) is active this morning, up 2 pennies to 12.5 cents on nearly 4 million shares…the rest of the BMR Portfolio is quiet…Seafield Resources (SFF, TSX-V) is off a penny to 16 cents…initial drill results out of Miraflores are expected around the middle of August…the market will be looking for evidence that Seafield can increase the 43-101 inferred resource at Miraflores by at least 25% to 1 million ounces…the company will likely bring in a 2nd rig to Quinchia to begin drilling Dos Quebradas by around the end of next month…drilling at Miraflores may not conclude until the end of September…as Seafield proves up more ounces at Quinchia, as we suspect it will, the stock should break out of its doldrums…