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Greencastle Resources (VGN, TSX-V) has experienced 3 powerful moves – very sharp spikes – over the last 7 years (late 2003, early 2006 and mid-2008).  The 2006 surge was more intense than 2003, and the 2008 explosion from 13 cents to 60 cents in just 18 trading sessions was stronger than 2006.  We’re certain that a very powerful fourth move is now underway, which could be longer lasting and even more spectacular than the previous 3, driven by Greencastle’s recent shift in corporate strategy to get much more active in the Gold exploration space.  This is a company with 3 quality Gold projects and possibly more on the way, monthly cash flow of at least $125,000 from an oil royalty valued at $5.2 million by an independent engineering firm last December, and $6 million in working capital with not a penny of debt – and it’s trading at a paltry market cap of just $8.3 million based on Friday’s closing price of 18.5 cents.  The huge volume increase in VGN at the end of last week suggests its fourth BIG move in the last 7 years is now underway.  BMR’s technical analyst reviews Greencastle’s chart to determine what we might expect in the immediate future:

John: On Friday, Greencastle Resources (VGN, TSX-V) opened at 18.5 cents, drifted down to its low for the day of 18 cents, climbed to a high of 19.5 cents and then closed at 18.5 cents for a gain of 1.5 cents on CDNX volume of 1 million shares.

Looking at the 15 month weekly chart, we see that starting in August, 2009,  VGN began a slow climb that took it to a high of 19.5 cents in January, 2010. From there the trading pattern that formed is a “Cup with Handle” (mauve lines), the handle shown as downsloping blue and green lines (note the charting software does not show 3 significant figures, thus the high of 20 cents is really 19.5 cents.   The low for the cup is 11.5 cents).  We also can see that the right hand side of the Cup reached a high of 18 cents and retraced down to the 14 cent level. Last week saw the breakout from the handle to end the week at the 19.5 cent level, the same as the left hand side of the cup. This is at the resistance level denoted by the horizontal blue line.

There are two sets of near-term Fibonacci levels shown. The initial set in green shows the first target is 26 cents.  The second set in blue indicates the second target is 35 cents.  Over the week a relatively huge 1.7 million VGN shares were traded, 1 million on Friday alone.

Looking at the Indicators:

The RSI is at the 66% level, not overbought, and notice the RSI bounced off the 50% level when the breakout from the handle occurred – very bullish.

The Chaikin Money Flow (CMF) indicator shows that last week’s buying pressure increased to offset the CMF selling pressure and reduced the previous week’s level from -0.40 to -0.067 – very bullish.

The ADX trend indicator has the +DI (green line) at 34, pointing up and above the -DI (red line) which is at 11 and pointing down – a bullish orientation. Notice the +DI crossed up over the -DI in the second week of September to start the bullish trend.  The ADX (black line) trend strength indicator is at the 21 level and rising, indicating a strengthening bullish trend.

Outlook: With the breakout from the handle the next objective is for the price to break above the 20 cent level on its way to the first target of 26 cents in the near future.  This is entirely possible if the volume remains high.  This stock has a history of quick, explosive moves.

CDNX and Gold

The CDNX continues to climb a “wall of worry” and has now enjoyed an amazing 11 consecutive weekly advances.  With Friday’s close of 1950, this red-hot market is up 45% since early July (that sounds incredible, but this writer witnessed the old Vancouver Stock Exchange jump 50% in 1 month in January, 1983) and has achieved another milestone – it has broken above (by just 1 point, mind you) its 200-week moving average for the first time in over 2 years.  In fact, the Great CDNX Crash 0f 2008 started in July when the Index broke below its 200-week moving average at the time.  At the beginning of this month (October) we predicted the CDNX would likely quickly reach a resistance band between 1900 and 2000 – so the question is, what’s next?

It seems the CDNX is determined to hit the psychological 2000 mark in quick order and then it’s likely going to need at least a few days to decide if it’s comfortable with that level at the moment.  We’ll let the market tell us what it wants to do over the near term.  A convincing move past 2000 on strong volume would be a clear indication that the Index could rapidly advance to the next major area of resistance around 2200.

It’s important to keep the “Big Picture” in mind which is the undeniable fact, we believe, that the CDNX and precious metals stocks in general are in the midst of a move of historic proportions which should ultimately take the CDNX to new all-time highs, quite possibly sometime during next year.  We’ve stated this repeatedly – the “mania stage” has yet to kick in.  The important breakouts we’re seeing in a lot of individual stocks is additional technical evidence that something very big is just around the corner in the speculative junior resource market.

At some point in November or December we do expect a minor pullback in the CDNX and then some sideways trading to unwind the current overbought conditions and close the gap a little with the long-term moving averages.  However, any significant weakness is going to be met with strong buying from pros and smart retail bargain hunters who see what we see beginning by late December at the latest – another massive move in the CDNX and a super-charged market through at least March on the strength of higher Gold and Silver prices, stronger commodity prices in general and major markets (Dow, Nasdaq, TSE) that are also advancing.  The expected Republican takeover of the U.S. House of Representatives and possibly even the Senate in Tuesday’s Congressional elections should be welcomed by investors (in both the United States and Canada).  The far left, anti-business, tax-the-“rich” agenda of the self-described “community organizer” in the White House who hasn’t worked a day in his life in the private sector is about to be stopped in its tracks.  Obama’s Chief of Staff knew when to bail when he bolted Washington recently for Chicago.

After falling the previous week for the first time in 6 weeks, Gold found support around $1,320 and powered higher Friday to close at $1,360 for a $33 weekly advance.  It’s impossible to say for sure how the Gold market will react to the outcome of Tuesday’s Congressional elections and the Fed’s announcement this coming week regarding more quantitative easing measures.  A bounce in the U.S. Dollar could occur on the hope – a false one –  that the U.S., with Republicans in control of perhaps both the House and the Senate, is about to get serious regarding its out-of-control spending and debt levels.  A “sell on news” mentality after the Fed speaks could be negative (briefly) for Gold.

The BMR Portfolio (2nd of 2 Parts)

GoldQuest Mining (GQC, TSX-V)

GoldQuest is one of our favorites with an outstanding portfolio of Gold projects in the Dominican Republic including Las Tres Palmas and Las Animas…the company also holds the Toral Silver-Lead-Zinc Project in northwest Spain with an historical (non-compliant) estimate of 5.4 million tonnes grading 9% zinc, 6% lead and 45 g/t Ag…a 43-101 is currently being prepared on Toral in addition to Las Tres Palmas…Las Tres Palmas is an exceptional target as demonstrated by new drill results released this past summer which included 26 metres grading 11.4 g/t Au in LTP-39 and 53 metres of 3 g/t Au in LTP-41 from the Escandalosa Zone…the results extended the known mineralization at Escandalosa to the northeast and south where it remains open in both directions…the Gold occurs as a flat-lying stratiform zone at shallow depth with mineralization interpreted to be part of a larger intermediate sulphidation replacement-style system which has now been defined intermittently over a strike length of 2,100 metres…Las Tres Palmas is part of the company’s San Juan Project which was discovered by GoldQuest geologists during the Gold Fields-funded regional exploration program in an area believed to have no previous history of mining or exploration…based on results to date, additional drilling at Las Tres Palmas could give GoldQuest a deposit of a million ounces or more at this property…that is clearly the potential…the initial 43-101 is expected to fall considerably short of that mark with only 42 holes drilled so far but the 43-101 will add fundamental value to the company and provide a base to build on…GoldQuest is in the process of organizing its exploration plans for its various DR properties including Las Tres Palmas…we expect by January at the latest GQC will be in the midst of a major new drill program in the DR…GoldQuest is up 23% since we added it to the BMR Portfolio late last month…in mid-2007, when the CDNX was trading above 3000, GoldQuest ran to an all-time high of $1.80 for a market cap of about $100 million…the company has much more going for it now in the DR, and has also since built a strong presence in Spain with a polymetallic project at Toral that definitely has production potential, so the possibilities for GQC going into a very hot market in 2011 are incredibly exciting to say the least…

Sidon International (SD, TSX-V)

We remain very bullish on the prospects for Sidon which has been quiet recently as the company seems to be holding its cards close to its chest at the moment…we fully expect that Sidon’s Morogoro East Gold Property in eastern Tanzania will generate major interest in the coming months…it also wouldn’t surprise us if Sidon picks up additional land packages in Tanzania…the stock was up half a cent for the week at 10.5 cents as it continues to build a base around this very strong area of technical support…the share price is underpinned by rising long-term moving averages (100, 200 and 300-day SMA’s) which confirms the outlook remains very positive…Sidon is up 110% since we uncovered this diamond-in-the-rough for BMR readers last spring…

Seafield Resources (SFF, TSX-V)

BMR interviewed Seafield President and CEO Tony Roodenburg this past week, a 12-minute discussion that was uploaded to the site Friday afternoon…Roodenburg admitted he has been frustrated with the pace of exploration at the company’s Quinchia Project in Colombia, but he thanked investors for their patience and confirmed that drilling has finally concluded at Miraflores (12 holes in total) where the company is hoping to increase the compliant resource to 1 million ounces…the drill rig for Miraflores will now proceed to Dos Quebradas which in our view is Seafield’s best prospect at Quinchia…historical drill results as well as recent geophysical and soil sampling work by Seafield suggest Dos Quebradas is a highly prospective porphyry-style target that holds major discovery potential…Seafield’s third property at Quinchia is Chuscal but the company is still waiting for Colombian government sign-off on that deal (expected in the near future)…Seafield was off 3 pennies last week to 21.5 cents but with an attractive land package at Quinchia and a market cap of only $20.5 million, the risk-reward ratio with this play right now appears to be very favorable…Roodenburg stated the company also has plans for its Picachos silver-Gold Property in Mexico…Seafield’s other asset is its Elora Gold Property near Dryden, Ontario, which previously has delivered very promising results…Seafield is up 258% since we introduced it to BMR readers in the summer of last year…we see strong fundamental value with SFF…

Excel Gold Mining (EGM, TSX-V)

Excel fell as low as 14 cents this past week, half a penny below its rising 100-day moving average, but recovered Friday to close the week unchanged at 16 cents…the company recently finalized a $763,000 flow-through financing and also announced that a 4,000 metre drill program will begin at its Montauban Mining Camp Project, 120 kilometres west of Quebec City, by month-end…drill targets were selected based on information provided by the most extensive historical compilation of geological data (including over 900 drill holes) ever assembled on Montauban which is a former Gold, silver and base metals producer…the company’s AGM is coming up in just over a week…we’re anxious to see the outcome of that as well as confirmation of Frank Basa’s role in the company…Excel is unchanged since we added it to the BMR Portfolio October 8…

Colombian Mines (CMJ, TSX-V)

Colombian was up 3 pennies for the week at 80 cents on quiet trading…for about 6 weeks now the stock has traded in a tight range between its 100-day SMA and its 200-day SMA…our expectation, based on technical and fundamental factors, is that CMJ will ultimately overcome resistance at 95 cents and take off to the upside…traders should be watching this one closely for if and when CMJ gets through 95 cents, its move will likely accelerate rapidly just based on technical factors…on October 13 the company reported assay results for 7 more holes at its Yarumalito Property with the best result being a 151 metre section in porphyry from YAR-24 grading 0.64 g/t Au…YAR-14 returned 95.5 metres of 0.70 g/t Au…Yarumalito continues to show promise but these are still early days and much more drilling is required…CMJ is one of the best positioned companies in Colombia with a history in that country and a large package of properties…the stock is up 25% since our introduction of it late last year (it was up as much as 170% at $1.62 in March)…

The BMR Portfolio (1st of 2 Parts):

Gold Bullion Development (GBB, TSX-V)

Gold Bullion has closed its $8 million financing (announced Friday morning) and it’s now armed with over $10 million in its bank account, all the money it needs to take exploration in the LONG Bars Zone of the Granada Gold Property to the next level…even at a burn rate of $1 million per month or slightly more, GBB won’t have to concern itself with another financing until well into next year…the company should also be getting some money back from the Quebec government for drilling expenditures and some warrants will also undoubtedly be exercised over the coming months, so Gold Bullion is very well positioned financially to make things happen at Granada…there has not been an exploration update from Granada since mid-September, just prior to the financing, which doesn’t concern us in the least…it’s safe to assume that the news flow should pick up again in November…there is every reason to believe, based on the geological reports we’ve read and the results to date, that mineralization at Granada is over an extremely large area…this deposit model is all about volume, so the more Gold Bullion drills and the quicker it drills the better…it will take time to confirm but at the end of the day, as we’ve stated repeatedly, the potential of a 5 million+ ounce LONG Bars Zone open-pit deposit is very real…given the strength of Gold and the CDNX, and where we see these markets going in 2011, any company that can demonstrate it has a multi-million ounce near-surface Gold deposit (especially in a mining friendly and safe jurisdiction such as Quebec) is going to command a very high valuation, well into the hundreds of millions of dollars…Gold Bullion is showing bullish new technical signs, gapping up Friday and closing at 63 cents (for a weekly gain of 6 cents) on its highest CDNX volume day (nearly 1.4 million shares) in a month…as John pointed out in his GBB chart analysis Friday night, on Thursday there was a breakout above the top of the triangle at a point approximately 3/4 of the distance between the start of the triangle and the apex…that was a significant development as this is the area where breakouts have the greatest upward force…support held for GBB at its rising 100-day moving average over the last 6 weeks, and now the 20-day SMA has reversed to the upside which suggests a new uptrend in the stock is indeed underway…GBB has jumped 800% since we introduced the company to BMR readers last December…

Adventure Gold (AGE, TSX-V)

BMR was pleased to add 3 new companies to its Portfolio this past week, Adventure Gold being one of them at 34 cents…we first mentioned AGE to our readers in an article September 29 when the stock was trading in the low 20’s and just a couple of days after the company announced it had acquired a small but strategic land position at Granada…on Friday, AGE closed at 39.5 cents after climbing as high as 43 cents during the day…Adventure Gold has been around for only 3 years (the stock is in new all-time high territory) and we are impressed by the company’s strong portfolio of properties (19 in 6 strategic areas in Quebec and Ontario) including its recently announced partnership with Agnico-Eagle (AEM, TSX) at Dubuisson…it also has a partnership with Lake Shore Gold (LSG, TSX) on the Meunier 144 Property where deep drilling is currently testing the down plunge extension of Gold zones located at the Timmins and Thunder Creek deposits…Adventure Gold has approximately $2 million in cash and nearly $3.5 million in cash and stock (includes 15,000 shares of Agnico-Eagle)…we’ve spoken with Marco Gagnon, AGE’s President and CEO…he has strong credentials and a clear vision for this company…he has also assembled a powerful geological team…this is a determined and aggressive group…technically, the stock started what appears to be a new uptrend this past week after consolidating in the low 30’s for about 3 weeks to unwind an overbought condition…

Currie Rose Resources (CUI, TSX-V) – SPECIAL ALERT

Currie Rose was added to the BMR Portfolio at 16 cents this past week after we completed a considerable amount of due diligence on this company which has been publicly trading under the same name with no consolidation for nearly 40 years…it has also had the same President, Harold Smith, for the past 17 years…so what has transpired with this company that has us so excited?…the explosion in the Gold market and the success other companies are having in Tanzania has made Smith realize that his company’s assets in that country, first acquired in 2005, are undervalued…he’s getting the word out and is going to aggressively tackle 2 major and highly prospective projects  – Mabale Hills, where Currie Rose made a discovery at Mwamazengo several years ago when it first started in Tanzania, and Sekenke where the company has assembled a large land package surrounding the former Sekenke Mine, one of the very first Gold mines in Tanzania which was in production in the first half of the 20th century…we have done our research on Sekenke and we have more to report on that project in the days ahead – in short, we believe Sekenke is another Granada-type situation and has tremendous potential to quickly develop into a “company maker” for Currie Rose…right now, Currie Rose is drilling its Sisu River Property at Mabale Hills (a few kilometres northeast of Mwamazengo)…a 3,000 metre RC drill program is in progress at Sisu River where “significant ‘in-situ’ Gold mineralization” exists according to a 2005 Technical Report…Sisu River has never been fully or properly explored and the current drill program is expected to deliver some answers regarding this property, in particular the extent of the Gold mineralization… this is a VERY interesting target which is hosted within felsic volcanic rocks, generally considered to be favorable hosts for Gold in greenstone belts around the world…rock chip sampling by a previous operator returned values as high as 553 g/t Au…random grab samples recently collected by Currie Rose’s geologist, over an area 150 metres by 30 metres, also returned interesting numbers with 6 of 13 results grading better than 5 g/t Au including one as high as 89 g/t Au…Gold is present at Sisu River, it’s close to surface (artisanal miners made their own discovery there about a year ago), and could be disseminated throughout the rock…in otherwords, it doesn’t appear they’re chasing a narrow vein structure…Currie Rose has a well thought out drill plan and the first round will blanket the anomaly with 25 or so holes drilled to depths of approximately 100 to 125 metres…record levels of volume for this stock started in mid-August and that’s a very bullish sign…over 6 million CUI shares traded this past week on the CDNX, including 2.1 million Friday when the stock closed at a new 52-week high of 19.5 cents…a breakout through resistance at 20 cents appears imminent…

Greencastle Resources (VGN, TSX-V)

In clockwork-like fashion, Greencastle has experienced 3 powerful moves (very sharp spikes) over the last 7 years (late 2003, early 2006 and mid-2008)…2006 was more intense than 2003, and 2008 was stronger than 2006…we’re certain that a very powerful fourth move is now underway, driven by Greencastle’s recent shift in corporate strategy to get much more active in the Gold exploration space…the stock roared to life Thursday and rocketed from a low that day of 14 cents to a high Friday of 19.5 cents before closing at 18.5 cents…the increase in price was significant but the key development here is that the stock went up in value on a huge surge in volume…Friday’s volume of just over a million shares was the highest we’ve seen in VGN in almost a year when the stock showed some life last November and made a brief run to 25 cents (not one of the 3 major historical moves we referred to earlier)…the fundamentals are different now with Greencastle than they were last November, and so too are the technicals…VGN’s 300-day moving average was in decline when the stock took off to 25 cents last November….its 300-day SMA is now increasing, along with the 100-day, and VGN’s 200-day SMA is about to reverse to the upside which is going to add more fuel to the fire…with a capitalization of only $8.3 million, Greencastle is dirt cheap in relation to its peers and in the context of the current overall market…the company has a terrific balance sheet with $6 million in cash and regular monthly cash flow of at least $125,000 from an oil royalty that was valued at $5.2 million by an independent engineering firm last December…with the acquisition 2 weeks ago of 13,000 hectares near Richfield’s Blackwater discovery in central British Columbia (Greencastle has already completed a detailed heliborne magnetic and electromagnetic geophysical survey over the property), the company now has 3 Gold properties in its portfolio with the other 2 in Nevada along the prolfic Battle Mountain trend…the Indian Creek and Jewel Ridge properties showed a lot of promise several years ago – these are highly prospective targets in strategic locations – but Greencastle’s focus in late 2007 shifted out of the Gold sector and back toward oil and gas as well as investments in other companies…VGN rebuilt its cash position and now wants to take advantage of the bullish Gold market…we spoke to President and CEO Tony Roodenburg this past week and we sensed an excitement in his voice regarding Greencastle that we haven’t detected in quite some time…he confirmed that the company is also actively searching for another Gold Project, “a more advanced one likely in the Americas”…

Richfield Ventures (RVC, TSX-V)

Richfield had a relatively quiet week and finished with a weekly gain of of 7 cents after closing Friday at $2.76…the stock found support last week at $2.55, just above its rising 50-day moving average…we’re not sure how long the current consolidation will continue but not likely for much longer as drilling is proceeding at a good pace at Blackwater and the news has consistently been good…Richfield came out with more positive results October 20 which were in line with market expectations…BW-81 was the best intersection out of 6 new holes reported…it extended the zone southeastward, returning 171 metres grading 1.04 g/t Au and 8.5 g/t Ag…Richfield is operating with 2 rigs in a fully winterized camp…the company is armed with approximately $15 million in cash and will continue to drill over the next several months…Richfield has jumped 130% since we added it to the BMR Portfolio last December, and the company appears to be well on its way to discovering a multi-million ounce Gold deposit at Blackwater with some silver and copper mixed in as well…

John: Today, Gold Bullion Development (GBB, TSX-V) opened at 61 cents, its low, rose to a high of 64 cents and then closed at 63 cents for a gain of 3 pennies on total CDNX volume of 1.4 million shares – the highest volume day in a month.  Very shortly after the open this morning the company announced the closing of its $8 million private placement.

Looking at the 3-month daily chart above, we see that GBB gapped up slightly at the open today, from the previous close of 60 cents to 61 cents, indicating buying strength. The chart shows a symmetrical triangle (blue line on top and green line at the bottom) as the trading pattern which started on September 16.

On Thursday there was a breakout above the top of the triangle at a point approximately 3/4 of the distance between the start of the triangle and the apex (the apex is the point where the blue and green lines meet – not shown.) This is important because TA research has shown that at this area breakouts have the greatest upward force.

Between September 16 and October 25 the stock had been consolidating, waiting for news with gradually diminishing daily volumes (downsloping mauve lines).  Then on September 26 there was a bullish reversal “hammer” candle which started the reversal to the upside.  The thin blue vertical line pinpoints the reversal.

The set of Fibonacci levels (horizontal black lines) shows the next target level is 97 cents.  With 79 cents being the all-time high, we can expect strong resistance at this point especially since the previous move up was completely retraced. We can also expect resistance at 64 cents (50% level) which we saw today and at 68 cents (61.8% level).

Looking at the indicators:

The RSI has crossed above the 50% level and is at 62% and pointing up – very bullish.

The Slow Stochastics has both the %K and the %D at 87% and 68%, respectively.  Both are pointing up with plenty of room to move higher even with the %K in the overbought region – very bullish.

The Chaikin Money Flow (CMF) indicator had low buying pressure on the reversal day but has increased every day since.  This will continue to increase – very bullish.

Outlook: The chart pattern and the indicators all point to a serious move upward in the near future.

BMR remains very bullish on the prospects for Seafield Resources’ (SFF, TSX-V) Quinchia Project in Colombia, though the pace of exploration there has been a concern for us recently.

To give our readers a better understanding of what’s happening at Quinchia, Jon has interviewed Seafield President and CEO Tony Roodenburg (click on the link below to listen to the 12-minute interview):

BMR Seafield Resources Interview

Gold got as high as $1,353 this morning before pulling back…as of 7:30 am Pacific, the yellow metal is up $3 an ounce to $1,347 after a strong upside move yesterday…Silver is ahead 24 cents to $24.27 while the U.S. Dollar Index is now unchanged at 77.21, well off its high of the day…U.S. economic growth edged up as expected in Q-3 (GDP growth of 2%) but not enough to reduce unemployment or change perceptions of more monetary easing from the Federal Reserve next week…the American economic recovery is still very fragile…the CDNX is up another 9 points to 1935 as it continues to close in on the psychologically and technically important 2000 mark…Gold Bullion Development (GBB, TSX-V) has announced this morning that it has closed its $8 million financing…the stock has turned around technically and is currently up 3 cents to 63 cents…after a relatively quiet October due in large part to the financing, chances are November will be much more exciting for GBB with more drill results expected and a general ramping up of exploration efforts now that the company is armed with over $10 million in its treasury…Adventure Gold (AGE, TSX-V), GBB’s new neighbor at Granada, has been added to the BMR Portfolio and has hit a new all-time high of 41 cents this morning…more on AGE over the weekend…we encourage readers to take 20 minutes to listen to our interview with Currie Rose Resources’ (CUI, TSX-V) President and CEO Harold Smith…this is a situation we’re extremely bullish about as CUI is sitting on ground in northwest Tanzania that is much more prospective than we originally thought…we will summarize the interview and our new thoughts in a special BMR Alert this weekend…the current drill program at Currie Rose’s Sisu River Property holds excellent potential for a discovery (the first 2 holes are already complete, reaching their intended depths) and the company’s Sekenke Project is undervalued and the “sleeper” in CUI’s large overall Tanzanian land package…BMR has added Currie Rose to its Portfolio at 16 cents…Greencastle Resources (VGN, TSX-V), which has decided to become aggressive in the Gold exploration space for the first time in several years, is showing good strength again today…the stock blasted through resistance at 16 cents yesterday on its best volume day of the year, and it gapped up this morning…VGN’s 200-day moving average is now very close to reversing to the upside…Greencastle is currently up a penny at 18 cents with nearly half a million shares trading in the first hour…GoldQuest Mining (GQC, TSX-V) appears to have bottomed out in the low 20’s after pulling back from a new 52-week high of 32.5 cents earlier this month…BMR’s Technical Analyst is preparing an updated chart for GQC which holds some outstanding Gold properties in the Dominican Republic…an aggressive new exploration program for GQC in the DR is currently being planned…GQC is up half a cent to 22.5 cents after the first hour of trading…

At BMR, our specialty is uncovering overlooked junior resource companies (mostly in the Gold sector) with high quality under-explored properties that offer major potential and are in the hands of a management team that has the ability, determination and urgency to advance them.  We have found another such company in Currie Rose Resources (CUI, TSX-V) which closed yesterday at 16 cents, and we’ve added CUI to the BMR Portfolio.

Currie Rose’s focus is on three major projects in the heart of the Lake Victoria Greenstone Belt in northwest Tanzania – Mabale Hills, Sekenke and Jubilee Reef.  What really excites us right now about Currie Rose is the drill program that started several days ago at the Sisu River anomaly just a few kilometers northeast of the Mwamazengo Property where a significant near-surface discovery was made by CUI in 2005.

In a drill campaign there are risks and never any guarantees, but we’ve done our homework on Sisu River and we love this property.  The odds of success with this 3,000 metre RC Phase 1 drill program are very real.  Meanwhile, Mwamazengo clearly warrants additional exploration (63 metres grading 2.59 g/t Au was one of several stellar holes drilled there) while the “sleeper” in Currie Rose’s package is the Sekenke Project which reminds us a lot of the Gold Bullion situation with Granada.  Sekenke has huge potential and Currie Rose is hungry to “go for the Gold” throughout that large land package which surrounds two former mines with extensions to those structures likely.

Currie Rose, which has a very modest market cap of $12.5 million with 79 million shares outstanding, also has a Gold property (Scadding) of considerable merit near Sudbury which is under option to Trueclaim Exploration (TRM, TSX-V).  Trueclaim is working hard and getting promising results from Scadding.

BMR has just interviewed Currie Rose President and CEO Harold Smith, and below is the link to that very interesting 20-minute discussion.  There is so much to cover with this fascinating story that we’ll be doing a “Part 2” interview with Smith sometime next week:

BMR Currie Rose Interview

As always, we suggest investors perform their own due diligence and also read our disclaimer.  No fee or compensation of any sort has been paid to BMR for coverage of Currie Rose.  The writer of this piece and the interviewer does hold a share position in CUI (120,000 shares).