BullMarketRun.com

Gold is higher today on fresh safe-haven buyer interest due to more tensions between North and South Korea and the European sovereign debt crisis…as of 8:00 am Pacific, the yellow metal is up $4 an ounce at $1,380 while Silver is actually off 19 cents at $29.00…the U.S. Dollar Index is up one-quarter of a point at 80.70…the CDNX, after a powerful move Friday, is up another 4 points to 2138…the Index is clearly beginning to break out again and we expect the resistance band between 2150 and 2250 will be overcome by year-end…seasonally, this is also traditionally a period of strength for the CDNX which gained 7% last year over the final 8 trading sessions and a whopping 14% over the final 3 trading sessions of 2008…Gold Bullion Development (GBB, TSX-V) has hit a new all-time high of 93 cents this morning…technical buying has been coming into the stock after last week’s push through resistance in the mid-to-upper-70’s…GBB is currently ahead 8 cents at 89 cents on strong volume….2010 has been a spectacular year for Gold Bullion and 2011 could even be more interesting as exploration and development intensify at the Granada Gold Property…last year at this time we discovered GBB when it was trading at just 7 cents…our discovery this December is Cadillac Mining (CQX, TSX-V) which has enormous potential going into 2011 with its properties west of Granada and the strong possibility of a major new project in the Great Basin…Cadillac is up 1.5 cents this morning to 43 cents which gives it a market cap of only $10.75 million…there are so many factors in favor of this company including a strong management team…we’re looking forward to our upcoming trip to Rouyn-Noranda when we’ll be reporting much more on Cadillac in addition of course to Gold Bullion and others…Everton Resources (EVR, TSX-V), not yet part of the BMR Portfolio, came out with encouraging drill results this morning from its APV Property in the Dominican Republic….we’re still reviewing the results but don’t base the quality of them on the action of the stock this morning…Everton is off 3 pennies at 35 cents on the “sell on news” mentality of some investors but the numbers are good and EVR is on the right track in the DR…GoldQuest Mining (GQC, TSX-V), also with a strong presence in the DR, is up half a penny at 38.5 cents after hitting a high of 41.5 cents…we expect drilling to be in full swing at GQC’s DR properties in January and a 43-101 resource estimate is expected soon from the company’s zinc-lead-silver deposit in Spain…2011 is going to be an exciting year for GoldQuest in our view…Adventure Gold (AGE, TSX-V) is ahead half a penny at 48 cents…with activity on numerous fronts, AGE is expected to be a strong performer as the New Year begins…the AGE chart continues to look very positive…Sidon International (SD, TSX-V) is up half a penny at 19 cents…drilling continues at Sidon’s Morogoro East Gold Property and the company has also secured ground (5,000 hectares) near Canaco’s (CAN, TSX-V) discovery…Seafield Resources (SFF, TSX-V) is off 2 pennies at 54 cents…we’re watching SFF closely as the trading action over the last 11 sessions shows some very bullish technical patterns…it’ll be interesting to see how quickly the company can close its recently proposed $15 million financing at 50 cents…results from 9 more holes at Miraflores are pending and 3 holes have already been completed at Dos Quebradas which is rich in porphyry targets over a wide area…the SFF chart we posted Friday shows a Fibonacci target of $1.05 for Seafield (not a BMR price target but a theoretical Fibonacci target based on technical indicators as a guide for investors)…Seafield should definitely be watched closely…if the multi-million ounce potential of Quinchia begins to resonate with investors through additional drill results, this will do extremely well…Currie Rose Resources (CUI, TSX-V) is off half a penny at 37 cents…the stock is in  good shape technically, however, with lots happening on the exploration front…drill results are pending from Sisu River at its very promising Mabale Hills Project, the company has other outstanding properties in Tanzania including Sekenke, and Trueclaim (TRM, TSX-V) is drilling the Scadding Gold Property which it has an agreement on with Currie Rose…

Welcome to our site, or at least the initial version of it!  BMR has been online for over a year now and strictly through word-of-mouth we have built a large and loyal following.  It helps when your portfolio is up over 200%!

We’re continuing with our plans to ultimately build a very unique investment and money-management resource site that goes considerably beyond what we have now.    An important component of this site will always be original research on small and undiscovered junior resource companies, mostly in the Gold exploration space, that offer very real and significant upside potential. We are extremely selective in the companies we feature and put forward to investors – we prefer quality over quantity.

We use a combination of fundamental and technical factors in determining the value and potential of a stock.  In terms of fundamentals we look for a company with a superb project supported by strong management.  Management must possess integrity, solid ethics and a determination to succeed and build shareholder value.

At BullMarketRun (BMR) we approach the handling of money from a biblical perspective and this is an important topic we will be sharing with our readers (and listeners) as the site continues to develop. The Bible teaches so much about money and how to handle it and invest it –  there are literally thousands of verses on how we should handle the money and possesions that God entrusts us with.  By examining the life of Jesus and reading the Word of God, we can all become fully equipped to be successful investors and handle money wisely in order to make it work for us.  If it’s the other way around –  if you’re a slave to money by being in debt for instance, or if you don’t respect the value of money and spend it foolishly –  you’re in trouble and you’ll never be blessed financially.  We have a God who thinks big – He created the universe – and He wants us to think big  in every area of our lives.  When we handle money from a Biblical perpective (His money that we have been given stewardship of) He will bless our financial decisions and an increase of tenfold or a hundredfold is always possible.  This all begins, of course, with a personal relationship with Jesus Christ by accepting Him as your Lord and Savior and putting Him at the throne of your life.  It is the most important decision you’ll ever make.

God Bless,

Terry Dyer

Owner/Publisher, www.BullMarketRun.com

Disclaimer:

BullMarketRun.com is completely independent from any companies it covers.  BMR accepts no compensation of any kind from the companies we cover in return for that coverage.   We accept no advertising either.  Our stock coverage is for informational purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. No investment opinion or other advice is being rendered on any stock or company.  We strongly recommend that you consult with a qualified investment adviser, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research before making any investment decisions.  The stocks we cover, by definition, are highly speculative and potentially very volatile.  Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks.  We are not Registered Securities Advisors. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.  It should be assumed that BMR personnel, writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time.

Owner/Publisher of BullMarketRun.com is Terry Dyer of Langley, British Columbia.

The BMR Portfolio (Part 2 of 2)

GoldQuest Mining (GQC, TSX-V)

GoldQuest was unchanged for the week, closing Friday at 38 cents…volume Friday (just 56,000 on the CDNX, nil on ALPHA) was the lowest in several months though the average daily volume for the week on the CDNX was 332,000 with the stock trading between a range of 36 and 41.5 cents…the stock has exceptionally strong technical support in the mid-30’s and we don’t anticipate a drop below that level (at least on a closing basis) through the balance of the year…the next major technical resistance is at 50 cents…with strong precious and base metal exposure, along with major new discovery potential, GQC is one of our top picks for 2011… the company is currently preparing to launch a drill program in the Dominican Republic which should build on its recently released 43-101 inferred resource for its La Escandalosa Project (formerly Las Tres Palmas)…all of GoldQuest’s properties in the Dominican Republic and its zinc-lead-silver deposit in Spain have us very bullish on this situation going forward…the company, whose largest shareholder is Gold Fields Ltd., is well established in the DR and its property package there is a geologist’s (and an investor’s) dream…they have spent nearly a decade identifying many highly prospective precious and base metal targets, one of them being La Escandalosa where an inferred resource of 400,000 ounces of Gold has already been outlined (announced Nov. 16) based on just 25 drill holes at Escandalosa Sur from 2006 through 2010…it’s important to stress the 43-101 was completed on La Escandalosa  at a very early stage and the possibility of a discovery well in excess of a million ounces is possible as this is such an attractive geological target…the deposit is open at depth as well as to both the south and the north toward another discovery of Gold mineralization by the company at Hondo Valle, approximately 1.2 kilometres away…GoldQuest now has all the permits in place for more drilling throughout La Escandalosa and a major program is set to begin…there is strong potential to substantially increase the initial inferred resource estimate for this intriguing deposit…Gold there 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…the source of the mineralizing fluids remains unknown at La Escandalosa, leaving open the possibility of the discovery of mineralization in structural feeder zones or perhaps in a porphyry copper-Gold type system…the resumption of drilling at La Escandalosa and fresh results should get the market very excited…GoldQuest has many other targets of considerable merit throughout its large DR land package including Las Animas which has a 43-101 inferred resource of 129,000 ounces of Gold, 2.5 million ounces of silver, 106 million pounds of copper and 130 million pounds of zinc…GQC has more drilling to do there as well…in Spain, Goldquest holds the Toral zinc-lead-silver deposit which has an historical (non-43-101 compliant) resource of 5.4 million tonnes grading 9% zinc, 6% lead and 45 g/t Ag…a 43-101 on Toral is currently being prepared…GoldQuest has also acquired a second polymetallic project in the area (Lago, just a 20-minute drive from Toral), and more details are expected upon approval from the Spanish government of a mineral rights application for the property… GoldQuest is up 95% since we added it to the BMR Portfolio near the end of September…

Adventure Gold (AGE, TSX-V)

Adventure Gold had a roller coaster ride Friday, dropping as low as 41 cents (the 50-day SMA) before recovering to finish the day at 47.5 cents for a weekly gain of half a penny…technically, AGE continues to look solid and the RSI appears to have bounced off support at 50 on the Index…the stock closed half a cent below its 20-day SMA Friday but the 20-day continues to rise…the company announced Thursday that a drill rig has been mobilized to its Pascalis-Colombiere Property in the eastern part of the Val d’Or mining camp…a 7-hole, 2500-metre program will test the former L.C. Beliveau Mine at depth (below 300 metres) as well as near-surface parallel Gold structures to the west…this is one of several quality projects in AGE’s portfolio…Pascalis-Colombiere is just 1.5 kilometres east of Richmont’s (RIC, TSX) operating Beaufor Gold Mine which has produced over 1 million ounces in its lifetime…it’s safe to assume Richmont will be watching AGE’s drill program with interest…we first mentioned Adventure Gold to our readers in an article September 29, just a couple of days following the company’s announcement that it had acquired land at Granada, when the stock was trading in the low 20′s…we officially added AGE to the  Portfolio at 34 cents October 28, so the gain since then is 40%…our interest in Adventure Gold, however, goes far beyond the company’s involvement at Granada, as exciting as that is…they do hold a small but strategic slice of land in the Granada Eastern Extension and also more property west and south of GBB’s Preliminary Block Model area…they’ve already produced some very interesting prospecting results on their land in the west…Adventure Gold has been around only since late 2007 and we are impressed by the company’s solid portfolio of properties (19 in 6 strategic areas in Quebec and Ontario)…also of immediate interest is AGE’s 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…Lake Shore recently provided an update on this project…the current initial deep drill hole onto the Meunier JV property is continuing and when completed is estimated to provide a deep cut on the projected target area at about a vertical depth of 2,600 metres…this will enable shallower wedge cuts to be considered if significant mineralization is found to be present in this area…the initial deep hole was collared on LSG’s Timmins mine property last August and is now about 1,700 metres in depth….this hole is targeting potential zones down plunge and on strike to mineralization at LSG’s 100% owned Timmins Mine Gold deposit where LSG has recently announced intercepts of up to 13.55 g/t Au over 50.8 metres and 61.35 g/t Au over 15 metres…the Timmins deposit straddles a volcanic/sedimentary/ultramafic contact zone within a folded sequence that plunges 54 degrees to the west-northwest toward the Adventure Gold Meunier JV property…if this deep hole succeeds, AGE could absolutely explode…

Seafield Resources (SFF, TSX-V)

Since announcing a spectacular drill result from its Miraflores Gold Property in Colombia December 2, an incredible 189 million Seafield shares have changed hands on the CDNX over 11 trading sessions (an average of 17 million per session)…that’s almost twice the amount of current outstanding shares, so there has been an amazing turnover of stock during the last couple of weeks which in our view is very bullish…volume is what will push SFF higher…the average closing price over the last 11 sessions is 59 cents…Seafield closed Friday at 56 cents and appears to have found very strong technical support in the low-to-mid-50’s…we really like how this stock has traded since December 3 and the key thing to watch for right now, in our view, is how quickly the company can close its proposed $15 million financing at 50 cents…the quicker this closes, the more bullish is the case for Seafield…results are pending on 9 more holes at Miraflores…given historical results, at least some of these holes should be very good…drilling is also underway at Dos Quebradas, a property we believe gives Seafield its real “blue sky” potential at Quinchia… SFF reported December 8 that the first 3 holes have been completed at Dos Quebradas which is rich in porphyry targets over a wide area…DQ is just a few kilometres northwest of Miraflores…visual reports indicate that these 3 holes have similar styles of mineralization to an historical hole drilled by AngloGold that returned an interval of 39.5 metres grading 1.67 g/t Au…the potential of Dos Quebradas is evident from limited historical drilling and was confirmed by Seafield earlier this year through soil geochemical surveys and magnetic surveys which are crucial to discovering hidden porphyries in areas of very little outcrop…Seafield also released results recently from trenching in 1 location from the southern end of the gold-in-soil anomaly that defines the northern extension of the Dos Quebradas porphyry…1.75 g/t Au was returned over 94 metres…Seafield has an excellent opportunity to develop a multi-million ounce Gold resource at Quinchia…with a current market cap of just $60 million ($77 million if you include the 30 million share financing at 50 cents), SFF still has considerable upside potential…we suggest readers review Friday morning’s chart update from John on Seafield…his near-term Fibonacci target is $1.05…

Colombian Mines (CMJ, TSX-V)

After finally breaking through resistance at 95 cents the previous week and climbing as high as $1.05, CMJ quickly went into reverse this past week and fell as low as 88 cents before closing Friday at 93 cents – an 8-cent weekly loss…this was surprising but doesn’t change our bullish outlook on the company…for most of December the stock has traded above its 200-day SMA (currently at 90 cents) and the 100-day reversed to the upside in late November…we believe it’s only a matter of time before CMJ picks up a strong head of steam…with just 23 million shares outstanding, this could get interesting in a hurry…we like CMJ because it’s an experienced operator in Colombia with a large land position (more than 150,000 hectares) covering many excellent geological targets…its flagship property is Yarumalito, just north of Medoro’s Marmato deposit and of course close to Seafield’s Quinchia Project…drilling continues at Yarumalito…2 months ago the company reported assay results for 7 more holes 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…the company’s El Dovio Property, approximately 100 kilometres southwest of Yarumalito, also has our attention…last month the company announced that recent channel sample results have extended high grade Gold-silver-copper mineralization over a much larger width than indicated by historical information at the 9,300-hectare El Dovio Property…all samples returned significant polymetallic mineralization…6 samples contained Gold in excess of 10 grams per tonne, with individual 2-meter channel samples assaying up to 25.55 grams per tonne Gold, 66.88 grams per tonne silver and 13.5 per cent copper…CMJ, which reported cash on hand of over $3 million as of July 31, is in good position for a strong 2011…the chart is telling us that positive developments are on the way…CMJ is up 55% since we added it to the BMR Portfolio a year ago…

Sidon International (SD, TSX-V)

Sidon traded between 16.5 and 21.5 cents this past week and closed unchanged for the week at 18.5 cents…technically, the stock has very strong support in the 16 to 18 cent range and the pullback from a recent high of 26.5 cents is of no concern to us…Sidon remains locked in a very strong long-term uptrend…there was some significant news on the Sidon front last week as the company picked up ground (50.5 square kilometres) northeast of Canaco’s (CAN, TSX-V) Magambazi Property, immediately north of Douglas Lake Minerals‘ acquisition which borders Canaco’s property…strategically, this was a smart move on Sidon’s part and helps underpin if not enhance the company’s value…it meant giving up an option, for now at least, to acquire more land adjacent to its Morogoro East Gold Property to the south where drilling is ongoing…given a choice between the 2 properties, Sidon made the right call in our view though the process appeared a little messy to investors…this company has come a long way since last March when we first introduced it to BMR readers at a nickel, and its new web site is just one more indication of how impressively Sidon has developed and matured…we see exciting possibilities for 2011…on December 7 Sidon reported encouraging visuals from the first hole at Morogoro which was being drilled to intersect the extension of the vein adjacent to the vein workings of artisanal miners…metasedimentary rocks were intersected in the first hole with strong silicification and up to 10 per cent pyrite, arsenopyrite, pyrrhotite and chalcopyrite being observed…all the right ingredients for a potentially good hole…Sidon reported that this hole is well above the artisanal mined vein (estimated to be at between 95 to 100 metres down the hole) and represents a significant envelope of mineralization associated with the contact and the mineralized vein…visuals, of course, can sometimes be deceiving but these are encouraging early indications of the potential of this initial 1,500 metre drill program…the drill bit is the “truth machine” and everyone will be eagerly anticipating results…Sidon is also expected to soon announce some placer testing results from Morogoro…

Excel Gold Mining (EGM, TSX-V)

Excel has been our worst performer over the last 2+ months (it’s down 25% since we added it to the BMR Portfolio in early October) with a drop this past week of another 1.5 cents to 12 cents…the stock has technical support between 10 cents (the July low) and 11.5 cents, the 200-day SMA…there are clearly better opportunities in the market right now than Excel…having said that, this is a company with a terrific asset – the Montauban Mining Camp Project, 120 kilometres west of Quebec City…inept management has prevented Excel from unlocking the value of this asset which is why the company’s recruitment of Frank Basa and Jacques F. Monette, another Gold Bullion director, got us so fired up about this situation…Excel seems to be following a pattern very similar to Sidon which ran hard to 18 cents and then gradually traded down very close to its 200-day SMA before reversing again to the upside…Excel’s 50-day SMA is still in decline and the turnaround for this stock will come only when that reverses…the company recently finalized a $763,000 flow-through financing to fund its current drill program at Montauban…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…

John: On Friday, Gold Bullion Development (GBB, TSX-V) opened at 77 cents, dropped to a low of 75 cents and then surged to a new all-time high of 83 cents.  It closed at 81 cents for a gain of 4 pennies on CDNX volume of 1.1 million shares.  GBB’s chart patterns are very bullish as outlined below, so there’s a decent chance this stock could close the year in powerful fashion.

Looking at the 6-month daily chart, we see that on Friday GBB broke to the upside to a new high of 83 cents without meeting much resistance at the old high from September of 79 cents.   On Thursday it made a breakthrough as it surged through a main resistance level at 74 cents on nearly 2 million CDNX shares. The previous 74 and 79 cent resistance levels now provide strong support (green horizontal lines).

If we consider the chart pattern between Sept. 8 and December 8 a “Cup with Handle”, with the breakout from the handle Dec.9, we can expect the next resistance level to be 95 cents (top level of cup + depth of cup = 75 cents + 20 cents = 95 cents) which agrees well with the Fibonacci target of 97 cents (this is not a BMR price target as we don’t give price targets but a theoretical Fibonacci target based on technical analysis as a guide for investors).   The EMA(20) provides close bullish support.

It is also important to note there has been a significant increase in volume over the last 3 trading sessions.  

Looking at the indicators:

The RSI is rising and now stands at 73% – bullish.

The ADX trend indicator has the +DI (green line) rising at 36 and above the -DI (red line) which is falling at 12.  The ADX (black line) trend strength indicator is at 30 and increasing.  The vertical thin green line shows where the +DI crossed above the -DI. This is where the bullish uptrend began.  The orientation of ADX, +DI and -DI is very bullish.

Since November 8 there has been a continuous increase in buying pressure (upsloping mauve line) with Friday’s Chaikin Money Flow (CMF) indicator closing at .378.  It is very unusual to have such a long continuous increase and this is very bullish.

Outlook: The chart patterns and indicators are very bullish for GBB and suggest the stock could aggressively continue its climb toward the next Fibonacci target of 97 cents.

Note:  The writer holds a position in GBB.

The BMR Portfolio (Part 1 of 2)

Gold Bullion Development (GBB, TSX-V)

Patience always pays off as Christmas came a little early for Gold Bullion shareholders this week…strong buying poured into the GBB market Thursday and Friday (fund managers positioning for 2011 perhaps?) and the stock hit a new all-time high, closing Friday at 81 cents for a weekly gain of 11 cents…GBB got as high as 83 cents Friday, meeting little resistance at the previous high (September) of 79 cents…we’ve stated this many times before at BMR but it’s worth repeating – the GBB chart is indeed a picture of beauty…it’s hard to find a better looking chart than GBB‘s, besides the CDNX itself…the stock has moved higher 6 of the past 7 weeks and has now increased by over 1,000% since we introduced Gold Bullion to our readers at this exact time last year…investors are anxiously awaiting new drill results from the LONG Bars Zone (last results were November 19) but it’s worth reminding impatient readers that it took Seafield Resources (SFF, TSX-V) 6 months before releasing results from Miraflores that turned out to be spectacular and put the company on the front page of The Northern Miner…what we can discern from the most recent GBB results is that the LONG Bars Zone appears to be widening from north to south which of course is very positive for the geometry of this deposit…it’s our theory that the mineralization GENIVAR is discovering in the northern portion of the Eastern Extension actually begins to the west above the Preliminary Block Model…at this point there’s no question there’s strong new potential for the LONG Bars Zone going north, and Hole #86 (1 gram over 84.6 metres near-surface) shows there is also new potential going south…looking at the drill map on the GBB web site, it’s obvious that GENIVAR has drilled a series of holes northwest of #86 toward Pit #2 East in the Preliminary Block Model to confirm if there is a possible extension of the #2 Vein…to the east, of course, it’s all “blue sky” as Gold Bullion has several kilometres of highly prospective strike length still to explore (LONG Bars Zone 2 is nearly 2 kilometres east of Phase 1 discovery hole #17)…Frank Basa has agreed to an interview with us next week which we’re very much looking forward to…this has been a great year for Gold Bullion and an even better 2011 is a strong possibility…

Cadillac Mining (CQX, TSX-V)

Cadillac Mining is the newest addition to the BMR Portfolio and it enjoyed another powerful week, climbing as high as 45.5 cents and closing Friday at 41.5 cents on the CDNX (42 cents on record volume on ALPHA) for a weekly gain of 8.5 cents or 26%…volume Friday was 1.25 million shares on the CDNX and 437,000 on ALPHA for a combined 1.7 million…CQX is already up 80% since we introduced it to our readers December 9…as we look at the “Big Picture” with this company, we can’t help but think this is really just the beginning of something absolutely huge…the “Perfect Storm” has formed here for a variety of very sensible reasons…first, reading between the lines of Cadillac’s latest news release, the company could be very close to “pulling the trigger” on a precious metals project (or projects) in the Great Basin…CQX also revealed they have been researching opportunities there for the last 2 years – they’ve obviously done their homework and put a lot of thought into this, so the potential for a solid and exciting project(s) seems very high…second, the company holds 7 strategic and valuable claims (164 hectares in total) immediately adjacent to Richmont Mines‘ (RIC, TSX) Wasamac Property where drilling has been ongoing with increasing urgency since last May…Wasamac is a former producer and Richmont is making new discoveries there…more drill results and a new resource estimate are expected in January…what’s particularly interesting is that the principal structure that hosts the Gold mineralization at Wasamac dips northerly toward the 7 claims owned by Cadillac…in addition, from the only hole Cadillac has drilled at its Wasa claims, a hole that they deepened last summer, the company discovered a 300-metre thick altered zone that’s interpreted to be a feeder system typical of those seen under VMS systems in the Noranda camp…it’s clear that Cadillac’s “Wasa” claims, largely untested, hold outstanding potential…it’s a compelling exploration story that could develop in a major way very quickly…third, Cadillac has partnered with Visible Gold (VGD, TSX-V) on over 7,000 hectares of land (excluding “Wasa”) 6 to 30 kilometres west of Gold Bullion’s Granada Gold Property…so not only are Cadillac’s “Wasa” claims in play, but Visible Gold is committed to some major expenditures on CQX’s other properties in the general area…there are many other factors contributing to a “Perfect Storm” for Cadillac including a very attractive share structure, strong management with outstanding mining industry backgrounds, and an intriguing silver property (“Silver Streak”) of considerable merit in the interior of British Columbia (less than 30 kilometres west of the massive Equity Silver deposit)…it’s no wonder that even with the sharp rise in Cadillac’s share price, insiders aren’t selling…the volume surge in Cadillac actually started last May (right around the time Richmont commenced drilling at Wasmac) and has steadily increased in intensity (nearly 14 million shares have traded on the CDNX over just the last 9 sessions)…when record volume comes into a stock, you know that something big is up…that’s clearly the case with Cadillac…the stock has come a long way over the last month but all things considered, the company’s current market capitalization of only $10.4 million is a better bargain than anything you’ll find on Boxing Day…

Currie Rose Resources (CUI, TSX-V)

Currie Rose was unchanged for the week, closing Friday at 37.5 cents…the stock seems to have found a “comfort zone” in the mid-to-upper 30’s with initial assay results still pending from the company’s Sisu River Gold Property at its Mabale Hills Project in Tanzania…the rising 20-day SMA of 35.5 cents is providing strong technical support…we first mentioned CUI to our readers 3 months ago when it was sitting at a dime…we added it to the BMR Portfolio at 16 cents in late October…the company has 2 major projects in northwest Tanzania (Mabale Hills and Sekenke) that are approximately 200 kilometres apart and hold excellent potential…Sisu River, where artisanal miners made a discovery in the fall of last year, is one of several promising properties Currie Rose holds at Mabale Hills and it’s certainly capable of producing a significant discovery…CUI’s intriguing land package at Sekenke, meanwhile, runs in between and surrounds 2 former producing high grade mines…the company has already identified a large structure (12 km by 800 metres) within a shear zone on the margins of a large granite intrusion that hosts numerous vertical quartz reefs of the same type that developed at the nearby former mines…Currie Rose is ready to initiate significant pre-drilling work (high resolution satellite imagery, geophysics, etc.) at Sekenke in order to prioritize drill targets for the spring…the former high grade Sekenke mine was one of Tanzania’s original Gold producers and a significant one but it’s quite possible they missed the main deposit which could actually be on the ground that Currie Rose holds…this is a company with outstanding geological prospects in a country where Gold mining and exploration have really exploded over the last decade…

Richfield Ventures (RVC, TSX-V)

Richfield has been consolidating the last few weeks after hitting a new all-time high of $5.10 in late November…it closed at $4.54 Friday for a loss of 6 cents for the week…the stock has fallen below its 20-day SMA for the first time since October but this does not concern us…the fundamentals are so strong with Richfield that any additional weakness due to technical factors (or some insider selling which retail investors fret over far too much) has to be considered a very attractive opportunity…the primary trend remains up with Richfield and there’s every reason to expect more excellent drill results in 2011…the latest results from Blackwater released last Tuesday were solid but not “spectacular” enough for the market to run this stock to new highs…January could be a different story and then it’s off to the races…RVC is ahead 278% since we introduced it to BMR readers a year ago at $1.20…we believe the company’s objective is to ultimately find a buyer for its potential multi-million Gold deposit at Blackwater…if good drill results continue, we’re confident that objective will be met and the takeover price could be much higher than the company’s current market cap of $175 million…all in all, this is shaping up to be a major deposit which also has silver and copper values…it looks like it’ll be a cold and snowy winter in central British Columbia but Richfield has a fully winterized camp and should be able to drill with at least 2 rigs without any interruptions throughout the harsh months of January and February…

Greencastle Resources (VGN, TSX-V)

Greencastle was off 3.5 cents for the week, closing at 34 cents…the chart we posted Wednesday clearly showed how Greencastle has tremendous technical support in the low 30’s…the next Fibonacci target level is 54 cents, so accumulation at current levels does make a lot of sense…despite the stock’s fall from a recent high of 44.5 cents, VGN is up a whopping 143% since we added it to the BMR Portfolio in mid-October…what triggered the increase is Greencastle’s stepped-up activities in the Gold exploration space…this all started a couple of months ago when the company acquired a substantial land package near Richfield’s Blackwater deposit and then quickly completed a heli-borne magnetic and electromagnetic survey over the property in preparation for a future drill program…Greencastle also just recently announced it’s looking at adding another Gold play to its portfolio, an “advanced” project that would become the company’s fourth Gold property as it also holds Indian Creek and Jewel Ridge in Nevada…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 major move in VGN is now well underway, driven by the company’s recent shift in corporate strategy to get much more active in the Gold exploration space, which could ultimately take VGN to new all-time highs…volume has picked up dramatically in this stock since late October which is what one would expect in the early stages of a major move…at 34 cents Greencastle’s market cap is still a very modest $15 million…the company has a large cash position (working capital of $6 million), regular monthly income of over $100,000 from an oil royalty valued at over $5 million by an engineering firm a year ago, and has recently hired two IR companies to tell its story…Greencastle seems primed, in our view, for its biggest run ever in the first quarter of 2011…

The CDNX and Gold

We saw some very encouraging signs with the CDNX Thursday when it dipped as low as 2093 and then reversed intra-day to finish ahead for the day and above 2100 despite weakness in Gold.  That momentum carried over into Friday with the CDNX gapping up to 2112, pulling back to 2105, and then rallying strongly to finish the day and the week at 2124 (a 29-point gain for the day and a 10-point advance for the week).    The CDNX out-performed all markets Friday, a very bullish sign.  At 11:15 am Pacific Friday BMR issued a market alert, stating that we have seen the low for December in the CDNX (2072) and that a bullish new move is underway that should take the Index through the 2150 to 2250 resistance band by year-end.    This is based on technical factors that John outlined in his chart including the fact the CDNX is now breaking out of a horizontal trend channel.

Seasonal factors are definitely in the CDNX’s favor right now as well.  Last year the Index advanced 7% or 100 points over the final 8 trading sessions (there are 8 trading sessions left this year).  And in 2008 the CDNX moved an incredible 15% over the final 3 trading sessions, marking the beginning of what we believe is the greatest bull market ever for the CDNX.

This is definitely the time to be heavily weighted in quality junior Gold stocks.  As BMR readers know, one of our specialties is tracking the CDNX.  We correctly called the bottom for this market last July and we have urged our readers to take advantage of any pullbacks, including the 8% correction in November.  We’re expecting an extremely bullish market from now through at least the end of February with the strong potential for some spectacular gains in the Index.  The masses have yet to jump in on this market, so there’s plenty of gas that has yet to be thrown on this fire.

Gold fell as low as $1,360 this week and closed Friday at $1,375.50 for a weekly loss of $10.50.  Gold‘s softness of late is nothing to be concerned about, in our view, especially since the CDNX (an extremely reliable leading indicator) is currently out-performing the yellow metal.  Gold’s overbought condition has been unwinding very nicely recently and the price is holding up well.    There is extremely strong technical support between $1,325 and $1,370 where the 50-day moving average sits.  With Christmas just a week away, we expect the Gold market to be relatively quiet and trade within a fairly narrow range (barring any major international developments) over the next couple of weeks until the beginning of January when things should start to heat up again.

Gold is up 25% so far in 2010, its biggest yearly advance since 1979.  This will also be Gold’s third double digit gain in the last four years.  But Gold is far from being in the “bubble” stage and is headed much higher in our view based on many technical and fundamental factors that we have outlined at BMR repeatedly over the past year-and-a-half.

We are in the midst of a bull market of a lifetime and the “top” is a long ways off yet – enjoy.

11:15 am Pacific

We have now seen the lows for December on the CDNX, according to BMR’s technical analyst, and a powerful move that’s expected to take this market through a resistance band between 2150 and 2250 is now underway.  The action in the CDNX yesterday and today has confirmed this.  The Index is making a strong move to break to the upside from a horizontal trend channel.

As of 11:15 am Pacific, the CDNX is up 23 points to 2129 – within just 21 points of its yearly high. More over the weekend.

Gold is fairly quiet this morning which is likely going to be the case through the Christmas period…as of 8:30 am Pacific, the yellow metal is essentially unchanged at $1,369…Silver is down 4 cents at $28.84 while the U.S. Dollar Index is charging higher, up more than half a point to 80.57…U.S. Treasury yields are at 6-month highs, supporting the greenback and pulling some demand away from precious metals…we are very encouraged, however, by the action in the CDNX which is telling us that Gold’s current weakness is only temporary…the CDNX is up 9 points to 2115 and has been out-performing Gold recently which is a very positive sign…it seems certain the CDNX will hold support between 2090 and 2100 over the coming days prior to rallying strongly at year-end when it will likely blast through resistance at 2150…Cadillac Mining (CQX, TSX-V) continues its relentless push higher…CQX is currently up 3.5 cents to 45 cents on nearly 700,000 shares…this stock has been playing “catch up” in terms of a fair market capitalization vs. its peers, and at 45 cents its market cap is still only $11.2 million which remains very modest in our view…the company’s “Wasa” Property adjoining the Wasamac Mine that Richmont Mines (RIC, TSX) is aiming to bring back into production is a valuable asset for a variety of reasons…not only does the principal structure hosting the Wasamac Gold mineralization dip northerly toward the seven titles and 164 hectares held by Cadillac, but CQX has discovered a zone on those claims that it believes could be a feeder system typical of those seen under VMS systems in the Noranda camp…Cadillac also appears close to pulling the trigger on a precious metals project in the Great Basin as disclosed in a recent news release…the company also has a silver property of considerable merit in British Columbia…the volume surge in this stock in recent months clearly suggests something VERY big is in the works, so 2011 looks extremely promising for CQX…15 kilometres to the east of Wasamac is Gold Bullion Development’s (GBB, TSX-V) Granada Gold Property which we’ll be visiting again soon…GBB had a strong day yesterday and is currently off a penny at 76 cents…John’s chart on Seafield Resources (SFF, TSX-V) this morning is very interesting…we’re blessed with a great technical analyst who very much likes what he sees in SFF at the moment…the stock is off 2 pennies at 54 cents this morning on relatively light volume…it’s trading however in an area of very strong support as John outlined…an important factor in order for Seafield to move higher in the immediate future is a quick closing of its recently proposed private placement at 50 cents…a quick closing (before year-end) will be very bullish for the stock in our view…as readers know, we see major potential in the company’s Quinchia Project – in particular, the Dos Quebradas Property where drilling has started…results on 9 more holes are still pending from Miraflores…we’re working on an update regarding Sidon International (SD, TSX-V)…everything continues to look positive with Sidon, technically and fundamentally…the stock is off half a penny this morning to 18.5 cents…trading is quiet so far today in Greencastle Resources (VGN, TSX-V), GoldQuest Mining (GQC, TSX-V), Currie Rose Resources (CUI, TSX-V) and Richfield Ventures (RVC, TSX-V)…