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John: On Friday, Currie Rose Resources (CUI, TSX-V) opened at 38 cents, rose to a high of 41 cents, drifted lower to 37 cents and then closed at 37.5 cents for a loss of 1 penny on CDNX volume of 740,000 shares.

Looking at the very bullish 6-month daily chart above, we see that on December 7 Currie Rose reached a new 52-week high of 47.5 cents.  The candles on Dec. 6, 7 and 8 formed an “evening star” pattern which suggested an imminent reversal.  Consequently the price fell to support at 37 cents, a healthy minor correction that helps set the stage for the next potential major advance.  The price Dec. 6/7 had risen too far above the supporting EMA-20 (exponential moving average) and was unsustainable at the time.   There is also a divergence between price and the RSI which reflects this situation.  This divergence, however, is positive in that it is effectively unwinding the overbought condition.

Two sets of Fibonacci levels are shown. The black set shows the target was 46 cents and this acted as resistance to the last move up.  The blue set shows the next target level is at 67 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 volume, probably our favorite indicator, shows that it is less on down days which is bullish as this indicates consolidation and not a sell-off.

Looking at the indicators:

The RSI has unwound from the overbought condition to a support level at 60% and should fall no further – very bullish.

The Chaikin Money Flow (CMF) indicator shows falling buying pressure during the last 3 days which is to be expected during a consolidation – bullish.

The ADX trend indicator has the +DI (green line) at 39 and above the -DI (red line) at 19.  The ADX (black line) trend strength indicator is weakening slightly at 59 which is to be expected – a very bullish scenario.

Outlook: Currie Rose is experiencing a minor consolidation to complete the unwinding of an overbought condition. It is trading at support and should start making another move up toward the next Fibonacci target.  The technical outlook for CUI remains very bullish.

John: On Friday, Adventure Gold (AGE, TSX-V) opened at 50 cents, its high, then drifted down and closed at its low of 47 cents for a loss of 1 penny on relatively light CDNX volume of 155,000 shares.

Adventure Gold at present is in a waiting mode. There is no selling pressure, just a lack of news. Although the stock is quiet it is still very much in a bullish state and at a very strong level of support.

Looking at the 4-month daily chart above, we see that after the move up to 47 cents on November 10 the price drifted lower to the 40 cent level on decreasing volume.  After 3 sessions of consolidation, AGE started to firm up and climbed to a high of 56 cents on December 2.  It has gradually declined back to the 47 cent level on rather low volume.  This price level is a strong pivotal support area as well as sitting right on the close bullish supporting EMA(20) which is also at 47 cents.

The set of blue Fibonacci levels show the next Fibonacci Target to be at the 66 cent level (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).

Looking at the Indicators:

The RSI is resting on a support level at 53%, thus is still bullish.

The Chaikin Money Flow (CMF) indicator shows the present buying pressure is quite low. The stock is being accumulated without pressure.

The ADX trend indicator has the +DI (green line) at 22 and above the -DI (red line) at 16. The ADX (black line) is declining at the 40 level which indicates a weakening bullish trend – a bullish orientation.

Outlook: Adventure Gold at present is in a waiting mode. There is no selling pressure, just a lack of news. Although the stock is quiet it is still very much in a bullish state and at a very strong level of support.

The BMR Portfolio (Part 2 of 2)

GoldQuest Mining (GQC, TSX-V)

GoldQuest was up 4 cents this past week, closing Friday at 38 cents, and hit a new 52-week high Thursday of 42.5 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 and build on its recently released 43-101 inferred resource for its La Escandalosa Project (formerly Las Tres Palmas)…technically the stock is extremely well supported in the 30’s where accumulation makes a lot of sense right now…we expect once 2011 arrives, GQC could be in full flight…the next major technical resistance is at 50 cents…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 pulled back slightly this past week but astute investors will pick up on the fact that AGE‘s 5-cent weekly drop to 47 cents has brought it right to its supporting 20-day SMA where it has bounced off from repeatedly since September…the RSI(14) for AGE is also at an attractive point, just above the 50 level where there has been continuous support over the last 3 months…in otherwords, now is as good a time as any to be stepping up to the plate with this…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 38%…our interest in Adventure Gold 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) 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…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)

It was another great week for Seafield which climbed 11 cents to 68 cents on total CDNX volume of more than 90 million shares…the company announced Friday it has increased its financing at 50 cents to 30 million units to raise gross proceeds of $15 million…this is almost a doubling of the original amount of $8 million which was announced a day earlier…as we discern that situation, we can’t help but come to the conclusion that some serious “heavy-hitters” are stepping into the picture here to grab as much cheap paper as they possibly can…this is extremely bullish going forward for Seafield…interest in this stock, we believe, is also going to spill over into a related company, Greencastle Resources (VGN, TSX), which of course is also part of the BMR Portfolio…Tony Roodenburg has scored huge with Seafield and that’s going to make it a lot easier for him to do something big with Greencastle (see our Dec. 6 article regarding that)…Seafield is prominently featured on the front page of the Dec. 13-19 issue of The Northern Miner (“Seafield Soars on Colombian Gold Hits“, by Anthony Vaccarro)…Seafield came out with more encouraging exploration news this week to follow up on the previous week’s announcement of a blockbuster hole at Miraflores (449 metres grading 1.3 g/t Au)…the first 3 holes have been completed at Dos Quebradas, a highly prospective property with numerous porphyry targets just a few kilometres northwest of Miraflores…Seafield is in the process of drilling 8 holes at Dos Quebradas and the company has reported that the first 3 holes show 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…Dos Quebradas, in our view, gives Seafield its “blue sky” potential as it is rich in targets over a wide area…this was evident from historical work by AngloGold and 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 this week 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…results on 9 more holes from Miraflores are still pending, so conditions are ideal for some serious speculation…the $15 million financing is going to turn up the heat on Seafield to ramp up exploration efforts at Quinchia which is a good thing…our only criticism of the company has been that Colombian manager Ian Park has not been nearly aggressive enough in drilling these properties…Seafield has to seize the moment right now and Park has to be given his marching orders and display a new sense of urgency…there is big potential here and a lot of new money at stake…

Colombian Mines (CMJ, TSX-V)

We’ve been predicting this for a while now and it finally came true…Colombian staged a breakout this past week, overcoming some major resistance at 95 cents and on no news…the stock closed Friday at $1.01 for a gain of 17 cents for the week…what this suggests to us is the potential for CMJ to really kick into high gear again anytime over the next month…with just 23 million shares outstanding, this could get interesting…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 68% since we added it to the BMR Portfolio a year ago…

Sidon International (SD, TSX-V)

It was an active and volatile week for Sidon which exploded to 26.5 cents Tuesday on news that drilling had commenced at its Morogoro East Gold Property in east central Tanzania…the company reported encouraging visuals from the first hole 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…near the end of the week Sidon announced another property acquisition (an “option” at this stage it appears) with a hefty price tag…the company has secured a block of land (13.8 square kilometres) contiguous to Morogoro East (northwest of MEG) with similar geological characteristics…the terms of the deal for this new property aren’t as favorable as the apparent geology ($5 million, 10 million Sidon shares and $5 million in exploration expenditures over the next 5 years) unless of course Sidon has seen something in Morogoro that is so incredibly encouraging (possible) that they felt it was a strategic necessity to tie up this additional land on those rather expensive terms…only time will tell if this was a stroke of genius or a mistake…Sidon closed the week at 18.5 cents, a gain of 2 pennies for the week on total CDNX volume of approximately 33 million shares…the stock is currently in an area of strong technical support which was resistance last summer…Sidon is ahead 270% since we introduced it to BMR readers last spring…

Excel Gold Mining (EGM, TSX-V)

Excel has been our worst performer over the last 2 months (it’s down 16% since we added it to the BMR Portfolio in early October) and at 13.5 cents the stock now seems trapped between its rising 200-day SMA of 11.5 cents and its 100-day SMA of 15.5 cents which is beginning to flatten out…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 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…Excel was off 1 penny for the week…

John: Periodically we take time out from analyzing the daily movements of our stocks to review the “Big Picture” of market indicies and precious metals.  Today we look at Gold.

As I have stated before, the daily movements often give false indications when taken out of context of a much longer period chart.  Gold (Continuous Contract) opened last week at $1,414, climbed just above $1,430 to a new all-time high, retreated sharply to a low of $1,370 and then closed Friday at $1,386 for a loss of $28 (-1.98%) for the week.

Looking at the 3-year weekly chart above, we see that in October, 2008,  Gold briefly moved down below $700 an ounce.  From there it rose methodically to reach the $1,000 level by February, 2009.  It was during this move that 2 significant technical events occurred.  The first was when the price moved up through $800 in December, 2008, the RSI moved above 50% – this was the first bullish sign following the 2008 correction.   The second event was when the RSI bullish move was confirmed in January, 2009, when the +DI (green line) of the ADX trend indicator crossed above the -DI (red line), showing the trend was now indeed bullish.

From the high of $1,000 the price retraced to around $870 where it found support at the weekly SMA(50) moving average. This is a classic example of how to determine the correct “close supporting bullish moving average“. The definition here is that this moving average is one that if violated to the downside provides serious warning that further downside is probable. Note how the price broke above the SMA(50), rose to $1,000 and then retraced and bounced off the SMA(50).   This was the start of the upsloping trend channel which has now been in place for 2 years.

From Oct. 10 to now I have drawn a mini-channel which incorporates the last 11 weeks of trading. We see there is a divergence between the price and the RSI during this period but note that the overbought condition that existed 2 months ago  is now unwinding even though the average price has continued to rise. This mini-channel is now between a low of $1,360 and a high of $1,450.

Looking at the indicators:

We see the RSI has remained bullish (above 50%) for 2 years.  Any declines bounced off the 50% level and the price did not violate the green supporting trendline. The overbought situation is gradually unwinding and is expected to continue to do so for the foreseeable future.

The ADX trend indicator has been constantly bullish since Jan., 2009, and has the +DI (green line) at 32 and above the -DI (red line) at 10. The ADX (black line) trend strength indicator is still climbing at 42, showing the trend strength is continuing to increase.

The Slow Stochastics has the %K (black line) above the %D (red line) at 81% and 77%, respectively. They are unwinding from an overbought situation.

Outlook: This historical bull market in Gold remains firmly intact.   The trend strength is very strong and the RSI overbought condition continues to unwind without a drop in the average Gold price – very bullish.

The BMR Portfolio (Part 1 of 2)

Gold Bullion Development (GBB, TSX-V)

Gold Bullion traded in a range of 66 to 75 cents last week and closed Friday at 70 cents, a loss of 1 penny for the week…it’s the first time in 5 weeks that GBB has declined on a weekly basis but volume was relatively low and the stock found strong support at the 20-day SMA which is currently at 67 cents…GBB’s chart continues to be a picture of beauty, showing a slow but steady progression from the September low of 53 cents…all moving averages are in bullish alignment, the RSI and Stochastics are at moderate levels while the Chaikin Money Flow (CMF) indicator shows continued strong buying interest…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…at the moment we’re particularly interested in the new discovery areas in the north and the south for additional confirmation that the LONG Bars Zone is widening…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 BMR prior to Christmas…he should be tuned up very well for that after 2 recent appearances on Jay Taylor’s show…GBB is up 900% since we introduced this company to BMR readers a year ago…

Cadillac Mining (CQX, TSX-V)

Cadillac Mining is the newest addition to the BMR Portfolio and it enjoyed a powerful week, nearly doubling in value from 17 to 33 cents with nearly 8 million shares traded on the CDNX…the potential of this situation is immense which is why we were so elated to discover it and put it forward to BMR readers for their consideration…while CQX has enjoyed a strong run, its market cap is still only $8.25 million – the lowest of any company in the BMR Portfolio…there are 3 major driving factors that are powering this stock higher…last Monday, Cadillac revealed in a news release that it has been “researching precious metals opportunities” in the Great Basin for the past 2 years…reading between the lines of that release, it’s our conclusion that CQX is likely close to pulling the trigger on what is probably going to be a major property acquisition in “Elephant Country”…the second driving factor is that Cadillac’s “Wasa” Property adjoins Richmont Mines‘ (RIC, TSX) Wasamac Property which is delivering very encouraging drill results…CQX‘s claims at Wasamac cover 164 hectares and are potentially very valuable with the strong probability that Richmont has a new mine in the works here…the principal structure hosting the Wasamac Gold mineralization dips northerly toward the 7 claims owned by Cadillac…in addition, the Horne Creek fault, host to significant mineralization to the northeast, and the related McClay splay, also cross Cadillac’s Wasa Property which is largely untested for its Gold potential…only 1 hole has ever been drilled on these claims and it intercepted a zone that is interpreted to be a feeder system typical of those seen under VMS systems in the Noranda camp…the discovery of an alteration pipe on these claims, and Richmont’s drilling success in the immediate vicinity, underscore the value of this important asset for Cadillac Mining…Richmont continues to drill at Wasamac (they have completed 18,000 metres) and more results and a resource calculation are expected next month…a “strong zone of mineralization” has been intersected between 200 and 800 metres vertical depth and Richmont is exploring the potential for an underground operation…there is plenty of nearby infrastructure…the third driving factor is that Cadillac announced last Monday it has partnered with Visible Gold (VGD, TSX-V) on its other landholdings in the general area (over 7,000 hectares)…VGD is in the process of raising $5 million and is expected to be very aggressive in exploring these properties…if you look at GBB’s new map on its web site, all the areas in light green (primarily to the west of Granada) are held by Cadillac…Gold Bullion also picked up a property (South Kekeko) which is immediately south of Cadillac’s Kekeko Property…record volume surges like we’ve seen with Cadillac over the past few months are typically a tell-tale sign of big developments on the way…a new chapter in this company’s history is underway and we believe it’s going to be a very exciting one…that’s also what the chart is saying…with strong insider ownership and a highly favorable share structure with no possible selling pressure from warrants (no warrants are outstanding), this is a particularly attractive situation…

Currie Rose Resources (CUI, TSX-V)

Currie Rose gained 1.5 cents this past week to close at 37.5 cents on total CDNX volume of nearly 7 million shares…CUI continues to look very strong technically…overbought conditions last month have receded and all the stock’s moving averages are in bullish alignment…the rising 20-day SMA at 32 cents provides exceptional support…this is a really nice picture that suggests the outlook for this company is extremely positive…John will be updating the CUI chart over the weekend…again, we can’t stress enough how important volume is an indicator…this stock has been around for some 40 years and the record all-time trading volume we’ve seen in CUI over the last few months is a hugely bullish sign…we first mentioned CUI to our readers nearly 3 months ago when it was sitting at a dime…we added it to the BMR Portfolio at 16 cents in late October…what’s driving this interest in Currie Rose is a growing appreciation of the company’s potential in Tanzania where it is focusing on 2 major projects (Mabale Hills and Sekenke), approximately 200 kilometres apart, in the prolific Lake Victoria Greenstone Belt…with the Sisu River Gold Property, which is part of the Mabale Hills Project, investors are looking for a possible repeat of Currie Rose’s early success in 2005 just 8 kilometres to the southwest at Mwamazengo…14 holes totaling nearly 1,500 metres were completed through mid-November at Sisu River and initial assay results are expected soon….the company reported that “good source rocks have been intersected beneath the ‘mbuga’ clays”…we can’t help but think a discovery could be in the making here, perhaps similar to what occurred at Mwamazengo…the drill program at Sisu River is focusing on an area that has returned excellent sampling results and where artisanal miners made a discovery in the fall of last year…the quartz porphyry target at Sisu River is hosted within felsic volcanic rocks, generally considered to be favorable hosts for Gold in greenstone belts around the world…in mid-November Currie Rose also gave more details on its Sekenke Gold Project which is 200 kilometres southeast of Mabale Hills…we are extremely bullish on this major land package as it 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…

Richfield Ventures (RVC, TSX-V)

Richfield has been consolidating the last couple of weeks after hitting a new all-time high of $5.10 in late November…it closed at $4.60 Friday for a loss of 25 cents for the week…the stock has essentially held at or above its 20-day SMA since its big move began in late July…currently, the 20-day moving average is at $4.30, so any additional weakness has to be considered a favorable opportunity…RVC is up 283% since we introduced it to BMR readers nearly 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 in central British Columbia…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 $176 million…Richfield recently announced very positive metallurgical results and also more outstanding drill results including 171 metres (from 8 to 179 metres) grading 3.13 g/t Au in BW-91…this hole was collared 50 metres south of BW-87 which cut 115 metres grading 2.59 g/t Au and demonstrates the southward continuity of strong near-surface mineralization between the 2 holes and the potential for a further extension to the south…the deposit is also expanding to the east as BW-90 intersected 148 metres grading 1.77 g/t Au…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 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 winter…

Greencastle Resources (VGN, TSX-V)

We are more bullish than ever on the prospects for Greencastle given what has happened with related company Seafield Resources (SFF, TSX-V)…Greencastle was up 2.5 cents for the week to close at 37.5 cents, a whopping 168% increase since we added it to the BMR Portfolio just 2 months ago…it hit a new 52-week high of 44.5 cents on Monday on its strongest trading volume (2.6 million shares) since mid-2008…we’re not sure if Greencastle still holds an equity position in Seafield (VGN did report “marketable securites” valued at $807,000 as of September 30) but events with Seafield are going to have a fundamental impact on Greencastle to create a “Perfect Storm” scenario for VGN shareholders…Tony Roodenburg is President and CEO of both companies and we have a lot of respect for his management style and ability to build value in a company…just a year-and-a-half ago,Seafield was trading at only a few pennies with just enough money in the bank to pay the rent and keep the lights on…he brought some major players to the table with Seafield who have now done incredibly well after a sizeable Gold project (Quinchia) was put into that company…it only makes sense that at least some of these players are going to follow Roodenburg into Greencastle which has already ramped up its activities significantly since mid-October when it acquired a substantial land package near Richfield’s Blackwater deposit…a heli-borne magnetic and electromagnetic survey has already been completed over that property…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 37.5 cents Greencastle’s market cap is still a very modest $17 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…

CDNX and Gold

The CDNX finished the week on a powerful note, reversing course intra-day Friday and closing 15 points higher at 2124 despite some continued softness in Gold.    The incredible strength and resiliency of the CDNX right now was clearly on display this past week as the market held up extremely well in the face of a 4.3% drop in the price of Gold from a new all-time high of just over $1,430 to a low of $1,370.  The CDNX reversed with Gold intra-day Tuesday after reaching 2150 but the “mini-correction” was very mild and short-lived with the Venture bottoming out at its 10-day SMA of 2084 a day later.

On repeated occasions over the last several months the CDNX has found strong support at the 10-day moving average.  Eager buyers are stepping in on any pullbacks, anticipating another major up-leg in this market beginning in earnest right after Christmas.  The 8% November correction unwound overbought conditions with the CDNX and the tables appear to be set for a powerful year-end move with a very robust start to 2011.  A weak band of resistance between 2150 and 2250 that John outlined in his chart last Monday should be obliterated by the end of the month.  January could be downright spectacular for the CDNX.

It’s extremely bullish when the CDNX, the most reliable leading indicator there is of the precious metals markets, is out-performing Gold as it did this past week (Gold was off 2% for the week while the CDNX was essentially unchanged).  What this tells us is that Gold is going to remain strong and will likely be back at new highs in the near future – perhaps not until late this month or early January, but Gold’s uptrend remains firmly intact. There are many fundamental factors supporting Gold at the moment – problems in the Eurozone, central bank and investment buying, debt levels, fiat currencies, supply issues –  you name it.  Bargain hunters can be expected to step in with force on any significant pullbacks.

Gold has strong technical support at $1,370 as it demonstrated again Friday, bouncing off that level to close the week at $1,386.  The yellow metal was quickly pushed back from a new all-time high Tuesday of $1,432.50 when the volume and momentum players just weren’t there.

China’s three-day Central Economic and Work Conference kicked off Friday and concludes Sunday.  Market players of course will be watching this event closely.   China will be releasing a slew of economic data over the weekend and additional tightening of the country’s monetary policy is expected in 2011.  We’ll keep our eyes focused on the “big picture” in China which is bullish for Gold – continued strong economic growth, inflationary pressures, and the strong appetite of the Chinese people and their government for owning Gold.  It’s a similar story in other emerging markets which is going to help fuel this amazing bull run in precious metals and commodities in general for some time to come.

Americans, meanwhile, are about to put the pedal to the metal.  It appears the Bush-era tax cuts are about to be extended for all income groups for two more years.  The new Congress in January is expected to be focused on jump-starting the economy while Ben Bernanke’s Magic Money Printing Machine will be busier than ever.

It’s such a wonderful time to be a Gold bug and to be invested in quality junior mining stocks.

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.  God wants each of us to succeed financially which is why the Bible teaches so much about money and how to handle it and invest it –  there are literally thousands of verses.  By examining the life of Jesus and reading the Word, 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.  He delights in us when we grow our investments (His money that we have been given stewardship of) and an increase of tenfold or a hundredfold is always possible.  Jesus loves what some companies are doing on the CDNX and He wants you to know about them and invest in them with wisdom and discernment.  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.

11:15 am Pacific

Seafield Resources (SFF, TSX-V) is surging again today, in part due to a major article on the front page of the December 13-19 Northern Miner.

Meanwhile, BMR has confirmed a pre-Christmas visit to Rouyn, Noranda, and the prolific Cadillac Trend for extensive coverage of developments at and around the Granada Gold Property in addition to exclusive reports on our newest addition to the BMR Portfolio, Cadillac Mining (CQX, TSX-V), which has enjoyed another impressive day today.