BullMarketRun.com

Gold has traded in a range of $1,409 to $1,420 today, within shouting distance of its November all-time high of $1,426…as of 8:20 am Pacific, the yellow metal is up $6 an ounce to $1,420, back to its high of the day…Silver has hit a new 30-year high…it’s up 53 cents to $29.91 while the U.S. Dollar Index has climbed half a point to 79.71…Federal Reserve Chairman Bernanke added more “fuel to the fire” yesterday with his comments on the CBS program 60 Minutes that it’s possible the Fed could expand its latest economic stimulus package if “conditions warrant”…meanwhile, in more good news for investors, White House officials and Congressional Republicans are saying they’re closing in on a deal to temporarily extend the Bush-era tax cuts to all income levels in the United States…the CDNX is up another 17 points to 2127…technically the next area of resistance, but only minor, is 2,200…Seafield Resources (SFF, TSX-V) is enjoying another strong day, up a dime to 67 cents on CDNX volume of over 22 million shares…Seafield came out of course with a world class drill result (1.29 g/t Au over 449 metres) from its Miraflores Property last Thursday which underscores the potential of its nearly 70 square kilometre Quinchia land package in Colombia…Seafield’s 12-hole drill program at Miraflores (results are pending on 9 more holes) should increase the size of that deposit to over a million ounces…the property we’re most excited about though is Dos Quebradas, just a couple of kilometres to the northwest of Miraflores, which has some serious blue sky potential based on limited historical drilling by AngloGold and geophysical and soil analysis work by Seafield this year…there are some highly prospective porphyry targets covering a wide area at Dos Quebradas which is now drill-ready…Tony Roodenburg’s other company, Greencastle Resources (VGN, TSX-V), is powering higher this morning…there have been some significant developments recently with Greencastle which has become active again in the Gold exploration space…we expect Greencastle, which appears to be on the hunt for an “advanced” Gold project and is loaded with cash to pull that off, will benefit from the suddenly improved fortunes of Seafield...VGN is up 7 cents this morning to 42 cents…a quick glance at its long-term chart shows it has a history of very sharp moves to the upside once it gains momentum…with working capital of $6 million, monthly oil royalty revenue and three very solid Gold projects already, Greencastle has considerable fundamental value…it has only 45 million shares outstanding…Gold Bullion Development (GBB, TSX-V) is firmer this morning at 73 cents, a gain of 2 pennies from Friday…the GBB chart is looking very strong and more drill results of course are pending from the LONG Bars Zone…Sidon International (SD, TSX-V) hit a new 52-week high this morning of 18.5 cents…a 6-hole, 1,500 metre drill program is starting at Sidon’s Morogoro East Gold Property in east central Tanzania…Sidon has pulled back slightly as of 8:20 am Pacific and is currently trading at 17.5 cents, up 1 penny on more than 4 million shares…Currie Rose Resources (CUI, TSX-V) is also strong this morning, touching its November 42.5 cent high…CUI is currently up a nickel to 41 cents with investors eagerly anticipating initial drill results from the company’s Sisu River Property at its Mabale Hills Project in northwest Tanzania…

7:00 am Pacific

BMR has turned more bullish than ever on its outlook for Greencastle Resources (VGN, TSX-V) given what has transpired with related company Seafield Resources (SFF, TSX-V) which is strong again in early trading today.  We expect that the changed fortunes of  Seafield following the release of a world class drill result from the company’s Miraflores Gold Property in Colombia Friday are going to have a fundamental impact on Greencastle, and we’ll explain why in this article. There is no question that the “Perfect Storm” has indeed formed for VGN.

First, let’s review the latest important developments with Greencastle.

We added VGN to the BMR Portfolio in mid-October (at 14 cents) when the company announced it had entered into an option to acquire a 100% interest in a property covering 13,000 hectares (28 claims) in the Nechako Plateau region of central British Columbia, very close to the potential multi-million ounce Blackwater Project of Richfield Ventures (RVC, TSX-V).  This move by Greencastle was highly significant because it showed the company was getting active once again in the Gold exploration space (Greencastle holds two promising properties in Nevada that it hasn’t worked on for a few years).  Greencastle immediately launched a heli-borne magnetic and electromagnetic survey over its Nechako Property and is currently reviewing the geophysical data to aid in identifying drill targets for the calendar 2011 field season.

Other significant developments have occurred regarding Greencastle over the last several weeks, giving further credence to the argument that something potentially very big is brewing with this company.  President and CEO Tony Roodenburg has hired not one but two IR firms for Greencastle, a highly unusual step for Roodenburg who has traditionally shunned this sort of thing which we consider important as it enables a company to gets its story out to investors a lot more effectively in a crowded marketplace.

Then the kicker – a very strong suggestion in the final sentence of the company’s most recent news release (November 30) that Greencastle is in the process of hunting down an “advanced” Gold project.  Not just a few untested claims somewhere but an “advanced” Gold project.  To us that means a property that possibly could already have ounces in the ground.

It appears certain to us that Greencastle is “going for the gusto” in this extremely bullish environment for Gold and junior mining companies.

The nice thing is, Greencastle is an ideal position financially to acquire a major project.   The company is sitting on piles of cash (working capital of $6 million) with $100,000 or more arriving in its mailbox every month from oil royalties.  We can’t remember the last time the company had to do a financing.

So let’s add this all up:

• 13,000 hectare Gold property in one of the hottest areas of British Columbia right now;
• 2 highly prospective Gold properties on the Battle Mountain trend in Nevada (Indian Creek and Jewel Ridge) – Greencastle drilled 40 metres of 2.1 g/t Au at Jewel Ridge in 2004;
• Monthly cash flow of at least $100,000 from an oil royalty valued at $5.2 million by an independent engineering firm last December;
• $6 million in working capital;
• “Advanced” Gold project potentially on the way

If that’s not enough, the Seafield Factor has now come into play.

Roodenburg, of course, is also President and CEO of Seafield.  He has turned that company around from near-extinction in 2008/2009 into a rising new star on the Colombian Gold scene.  To facilitate that, he brought some “heavy hitters” to the plate with Seafield who helped finance the company and pull things together.  It only makes sense that at least some of these players, after a profitable experience with Seafield, will follow Roodenburg into his next potential major success story, Greencastle.

We suspect that Roodenburg himself has caught “Gold Fever” and is determined to acquire a similar type of advanced project for Greencastle that has produced a massive increase in market capitalization for Seafield.  Perhaps not in Colombia but maybe in another hot area of Canada?

We have an enormous amount of respect for Roodenburg who’s a smart businessman and knows how to handle money and build a company.  He’s a steady and experienced hand at the wheel for both Greencastle and Seafield, and has become very market savvy as well.  He is opportunistic, which one needs to be in this business.  He has also become very comfortable and effective operating in the Gold exploration space.

Anyone who has followed Greencastle over the last number of years knows how explosive this stock can be.

In clockwork-like fashion, Greencastle has experienced three powerful moves (very sharp spikes) over the last seven years (late 2003, early 2006 and mid-2008).  2006 was more intense than 2003, and 2008 (when the stock ran from 13 cents to 63 cents over just 21 trading sessions) 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 on the Gold exploration front, 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.  Volume on Friday, when the stock hit a new 52-week high of 35 cents, was the highest we’ve seen in Greencastle since its spectacular run in 2008.  The share price has more doubled in value over the last 30 trading sessions.  But VGN‘s market cap is still only a very modest $16 million with just 45 million shares outstanding.

When you’re hot, you’re hot.  And right now Roodenburg is on fire and that means some exciting days ahead for Greencastle Resources.

Note:  The writer continues to hold a position in Greencastle Resources (75,000 shares).

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.

John: The Gold Bullion Development (GBB, TSX-V) chart is indeed a picture of beauty, especially after Friday’s trading action.  Gold Bullion opened at 68 cents Friday, traded to a low of 67 cents and then climbed to 71 cents.  It was able to close at 71 cents, its high of the day, for a gain of 2 pennies on CDNX volume of 874,000 shares.  GBB has advanced for 4 consecutive weeks and its market cap is now at an all-time high, breaking through the psychologically important $100 million mark.

Looking at the 6-month daily chart we see that on Friday the price broke out from an ascending triangle to the upside. This is very significant because the top of the triangle at 69 cents had held since November 9.

I have shown 2 levels of resistance (blue horizontal lines) at 71 cents and 79 cents, respectively, but I doubt if the resistance at these levels is going to be very intense.  The move up in September to 79 cents was driven by momentum and a lack of sellers.  It proved to be unsustainable when the sellers came out in droves during the next couple of days.  This time is different – a solid base has been formed with increasing lows on average level volume.  The price has moved above the EMA(20) moving average which is pointing up and providing bullish support.

A set of Fibonacci levels is shown with the next Fibonacci target level at 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).   Also note the 61.8% retracement level was at 68 cents which also contributed toward resistance at 69 cents.

Looking at the indicators:

The RSI is at 64% and pointing up with a lot of room to move higher before becoming overbought – very bullish.

The ADX trend indicator has the +DI (green line) pointing up at 28 and above the -DI (red line) at 13. The ADX (black line) is flat and steady. This is a very bullish orientation showing a steady bullish uptrend coming out of an ascending triangle.

The Chaikin Money Flow (CMF) indicator is in the green and shows that the buying pressure has been increasing every session since Nov. 9 – very bullish.

Outlook: There is every indication that Gold Bullion could accelerate to the upside in the near future.   The GBB chart is undeniably bullish and I expect an increase in volume near-term as well.

Note:  The writer holds a position in Gold Bullion Development.

John: On Friday, Sidon International Resources (SD, TSX-V) opened at 13.5 cents, its low, rose to a high of 17 cents and then closed at 16.5 cents for a gain of 3.5 cents or 27% on CDNX volume of 6.1 million shares.

Looking at the 5-month chart below, we see that there has been considerable change from the situation compared to November 25 at which time the price was in a thin horizontal trend channel between 9.5 cents and 10.5 cents:

On Nov. 26 the price broke to the upside and during the next 2 days Sidon rose to the 15 cent level to form a “Cup” pattern (mauve lines). Then the handle formed and on Friday the price broke to the upside again on very high volume. The next resistance level is at 18 cents and the Fibonacci target is shown as 22 cents (this is not a BMR price target as we don’t give price targets but a theoretical near-term Fibonacci target based on technical analysis as a guide for investors).

The price is now above the EMA(20) which is providing bullish support (the 50-day SMA, not noted on the chart, has reversed and is now moving up which is another bullish development).  Note how the volume decreased during the handle formation but had a huge increase on the breakout – very bullish.

Looking at the indicators:

The RSI unwound from a slight overbought condition during the handle formation and is now at 73% with plenty of room to continue to move up.

The Slow Stochastics %K (black line) has turned up at 64% and has just crossed above the %D (red line) at 62% – very bullish.

The Chaikin Money Flow (CMF) indicator has moved above zero into the green, thus the buying pressure is increasing.

Outlook: The near-term outlook for Sidon, based on the technical patterns noted above, is very bullish.  This supports the improved fundamentals as the company begins a drill program at its Morogoro East Gold Property in Tanzania.

Note:  The writer holds a position in Sidon International Resources.

The BMR Portfolio (2nd of 2 Parts)

GoldQuest Mining (GQC, TSX-V)

GoldQuest continues to look very strong technically and fundamentally…GQC gained 3 more cents this past week to close at 34 cents on total CDNX volume of just under 2 million shares…the stock is strongly supported by rising 10-day and 20-day moving averages around 30 cents…all indicators show GQC is quite comfortable at current levels with the next major resistance at 50 cents…at the start of last week we stated there was a good possibility of an imminent breakout to a new 52-week high which is exactly what occurred as GQC moved to 37 cents…GoldQuest’s Gold properties in the Dominican Republic and its zinc-lead-silver deposit in Spain have us very bullish on this company going forward and it’s one of our top picks for 2011…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 targets, one of them being La Escandalosa (formerly Las Tres Palmas) 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 74% since we added it to the BMR Portfolio 2 months ago…

Sidon International (SD, TSX-V)

We recently sensed a move was coming in Sidon, based on some interesting technical patterns, and we guessed correctly as the stock jumped 43% this past week to close at 16.5 cents, just shy of its 52-week high of 18 cents…volume on the breakout last week was huge as 23 million shares traded on the CDNX…all of Sidon’s moving averages are in bullish alignment once again with the 50-day SMA reversing to the upside to end a decline that started in late September…the turnaround in Sidon was triggered by the company’s announcement that a 6-hole, 1,500 metre drill program is ready to begin at the company’s Morogoro East Gold Property in east-central Tanzania…these first 6 holes will test the continuation of the vein that the Primary Mining License holders have been mining along the ridge that is between the two placer areas of the prospecting license…we’ve spoken at length with Laurence Stephenson, Sidon’s consulting geologist for Morogoro…Stephenson knows Tanzania like the back of his hand and he’s very bullish on this particular property…he’s now putting the drill rig, the “truth machine” to work, and it’s going to be very interesting to see what may develop here…we’re impressed with how Sidon has slowly but steadily matured as a junior mining company since we introduced it to BMR readers last spring at a nickel…Sidon has had some ups and downs since then but the stock is up 230% in our Portfolio and we have every reason to believe that 2011 will be Sidon’s best year yet…

Seafield Resources (SFF, TSX-V)

Well, it finally happened…at BMR we’ve been pounding the table for a year on the blue sky potential of Seafield’s properties in the Quinchia District of Colombia, and on Friday the stock exploded to an all-time high of 77 cents (the last trade before Thursday’s halt was 23 cents) on the first drill results from Miraflores which included 449 metres grading 1.29 g/t Au in Hole #3…between the CDNX and the Alpha market, Seafield traded an incredible 91 million shares in Friday’s frenzy…profit-taking near the end of the trading session Friday knocked SFF down to a closing price of 57 cents, a jump of 34.5 cents or 153% for the week…Hole #3, which was drilled through the centre of the breccia body, is the best result ever obtained at Miraflores and supports the interpretation in the 43-101 that there appears to be a bonanza zone to the breccia, a high-grade core with an increased abundance of visible Gold and enhanced overall grades…mineralization is contained within two forms in the breccia body at Miraflores – general low-grade disseminations as well as high-grade fault veins which cut the breccia body…Seafield also stated that core logging from several holes shows that the breccia body is more extensive at depth than was inferred from previous drilling…prior to Seafield’s drilling, only 10 holes had ever been drilled at Miraflores (in 2006 and 2007)…Seafield used information from those holes as well as 154 underground samples to produce a 43-101 inferred resource earlier this year of 18.6 million tonnes grading 1.3 g/t Au…at a cut-off grade of 0.50 g/t Au, this represents 976,000 inferred ounces…results are pending on nine additional holes at Miraflores which should give the market plenty to speculate about in the days and weeks ahead…in addition, drilling should be starting soon (if it hasn’t already) at Dos Quebradas which we believe is an even better target than Miraflores which is somewhat limited in its potential size…what will really build Seafield and make it a possible takeover target is if the company can outline several significant deposits throughout its land package, and we believe it has every opportunity to do so…there are some exceptional porphyry targets over a wide area at Dos Quebradas where limited previous drilling by AngloGold produced some very encouraging results such as 39.5 metres grading 1.67 g/t Au (from 230 metres to 269.5 metres depth)…we’ll report some more on Dos Quebradas in the coming days…Chuscal, Seafield’s third major property at Quinchia, is less advanced than Dos Quebradas but also holds a lot of blue sky potential…in exciting situations like Seafield is in, a company usually comes under some pressure for a financing so we do see the possibility of that in the near future for SFF…at what price is anyone’s guess at this point…our other comment is that Seafield, especially now, needs to significantly pick up the pace of exploration at Quinchia…they have a great land package there and hopefully now there will be a much greater sense of urgency to make things happen on the exploration front…that means more personnel and more than just 1 drill rig…Ian Park, Seafield’s Colombian manager, has not been nearly aggressive enough to date in moving this overall project forward…having said that, we love this company and its prospects and we definitely see bigger things ahead for Seafield in 2011…

Excel Gold Mining (EGM, TSX-V)

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 200-day SMA is at 11 cents, so the downside risk from here is limited but it may be a little while yet before EGM kicks back into high gear…the good news is that drilling is underway at the company’s Montauban Mining Camp Project, 120 kilometres west of Quebec City…when the drills are turning, anything’s possible…we like Montauban a lot and if anybody can unlock the value of this project, it’s Frank Basa…Excel just recently named Basa as President…the Gold Bullion President and CEO has some cleaning up to do with Excel but he has certainly proven himself with Gold Bullion and we’re confident he’ll turn Excel into a major success though this won’t happen overnight…the company recently finalized a $763,000 flow-through financing to fund its current drill program…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 is down 1.5 cents since we added it to the BMR Portfolio 2 months ago…

Colombian Mines (CMJ, TSX-V)

Colombian was unchanged for the week on light volume at 84 cents…we still see the potential for a near-term technical breakout with CMJ…since mid-September the stock has traded between its 100 and 200-day SMA’s…the 100-day, just below 80 cents, has now started to reverse to the upside…a breakout will be confirmed if and when CMJ closes above 95 cents, an area that has provided stiff resistance…on Nov. 17 the company announced that recent channel sample results have extended high grade Gold-silver-copper mineralization over a much larger width than indicated by historic information at its 9,300-hectare El Dovio project in Colombia…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 …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 40% since our introduction of it late last year (it was up as much as 170% at $1.62 in March)…

The BMR Portfolio (Part 1 of 2)

Gold Bullion Development (GBB, TSX-V)

Gold Bullion is gaining impressive momentum and patience is going to pay off here as it has for Seafield Resources‘ (SFF, TSX-V) investors…Gold Bullion has battled through resistance at 69 cents and recorded its fourth consecutive weekly advance by closing Friday at 71 cents, a nickel increase over the previous week…the market is finally getting comfortable with a $100 million market cap for this company and that’s a significant development…GBB’s chart is a picture of beauty, a slow but steady climb from the September low of 53 cents…John will be providing an updated chart analysis later today…all moving averages are in bullish alignment and the RSI shows GBB has plenty of room to move higher in the near term without becoming overbought…the Chaikin Money Flow (CMF) indicator shows steadily increasing buying pressure in GBB since early November…this is a stock that definitely wants to go higher…new drill results from the LONG Bars Zone are expected soon…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)…it appears the east will be the delicious “dessert”…right now we’re still in the early stages of the main course which is taking longer than expected to get through (a good thing) because of important developments in the north and the south…without a doubt, the size of this thing is going to be massive and sometime next year, hopefully sooner than later, Gold Bullion is going to have to call in the cavalry and put half a dozen drill rigs to work in the LONG Bars Zone…GBB is up a whopping 914% since we introduced it to BMR readers a year ago at 7 cents…

Adventure Gold (AGE, TSX-V)

It was a strong week for Adventure Gold which climbed to a new all-time high of 56 cents Thursday and closed the week 6.5 cents higher at 52 cents…the AGE chart is incredible…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 BMR Portfolio at 34 cents October 28, so the gain since then is 53%…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 the 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 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…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…

Currie Rose Resources (CUI, TSX-V)

It was a very positive week, technically, for Currie Rose as the stock corrected 35% from the recent 42.5 cent high to help unwind an overbought condition, and then it snapped back quickly to close the week at 36 cents for a loss of just 1.5 cents…CUI fell as low as 27.5 cents Wednesday, just above its rising 20-day moving average, and that’s when we correctly called an end to the pullback…volume is such an important indicator…this stock has been around for some 40 years and the record all-time trading volume we’ve seen in CUI recently has to be considered an extremely bullish sign for this company…we first mentioned CUI to our readers over 2 months ago when it was sitting at a dime…we added it to the BMR Portfolio at 16 cents in late October and the stock has more than doubled since then…what’s driving this interest in Currie Rose, we believe, 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….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 finally took a well deserved rest after a sizzling couple of weeks…the stock fell 14 cents this past week, closing at $4.85, and appears to be in consolidation mode before the next leg up…the first area of technical support is at the rising 10-day SMA which is currently just above $4.70…there have been just a few occasions since Richfield began its run in July when the stock has fallen below its 10-day SMA (and only very marginally), so we would view any drop below the 10-day as a buying opportunity…the 20-day at $3.90 provides rock-solid support…at $4.85, RVC is now up 304% 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 $175 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)

Wow…Greencastle has suddenly become even more interesting with major developments in a related company, Seafield Resources (SFF, TSX-V), which shot as high as 77 cents Friday on a spectacular drill result from its Miraflores Property in Colombia…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, including Scott Paterson, 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, and Greencastle also just recently announced it’s looking at adding another Gold property 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…volume on Friday was the highest we’ve seen in Greencastle since its spectacular run in 2008…the stock closed the week up 6 cents at 35 cents, a new 52-week high, and is now up 150% since we added it to the BMR Portfolio in mid-October…at 35 cents Greencastle’s market cap is still a very modest $16 million…the company has a large cash position (working capital of $6 million), regular monthly income of over $100,000 from oil royalties, and has recently hired two IR firms to tell its story…Greencastle seems primed for a huge run…

CDNX and Gold

It was another banner week for the CDNX which added 53 more points to close at 2110.  At the risk of sounding like a broken record, a bull market run of historic proportions continues in the junior mining sector and is showing fresh signs of intensifying as Gold once again nears an all-time high.  The Perfect Storm is here and for those who have not yet caught on to what’s unfolding, you need to open your eyes in a hurry.  In 30 years of following the junior resource market in Canada, including the old Vancouver Stock Exchange in the Murray Pezim days, I have not seen a market with such powerful underlying technical and fundamental strength as the one we’re in now with the CDNX.  This is why our team at BMR believes this Index is headed much, much higher in 2011.  Since we are entering a seasonally strong period (late December and the first quarter of the New Year), now is the time to ensure that you are invested in the best opportunities the CDNX has to offer.  We present some of them here at BMR with Seafield Resources (SFF, TSX-V) – the best stock in Canada yesterday – being the latest example. Focus on companies that have superior properties, strong management and the ability to get their story out in a crowded marketplace.

We checked with our technical analyst this morning who likes all the signs he’s seeing right now with the CDNX.  “Daily indicators are not overly high,” stated John, with the next area of resistance being 2200.  All that means is that the CDNX could pause for a short period of time around 2200 to catch its breath.  Investors should embrace any minor pullbacks over the next two or three weeks – this market could really begin to accelerate just before Christmas and should finish the year at a new 52-week and two-year high.

The fact the CDNX is moving in step with Gold, and even leading Gold at times, is extremely bullish.   The CDNX has proven to be an incredibly accurate leading indicator for the precious and base metals markets and even the economy in general.

Gold powered higher Friday on a disappointing U.S. jobs report.  The yellow metal surged $30 an ounce to close at its high of the day, $1,415.50, and just $10 below the November 9 all-time high.  For the week Gold was ahead $51.50.

The U.S. Dollar Index plummeted Friday to 79.15, a drop of more than a point.  The Dollar had climbed above 81 on the Index during the week (John stated there was major resistance at 82) before bears knocked it back down.  In our view the Federal Reserve is determined to keep a lid on the Dollar and wants to see the Dollar move lower in order to rekindle inflation in the United States.  A cheaper Dollar also benefits U.S. exporters and devaluing the currency reduces the real value of the multi-trillion dollar debt the U.S. government owes to foreigners.  A lower greenback is very bullish of course for Gold and commodities in general.  But if you were paying attention last week if you would have noticed that Gold was holding up very well in the face of a stronger U.S. Dollar and at times was even moving higher in tandem with the Dollar.  This shows that Gold is going to go higher, no matter what.

New data from the World Gold Council (WGC) shows that Russia has been a strong buyer of Gold in recent months, so it’s not just China and India who are aggressively accumulating the yellow metal.  Russia has added 65 tonnes for its official foreign exchange reserves since July (it now holds 775 tonnes) and has overtaken Japan for eighth place in the league table of national Gold holders.  All told, central banks worldwide continued buying Gold totaling 91.5 tonnes between July and November.  Sovereign states turned net buyers in 2009, led by Asian and other emerging-economy banks, after 20 years of net selling.

Silver jumped 84 cents Friday to close at $29.38, very close to its November 30-year high.  It’s a great time to be invested in quality silver stocks such as Great Panther Silver (GPR, TSX) which we mentioned last month when it was below $1.50.  GPR closed Friday at $2.50. While we’re more focused on Gold at BMR, a couple of our companies have interesting exposure to silver – Goldquest Mining (GQC, TSX-V) and Gold Bullion Development (GBB, TSX-V).  With all the attention focused on Granada, some investors have forgotten that GBB holds the past producing and high grade Castle Silver Mine in Ontario (formerly operated by Agnico-Eagle in the 1980’s).  We see the possibility of Gold Bullion “spinning out” this asset as a separate silver-focused company and a dividend to current GBB shareholders.