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Visible Gold Mines (VGD, TSX-V)

Visible Gold Mines (VGD, TSX-V) dropped 6.5 cents last week but on relatively light volume…the stock, which closed Friday at 26.5 cents, has dropped for six consecutive weeks and has clearly become oversold, hitting its rising 500-day moving average (SMA)…this is an aggressive company with nearly 18 cents per share in cash and two drill programs in progress…exploration is also expected to begin soon at what we consider to be VGD’s flagship property, Joutel, which is a joint venture with Agnico-Eagle Mines (AEM, TSX)…Visible Gold Mines is the operator…BMR was the first to discover Gold Bullion Development (GBB, TSX-V), which led to massive profits for some of our readers, and we’re confident history could repeat itself with Visible Gold Mines as we are on this story before anyone else through careful research and due diligence…VGD is blessed with strong management and one of the best geologists in the country in Robert Sansfacon who was instrumental in the discovery of Osisko’s (OSK, TSX) Canadian Malartic Deposit…VGD is certainly emerging as an exploration leader in northwest Quebec, specifically in the Rouyn-Noranda region…Joutel is a significant former Gold-Silver producer that gave birth to Agnico-Eagle in the 1970′s…Sansfacon believes a lot has yet to be discovered at Joutel which is why he’s so eager to tackle that project…at the moment VGD has two drill programs in progress with one rig at the Silidor Gold Property, also a former producer, and another rig at its Kanasuta claims (Cadillac Break Project) very close to Vantex Resources‘ (VAX, TSX-V) Moriss Zone discovery at its Galloway Project…following completion of four holes at Kanasuta, the drill rig is expected to move east to the area near Richmont Mines‘ (RIC, TSX) growing Wasamac deposit…initial drill results from VGD’s Silidor Property were released April 20…each of the first 10 holes at Silidor intersected mineralization and Hole #8 is of particular interest as four sections of Gold were hit between depths of 70.85 metres and 130.5 metres including 2.70 metres grading 5.45 g/t Au and 1.5 metres grading 5.70 g/t Au…this area has never been drilled before and it’s 700 metres southwest of the former Silidor mine…a total of 23 holes were completed by April 20 (assays pending for 13 of them) and drilling continues in a northeasterly direction toward the former mine…things could get extremely interesting in a real hurry at Silidor with geologists of the opinion they could be closing in on a series of ore shoots…Silidor is just one of four major projects Visible Gold Mines is currently advancing…besides Joutel and Cadillac Break, VGD holds the Stadacona-East Property at Rouyn-Noranda which has an inferred resource of 164,000 ounces with potential for significant expansion with additional drilling…the President and CEO of Visible Gold Mines is Martin Dallaire, a very successful entrepreneur in Rouyn-Noranda with an engineering degree who understands the mining industry and what an exploration company needs to do to succeed and build shareholder value…Dallaire is fluently bilingual, presents himself extremely well and knows how to run a business and make money…he thinks big but is focused…he has also recruited some key people including Sansfacon, a highly respected geologist who honed his skills for many years with Lac Minerals…in short, Dallaire has put something together you don’t often see in the junior speculative market – a powerful dynamic of business, geological and marketing expertise with a strategic plan to rapidly build value…the company’s niche and sole geological focus is northwestern Quebec where it has acquired several promising land packages, mostly west and north of Rouyn-Noranda…Dallaire is taking an aggressive approach to exploration and he’s targeting under-explored areas and past producing mines where major new extensions are possible…

GoldQuest Mining (GQX, TSX-V)

GoldQuest was up half a penny last week to 23.5 cents but on relatively light volume…the stock appeared to bottom out the previous week with its lowest close being 20 cents, an area of exceptional support, on May 4…technically, the downside risk from current levels seems limited given the successful test of support at 20 cents which is where the rising 500-day moving average (SMA) sits…the stock became extremely oversold recently based on a range of indicators…the 200-day SMA at 29 cents continues to rise and that’s where resistance can be expected for now on the upside…the substantial drop in the share price from a high of 48.5 cents in early February was due to general market weakness and selling from speculators whose expectations may have been too high regarding initial drill results from the company’s La Escandalosa Project in the Dominican Republic…the results were good and support the resource model but were far from spectacular…17 holes are in from Escandalosa with seven more pending…results confirm that mineralization remains open to the north toward Hondo Valle, a distance of 1200 metres…best assays included 36.5 metres grading 2.74 g/t Au in hole #62, 16 metres grading 2.45 g/t Au in hole #47, and 9.2 metres grading 3.54 g/t Au in hole #48…the fact that any potential southern extension of La Escandalosa may have been displaced by faulting, as reported, is not a big surprise or a major concern as the ground going north has always been considered more prospective and provides GoldQuest with all the opportunity it needs to achieve its goal of a 1 million+ ounce deposit…another round of drilling at Escandalosa is scheduled for the second half of this year…in the meantime the company has other highly prospective targets in the DR to explore including Las Animas and Jengibre…GoldQuest’s potential has not diminished whatsoever yet the share price has dropped in half from its early February high…the company released a 43-101 resource estimate March 2 on its Toral zinc-lead-Silver deposit in Spain…it showed slightly lower grades but much higher overall tonnage than the previous historical non-compliant estimate…as a result, total resources came out 15% higher…resources in the indicated category are 4.04 million tonnes grading 11.8% lead and zinc (5.3% lead, 6.5% zinc) as well as 41 g/t Ag and 0.11% Cu… inferred resources are 4.67 million tonnes grading 9.8% lead and zinc (4.44% lead, 5.4% zinc), 32 g/t Ag and 0.14 Cu…Toral has significant exploration and development upside as a majority of the historical drilling (40,000+ metres) was conducted over one relatively small part of the property…the zone of sulphide mineralization is open along strike to the northwest toward a known lead deposit as well as along strike to the southeast and downdip…the project is also an ideal candidate for a fast-track to production…the deposit is close to a power line, highway and rail line…a large smelter is located just 300 kilometers away by rail…despite the recent sharp setback, GoldQuest is up 21% since we introduced it to BMR readers last fall at 19.5 cents…

Greencastle Resources (VGN, TSX-V)

All remains quiet with Greencastle which was up half a penny last week at 18 cents…the fact Tony Roodenburg is no longer at the helm of Seafield Resources (SFF, TSX-V) is a positive development in our view for Greencastle…Roodenburg had been trying to ease his way out of Seafield since 2009 without much success until last week…he’ll now be able to focus almost exclusively on Greencastle which has been a favorite project of his for many years…we suspect he’s going to take a serious look at spinning out the oil assets or the Gold assets into a separate company…Greencastle’s market cap is just $8 million which means the stock is now trading at cash value…history shows that whenever this occurs in VGN, a terrific buying opportunity has opened up though investors must be patient…it’s interesting to note that the stock’s rising 500-day moving average (SMA) and its 1000-day SMA, which has flattened out, have converged at 17 cents…VGN’s strong underlying fundamental value is clearly shown in the latest financials which were released March 24…as of December 31, Greencastle held $5.1 million in cash and $2.6 million in marketable securities…some of those securities are likely shares in Seafield Resources (SFF, TSX-V) while the company disclosed it held 1,148,000 shares of Evrim Resources Corp. (EVM, TSX-V), formerly Avaranta, which started trading on the Venture Exchange January 25…current oil prices should maintain Greencastle’s monthly cash flow of approximately $130,000 as it receives royalties from heavy crude production at Primate in Saskatchewan…Greencastle tripled in value over a six-week period from late October to early December…since the beginning of January, though, the stock has struggled due mostly to impatient investors frustrated with the lack of news…patience is required here…over the years the successful strategy with Greencastle has been to accumulate on weakness when the stock is near cash value and then sell into strength when something develops…with $8 million in working capital, three Gold properties (including land near Richfield’s Blackwater Project) and monthly cash flow from an oil royalty, it doesn’t take a rocket scientist to figure out that Greencastle offers excellent value at current levels…the long-term chart remains very encouraging with rising 200 and 300-day SMA’s that are in no danger of reversing…it’s also important to note that Roodenburg, a large shareholder in VGN, refrained from selling any of his holdings during the late 2010 run-up in the share price…this is different from past bullish in the stock and adds further credence to our view that we haven’t seen the highs in this cycle yet from Greencastle – it’s poised for what we believe could be a massive breakout sometime this year…Pinetree Capital has also accumulated more shares in Greencastle, so there’s every reason to be very optimistic regarding this company’s prospects…Greencastle is up 25% since we added it back in to the BMR model portfolio last October…

Adventure Gold (AGE, TSX-V)

Last weekend we stated that some cracks were beginning to appear in the AGE chart – most notably, the 50-day moving average (SMA) has reversed to the downside after advancing for more than eight consecutive months…this has been brought on by the weak overall market as opposed to any negative developments with the company…the stock fell as low as 50 cents last week and closed Friday at 55 cents, down a penny over the previous Friday…there is support at 50 cents and beneath that in the mid-40’s at the 200-day SMA…Agnico-Eagle Mines (AEM, TSX) has started a 4,000-metre drill program at AGE’s Dubuisson Property near Val d’or…Dubuisson is contiguous to the Goldex mine property and also straddles a 5-kilometre segment of the prolific Cadillac-Larder Lake Gold break…the company released good results from two more holes April 7 from its recently completed Phase 1 drill program at the Pascalis Colombiere Gold Property near Val d’Or…hole #17 intersected four separate zones of mineralization at depths ranging from 6 metres to 187 metres (5.7 g/t Au over 4.3 metres, 4.6 g/t Au over 5.7 metres, 12.9 g/t Au over 8 metres, and 5 g/t Au over 6.1 metres)…hole #16 intersected 5.5 g/t Au over 5.9 metres…results from five more holes are pending…follow-up drilling will commence once all assays have been received and reviewed…a NI-43-101 resource calculation is planned for later this year…AGE’s latest financials, released April 1, show the company with $3 million in working capital at the end of January…AGE runs an efficient operation and knows where to direct its energies…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 model portfolio at just 34 cents October 28…Adventure Gold has been around only since late 2007 and we are impressed by the company’s solid portfolio of properties (19 in six 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 still testing the down plunge extension of Gold zones located at the Timmins and Thunder Creek deposits…the current initial deep drill hole onto the Meunier JV property is continuing and is on track to reach the 2,400 metre target level by the end of this month…if a discovery is made, AGE will run back in an instant…

Sidon International (SD, TSX-V)

Nothing new to report here…Sidon fell as low as 4 cents last week but closed Friday at a nickel, unchanged for the week…there has been no news from the company since March 14 when it announced a proposed private placement at 8 cents and an option to acquire an 80% interest in a 50-square kilometre property adjacent to Canaco’s (CAN, TSX-V) Handeni discovery in Tanzania…Sidon has yet to recover from a sharp drop in early March following disappointing assay results from its Morogoro East Gold Property…the six shallow holes drilled in December at Morogoro East did not produce significant results, the best hole showing 3 metres grading 1.7 g/t Au…the company has drilled four deeper holes with results for those still pending…what the initial six holes have given Sidon, however, is a better understanding of the Morogoro geological structure which will aid in any future drilling…exploration, especially at such an early stage, is never easy and disappointing early results don’t necessarily mean a property doesn’t hold excellent potential…the company is also trying to develop a placer operation at Morogoro…there is certainly hope here for better days ahead for Sidon…from a technical standpoint, previous support between 9 and 10 cents will now provide resistance…the turnaround in the stock price will start once the 50-day SMA has reversed to the upside…Sidon is now unchanged since we introduced it to BMR readers a year ago at a nickel…the company currently has approximately 140 million shares outstanding for a market cap of $7  million…

Seafield Resources (SFF, TSX-V)

There was big news out of Seafield last week with a change in management which has to be considered a bullish development…Cesar Lopez, who has a strong background in South American exploration management and development, is the company’s new Chief Executive Officer…he replaces Tony Roodenburg who will remain as a director…Tom Henricksen, meanwhile, takes over as Vice-President, Exploration, from James Pirie who also remains as a director…Henricksen has over 35 years of mineral exploration experience and has spent the last 15 years on projects in South America…Seafield climbed as high as 26 cents last week and closed Friday at 24.5 cents for a weekly gain of a penny…the stock exploded from the low 20′s to an all-time high of 77 cents in just one day last December but has since given up all of those gains…the company’s Quinchia land package in Colombia has a great deal of untapped potential and Seafield is also sitting on approximately $15 million in cash…the new management group is conducting a private placement for 10 million units at 30 cents which will raise another $3 million…the company announced April 5 that drilling has commenced at Santa Sofia, about 1 kilometre north of Dos Quebradas where drilling continues…Seafield geologists have identified a promising porphyry target measuring 1,050 metres in length and 850 metres in width at Santa Sofia with soil values up to 2.3 g/t Au…on March 7, assays were reported from the first three holes completed at Dos Quebradas with hole #2 intersecting a whopping 511 metres grading 0.58 g/t Au…the hole ended in mineralization…hole #1 delivered 269 metres grading 0.37 g/t Au while hole #3 was drilled to define the eastern limit of mineralization and returned no significant results…a total of 10 holes were completed at Dos Quebradas as of early this month…significant intercepts well outside areas of historical drilling would start to get the market excited…the geological case for Seafield’s Quinchia land package is compelling and we’re looking forward to more results from Dos Quebradas as well as initial assays from Santa Sofia…the company has already outlined a NI-43-101 inferred resource of nearly 800,000 ounces at its Miraflores Property, a number that’s expected to increase following the 12-hole, 4,000 metre program completed late last year…patient investors have an opportunity to do extremely well with this play given the geological merits of Quinchia and the real potential for 5 million+ ounces from several potential deposits…we have confidence the new management group will unlock value by bringing fresh insight and new energy to this play along with a more aggressive exploration approach…Seafield has gained 308% since we made it the first company in the BMR model portfolio in the summer of 2009…its current market cap of $37.5 million is very modest given its cash position and resource potential…

Gold Bullion Development (GBB, TSX-V)

Gold Bullion released fresh drill results from Granada last week which were consistent with previous numbers but the stock remained under pressure in this current overall weak market…GBB was off 2.5 cents for the week, closing Friday at its 500-day moving average (SMA) of 36.5 cents…hole #173 was the star of Thursday’s batch of 25 holes…it provided additional evidence that the north and northeastern parts of the Eastern Extension are highly intriguing…#173 cut 80 metres grading 1.36 g/t Au within a total intersection of 363 metres of 0.35 g/t Au…a 1-metre section of high-grade (89.83 g/t Au) was hit near the bottom of the hole below 300 metres…#173 was collared approximately 115 metres northeast of #55 and 100 metres east-northeast of #108, two stellar holes released last fall…this is critical – assays are still pending on 9 holes (165, 168, 178, 183, 241, 243, 246, 254, and 257) north of #55 drilled over an east-west distance of about 250 metres and a north-south distance of 200 metres…results from those nine holes will go a long way toward confirming just how prospective these parts of the Eastern Extension are…#241 is the most northerly of those holes…meanwhile, hole #200 in the southeast portion of the Eastern Extension (northeast of discovery hole #86) returned an impressive interval of 48.50 metres grading 1.68 g/t Au within a total intersection of 210.5 metres of 0.44 g/t Au…results from the second most northerly hole drilled north of the Preliminary Block Model suggest more drilling is definitely required in that area…hole #31 hit a modest 18.5 meters grading 0.64 g/t Au close to surface (36 to 54.15 metres) and another 28 metres grading 0.59 g/t Au between a depth of 125 to 153 metres…where’s there’s smoke, there’s fire, and our theory is that there could be a significant trail of mineralization running north of the Preliminary Block Model and connecting with what has been discovered over the northern part of the Eastern Extension…six more holes (213, 214, 215, 217, 221 and 224 and 224) from the southwest portion of the Preliminary Block Model returned mixed results – we were hoping to see a couple of exciting holes from that area but that hasn’t materialized yet…overall, Gold Bullion continues to hit long intersections of lower grade mineralization over a wide area at Granada…this is a massive project with much more drilling required but the multi-million ounce model that Frank Basa has in mind remains intact…the 43-101 resource estimate, expected sometime over the summer, should give this play more focus and a big lift…drilling is also underway now in LONG Bars Zone 2 near the old Aukeko Property (2 kilometres east of Phase 1 discovery hole #17) and if Gold Bullion is able to connect these two zones, look out…GENIVAR’s Nicole Rioux, the head geologist for Granada, is genuinely excited about the Aukeko area and she is normally quite conservative in sizing things up…a couple of excellent results from this area could really ignite this play and based on all the historical information we have reviewed from “LONG Bars Zone 2”, the chances of a “hit” in this area have to be considered very good…

Cadillac Mining (CQX, TSX-V)

We have little to add regarding Cadillac today other than the fact new results released by Richmont Mines (RIC, TSX) last week for its Wasamac deposit add further value to the “Wasamac play”…unfortunately, to our utter astonishment and frustration, up to this point in time Cadillac has completely dropped the ball on this incredible opportunity…in this business, one must “seize the moment” – Cadillac was handed a great “moment” and so far it has failed to capitalize on that opportunity and execute a strategy…Richmont has been one of the best performing Gold stocks on the entire TSX this year and Wasamac is a big reason why…the principal structure hosting Gold mineralization at Wasamac plunges north onto seven strategic claims held 100% by Cadillac…it’s possible the company could be holding out for a terrific deal on these claims and we hope that’s the case as that’s the only justification management has for not pushing forward aggressively by now on exploration there…by so far not seizing the opportunity at Wasamac (including doing a much-needed financing at significantly higher prices), Cadillac is also seriously undermining investors’ confidence that it has the ability to make a success out of the Utah Gold-Silver project it put together in January and that’s very unfortunate…so they are in effect potentially jeopardizing two excellent projects…the stock’s 100-day SMA is now in a sharp decline…the rising 500-day moving average (SMA) at 9 cents represents the next major support area…on April 29 the company updated drilling progress by partner Visible Gold Mines (VGD, TSX-V) on the Cadillac Break Project that was optioned to VGD last December…two holes have been completed on the Kanasuta claims within 800 metres of Vantex Resources‘ (VAX, TSX-V) Moriss Zone discovery at its Galloway Project in Dassarat township, approximately 30 kilometres west of Rouyn-Noranda…Visible Gold is expected to drill two more holes before moving that rig eastward to ground within 2,800 metres of Richmont’s growing Wasamac deposit…no mention was made in the Cadillac news release of its claims that are tied on to Wasamac…at the end of February the company announced it was “getting ready” for an exploration program at its Wasa claims and that it expected to announce details of its exploration program in the “near future”…in our view, Cadillac would be far better off optioning those claims as well to Visible Gold which is in a much better position in every way to aggressively tackle the great potential of that property…Wasamac helped propel Richmont’s share price to an all-time high of nearly $10… Cadillac’s current market cap of only $3 million allows for plenty of upside if management can deliver…

Abcourt Mines (ABI, TSX-V)

Abcourt closed down another penny last week to close at 12 cents…the stock, which now has 149 million shares outstanding for a market cap of $18 million, has had only one “up” day over the last 12 sessions…the decline has coincided with the closing of a financing (35 million units at 18 cents), a sharp drop in Silver, and overall CDNX weakness…technical support exists at 11 cents…a declining 50-day moving average (SMA) has been putting some pressure on the stock which still has rising 100, 200 and 300-day SMA’s above the current share price…the 100-day, however, is in imminent danger of reversing to the downside after advancing for more than eight months…ABI released more drill results April 26 from its Abcourt-Barvue Silver-Zinc Property near Val d’Or…the results from five additional holes suggest growing open pit reserves and resources…two zones continue to produce significant grades including 9.1 metres of 171.73 g/t Ag and 3.48% Zn in hole #20 (zone 1) and 7.3 metres grading 196.32 g/t Ag and 3.73% Zn in hole #19 (zone 1)…the 10,000 metre drill program continues…the last set of results from the company’s Elder-Tagami Gold Property near Rouyn-Noranda came out March 3…mineralization continues to expand to the west of the former underground Elder Mine which is now being dewatered as announced by the company last week…the Tagami area to the north, meanwhile, has untapped potential including some higher grades…the latest NI-43-101 resource estimate of 216,000 ounces was released in the summer of 2009…the possibility of Abcourt expanding that resource beyond 500,000 ounces certainly exists given the encouraging results to date (look what Richmont has done at Wasamac)…the heavy accumulation that began in Abcourt in December was no fluke in our view…this is a company with significant assets that could justify a substantially higher valuation…nearly 60 million shares of ABI changed hands on the CDNX in December and January – record volume for this stock, accompanied by a price jump from 14.5 cents…we’ve seen these type of volume surges before and they are always a very positive sign…Abcourt has been under significant accumulation and our best guess is that some savvy players like the assets in the ground…continued drilling success and higher prices for Gold, Silver and zinc would be exciting developments for this stock which has a history of major moves…from mid-2005 to early 2006, Abcourt rocketed from 15 cents to nearly $1.40…

Currie Rose Resources (CUI, TSX-V)

We still view Currie Rose as one of our best near-term opportunities given its bullish chart patterns and the pending start of a major drill program at its properties in Tanzania…the stock bucked the overall trend and was up a penny last week at 17 cents…the 50-day moving average (SMA) has flattened out and what we’re looking for is a reversal to the upside in the very near future which would be another bullish development in addition to the just completed “cup with handle” formation…we are particularly excited about Currie Rose’s Sekenke Project in northwest Tanzania which we regard as the company’s #1 play as it holds major blue sky potential…Sekenke covers a lot of promising ground and runs in between and surrounds two former high grade Gold mines including Tanzania’s original producer…as often is the case, chances are that much was overlooked at and around the former mines which were in operation during the first half of the 20th century…Sekenke will likely be the first target of CUI’s upcoming drill program…while its Tanzanian properties are the market’s major focus, Currie Rose could also benefit over the coming weeks and months from continued good exploration news from Trueclaim Exploration (TRM, TSX-V) which is currently conducting an 8,000 metre drill program at the Scadding Gold Property near Sudbury…Trueclaim, which continues to release encouraging assay results, has earned a 51% interest in Scadding and can acquire a full 100% interest by completing a feasibility study, paying $2 million to Currie Rose, and giving Currie Rose a 3% net smelter royalty…CUI announced a joint-venture deal January 25 with Australian-based Liontown Resources for Currie’s Jubilee Reef Gold Project in Tanzania…CUI’s focus is on the Sekenke and Mabale Hills Projects, so finding a partner for Jubilee Reef made sense…the deal commits Liontown to at least 5,000 metres of drilling at the property this year which will give Currie Rose a minimum of 23,000 metres of drilling at all of its properties in 2011…while Currie Rose has had its market cap shaved considerably, from a high of nearly $40 million late last year to the current $15 million, what hasn’t changed is the quality of this company’s project portfolio which remains as high as it ever was in our view…Currie Rose has all the cash it needs ($2 million) to complete an initial major round of drilling (10,000 metres) this spring and summer in Tanzania, so there will not be any dilution of the stock at current levels as confirmed by President and CEO Harold Smith…

Richfield Ventures (RVC, TSX-V)

Richfield, moving of course in step with New Gold Inc. (NGD, TSX), was off another 34 cents last week to close at $8.26, almost exactly at its rising 50-day moving average (SMA) which has provided  consistent support throughout RVC’s incredible bull run since last summer…last Tuesday, Richfield announced more positive drill results from its Blackwater Project in central British Columbia including 378 metres grading 1.09 g/t Au over the northern section which Silver Quest Resources (SQI, TSX-V) holds a 25% interest in…of course at the beginning of April, Richfield announced a plan of arrangement with New Gold for a takeover of Richfield (in NGD stock) valued at that point at $10.38 per RVC share or $550 million…the drop in New Gold’s share price has partly been due to a knee-jerk reaction to some potential share dilution without investors properly considering the enormous possible benefits down the road to this company if it were to add Blackwater as a producer…we had been speculating on a potential buyout of Richfield for some time…the proposed deal is certainly a very positive fit for New Gold whose New Afton Project in the interior of British Columbia, not far from Blackwater, is on target to start production by the middle of next year…New Gold sees some obvious synergies between the two deposits…Richfield recently outlined approximately 4 million ounces of Gold in the indicated and inferred categories at Blackwater in a NI-43-101 resource estimate released March 2…the New Gold deal is expected to close next month (no competing offers for Richfield have yet been made)…New Gold recently released its first quarter results which showed continued solid growth, lower costs and earnings of six cents per share…the company expects to double its cash flow when production begins at New Afton next year…Richfield is up 588% since we introduced it to BMR readers in December, 2009, at $1.20…the Blackwater Gold District is still full of opportunity for investors and we encourage readers to check out the web site, www.BlackwaterGoldDistrict.com…

TSX Venture Exchange and Gold

The CDNX declined for the fifth straight week, losing 51 points to close at 2038.  During that time the CDNX has lost a whopping 15%.  The Dow and the Nasdaq have each gained 1.7%, the resource-heavy TSX has fallen 5.8%, Gold has climbed $20 or 1.4%, Silver has lost 14% while copper has also had a rough time, dropping about 10%.

What are we to make of this clear divergence between the CDNX, Gold and the major exchanges?

The bottom line is that it’s a troubling sign.  It’s the opposite of what we saw in July of last year when the CDNX suddenly took off to the upside, leading all markets higher.  The divergence was quite pronounced and it suggested we were in for a buoyant period in the markets and that’s exactly what unfolded over the balance of the year.  The risk factor was very low.  Right now the CDNX, which has proven to be an incredibly accurate leading indicator, is not behaving in a way that gives us comfort regarding the broader markets and commodities.  The message the Index is giving us is that there’s trouble ahead – we’re not sure what but given the uncertain geopolitical climate at the moment, this is an ominous warning.  The risk factor has increased which is something we first pointed out last March.

Having said that, it’s important to point out that the long-term CDNX and commodities bull market remains intact.  The fundamentals and the technicals both support that view.  Within any bull market there are always pauses and corrections and they are necessary in order to recharge the market for the next leg up.  Ultimately during this cycle there’s a good chance the CDNX will hit new all-time highs which would mean a move of at least 70% from current levels, similar in scope to the run the Index enjoyed from July of last year to the 2465 high in early March.

While the CDNX has been hit hard over the last five weeks, we haven’t yet seen a capitulation in this market which means a break below 2000 in the near future has to be considered a  possibility especially with the 100-day moving average (SMA) beginning to roll over.  The November low of 1900, just above the 200-day SMA, would be the first major support area below 2000.  The Index actually dropped slightly below its 300-day SMA last July before the Big Move kicked in.  The 1000-day SMA is at 1800.

There is significant volatility in the markets right now which experienced and sophisticated traders can profit from.  For most of us, though, that’s a dangerous game.  Hold some cash to take advantage of special bargains that may come along and invest only in companies with strong balance sheets, superior properties, skilled management, and encouraging charts.

Weakness in Commodities

Big hedge funds and speculators cut their bullish bets on commodity markets by $17 billion in the week through Tuesday, the biggest bear turn since at least 2009, according to regulatory data released on Friday.

The so-called “managed money” funds cut their overall net long holdings in 22 U.S. futures markets by over 222,000 contracts or 13% in the five days ended May 10, according to Reuters calculations based on the Commodity Futures Trading Commission’s weekly Commitment of Traders (COT report).

The data, based on both futures and options positions, confirm that some big hedge funds, commodity trading advisors (CTAs) and other major speculators dramatically pared back long positions during a week in which prices abruptly collapsed before staging a modest rebound.

Gold

Gold bounced around on either side of $1,500 last week before finishing unchanged at $1,495.  Technically, Gold appears to be in a “distribution box”, as John outlined in one of his recent charts, and this may continue for several more weeks.  Silver was all over the map but closed Friday down just 32 cents for the week at $35.20.

The rally in the greenback continues as the U.S. Dollar Index closed the week at 75.71.  Extreme oversold conditions in the U.S. Dollar emerged at the end of last month, so a significant bounce has come as no surprise.  The Index is now within about 3 points of its declining 200-day SMA where there is major resistance.  Technically and fundamentally, the overall outlook for the U.S. Dollar is grim.  Below is a snapshot from usdebtclock.org, taken late in the afternoon Friday, which shows the horrible financial mess the United States is in.  It’s an ugly picture.  Congress at the moment is having trouble grappling with two major issues – raising the debt ceiling to avoid a default by August, and making the deep and real cuts to government spending that are necessary.

The fundamental case for Gold remains incredibly strong – currency instability and an overall lack of confidence in fiat currencies, an environment of historically low interest rates and negative real interest rates (inflation is greater than the nominal interest rate even in parts of the world where rates are increasing), massive government debt from the United States to Europe, central bank buying, flat mine supply, physical demand, investment demand, emerging market growth, geopolitical unrest and conflicts, and inflation concerns…the list goes on.  It’s hard to imagine Gold not performing well in this environment.  The Middle East is being turned on its head and that could ultimately have major positive consequences for Gold.

Gold has traded between $1,501 and $1,518 so far today…as of 7:55 am Pacific, the yellow metal is unchanged at $1,507…this follows a nice reversal yesterday…Silver climbed as high as $36.50 but has pulled back…it’s currently up 72 cents at $35.34…crude oil is 41 cents higher at 99.38 while the U.S. Dollar Index is strengthening after some weakness this morning and is currently up slightly from yesterday at 75.31…better than expected economic growth data came out of Germany and France this morning…Martin Murenbeeld, chief economist for Dundee Wealth Economics, says his firm sees an average price of Gold at $1,515 this year, rising to $1,675 for 2012…U.S. consumer prices rose as expected in April on higher food and energy prices but continued to exhibit little sign of a broader pick-up in inflation that would concern the Federal Reserve…the Labor Department said its Consumer Price Index increased 0.4% last month after rising 0.5%  in March…core CPI  – excluding food and energy – gained 0.2% after edging up 0.1% in March which was in line with economists’ expectations…the monthly increase in core CPI has been bouncing around 0.1% and 0.2% since November…gasoline prices accounted for almost half of the rise in overall consumer inflation last month, advancing 3.3%…the CDNX managed to hold support yesterday and is currently up 5 points at 2055…there were no major surprises in Gold Bullion’s assay results yesterday…25 new holes were released (#108 was previously announced)…the most significant result was clearly hole #173, collared over 100 metres northeast of hole #55, which returned 80 metres grading 1.36 g/t Au and 238.25 metres of 0.52 g/t Au within a total intersection of 363 metres grading 0.35 g/t Au…results from six more holes (165, 168, 178, 243, 248 and 254) will give a really good picture of just how much the mineralization is broadening out over this promising northern part of the LONG Bars Zone Eastern Extension…hole #200 in the southeast portion of the Eastern Extension (northeast of discovery hole #86) returned an impressive interval of 48.50 metres grading 1.68 g/t Au within a total intersection of 210.5 metres of 0.44 g/t Au…results from the second most northerly hole drilled north of the Preliminary Block Model suggest more drilling is definitely required in that area…hole #31 hit a modest 18.5 meters grading 0.64 g/t Au close to surface (36 to 54.15 metres) and another 28 metres grading 0.59 g/t Au between a depth of 125 to 153 metres…where’s there’s smoke, there’s fire, and our theory is that there could be a significant trail of mineralization running north of the Preliminary Block Model and connecting with what has been discovered over the northern part of the Eastern Extension…six more holes (213, 214, 215, 217, 221 and 224 and 224) from the southwest portion of the Preliminary Block Model returned mixed results – we were hoping to see a couple of stellar holes from that area but that hasn’t materialized yet…overall, Gold Bullion continues to hit long intersections of lower grade mineralization over a wide area at Granada…this is a massive project with much more drilling required but the multi-million ounce model that Frank Basa has in mind remains intact…the 43-101 resource estimate, expected sometime over the summer, should give this play more focus and a big lift…drilling is also underway now in LONG Bars Zone 2 near the old Aukeko Property (2 kilometres east of Phase 1 discovery hole #17) and if Gold Bullion is able to connect these two zones, look out…GBB is unchanged at the moment at 37 cents…Richmont Mines (RIC, TSX), which has become one of our favorites due to the success of its exploration program at Wasamac near Rouyn-Noranda, has released stellar first quarter financials showing net earnings of 28 cents per share ($8.7 million vs. $1.8 million or 7 cents per share in Q1 2010)…Gold sales increased to 19,234 ounces, a slight increase from the fourth quarter of last year…lower cash costs and higher grades at the Island Gold Mine helped give Richmont its robust numbers for the first quarter…the only negative is that commerical production at the Francoeur Mine will not commence as scheduled by the middle of this year and instead will likely not begin until the first quarter of 2012…Richmont should produce at least 80,000 ounces of Gold this year and that will increase significantly next year with an annual rate of 35,000 ounces expected from Francoeur…the company hopes to eventually bring Wasamac into production at the rate of approximately 100,000 ounces per year…Richmont has only 31.5 million shares outstanding and $50 million in working capital with no long-term debt…long-term investors need to take a serious look at RIC, especially if any additional overall market weakness sends the stock lower…RIC has important technical support right around $7 where the rising 50-day moving average (SMA) sits…RIC’s 20-day SMA has started to decline, however, for the first time since February which suggests there could be some weakness ahead…RIC is currently up 63 cents at $7.72…we continue to keep a close eye on the CRB Index which needs to hold support around current levels…below is a chart through yesterday and John remains encouraged…

Checking the volume leaders on the Venture Exchange this morning, it’s not hard to tell that resource companies aren’t exactly the flavor of the month right now…Intertainment Media (INT, TSX-V), Poynt Corporation (PYN, TSX-V), Selectore Ltd. (SCG, TSX-V) and Fireswirl Technologies (FSW, TSX-V) are all up this morning and dominating trading…Currie Rose Resources (CUI, TSX-V) continues to show favorable technical signs and there has been some obvious accumulation in this stock over recent weeks…it has been trading between 16 and 17 cents so far today…lately we’ve been pointing out the very oversold technical conditions in Visible Gold Mines (VGD, TSX-V) which is also armed with about 18 cents per share in cash…a bullish “W” appears to be forming on the RSI for VGD…the stock closed up a penny at 28 cents yesterday, 1 cent above its rising 500-day moving average, on the best volume in several trading sessions…

Commodities remain under pressure due to a number of factors including a perception of slower economic global growth…copper’s drop to a 5-month low, just under $4 a pound, coincides with the weakness we’re been seeing in the CDNX…copper dropped as low as $3.85 this morning but has recovered to $3.93 (up 2 cents for the day) as of 9:20 am Pacific…Gold tumbled as low as $1,477 but has also rebounded…the yellow metal is currently off $8 an ounce at $1,493…Silver, which got smacked down again yesterday after rallying as high as nearly $40 an ounce, is off its lows of the day but still down sharply ($1.22 an ounce) to $33.85…crude oil is now 47 cents higher at $98.68 after falling as low as $95.25…the volatility in these markets has been rather stunning…the CDNX is a superb leading indicator and it was truly sending a strong message back in March that a correction in commodities was just around the corner…the question now is just how deep that correction will be or if in fact it has already largely run its course…the CDNX will often be a step or two ahead of the metals so when we see the Venture Exchange begin to outperform Gold, copper, etc., that’s likely the start of a new and sustained uptrend…astute and experienced traders can take advantage of the current volatility but for most of us, just riding out the storm and keeping some cash available to snap up an incredible bargain or two along the way is the wisest strategy…the long-term CDNX bull market remains intact, so staying focused on the “big picture” is critical…the U.S. Dollar Index has backed off after jumping higher again this morning (above 76.60)…it’s now down slightly on the day at 75.25…China has boosted reserve requirements at the country’s banks by half a percentage point, the eighth increase since last October…Chinese authorities are walking a tightrope…on the one hand, they are determined to keep inflation under control but on the other hand they face significant social and political pressures to ensure that strong growth continues…China’ is obviously critical to the commodities picture…the TSX Gold Index found support at its rising 500-day moving average (SMA) of 360 this morning…whether that’s the bottom after a nearly 20% drop from a high of 444 early last December remains to be seen…the CDNX has hit its lowest level (2033) in over five months…the Index is now trying to recover but is still off 27 points at 2043…a declining 100-day SMA is a negative technical development for the CDNX and suggests this market may not have hit bottom yet…Gold Bullion Development (GBB, TSX-V) reported results this morning from 25 more holes at the Granada Gold Property…we’ll go into more detail on our “Morning Musings” tomorrow after a more comprehensive review but at first glance these assays continue to support the LONG Bars Zone low-grade but near-surface, high-tonnage model…hole #173 in the northeast part of the Eastern Extension is significant as this particular area continues to show excellent potential…#173 returned 80 metres grading 1.36 g/t Au (238 metres of 0.52) within a total interval of 363 metres grading 0.35 g/t Au…hole #108 was released in mid-November so we’re not sure why that was included in this morning’s results…GBB is currently off a penny at 37 cents…Focus Metals (FMS, TSX-V), which we mentioned recently when it was trading around 80 cents, is a company to continue to keep an eye on especially if any additional overall market weakness pushes it lower and closer to its 200-day SMA where there is exceptional support…FMS announced this morning it has completed a $20 million bought deal financing which will go a long way toward advancing its promising Lac Knife Graphite Project in Quebec…the stock has been under some technical pressure recently but it’s in better shape in that regard than most other plays at the moment, and the company is now sitting on piles of cash…waiting for a reversal in the 20 or the 50-day SMA might be the wisest strategy in terms of picking an entry point…the 200-day rising SMA is currently 60 cents…FMS is up a penny at 90 cents at the moment…in the speculative sphere, companies that are aggressive on the exploration front and have strong cash positions are going to be favored by the market in the current environment…GBB and FMS are just two such examples…Visible Gold Mines (VGD, TSX-V) is another…VGD is armed with $8 million in cash and is exploring feverishly in northwest Quebec in the Rouyn-Noranda region…the company’s Joutel Property has all the ingredients we look for in a project that can drive shareholder value in a major way…it’s a significant former producer of Gold and Silver and if there’s anyone who can make new discoveries around that area with a fresh approach, it’s VGD’s senior geologist Robert Sansfacon who’s very upbeat about the prospects for Joutel…VGD closed at 27 cents yesterday, exactly at its 500-day rising moving average, and the stock is currently heavily oversold based on RSI and Stochastics levels…it’s up a penny this morning at 28 cents…

Markets are generally weak across the board today…Gold shot up as high as $1,528 overnight but has since pulled back to $1,510 (as of 8:25 am Pacific) for a drop of $6 on the day…Silver got above $39 before running into selling pressure…it’s currently down $1.88 at $36.57…crude oil is off $2.90 a barrel to $100.98 while the U.S. Dollar Index continues to climb…it’s up one-third of a point to 74.83…China’s inflation for April came in at 5.3%, down from 5.4% in March but slightly above the 5.2% reading that was expected…other data including industrial output and loans suggested the world’s second largest economy might be cooling slightly but growth nonetheless remains robust in China…the Bank of England stated this morning that inflation could hit 5% in that country by next year…Germany reported that its inflation rate rose to 2.7%, the highest level in a few years…next up on the inflation data front is Friday’s U.S. report for April…the CDNX is giving up some gains this morning after three straight advancing sessions following last week’s intense selling…as of 8:25 am Pacific, the CDNX is off 30 points at 2096…Gold Canyon Resources (GCU, TSX-V), which is expected to close a $10 million financing any day now, released more stellar drill results this morning from its Springpole Property located about 100 kilometres northeast of the Red Lake mining camp….hole #58 returned 110 metres grading 2.48 g/t Au and 4.56 g/t Ag…the last nine metres of that hole assayed 18.33 g/t Au…meanwhile, SP-11-048, an inclined infill hole, intersected 194 metres grading 1.11 g/t Au and 13.79 g/t Ag…recent drilling by GCU has revealed unusually high silver assays in the mid-section of the Portage Zone…Springpole is shaping up to be a world class deposit, so we continue to follow this situation with a great deal of enthusiasm…the known mineralized zones at Springpole underlie a total known area of about 4 square kilometers representing only about 15% of the greater alkaline intrusive complex which is yet to be comprehensively explored…from a technical standpoint, the stock is looking solid and has been building a nice base near the $3 level…GCU is currently off a dime at $3.20 but we attribute that to a soft overall market today…Seafield Resources (SFF, TSX-V) is showing signs of life with new management having stepped in this week…the stock has been on a steady decline since exploding to an all-time high of 77 cents in December, and may have found a bottom at 22.5 cents yesterday…Seafield closed yesterday at 25.5 cents on CDNX volume of 1.6 million shares…this is a company sitting on a significant amount of cash (nearly $20 million with the proposed $3 million financing at 30 cents) and a quality land package in Colombia at Quinchia…a new team at the helm should be able to unlock the value of this play though it won’t happen overnight…Seafield is currently off half a penny at 25 cents…long-term investors may wish to perform due diligence on Premium Exploration (PEM, TSX-V), currently down 3 cents at 57 cents…the company is working on discovering an emerging Gold district in Idaho and John likes the PEM chart as shown below…the stock’s rising 300-day moving average (SMA) at 45 cents has provided strong support since 2009…

Abcourt Mines (ABI, TSX-V) is up half a penny at 13 cents…Mineralfields unloaded over 3 million shares last Friday which helps explain why this stock has been under pressure recently…it seems reasonable to believe that the 11-cent mark touched last Friday could prove to be an important low…Richmont Mines (RIC, TSX) has released encouraging new drill results from its Wasamac deposit which show an important widening of the Gold-bearing mineralization in the Main Zone to the west at depth, below the resource block…Richmont is currently down 27 cents at $7.48…

Gold has traded between $1,498 and $1,519 so far today…as of 6:45 am Pacific, the yellow metal is off $3 an ounce at $1,510…Silver continues its rebound after last week’s dramatic sell-off…it’s currently up 42 cents to $38.13…the U.S. Dollar Index is up over one-fifth of a point to 74.83 while crude oil is down $1.08 a barrel to $101.47…the CME Group, the world’s largest commodities exchange, raised margin requirements on crude oil futures contracts by 25% following the market close yesterday in a move designed to curtail excess speculation…this will shake out some of the small single contract players and cause bigger multi-contract players to add funds to their accounts or reduce their positions…crude oil may have a hard time holding $100 and may need to carve out a base in the 90’s before marching higher again…the market will be paying close attention to a slew of Chinese economic data this week including PPI, CPI, industrial production, retail sales, fixed asset investment and international trade statistics…trade data out this morning showed monthly crude imports by the world’s second-largest user rose last month to the third highest volume on record…China’s April crude oil imports increased 1.7% from a year earlier to 5.24 million barrels per day…given last week’s rout in commodities, it’s a good time to examine the technical health of the CRB Index which is an excellent measure of commodity prices and inflation…John’s chart this morning shows the CRB Index hit an important support level last week and more than just a bounce is likely in order…

John: Recently the volatile market action has revolved around commodities. Silver went parabolic and then last week in 5 days collapsed from a high of nearly $50 an ounce to around $33 with other commodities also being affected across the board.

Yesterday, Silver opened at $35.69, fell to a low of $35.27, climbed to a high of $37.94 and then closed at $37.83 for a gain of $2.23 (+6.26%). The question is whether this is a true reversal or just a bounce from an oversold position. Because many commodities also suffered a drop in price it’s appropriate to examine the CRB Index chart.   The CRB Index is an unweighted geometric average of important commodities. The Index averages prices across 17 commodities including energy, grains, industrials, livestock, precious metals and agriculturals and across time.

Looking at the 6-month daily CRB Index (EOD) chart, we see that last week the Index collapsed from a high of 370 down to a low of 335. I have included a Gold chart for comparative purposes. The first point to notice is that the down move stopped abruptly at the previous support level of 335 – this indicates just how strong support is at this level. Yesterday the Index gapped up at the open to 342.10, fell to a low of 340.10, rose to a high of 344.81 and then closed at 344.10 for a gain of 6.75 points or 2%.  There was a strong indication prior to last week that a correction was possible in part due to Silver’s overbought condition and the divergence between RSI and the CRB Index.

Looking at the Indicators:

The RSI dropped down to just below the 30% level last Friday, putting it in a slightly oversold position. Yesterday it climbed above 30% to 36% – bullish.

The Slow Stochastics (SS) also plunged deep into the oversold region and yesterday the %K reversed direction and appears ready to cross up above the %D and still remain oversold –  this is a bullish scenario.

The ADX trend indicator had the -DI reaching a very high level last Friday (horizontal blue line) and yesterday reversed to point down – bullish.

Outlook: The strong bullish position of the chart pattern and the indicators show a high probability that this is a reversal and not just a bounce.  The long-term commodities bull market remains completely intact – last week was a correction, not a fundamental shift.

Morning Musings continued…

Gold Bullion Development (GBB, TSX-V) has closed its nearly $5 million financing…7,142,770 flow-through shares at 61 cents raised most of the money while 833,333 units at 51 cents (the units include a half warrant) brought in the balance for total gross proceeds of $4.78 million…barring another major market sell-off, we see no reason why GBB won’t hold support at its March low of 34.5 cents…technically, the stock is in oversold territory and everyone knows our position regarding the fundamentals – GBB has an excellent chance of proving up a multi-million ounce deposit at Granada with the initial 43-101 resource estimate expected sometime this summer…GBB closed yesterday at 38.5 cents and as of 6:45 am Pacific, it’ up half a penny at 39 cents…John’s updated GBB chart shows a stock that’s trading in a very strong support zone…

We’ve been paying close attention to Currie Rose Resources (CUI, TSX-V) recently due to very encouraging technical signs and the fact the company is gearing up for the start of a major exploration program in northwest Tanzania…we’ve been waiting for this moment for more than six months since we introduced CUI to our readers – the drilling of the company’s Sekenke Project which we believe is a superb geological target…the ground Currie Rose has locked up in that area is extensive and runs in between and surrounds not just one but two former producing high grade Gold mines…that’s music to the ears of any geologist, especially CUI’s Michael Griffiths who we first spoke to on the matter several months ago…in the exploration business there are never any guarantees but we’ve seen it happen at Granada, Canadian Malartic, Wasamac and elsewhere – many mines from 50 or 100 years ago, and the immediate areas surrounding them, were never properly explored or fully exploited…Currie Rose has an excellent chance for success with its Sekenke Project…this has what they call “blue sky” potential written all over it and we believe the market will respond accordingly…CUI is off half a penny at 16 cents in early trading…Richfield Ventures (RVC, TSX-V), which is up 636% since we introduced it to our readers in December, 2009, released more drill results from its Blackwater Project this morning (the northern section where SilverQuest, SQI, TSX-V, holds a 25% interest) including a stellar hole of 378 metres grading 1.09 g/t Au…SilverQuest is up 6 cents to 78 cents on strong volume while RVC, trading in lockstep with New Gold Inc. (NGD, TSX) is down 2 pennies at $8.83…

Commodities have started the new week on a strong note to follow up on Friday’s recovery after a broad sell-off the first four trading days of the month…as of 8:45 am Pacific, Gold is up $11 an ounce at $1,506 while Silver has climbed $1.40 to $37.02…crude oil is up $3.46 a barrel to $100.64 while the U.S. Dollar’s rebound continues…the Dollar Index is up over one-third of a point to 75.06…a rally in the greenback is not surprising given the recent extreme oversold conditions and it’s something we predicted a week ago…further strength in the Dollar in the days ahead could put additional pressure on commodities but as John’s chart shows, the Dollar faces some heavy resistance and the declining 200-day moving average (SMA) at 78.47 is likely about as high as it could get…

U.S. home values fell in the first quarter at the fastest rate since late 2008, according to real estate data firm Zillow, suggesting that a bottom will not be seen until next year at the earliest…Zillow said its home value index fell 3% in the first three months of the year from the previous quarter, and was down 8.2% year-over-year…the number of homeowners under water – those who owe more on their mortgage than their house is currently worth – amounted to 28.4% of single-family homeowners, representing a peak since Zillow began calculating the data in 2009…that was up from 27% in the fourth quarter of last year…the CDNX is back above 2100 which is encouraging…the Index is following through on Friday’s rally with a 20-point gain after two hours and 15 minutes of trading today…it’s currently at 2108…there has been a big shuffle at Seafield Resources (SFF, TSX-V) which has to be considered a very positive development…Cesar Lopez, who has a strong background in South American exploration management and development, is the company’s new Chief Executive Officer…he replaces Tony Roodenburg who will remain as a director…Tom Henricksen, meanwhile, takes over as Vice-President, Exploration, from James Pirie who also remains as a director…Henricksen has over 35 years of mineral exploration experience and has spent the last 15 years on projects in South America…Seafield, which is up a penny so far today at 24.5 cents, exploded from the low 20’s to an all-time high of 77 cents in just one day last December but has since given up all of those gains…the company’s Quinchia land package is Colombia has a great deal of untapped potential and Seafield is also sitting on approximately $15 million in cash…the new management group is conducting a private placement for 10 million units at 30 cents which will raise another $3 million…Roodenburg’s desire over the last year-and-a-half in particular has been to phase himself out of Seafield and concentrate his efforts on Greencastle Resources (VGN, TSX-V)…the fresh faces with Seafield should give that company the boost it needs, and now perhaps Roodenburg can start to make things happen with Greencastle which is currently trading near cash value at 19 cents…we’re expecting news anytime now from Currie Rose Resources (CUI, TSX-V) which is scheduled to resume drilling operations in northwest Tanzania by the end of this month…the property we are keenly interested in is Sekenke which runs in between and surrounds two former producing high grade Gold mines…CUI has not yet drilled this property but has conducted some initial exploration work including geophysics that reveal strong potential for a significant discovery…Currie Rose is up half a penny at 16.5 cents…Gold Bullion Development (GBB, TSX-V) is up half a penny at 39.5 cents…GBB was under heavy selling pressure last week but managed to hold above its March low of 34.5 cents…the rising 500-day SMA at 36 cents provides strong support…Richmont Mines (RIC, TSX) has acquired additional ground near its growing Wasamac deposit…the deal with Globex Mining (GMX, TSX) is a juicy one and underscores the value of Cadillac Mining’s (CQX, TSX-V) claims…