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May 8, 2011

The Week In Review And A Look Ahead: Part 3 of 3

Visible Gold Mines (VGD, TSX-V) suffered with the market as a whole last week but found support at 30 cents and closed Friday at 33 cents for a loss of just two pennies for the week…the stock became extremely oversold based on RSI levels….the rising 500-day moving average (SMA) at 27 cents also provides excellent support, so it’s possible an important bottom may have been put in last week…interestingly, the CMF indicator shows a consistent increase in buying pressure in VGD since February…there has been some accumulation which doesn’t surprise us…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…this is an aggressive company with $8 million in its treasury, 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 quickly emerging as an exploration leader in northwest Quebec, specifically in the Rouyn-Noranda region…its flagship property is Joutel, a significant former Gold-Silver producer that gave birth to Agnico-Eagle Mines Ltd. (AEM, TSX) in the 1970′s…VGD just recently optioned Joutel from Agnico-Eagle and exploration will be starting soon…at the moment Visible Gold Mines 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 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…it’s our belief VGD could have its sights set on acquiring a bigger and more strategic land package around Wasamac…it tried but was not able to work out an option agreement with Cadillac Mining (CQX, TSX-V) in December regarding  seven claims that are tied on to the Wasamac deposit…Cadillac may have been holding out for a better deal…we’ll see what happens on that front but VGD is clearly in a better position than Cadillac to explore that highly prospective and strategic ground…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 have now been completed (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 appears to have finally bottomed out last week with its lowest close being 20 cents on Wednesday, an area of exceptional support as we had mentioned earlier…the stock was unchanged for the week, closing Friday at 23 cents…technically, the downside risk from current levels is limited given the successful test of support at 20 cents which is where the rising 500-day SMA sits…the stock became extremely oversold last week 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 15% since we introduced it to BMR readers last fall at 19.5 cents…

Greencastle Resources (VGN, TSX-V)

Greencastle continues to struggle as the stock fell as low as 16 cents last week and closed at 17.5 cents for a weekly loss of a penny…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…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…continued firm oil prices will maintain or increase 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 President and CEO Tony 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…investors need to be patient, however, as they often do with Roodenburg’s plays…Greencastle is up 25% since we added it back in to the BMR model portfolio last October…

Adventure Gold (AGE, TSX-V)

Adventure Gold has had a phenomenal chart for many months but some cracks are finally beginning to appear…the stock was off 9 cents last week, closing exactly at its 100-day moving average (SMA) of 56 cents which has provided exceptional support since AGE started its big run last September…however, the 50-day SMA is now reversing to the downside and that’s always a danger sign…selling pressure as shown by the CMF has intensified which is also worrisome, so AGE does look vulnerable to a potential drop from here…the 200-day SMA at 44 cents will provide support…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 expect AGE will begin drilling its Granada Extension Property in the near future…results from Gold Bullion reveal exciting potential over the far western portion of GBB’s Preliminary Block Model which supports Adventure Gold’s geological interpretation that it holds part of the western extension of the LONG Bars Zone…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 could explode…

Sidon International (SD, TSX-V)

Sidon fell as low as 4.5 cents last week and closed at a nickel for a weekly loss of a penny…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)

Seafield closed Friday at 23.5 cents, its rising 500-day moving average (SMA), which was a loss of 2 more pennies for the week…while we weren’t expecting a drop this low, we’d certainly be shocked if SFF couldn’t find support in the 23 to 24 cent range…the downside risk from here appears to be very limited based on technical and fundamental considerations…in otherwords, the risk-reward ratio at the moment is looking extremely attractive with SFF…this is also why we like the warrants that started trading recently (they closed at 6.5 cents Friday) as they provide excellent leverage though one stands the risk of losing most or all of their money in that trade…each warrant entitles the holder to purchase one common share at a price of 75 cents per share and will expire on Friday, Dec. 21, 2012…the company announced April 5 that drilling has commenced at Santa Sofia, about one 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…the company is sitting on at least $15 million in cash and has a very modest market cap of $39 million…Seafield has gained 292% since we made it the first company in the BMR model portfolio in the summer of 2009…it’s encouraging to see that Anglo-Ashanti Ltd., the world’s third largest Gold producer, plans to spend $300 million over the next three years on further exploration in Colombia…

The Week In Review And A Look Ahead: Part 2 Of 3

Gold Bullion Development (GBB, TSX-V)

Gold Bullion fell in sympathy with the overall market last week, falling 7 cents to close at 39 cents…the stock fell as low as 37.5 cents during Thursday’s CDNX 78-point sell-off, just three pennies above the March low for GBB where there is outstanding support…the first sign of a sustained recovery in the stock will come when the still-declining 50-day moving average (SMA), which is currently providing resistance in the mid-to-upper 40’s, reverses to the upside…GBB expects to close a private placement financing in the very near future which could add as much as $5 million to the company’s treasury…most of the financing is at 61 cents on a flow-through basis which is a departure from previous financings which have all been hard cash…nonetheless, the money is needed as GBB pushes to advance the Granada Gold Property…for the past two months Gold Bullion has traded between its 300-day and 500-day moving averages, a pattern that seems likely to continue for the immediate future until an event or news produces the most likely scenario which we believe is an upside breakout…investor patience is critical here as this opportunity is as big as ever despite the share price slump which started in mid-February…GENIVAR is expected to complete an initial 43-101 resource estimate for the LONG Bars Zone sometime during the third quarter and that should spark significant new interest in GBB…given the obvious multi-million ounce potential of the LONG Bars Zone, the company’s current market cap of $62 million seems absurdly cheap…more drill results were released April 5…there were no eye-popping numbers but that’s okay – virtually every hole continues to hit near-surface mineralization and tonnage keeps building…hole #179 (72.25 metres grading 1.25 g/t Au and 156 metres of 0.61 g/t Au) shows mineralization continues to push eastward from Pit #1…six holes drilled just NE and SE of #179 under the waste pile will be important to look for (holes #198, #199, #201, #248, #250, and #253 – assays to come)…hole #97 was a nice cut likely of Vein #2, 46.7 metres grading 1.51 g/t Au…holes like #69, #124, #136 and #193 don’t get most investors excited but they’re very important to the overall picture with long intersections of lower grade (177, 113, 189 and 165 metres respectively grading between 0.31 and 0.42 g/t Au)…Frank Basa will have no problem with those numbers, keeping in mind the “upgrading” effect at Granada…structure is there…more bulk sampling and different types of drilling will quantify and improve the grade…just a few holes reported from the southwest corner of the Block Model with many more to come from there – it continues to be a promising area…there were a smattering of holes from the Eastern Extension but nothing that jumped out at us…many more results are yet to come from the Eastern Extension including the northern part where good visuals were reported earlier…it’s interesting to note that on GBB’s drill map, three step-out holes have been drilled about 90 to 145 metres north of holes #55 and #108…we’ll be watching closely for results from those holes…assay results are now in on nearly half of the 228 holes completed so far (45,000 metres) in Phases 2 and 3…47,730 metres in total have been completed since December, 2009…the case for the LONG Bars Zone remains intact…much, much more drilling lies ahead as this is all about volume (which is why we wanted to see more than two rigs by 2011)…the 43-101 this summer will be extremely helpful in terms of pushing this exciting project forward…Gold Bullion is sitting on a potentially huge near-surface Gold deposit in one of the best jurisdictions in the world for mining and exploration during the greatest bull market in history for the yellow metal…on April 11, Gold Bullion announced its intention to spin off its Castle Silver Mine Property into a separate publicly traded company…such a move makes good strategic sense and Gold Bullion is hoping the proposed transaction will be completed before the third quarter of this year…that could be optimistic as this type of move typically runs into unexpected delays but the important point is that GBB is going in the right direction with this important asset…Castle is a significant former producer with a lot of unexplored potential for cobalt and silver, in particular, in addition to nickel and copper…GBB has gained 457% since we introduced it to BMR readers 16 months ago and much more excitement in our view is yet to come from the LONG Bars Zone…

Cadillac Mining (CQX, TSX-V)

There is no way to sugar coat this one – Cadillac has been an under-performer and a major disappointment given the opportunity this company had (and still has) with Richmont’s discovery of much more Gold at the Wasamac deposit where Cadillac holds seven very strategic and valuable claims…it’s possible the company could be holding out for a great 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 incredible 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 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 Mines’ (RIC, TSX) growing Wasamac deposit…no mention was made in the Cadillac news release of its seven 100% owned 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 $3.4 million allows for plenty of upside if management can deliver…

Abcourt Mines (ABI, TSX-V)

It was a tough week for Abcourt which fell through support and lost 3.5 cents to close at 13 cents…the stock, which now has 149 million shares outstanding for a market cap of $19.5 million, traded as low as 11 cents Friday morning where it appeared to hit an important bottom given heavily oversold technical conditions and support at the December low…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 at 17.5, 15.5 and 14 cents, respectively…after announcing the closing of a $6.32 million financing April 21, 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…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 is being accumulated, and our best guess is that some savvy players like the assets in the ground…continued drilling success and even 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 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 was off 2 pennies for the week at 16 cents but staged a nice recovery during Thursday’s market sell-off when it dropped as low as 14 cents and then quickly recovered to 16 cents as buyers stepped aggressively into the market…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 to the current $14 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 $1.09 last week to close at $8.60…the rising 50-day moving average (SMA), currently at $8.00, 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 91 metres grading 2.04 g/t Au over the southern section…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’ve been speculating on a potential buyout of Richfield for some time now…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…will another company step into the picture and start a takeover battle for Richfield?…the possibility of that can’t be ruled out, especially with Gold as strong as it is and the likelihood in the minds of some that the current resource at Blackwater could be expanded significantly…we’re now living in a world where there is a fierce battle for resources of all types…Richfield is up 617% 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…we also see great value in New Gold which has been exceeding analysts’ expectations with terrific numbers…New Gold released its Q1 results last Wednesday, showing first quarter earnings per share of 6 cents and its lowest cash costs ever…

The Week In Review And A Look Ahead: Part 1 Of 3

TSX Venture Exchange and Gold

It was a very rough week for commodities which took its toll on the CDNX.  The Venture Exchange plunged 9% over a four-day period to 2045, 8 points below the March 15 low, before rebounding 41 points Friday to close the week down 163 points or 7.2% at 2089.  Thursday’s 78-point sell-off had all the markings of an important bottom (a short-term low at least) as RSI readings hit extreme levels.  The market found support right around the March low and just above its rising 200-day moving average (SMA).

We have to remember the CDNX has had a spectacular run since the late 2008 low of just under 700.  The Index has tripled in value in only 29 months, so the kind of trading action we’ve seen over the last few months should be viewed as normal.  The sky is not falling and some excellent opportunities have opened up for skilled traders as well as patient investors who have the long-term in mind. For now we’re dealing with a market that appears to be range bound between its 200-day SMA and the 2200 to 2300 area (the 50 and 100-day SMA’s have converged at 2280).

Given the fact the CDNX remains in an overall bull market, underpinned by rising 200, 300 and 500-day moving averages, the sell-off in commodities last week has to be viewed in the context of an overdue and healthy correction as opposed to a fundamental shift.  The masses have not yet jumped into the CDNX – that moment is yet to come.

Gold dropped $70 or 4.5% for the week but that was a tea party compared to the bloodbath longs were subject to in Silver.  The “poor man’s Gold” had become hugely overbought and several factors contributed to a spectacular 26% drop for the week from $47.94 to Friday’s close of $35.62.    It was a “Commodities Smackdow” right across the board as crude oil, copper, nickel, lead, aluminum, sugar and tin were also down significantly.

The heavily oversold U.S. Dollar finally woke up and gained some traction, especially after the president of the European Central Bank dashed expectations Thursday that another rate hike from the ECB was imminent.

The possibility of slower growth in emerging markets such as China and India seemed to weigh on investors’ minds last week which contributed to the sell-off in commodities.  This has been an on-again, off-again concern due to continued monetary tightening in those countries in order to tame inflationary pressures (India raised interest rates by a greater than expected 50 basis points, the ninth hike in just over a year).

Gold found support at its rising 50-day SMA of $1,456 and rallied $22 an ounce Friday on a strong U.S. jobs report to close the week at $1,495.  Gold was also in technically overbought conditions entering last week though it certainly wasn’t in an extreme “frothy” state like Silver.

The outlook for the yellow metal continues to be very positive but for the time being it’s likely to trade within a “distribution box” as John outlines below.

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, rising oil prices, 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.

Mexico massively ramped up its Gold reserves in the first quarter of this year, buying over $4 billion of bullion as emerging economies continue to move away from the U.S. Dollar.  This was the third biggest off-market purchase of Gold by any country over the past decade, and Mexico’s reserves went from just 6.84 tons at the end of January to 100.15 tons, or 3.22 million ounces, by the end of March.

The International Monetary Fund also reported that Russia and Thailand purchased 18.8 and 9.3 tons to bring their respective totals to 811.1 and 108.9.  The Gold purchases by Mexico, Russia, and Thailand are consistent with a change that occurred in 2010 in which central banks became net buyers of Gold rather than net sellers for the first time in nearly two decades. This change in trend is one of many reasons we believe Gold is ultimately headed well beyond $2,000 an ounce.

May 6, 2011

BMR Morning Market Musings…

Gold is recovering today after dropping about $100 an ounce over four trading sessions…as of 8:45 am Pacific, the yellow metal is up $19 an ounce at $1,492…Silver, which endured its biggest one-day drop since 1980 yesterday, fell again this morning and touched nearly $33 an ounce before finally rebounding…it’s currently up $1.35 to $36.01…the amazing drop in Silver this week was magnified by traders and investors who sold out of sheer panic or who were forced to sell due to margin calls…the U.S. Dollar Index, which rallied sharply yesterday, is up another one-fifth of a point at 74.26…a sustained rally in the U.S. Dollar, which is possible, could put additional downward pressure on commodities over the short-term though we have seen periods when the U.S. Dollar and Gold have both climbed higher together…public opinion has never been more negative on the greenback since 2003…turnarounds or rallies are born in conditions of extreme bearishness…Goldman Sachs, which last month predicted this week’s major correction in oil prices, said this morning that oil could surpass recent highs by next year due to supply tightness…the Wall Street bank, seen as one of the most influential in the commodities business, said it did not rule out a further limited decline in oil prices in the short term…markets are getting a boost today from a positive though somewhat deceiving U.S. jobs report which showed that employment increased significantly more than expected last month as private companies created jobs at the fastest pace in five years…job growth, however, barely kept up with the expansion of the labor force and the jobless rate rose to 9% which underscores how difficult it’s going to be to put a serious dent in the unemployment rate…nonfarm payrolls rose 244,000 last month, the most in 11 months, according to the Labor Department but that number was aided by a move from McDonald’s to hire 50,000 new workers…the private sector accounted for all of the job gains last month with payrolls rising 268,000, the largest rise since February, 2006…April marked seven straight months of net job creation in the U.S. but 13.7 million Americans remain out of work…another measure of unemployment rose as well –  the so-called “real” unemployment rate, which increased to 15.9 percent, up two-tenths from the prior month…the government calls the rate the “U-6” and it measures not just those looking for work and unable to find jobs but also those “marginally” attached to the labor force and those who are working part-time but who want full-time work…U.S. home prices have double-dipped nationwide and are now lower than their March, 2009 trough, according to a new report from Clear Capital…due to the fragile economic recovery, debt issues and global risks, there can be little doubt we’re in an extended period of very accommodating monetary policy from the Federal Reserve which should prevent any kind of a market meltdown…the CDNX almost touched its 200-day moving average (SMA) yesterday, reaching a low of 2045, and it did hit extreme oversold RSI conditions which strongly suggested a low was being put in…the CDNX is sharply higher this morning, up 49 points to 2097…RSI(2) can be very effective in picking market lows as John illustrates in this chart…

Currie Rose Resources (CUI, TSX-V) staged a bullish reversal yesterday on CDNX volume of 1.1 million shares…we believe this could be a superb month for Currie Rose as exploration resumes on its properties in Tanzania…we are particularly excited about CUI’s Sekenke Project which runs in between and surrounds two former high grade Gold mines including one of Tanzania’s original producers (140,000 ounces of Gold with an average grade of 15.4 g/t Au)…the ground immediately surrounding these former mines has to be considered highly prospective…indeed, Currie Rose has already identified a large structure (12 km x 800 metres) within a shear zone on the margins of a large granite intrusion that hosts numerous quartz reefs of the same type and even larger than those that developed at the nearby historic mines…the company has a map of this on its web site and it’s quite stunning…the Sekenke Project is in the prolific Lake Victoria Gold Fields of northwest Tanzania where numerous major deposits exist…the chart, which includes the completion of a “cup with handle” pattern, and the fundamentals both suggest Currie Rose is about to head higher…it’s currently off half a penny at 15.5 cents…Visible Gold Mines (VGD, TSX-V) appears to have found a bottom at 29 cents, just above its rising 500-day moving average (SMA), after hitting extremely oversold levels this week based on RSI and Stochastics…it’s currently up half a penny at 31.5 cents…20 cents appears to have been the bottom on GoldQuest Mining (GQC, TSX-V), as predicted, as it too fell into extreme oversold conditions…GQC is up 2 pennies at 23 cents…Gold Bullion Development (GBB, TSX-V) is an absolute gift below 40 cents in our view…it’s up a penny at 39 cents after dropping as low as 37.5 cents in yesterday’s sell-off…it’s amazing how investors can sometimes throw fundamentals completely out the window…GBB is edging closer to a 43-101…there is no denying the multi-million ounce potential of the LONG Bars Zone which makes the risk-reward ratio on GBB at the moment incredibly attractive…

May 5, 2011

BMR Morning Market Musings…

It has been a wild day on the markets and the action this morning has the feel of an important bottom…Gold has dropped as low as $1,478 this morning, just $1 above the first major support level John identified in last night’s chart…as of 9:30 am Pacific, the yellow metal is down $33 an ounce at $1,483…Silver fell slightly below $36 an ounce and is currently off $3.28 at $36.11…in addition to the CME raising margin requirements on Silver three times in a week, CNBC reported late yesterday that Mexican tycoon Carlos Slim has been a heavy seller of Silver futures and options to hedge his Silver production well beyond 2011…this has further spooked the longs…holdings in global Silver-backed exchange-traded products fell by 520 metric tons yesterday, the second-largest daily drop ever, according to analysts with Barclays Capital…the largest-ever daily decline was 555 tons in January, 2008…Silver ETP’s have suffered net redemptions of 1,105 tons in seven days, Barclays stated…as John’s chart showed last night, major support levels for Silver are between $27 and $37…there is particularly strong support at $35 which is also the Fibonacci 38.2% retracement level…bargain hunters started stepping into Gold and Silver stocks yesterday, which is evidence a bounce in the metals could be at hand, as the CDNX rallied 25 points from its intra-day low of 2099 while the TSX Gold Index actually finished in positive territory for the day after earlier touching its 300-day moving average (SMA)…the TSX Gold Index has held support at its 300-day SMA since early 2010…traders/investors pocketed large profits by jumping in at that supporting moving average on four previous occasions since early 2010…it’ll be interesting to see if that trend continues…the 500-day SMA at 360 is secondary support on the TSX Gold Index…the bottom line is that this is a correction within an ongoing bull market and Gold in particular will be supported by strong physical buying which has the potential of producing a rapid reversal…the U.S. Dollar Index is up two-thirds of a point to 73.75 as it finally begins to gain some traction after being in deeply oversold territory…there’s more evidence of weakness or choppiness in the U.S. economic expansion…this is still a fragile recovery with numerous risks which means the possibility of a new round of quantitative easing from the Federal Reserve can’t be ruled out after June…new U.S. claims for unemployment aid unexpectedly rose last week to touch their highest level in eight months…initial claims for state unemployment benefits rose 43,000 to a seasonally adjusted 474,000, the highest since mid-August of last year according to the Labor Department…economists polled by Reuters had forecast claims dropping to 410,000…the four-week moving average of unemployment claims, a better measure of underlying trends, increased 22,250 to 431,250, the highest since November…the data falls outside the survey period for the government’s closely watched employment report for April which will be released tomorrow…nonfarm payrolls are expected to come in at 186,000 for last month, according to a Reuters survey, after rising by 216,000 in March which was the most in 10 months…as of 9:30 am Pacific, the CDNX is down 47 points at 2079, only about 40 points above its rising 200-day SMA…RSI(14) levels on the CDNX are at previous important market lows in March and July and February of last year, so now is not the time to be throwing stocks overboard…nerves of steel are required…some very attractive opportunities have opened up…Gold Bullion Development (GBB, TSX-V) is off 3.5 pennies at 38 cents, just 3 cents above its March low where there is rock-solid support…Currie Rose Resources (CUI, TSX-V) sold off to 14 cents, its rising 300-day SMA, and has since recovered to 16 cents where it is unchanged for the day…GoldQuest Mining (GQC, TSX-V) remains heavily oversold with superb support at 20 cents…it’s up half a penny at the moment at 20.5 cents…Visible Gold Mines (VGD, TSX-V) has also reached extreme oversold conditions…it’s unchanged at 30.5 cents this morning…one of the junior producers we like a lot which has been a major market out-performer so far this year is Richmont Mines (RIC, TSX) which is off 25% from its April 29 all-time high of $9.95 simply due to market weakness…Richmont is a solid money-maker with no debt and a growing resource at its Wasamac deposit…RIC dropped as low as $7.17 this morning and is currently off 31 cents at $7.36…Spanish Mountain Gold (SPA, TSX-V) touched its rising 200-day SMA at 57 cents this morning and is currently at 58 cents, down 2 pennies…Adventure Gold (AGE, TSX-V) is down a nickel at 59 cents, just three pennies above its supporting 100-day SMA…

May 4, 2011

Gold And Silver Support Levels

Gold and Silver both tumbled significantly again today but some interesting developments occurred from a technical perspective with regard to the stocks – the CDNX found support at 2100 and rallied to finish the day at 2125, while for the fifth consecutive time in just over a year the TSX Gold Index tested its supporting 300-day moving average (SMA) and then headed higher.  On a day when Gold was off over $20 an ounce, the TSX Gold Index lost ground in early trading, fell very slightly below its 300-day SMA, and then rallied to finish the day in positive territory – up 2 points at 385.   The last time the TSX Gold Index did this was in late January of this year which presented a great buying opportunity in many plays.  The CDNX showed bullish signs as well in bouncing off its lows.

Tonight, John takes a detailed technical look at both Gold and Silver.  Both still need to unwind overbought conditions so one needs to be careful getting too excited if we see a bit of a rally after three straight days of heavy losses.  However, the stocks may be sensing that lows aren’t far off in both Gold and Silver.

John: Tonight we’re taking a look at precious metals, specifically Gold and Silver. Right from the opening bell on Monday morning we saw the PM bears out in force driving down the prices in Gold and Silver. Through the first three trading days of the week, Gold has dropped $48 an ounce or 3% while Silver has fallen a whopping $8.55 an ounce or 18%.

One of the primary reasons for the reversal in Silver has been the main U.S. metals exchange, the CME Group, which raised margin level requirements three times in just over a week and some brokerages raised their margins even higher.  This caused a panic with the Silver speculators who quickly fled the scene in droves.

The fundamentals with Gold and Silver are very complex and hard to analyze but I resolve that by using TA with chart patterns and indicators. We will take a look at two charts – Chart #1 is Gold (continuous contract) and Chart #2 is Silver (continuous contract).

Looking at Chart #1 immediately below, we see that starting the week of January 31 Gold rose from about $1,335 an ounce to around $1,565 an ounce in a period of 13 weeks, an increase of over 17%.  Then on Monday the price reversed and at the end of today’s trading Gold had retraced 21% of that move in just 3 days. The blue Fibonacci set shows that the first support is at the 61.8% level – $1,477. The other two Fibonacci support levels are at 50% ($1,449) and 38.2% ($1,422).  A complete retracement would be to the $1,335 level. The 38.2% level is particularly strong as it coincides with the December highs.

CHART #1 – Gold

Looking at the indicators:

The RSI was very overbought at 80% and currently it’s at 67%, gradually unwinding. It should find bullish support at 50%.   The Slow Stochastics (SS) is still too overbought with %K at 93% and %D at 97%.   The ADX indicator shows the +DI has peaked and reversed but the ADX trend strength indicator shows the primary trend is still strong.

Outlook: Gold must unwind its overbought position.  I expect it to test the Fibonacci 61.8% level at $1,477.

Now let’s look at Chart #2 – Silver (continuous contract). We see that this chart is similar to Chart #1 but Silver has fallen faster than Gold and has broken through the Fibonacci 61.8% level ($40.80), closing today at $39.21.

CHART #2 – Silver

From the week of Jan. 31, Silver rose from $27 to $48 in just 13 weeks – an increase of 78%.   With this huge move it’s not surprising that it has fallen faster and further than Gold this week. Today Silver finished at $39 and appears ready to test the Fibonacci support levels at 50% ($38) and possibly 38.2% ($35).

Looking at the indicators:

The RSI was very overbought at 90% and is now at 60%. I expect it to find support between 40% and 50%.   The Slow Stochastics is still too overbought with %K at 81% and %D at 93%.   The ADX indicator shows that the +DI was too high, has peaked and reversed but the long-term trend strength is still strong.

Outlook: Silver must continue to unwind and 5 support levels are identified between $37 and $27.   These charts should be used to monitor Gold and Silver prices. I expect both will find a support level and then consolidate before  reversing to the upside. I will publish updated charts to keep everyone informed and point out what to look for with regards to consolidation and reversal signals. In the meantime keep an eye on the prices and their respective support levels.

BMR Morning Market Musings…

Gold has traded between $1,525 and $1,544 so far today…as of 8:15 am Pacific, the yellow metal is off $11 an ounce at $1,526…Silver, which has experienced its worst 3-day setback since 2008, dropped slightly below $40 an ounce this morning…it’s currently off $1.64 at $40.02…the recent near-vertical run to $50 in Silver was primarily investment-driven, so the risk of a significant near-term correction had certainly increased…three margin hikes by the CME to curb speculative buying in the last week have helped to cool the metal’s run…Silver is up 150% since last August and from the start of this year to the end of April, Silver futures rallied 57% and were the best performer among the 24 raw materials tracked by the S&P GSCI Index… the U.S. Dollar Index, already technically oversold, continues to struggle…it traded as high as 73.30 overnight but took a turn south again…it’s currently off nearly one-third of a point to 72.78…the U.S. economy added a disappointing 179,000 private sector jobs last month, according to a report ADP and Macroeconomic Advisors…the U.S. government will issue its key nonfarm payrolls report Friday…consistent monthly job growth of 200,000+ will be required in order to drive the U.S. unemployment rate aggressively lower…it’ll be interesting to see what impact required major austerity measures by federal, state and local governments in the U.S. may have on the unemployment and overall economic situation…hopefully these cutbacks will be combined with pro-business and pro-growth tax strategies but that may be expecting too much out of the Obama Administration and Congress…it has been a rough start to the month of May for the CDNX but we don’t believe the sky is about to fall…the Index fell 45 points Monday and another 49 points yesterday…the March low of 2053 provides very strong support with the rising 200-day moving average (SMA) just underneath that…John’s chart yesterday also outlined support at 2150 and 2100…it’s important to emphasize that the CDNX remains in a long-term bull market and each significant pullback during this bull market since the beginning of 2009 has presented an excellent buying opportunity in the higher quality speculative stocks…the CDNX is ahead a relatively modest 30% over this time last year, so it’s hard to argue this market has gotten way ahead of itself especially considering the strength in commodities…focus on companies that are well-managed with strong cash positions and attractive properties with high discovery potential…patience is also critical and keep your eye on the “big picture” which is a long-term commodities bull market with the strong likelihood of much higher Gold and Silver prices…at the moment the CDNX is off another 39 points to 2120…in the current market environment we like to look for stocks that not only have superior long-term potential but are also heavily oversold based on RSI and Stochastics indicators…Visible Gold Mines (VGD, TSX-V) is one of them and it’s also one of our favorites for the balance of the year…VGD fell below its rising 300-day moving average (SMA) yesterday, triggering additional selling that has given VGD its lowest RSI(14) reading on a multi-year chart since 2007…a very strong support area is in the 27-28 cent range, right around the rising 500-day SMA and a late 2009 high that became resistance which was broken last September…with $8 million in the bank and two drill programs in progress, Visible Gold Mines is poised to snap back in a hurry on a market turnaround given its already oversold state…VGD is currently off a penny-and-a-half at 29 cents…GoldQuest Mining (GQC, TSX-V) is also in deeply oversold territory and is underpinned by exceptional support at 20 cents as we’ve been stating recently…GQC is down a penny at 21.5 cents…Gold Canyon Resources (GCU, TSX-V) has held up very well in this market and is currently up 4 cents at $3.39…GCU is expected to close a bought deal financing of approximately $10 million by sometime next week…$2.75, right around the 100-day SMA, appears to be the worst-case scenario for GCU so the downside from current levels is limited…GCU is developing a deposit at its Springpole Project in Ontario that Fraser McKenzie’s mining analyst states is likely to contain at least 5.5 million ounces…Levon Resources (LVN, TSX-V) is expected to complete a $40 million bought deal financing at $1.95 next week…the company’s flagship Cordero Project in Mexico is a potential world class deposit (Silver, Gold, zinc and lead) and the stock is underpinned by strong technical support just below $2…it’s currently off 6 pennies at $2.04…keep an eye on Richmont Mines (RIC, TSX) which hasn’t become oversold yet but could in the very near future…the stock has fallen 25% from its all-time high of $9.75 over the last four trading sessions to $7.35 this morning…as readers know, we’ve very bullish on Richmont’s Wasamac deposit…the company had earnings of 31 cents per share last year and carries no debt…Adventure Gold (AGE, TSX-V) announced this morning Agnico-Eagle Mines Ltd. (AEM, TSX) has started a 4,000-metre surface diamond drilling program on AGE’s promising Dubuisson property located in the western part of the Val d’Or mining camp…the property is contiguous to the Goldex mine property (reserves of 1.6 million ounces at 1.8 g/t of Gold and also straddles a 5-kilometre portion of the prolific Cadillac-Larder Lake Break…AGE is unchanged at 60 cents with its supporting 100-day SMA sitting at 56 cents…

May 3, 2011

BMR Morning Market Musings…

Gold has traded in a range between $1,532 and $1,552 so far today…as of 7:35 am Pacific, the yellow metal is down $6 an ounce at $1,540…Silver, which got hammered yesterday, is off another 29 cents to $43.64 after dropping as low as $43 overnight…a close below yesterday’s low of $42.20 would certainly be near-term bearish for Silver…volume in the Proshares UltraShort Silver ETF (ZSL, NYSE) reached a new record yesterday of 43.2 million with the ETF climbing 16.5%…keeping an eye on the U.S. Dollar Index is important and it’s showing signs of a potential imminent reversal, though this would likely be just a short covering bounce as the “big picture” outlook for the greenback remains grim…below is John’s updated U.S. Dollar Index chart through yesterday…the Index is currently off one-tenth of a point at 73.06…

The CDNX has not been looking healthy lately in the midst of Gold’s powerful move to a new record high of $1,577 yesterday…after out-performing Gold throughout 2009 and 2010, there is now a noticeable divergence between the CDNX (down 3.5% for the year) and the yellow metal which is up nearly 10% for the year…Gold surged 8% higher just last month while the CDNX fell 1.9% for April…since the CDNX has proven to be such a reliable leading indicator, it appears to be telling us that we’re close to seeing a near-term top in Gold if that hasn’t occurred already…however, the CDNX bull market remains firmly intact and of course Gold remains very bullish long-term as well…John’s updated CDNX chart shows additional support levels at 2150 and 2100 if the market fails to hold 2200…

As of 7:35 am Pacific, the CDNX is down 17 points to 2190….the TSX is down 117 points but the business community has to be breathing a sign of relief that the Conservatives have managed to pull off a solid majority government in yesterday’s elections…Stephen Harper has clearly become a transformative figure in Canadian history and a majority Conservative government does bode well for long-term economic growth in this country which is obviously market positive…Richfield Ventures (RVC, TSX-V) released results from another six holes at its Blackwater Gold Project in central British Columbia this morning….all results were from the southern part of Blackwater where Richfield has demonstrated more continuity of mineralization…hole #130 intersected 226 metres grading 0.92 g/t Au while hole #134 returned 91 meters grading 2.04 g/t Au and 9.01 g/t Ag…Richfield is moving in step with New Gold Inc. (NGD, TSX) which releases its first quarter results Thursday…Baosteel Resources International Ltd., a subsidiary of one of the world’s largest and most profitable steel companies based in China, is making a strategic (9.9%) investment in Noront Resources (NOT, TSX-V) by way of a private placement at 86 cents…Baosteel also has the right to nominate one individual to the Noront board and can also elect to increase its interest in Noront over time…the stock has been a disappointing performer over the last year-and-a-half but Baosteel’s investment is an interesting development and also demonstrates China’s continued aggressive grab for resources…Abcourt Mines (ABI, TSX-V) has dropped another penny to 14.5 cents this morning…the company just completed a $6.3 million financing at 18 cents and is in good shape to continue to aggressively explore two excellent properties in Elder-Tagami (Gold) and Abcourt-Barvue (Silver-Zinc)…it should be noted that at 14.5 cents, ABI has touched its rising 500-day moving average (SMA)…the long-term trend remains positive for ABI which has a current market cap of just $21 million…even in a sluggish or weak market, certain stocks will outperform and we’re very optimistic regarding the outlook this month for Currie Rose Resources (CUI, TSX-V) and Visible Gold Mines (VGD, TSX-V)…Currie Rose, which has a favorable chart, is expected to start drilling its highly prospective Sekenke Gold Project in the Lake Victoria Greenstone Belt of northwest Tanzania this month…Visible Gold Mines is drilling two properties at the moment with more results pending from its Silidor Gold Property near Rouyn-Noranda after encouraging initial assays were reported April 20…VGD is armed with $8 million in its treasury and is quickly emerging as an exploration leader in northwest Quebec…in our view it has higher-than-average potential for making a significant discovery with Robert Sansfacon as the company’s senior geologist…Sansfacon was instrumental in the discovery of Osisko’s (OSK, TSX) Canadian Malartic deposit…

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