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Gold has traded between $1,532 and $1,548 so far today…as of 8:05 am Pacific, the yellow metal is off $2 an ounce at $1,538…Silver is 12 cents lower at $35.78…crude oil, which got hit hard last week, is off 16 cents at $92.85 while the U.S. Dollar Index is down one-fifth of a point at 74.98…reports are that physical demand for Gold is very strong at the moment with a lot of buying on the dips which is helping to put a floor on the price…the more investors get comfortable with the psychologically important $1,500 level, the better…this is also not the time of the year when one would normally expect strong physical demand, so that certainly bodes well for the third and fourth quarters of this year when a major breakout could potentially occur…the CME Group is decreasing the margin requirements for Gold futures by 10% as of the close of business today…the initial margin to open new speculative positions will decline by nearly $700 on the COMEX division of the New York Mercantile Exchange…CME Group said the changes are part of the “normal review of market volatility to ensure adequate collateral coverage”…Europe’s finance ministers unexpectedly put off approval today of the next installment of aid to debt-laden Greece, delaying the decision until next month and demanding that the Greek Parliament first approve spending cuts and financial reforms that include a large-scale privatization program…everything boils down to whether Greece is prepared to take the additional fiscal medicine it needs to…the Greek tragedy is a classic example of what happens when government is allowed to run amok, spending gets out of control and citizens develop a sense of entitlement…contrast that with the situation in Texas…amazingly, the Lone Star state has produced 48% – yes, nearly half – of the net jobs created in the United States since the recovery began in 2009…that fact comes from the Federal Reserve Bank of Dallas, using non-farm payroll data from the Bureau of Labor Statistics and its own analysis…from June, 2009, through April 2011, the country as a whole added 496,000 jobs and the Dallas Fed says that 237,000 of them were in Texas…it’s a big state, of course, but only 8% of the U.S. workforce lives there…there are a multitude of reasons for that stunning job growth in Texas via-a-vis the rest of the U.S., including a sharp recovery in the oil and gas sector, but one has to credit the state’s pro-growth policies…a small government with no state income tax, no tax increases of any kind, and limits on regulations and lawsuits…market participants will be focusing intensely on every word of Federal Reserve Chairman Ben Bernanke when he speaks Wednesday at a news conference following the FMOC meeting which begins tomorrow…economists expect the benchmark rate to remain unchanged at 0.25%, and that could be the case for an extended period…the CDNX is off 5 points at 1893…as we’ve mentioned, important market bottoms have occurred repeatedly over the last decade slightly below the CDNX’s 300-day moving average…we’re keeping a close eye on Adventure Gold (AGE, TSX-V)  which has been looking really solid lately…AGE has outperformed the Venture Exchange this year (AGE is up 10% while the CDNX is off 17%) and we expect AGE will continue to outperform the market given its quality portfolio of projects and the success the company is having with some of them…last Thursday, AGE reported impressive initial drill results from its Lapaska Gold Property near Val d’Or that was optioned to Mazorro Resources (MZO, TSX-V) late last year…near-surface assays included 1 g/t Au over 103.4 metres (LP-11-16) and 1.2 g/t Au over 156.9 metres (LP-11-17) as well as impressive longer lower grade intervals such as 245.5 metres of 0.80 g/t Au…Lapaska contains three significant Gold-bearing zones and a significant portion of the property has been under-explored or not even drill-tested…Mazorro, which we mentioned first thing Thursday after results came out, rocketed from the low 20’s to a closing price of 38 cents Friday (it’s higher again this morning) while AGE has moved up just slightly…however, Lapaska gives AGE considerable upside potential that the market in our view hasn’t fully taken into account…Adventure Gold will still end up with a 30% interest in this project, assuming Mazorro ultimately exercises its right to acquire 70%…that means AGE would receive a total of $2,250,000 in cash from Mazarro as well as 3 million shares of MZO…in addition, MZO will have to incur exploration expenditures on the property totaling $7.7 million…AGE won’t be diluted through the exploration process but Mazorro will…it’s a favorable deal for Adventure Gold which will remain operator of the project through the first two option stages (totaling six years unless the parties agree to reduce that period)…in addition to Lapaska, Adventure Gold is enjoying great success with its 100%-owned Pascalis-Colombiere Gold Property also near Val d’Or…a 5,000 metre Phase 2 drill program is underway at that property which has open-pit as well as underground potential…given results to date, including 4.8 g/t Au over 33.1 metres near-surface as reported May 31, we wouldn’t be surprised if Pascalis-Colombiere was garnering interest from Richmont Mines (RIC, TSX) which is aggressively trying to build its production profile…Pascalis-Colombiere, which is adjacent to Richmont’s Beaufor Mine, encompasses the former L.C. Beliveau Mine which produced 167,000 ounces of Gold for Cambior between 1989 and 1993…AGE has three other projects that are active – Timmins West where Lake Shore Gold (LSG, TSX) is conducting deep drilling on the Meunier-144 Property (this could be huge for AGE if LSG hits), the Dubuisson Property where Agnico-Eagle Mines (AEM, TSX) is currently drilling with an option to earn a 51% interest from AGE, and of course Granada where AGE holds some strategic ground in the LONG Bars Zone Eastern Extension as well as west and south of historical producing areas at Granada and Gold Bullion Development’s (GBB, TSX-V) Preliminary Block Model…technically, Adventure Gold has enjoyed tremendous support from its 200-day rising moving average (SMA) and a close above resistance at the 50-day SMA would be another bullish sign as John points out in the chart below…

As of 8:05 Pacific, Adventure Gold is up 2 pennies at 57 cents…Mazorro Resources gapped up to 43.5 cents, climbed as high as 45 cents, and pulled back as low as 39 cents…it’s rallying again and is currently up 7 cents at 45 cents…Gold Bullion Development has traded within its 300-day and 500-day moving averages for more than three months, and it’s once again at the 500-day “sweet spot”…technical indicators (Stochastics, Chaikin Money Flow) show the stock is oversold, so a rebound should be expected sometime this week…the fundamentals remain strong with this play…GBB is unchanged at 38.5 cents on light volume…Visible Gold Mines (VGD, TSX-V) staged a reversal Friday and is unchanged at 23 cents to start the week…the outlook for VGD has improved considerably with the company making the Joutel Property its exploration priority…Joutel is a former significant producer (three separate zones were mined by Agnico-Eagle between the early 1970’s and the early 1990’s) and VGD is already finalizing high priority drill targets with Agnico-Eagle which is their joint venture partner on this project…groundwork begins early next month, followed soon thereafter by a major drill program which is expected to continue through the balance of the year…readers should check out an excellent article by Frank Holmes posted Friday night (click on “Investor Alert” at www.usfunds.com for the article, “Will Gold Equity Investors Strike Gold“)  which focuses on the recent under-performance of Gold stocks vs. the Gold price…Holmes paints a very clear picture of that situation and argues now is one of the best times ever to hold positions in quality Gold mining stocks…while we focus mostly on speculative juniors at BMR, we’re increasingly targeting overlooked small to medium sized producers who are significantly growing their earnings and production profiles…one classic example is Richmont Mines (RIC, TSX) which is operating in an area we’re very familiar with – northwest Quebec…Richmont closed Friday at $6.35 where it’s trading at this morning…it has all-category 43-101 reserves and resources of 2.5 million ounces, so its market cap of $200 million puts a value of just $80 per ounce on Gold in the ground…the company recorded earnings of 28 cents per share in Q1 and will have another solid quarter April-June thanks to increased production (a 10 to 15% jump we suspect) and a higher Gold price…there is a strong exploration component to Richmont as well with developments at Wasamac and elsewhere in that prolific area of northwest Quebec – the company is drilling aggressively and producing excellent results…RIC is technically oversold – it’s down significantly from its all-time high of $9.75 just six weeks ago – but its chart is very healthy overall with rising 100, 200 and 300-day moving averages…Richmont is truly a keeper for the long haul in this Gold bull market of a lifetime. So it’s critical right now to stay focused on the “Big Picture” – there are some great opportunities in this market for patient investors, and of course for traders too.

Visible Gold Mines (VGD, TSX-V)

Visible Gold Mines (VGD, TSX-V) was unchanged last week, closing at 23 cents, but the trading action Friday suggests a reversal could finally be in the works for this stock which hasn’t  posted an “up” week since the end of March…the company released news very late in the trading session Thursday…while drill results from its Silidor Property were unimpressive, VGD announced it’s proceeding almost immediately with a major exploration program at its flagship Joutel Project…this gave hope and some new energy to the market…several high priority drill targets are being finalized and work begins on the ground at Joutel in two or three weeks…the property will be drilled through the balance of the year…the stock sold off to 20 cents in early trading Friday but quickly reversed and closed at its high of the day at 23 cents on the strongest volume since May 3…selling in VGD in recent weeks has been technically driven and unrelated to the fundamentals and what’s about to happen on the ground – hence we see a major opportunity at the moment with this company’s market cap not much above its cash value of $6.5 million…on Thursday evening we posted our interview with VGD President and CEO Martin Dallaire…the “trigger” for a comeback in this stock is Joutel which is a massive project with multi-million ounce potential…it’s a significant former producer that Agnico-Eagle (AEM, TSX) mined from three zones between 1974 and 1993…the project was closed prematurely as Agnico-Eagle turned its attention to the huge LaRonde Mine…the theory is that there are extensions to the Joutel deposits as well as potential undiscovered zones elsewhere on that large land package (it’s more than 10 times the size of Granada)…Joutel is a geologist’s dream with a great story and it was Agnico-Eagle that actually approached VGD to take on this project through a joint venture – that’s the confidence they have in Visible Gold Mines’ geological team, in particular senior geologist Robert Sansfacon who was instrumental in the discovery of Osisko’s (OSK, TSX-V) Canadian Malartic deposit…”When we picked up all the Joutel boxes and maps from the Agnico-Eagle exploration offices, it took us two pick-up trucks for all the data,” Dallaire told us…”We were flooded with data but we love it because we have the capacity to analyze all of it and bring some fresh ideas to the project…the trend is very large and there’s a lot of potential for many new mines in the area”…Dallaire, an engineer and entrepreneur from Rouyn-Noranda, understands the mining industry and what an exploration company needs to do to succeed and build shareholder value…he’s 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 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…

Cadillac Mining (CQX, TSX-V)

Cadillac was unchanged for the week, closing at 10 cents, but on continued very light CDNX volume…this is a company with tremendous potential given its property packages but management has yet to demonstrate an ability to make things happen in the market and create shareholder value…we are frustrated but remain patient for now because the possibilities with CQX are still incredible, especially considering the current market cap which is just $2.5 million…not often does a company get the kind of opportunity that Cadillac was handed (and still has)…CQX holds a 100% interest in a very strategic piece of property that adjoins Richmont Mines‘ (RIC, TSX) Wasamac deposit, 15 kilometres west of Rouyn-Noranda…the principal Gold structure hosting mineralization at Wasamac dips northerly onto the seven claims held by Cadillac…Richmont started drilling Wasamac a year ago and steadily ramped up its drilling due to excellent results…in February of this year, Richmont reported a nearly five-fold increase in resources (from 285,000 to 1.4 million ounces) at Wasamac…as a result RIC has been one of the best performing Gold stocks on the TSX this year…BMR brought the Wasamac situation to the attention of its readers in December…investors got excited about the story and the potential of Cadillac’s “Wasa” claims…the stock ran to 50 cents by early January and the market was clearly eager to see Cadillac pursue this project as quickly and vigorously as possible…in this business, it’s critical to “seize the moment” and take immediate advantage of opportunities like this when they present themselves…the company easily could have leveraged the Wasamac situation into a major financing anywhere between 25 to 40 cents (they began the year with only about $200,000 in the bank)…in order to take advantage of any opportunity, a company must be well-financed and Cadillac management absolutely dropped the ball during the first quarter of this year when they did have a chance to raise at least $1 million (potentially much more) and failed to do so…we give the company credit for securing an excellent project (Goldstrike) in Utah on fabulous terms but several million dollars is going to be required to tackle Goldstrike in the right way…after talking about getting a drilling program going at Wasamac “in the near future” shortly after their mid-February AGM, Cadillac soon reversed course and stated in a news release May 16 that it needs more information from Richmont’s work before drilling for down-plunge extensions of the Wasamac main, #1 and #2 zones…President and CEO Victor Erickson’s heart is with the Utah project, not with Wasamac…in retrospect, that has been demonstrated in many ways over the last six months…Erickson would have to admit that himself…the best solution in our view is for Cadillac to cut a deal with another company for exploration at Wasamac and the natural partner for that appears to be Visible Gold Mines (VGD, TSX-V) which last December entered into a JV with CQX on its other Rouyn-Noranda area properties…VGD has all the money and expertise necessary to unlock the value of Cadillac’s Wasa claims…Cadillac could let others do the heavy lifting at Wasa and then focus its energies on developing the Goldstrike Project…talk is cheap – the onus right now is on Cadillac to show investors that it can “walk the walk” and make things happen, however they decide to proceed…

Abcourt Mines (ABI, TSX-V)

It was another quiet week for Abcourt which was unchanged at 12 cents…volume has dried up significantly and ABI hasn’t enjoyed a 1 million+ share day since May 16…the drop-off in volume is actually a good sign as that’s what typically occurs near the end of a decline…Abcourt has traded in a narrow range between 11.5 and 13 cents over the last 29 sessions…the stock, which now has 149 million shares outstanding for a market cap of $18 million, has found support at current levels and should begin to firm up over the summer given strong fundamentals and an aggressive exploration program at two properties…ABI’s decline from a 52-week high of 25.5 cents in late March was brought on by the closing of a financing (35 million units at 18 cents), a sharp drop in Silver, overall CDNX weakness, and selling by MineralFields Group…ABI’s 100-day moving average (SMA) is now in decline and will provide resistance for now around 16 cents while the declining 50-day is at 14 cents…it’s going to take some significant news or bullish new overall market sentiment to drive ABI through resistance over the next month or two, so investor patience will be required here…the company released more results from its Abcourt-Barvue Silver-Zinc Property last Monday including 20 metres grading 108.33 g/t Ag and 1.49% Zn, and 4.5 metres grading 239.43 g/t Ag and 2.00% Zn… metres grading 300.99 g/t Ag and 3.05% Zn in AB-11-24, and 10 metres grading 129.48 g/t Ag drill results to date should significantly upgrade and increase all-category reserves and res0urces…more drilling will take place at Abcourt-Barvue later this year…the rig was just recently moved to the Vendome Gold-Silver-copper-zinc property approximately 13 kilometres south of Abcourt-Barvue…the last set of results from the company’s Elder-Tagami Gold Property near Rouyn-Noranda came out May 16…mineralization continues to expand to the west and the east of the former underground Elder Mine which is now being dewatered…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…while the stock price is now slightly below that level, the record volume in ABI since late last year (take a look at a 10-year chart) is still a very bullish 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…

Greencastle Resources (VGN, TSX-V)

Greencastle was off another penny for the week at 17 cents with volume remaining relatively light…the company released its Q1 financials June 9 which show working capital of 16.4 cents per share ($7.5 million)…oil royalties have declined significantly – just $212,000 for the first three months of 2011 vs. $355,000 over the same period a year ago which underscores the need for VGN to make some changes as Primate just isn’t the cash cow it used to be…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 month…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…something needs to happen here to move this company forward and boost shareholder value…Greencastle’s market cap of $7.8 million means the stock is now trading just half a penny above its 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 where there is exceptional support… Greencastle tripled 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 definitely required with VGN or one shouldn’t invest in it…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 $7.5 million in working capital, three Gold properties (including land near the Blackwater Project) and monthly cash flow from an oil royalty, it doesn’t take a rocket scientist to figure out that Greencastle does offer 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 at the moment…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 21% since we added it back in to the BMR model portfolio last October…

Sidon International (SD, TSX-V)

Sidon simply hasn’t been able to recover yet from its fall in March, one day after the CDNX correction began, on poor drill results from its Morogoro East Gold Property in Tanzania…the stock hit another 52-week low of 3 cents last week which is where it closed at Friday, down half a penny 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…the six shallow holes drilled in December at Morogoro East failed to 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 the possibility of better days ahead for Sidon but the lack of news and the continuing weakness in the share price is not encouraging…from a technical standpoint, the stock has fallen to a support area and is in deeply oversold territory…the climb back up, however, won’t be easy and the company may have to look at a consolidation of its capital on a 1-for-5 basis at least…Sidon ran as high as 26.5 cents last winter but is now off 2 pennies since we introduced it to BMR readers just over a year ago at a nickel…the company currently has approximately 140 million shares outstanding for a market cap of $4.2 million…

Levon Resources (LVN, TSX-V), which recently completed a $40 million financing, is developing the Cordero Project in Mexico, a very promising porphyry Silver, Gold, zinc and lead system with multiple deposits potentially amenable to large-scale bulk mining.  Levon should be watched closely and the stock had a very interesting trading day Friday as John describes below.

John: On Friday, Levon Resources gapped down and opened at a low of $1.40.  It then reversed sharply and climbed to a high of $1.74 before closing at $1.70 for a daily gain of 20 cents (13.33%) on CDNX volume of 525,000 shares. It was down 2 pennies for the week on CDNX volume of 2.2 million shares.

Looking at the 1-year weekly chart we see that in July, 2010, 3 weekly “hammers” occurred which proved to be the basis for a 5-Wave Motive Phase. This phase started at the 50-cent level and peaked in April, 2011, at $2.38.  From that point the stock retraced in a textbook ABC Corrective Phase to the Fibonacci 50% level at $1.40 which occurred Friday.   The candle for last week was a hammer which, as we saw in July of last year, can be the basis for a reversal to the upside.

During the Corrective Phase the volume declined as expected during a primary uptrend. The supporting moving average is the weekly SMA(50).

Looking at the Indicators:

The RSI is at 48% and flat, just below the previous support level of 50% – bullish.

The Slow Stochastics (SS) is still pointing down, but this is after 4 straight down days. With an expected bullish move to the upside in the near future, after a possible short consolidation, it should reverse quickly.

The Chaikin Money Flow (CMF) shows the buying pressure started to increase during the past week – bullish.

Outlook: The chart pattern and the indicators all agree that LVN appears poised to make a bullish move to the upside in the near future.

Note: John holds a position in Levon Resources.

Gold Bullion Development (GBB, TSX-V)

Gold Bullion’s share price unexpectedly turned south last week, falling 6.5 cents to close Friday at 38.5 cents, its rising 500-day moving average (SMA) which provided support at the March and May lows…in fact, the stock has traded entirely within its 300 and 500-day moving averages since early March…the successful trading strategy has been to buy near the 500-day and sell near the 300-day…the drop in GBB last week didn’t happen for fundamental reasons and was simply a result, we suspect, of some technical weakness that crept into the stock, perhaps caused by the CDNX diving to an eight-month low…in situations like this, the timid bow out – they get frustrated and scared and typically sell into a market bottom as stock moves from weak hands into strong hands…one has to be careful regarding potential technical fake outs and chart painting by the pros – the “cup with handle” formation, for example, was seemingly invalidated last week which brought about some of the selling pressure but that doesn’t mean GBB doesn’t have a terrific summer ahead of it…the initial 43-101 resource estimate for the LONG Bars Zone, expected during the third quarter, should re-energize this play…the market is a forward-looking machine and those who follow GBB won’t be waiting until after the 43-101 comes out before getting positioned appropriately in the stock…the company’s current market cap of $64 million puts a value of just $21 an ounce on Gold in the ground at Granada if one were to assume the 43-101 will outline approximately 3 million ounces in the measured, indicated and inferred categories…that’s just a hypothetical number on our part at the moment but whatever number GENIVAR comes up with, we believe it should exceed the 2.4 to 2.6 million ounce conceptual figure that Gold Bullion gave in April of last year…based on all the drill results to date, this appears to be shaping up as a half-gram deposit with a higher grade starter pit and massive volume…it’s all about volume at Granada which is why the drills have to keep turning and why we want to see more than just two rigs in the LONG Bars Zone which has such incredible potential…Gold Bullion released fresh drill results from Granada May 12 which were consistent with previous numbers…hole #173 was the star of the 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…drilling is also underway 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…the company provided an update on its Castle Silver Mine Project June 8…the 6,000 metre Phase 1 drill program is nearing completion and a strong new vein structure was intersected at the first IP target…a 43-101 technical report on the property has also been released…assay results from the 10 holes drilled so far are still pending…GBB plans to spin-off this asset into a separate publicly traded entity…GBB is up 450% since we introduced it to BMR readers in late December, 2009…

Currie Rose Resources (CUI, TSX-V)

Currie Rose is clearly one of our favorites going into the summer as it launches a major drill program at its properties in the Lake Victoria Greenstone Belt of Tanzania…the stock, which is now at an RSI(14) support level and is oversold based on Stochastics, declined two-and-a-half pennies last week but on relatively low volume…it closed Friday at 16 cents, exactly at its 300-day moving average (SMA) which has provided strong support throughout the year…the overall chart is favorable in our view and suggests a breakout above resistance in the low 20′s is only a question of when, not if…any loose stock is being gobbled up quickly and the Chaikin Money Flow (CMF) indicator has shown consistent accumulation in CUI since late January…the 100-day SMA has flattened out and the sure sign of a major reversal is when this turns decisively to the upside…from a fundamental perspective, the company is busier than ever with its projects in northwest Tanzania as outlined in a news release June 9…we’re particularly excited about the Sekenke Project which has “blue sky” written all over it…Sekenke is why we decided to start following CUI when it was trading around a dime last fall…results from satellite imagery provide additional evidence that Sekenke is a highly intriguing geological target and part of the same northwest trending structure that hosts Canaco’s (CAN, TSX-V) Handeni Project…satellite imagery has also shown that the structures at Sekenke are coincident with a strong alteration envelope…what’s unique about this project is that it surrounds and runs in between two former high grade Gold mines including Tanzania’s original producer…this greatly increases the chances of a discovery as it’s unlikely the former mines were fully exploited or explored as techniques a century ago in this industry obviously weren’t what they are today…CUI has a terrific chance to hit it big at Sekenke and we also wouldn’t be surprised if the company takes a shot at acquiring the former Sekenke Mine…that’s speculation on our part but it makes sense from a strategic point of view…pre-drilling exploration work continues at Sekenke to pinpoint the best targets and in the meantime the company will begin drilling very soon at its Mwamazengo discovery at Mabale Hills…geochemical analysis has outlined a continuous anomaly over a few hundred metres that runs parallel to the west of the discovery where previous drill results included notable high-grade intercepts such as 34 metres grading 3.60 grams per tonne gold, 12 metres grading 9.11 g/t Au, 63 metres grading 2.59 g/t Au and 31 metres grading 5.97 g/t Au…CUI also has two other important targets at Mabale Hills, Sisu River and Dhahabu…while its Tanzanian properties are the market’s major focus, Currie Rose could also benefit over the summer from continued good exploration news out of 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 by more than half, from a high of nearly $40 million late last year to the current $14.2 million, what hasn’t changed is the quality of this company’s project portfolio which remains as high as ever…Currie Rose has all the cash it needs ($2 million) to complete an initial major round of drilling (10,000 metres) in Tanzania this summer, so there will not be any dilution of the stock at current levels as confirmed by President and CEO Harold Smith…

Adventure Gold (AGE, TSX-V)

Adventure Gold continues to look very, very interesting and the potential of a near-term breakout definitely exists…on Thursday, the company gave the market a pleasant surprise when it reported results from the first two holes of a drill program at its Lapaska Gold Property 20 kilometres east of Val d’Or…AGE is the operator of this project which Mazarro Resources (MZO, TSX-V) can earn a 70% interest in (30% to AGE) under which we consider to be quite favorable terms for Adventure Gold…the Lapaska Property is located along the Cadillac-Larder Lake Gold Break and the first two holes returned solid results at shallow depths…LP-11-16 cut an interval of 1 g/t Au over 103.4 metres (from 45.3 to 148.7 metres), including 10.3 g/t Au over 3.8 metres, while LP-11-17 returned 1.2 g/t Au over a 156.9-metre interval (25.2 to 182.1 metres)…LP-11-16 included a Gold halo of 564.1 metres grading 0.3 g/t while LP-11-17 featured a Gold halo of 245.5 metres grading 0.8 g/t, providing evidence of a potentially strong Gold system…both holes were drilled perpendicular to the strike of the vein system in the Lapaska Central zone and are therefore close to true thickness…this will be interesting to watch and the market will be eagerly awaiting additional results to size up the potential of this play…Mazarro, which we mentioned Thursday morning when it was trading at just 23 cents, closed Friday at 38 cents…AGE closed Friday at 55 cents, a loss of 2 pennies for the week, but AGE could really start to motor once it breaks through resistance around 60 cents…it has been a very decent performer this year, relative to the overall market, and has other outstanding projects that have the potential of driving this stock much higher in the second half of this year…just recently the company reported significant news regarding its Pascalis-Colombiere Gold Property near Val d’Or…AGE has started a 5,000 metre Phase 2 drill program at the property after releasing more highly encouraging drill results including 4.8 g/t Au over 33.1 metres in hole #20 (plus lower grade halos over significant widths)…the intent of this program is to further define the Gold system, leading to a resource calculation which is already being worked on…Pascalis-Colombiere encompasses the past producing L.C. Beliveau mine (Richmont’s Beaufor Mine is just a few kilomeres away)…we found a comment from AGE President and CEO Marco Gagnon in the June 2 news release quite interesting…”Following positive drill results and the permitting process, an open-pit or an underground operation could be producing in the near future“…earlier this year we met with AGE’s Jules Riopel, VP Exploration, regarding the company’s strong portfolio of properties…he was very keen at that time on Pascalis-Colombiere and given the drill results, his bullishness on this property appears to have been justified…the former L.C. Beliveau Mine was a very profitable operation between 1989 and 1993, producing nearly 170,000 ounces of Gold for Cambior…meanwhile, 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…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 in the near future…if a discovery is made, AGE will instantly explode higher…

GoldQuest Mining (GQX, TSX-V)

GoldQuest remains in a consolidation phase which provides a great opportunity for patient and long-term investors…for the week the stock was off half a penny, closing at 18.5 cents…some major bids came in at 17 cents…the stock has had a difficult four months, falling from a high of 48.5 cents in early February, but the opportunity at current levels has to be considered highly attractive…Chairman Bill Fisher certainly sees value at these lower prices – he recently picked up 211,000 shares in the open market between 18 and 20.5 cents according to insider trading reports…GQC’s prospects remain solid as the company has an outstanding portfolio of projects in the Dominican Republic and Spain…while GQC is now slightly below its 300 and 500-day moving averages, these long-term term SMA’s continue to rise and are in no danger of rolling over anytime soon…technically and fundamentally, the downside risk from current levels is very limited in our view…the 200-day SMA at 30 cents continues to rise and that’s where major resistance can be expected for now on the upside…that’s also where the declining 100-day SMA sits…the declining 50-day SMA at 22.5 cents is also an area of resistance…a test of those moving averages should be expected over the summer…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…in addition, the company has stopped all drilling in the DR until probably August in order to conduct extensive IP surveys over Escandalosa and other properties…overall assay results from Escandalosa were decent though far from spectacular…the final set of assays for seven holes came out May 16…the best intersection from Escandalosa Sur, where an initial 43-101 inferred resource of 400,000 ounces was outlined last fall, was 20 meters grading 1.32 g/t Au…results from this area overall (21 holes) were somewhat disappointing though more drilling is required and will take place later this year…however, the company drilled three holes at the Hondo Valle target 1.6 kilometres to the north (outside the resource area) and all three intersected significant mineralization including 29 metres grading 2.18 g/t Au in hole #65…that’s the thickest and highest grade mineralized section drilled to date at Hondo Valle…the theory is that mineralization trends north from Escandalosa Sur to Hondo Valle…GoldQuest is now carrying out a 16-square kilometre IP survey and magnetic ground geophysical survey from 2 kilometres north of Hondo Valle to 2.2 kilometres south of Escandalosa Sur…this will be completed by the end of July and GQC will then use the data to pinpoint key targets for an additional 3,000 metres of drilling…GoldQuest also has other promising projects in the DR (in particular, Loma Oculta – formerly Las Animas – where an exploration program aimed at identifying new drill targets is now underway) in addition to its lead-zinc-silver deposit in Spain…GoldQuest’s potential has not diminished whatsoever yet the share price has dropped by about 60% 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…GQC is off a penny from when we introduced it to BMR readers last fall…

Seafield Resources (SFF, TSX-V)

Volume has come back into Seafield and the stock has been volatile lately, bouncing back and forth from the low 20’s to the low 30’s…the 100-day moving average (SMA) at 32 cents is providing resistance at the moment while there is plenty of support at 21 cents (the rising 1,000 day SMA is at 18.5 cents)…SFF closed Friday at 24 cents, a decline of 3 pennies for the week…volume on all exchanges for SFF has exceeded 1 million shares each session for the past 7 trading days…the company announced the closing of a $3 million private placement at 30 cents May 24 with a “strategic” long-term investor and also released an updated 43-101 resource estimate for its Miraflores Property…that project has gone from an inferred resource of 776,000 ounces (at a cut-off grade of 0.5 g/t Au) to a measured and indicated resource of 1.2 million ounces and an inferred resource of 354,000 ounces (at a cut-off grade of 0.3 g/t Au)…another round of drilling will begin shortly at Miraflores…there was big news out of Seafield May 9 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 exploded from the low 20′s to an all-time high of 77 cents in just one day last December but then proceeded to give 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 $18 million in cash…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…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…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 300% since we made it the first company in the BMR model portfolio in the summer of 2009…its current market cap of approximately $37 million is modest given its cash position and resource potential…

TSX Venture Exchange (CDNX) and Gold

The CDNX fell to its lowest point in nearly eight months last week, closing at 1898 for a weekly loss of 37 points.  Friday, the Index dropped to 1885, slightly below its rising 300-day moving average (SMA), but then staged a mild rally to post just its third daily gain over the last 15 trading sessions.

This has been a nasty market since early March with several deceptive moves.  But despite all the gloom and doom at the moment, it’s critical to point out that from the high of 2465 to last week’s low of 1885, the correction in the CDNX over the past four months has been very normal (23.5%) and certainly within historical parameters.  There is nothing unusual about what has happened – a healthy pullback within an ongoing bull market, exactly what we’ve witnessed in just about every year over the last decade. These have always been great buying opportunities.

Historically, the 300-day SMA has been a strong supporting moving average for the CDNX.  Market bottoms occurred in 2002, 2003, 2004, 2005, 2006, 2007, and 2010 when the Index fell slightly below its 300-day for a brief period.  So it’s possible we could see some minor additional weakness as the market officially bottoms out, but the odds clearly suggest this correction has essentially run its course.  The 200 and 300-day SMA’s are still rising, confirming the continuing healthy state of this long-term bull market.  This is not 2008.

The big question on investors’ minds is whether the global economy has hit just a temporary “soft patch” (caused in part by the disaster in Japan in early March) or if the current slowdown marks only the beginning of something much worse that could also cause debt issues in various countries, including the United States, to spiral out of control.  There are plenty of “fear mongers” out there at the moment (most of them can’t see beyond the borders of the United States) who are painting a very bleak macro picture of the world economic situation.  While there are clearly some major global concerns – chief among them being the Greek debt crisis that potentially could have some sort of domino style effect – we’re comforted by the fact the CDNX has gone through a very normal correction up to this point.  The CDNX is a valuable and reliable leading indicator.  It’s sell-off in March was clearly a sign that there was trouble ahead of some sort as we had warned about.  If the second half of this year is going to be better for the global economy, then we would now expect the CDNX to start reflecting that (some of the previous drops to the 300-day moving average and below have coincided with other global fears and very bearish market sentiment).

Technical indicators such as RSI, Slow Stochastics and the Chaikin Money Flow (CMF) all show the CDNX is in deeply oversold territory. The same applies to the Dow, the TSX and the TSX Gold Index.

All those who fear the “summer doldrums” on the CDNX, which is part myth, or another Great Crash as predicted by certain writers and analysts, have dumped their stocks.  There’s a lot of cash on the sidelines and it could come rushing back into the market at anytime.  In terms of the CDNX, there is going to be a tsunami of drill results and exploration news over the next few months and we wouldn’t be surprised if there is a major discovery somewhere that really ignites this market again.

In the beginning stages of a CDNX recovery, we suggest focusing on companies with strong cash positions and projects that are well advanced.  While our attention is mostly on the CDNX, one can’t ignore opportunities in the Gold space among producers on the big board (TSX) as well (we prefer the smaller producers).  One classic example is Richmont Mines (RIC, TSX) which is operating in an area we’re very familiar with – northwest Quebec.  Richmont closed Friday at $6.35.  It has all-category 43-101 reserves and resources of 2.5 million ounces, so its market cap of $200 million puts a value of just $80 per ounce on Gold in the ground.  The company recorded earnings of 28 cents per share in Q1 and will have another solid quarter April-June thanks to increased production and a higher Gold price.  There is a strong exploration component to Richmont as well with developments at Wasamac and elsewhere in that prolific area of northwest Quebec – the company is drilling aggressively and producing excellent results.  RIC is technically oversold – it’s down significantly from its all-time high of $9.75 just six weeks ago – but its chart is very healthy overall with rising 100, 200 and 300-day moving averages.  Richmont is truly a keeper for the long haul in this Gold bull market of a lifetime. So it’s critical right now to stay focused on the “Big Picture” – there are some great opportunities in this market for patient investors, and of course for traders too.

Gold

We suggest readers check out Frank Holmes’ excellent article (“Investor Alert – Will Gold Equity Investors Strike Gold“) posted last night at www.usfunds.com.  Holmes has one of the brightest minds in the investment industry and in that article he paints a very clear picture of how Gold mining shares present such a great opportunity at the moment for long-term investors.

Thanks to strong performance Friday, Gold was up $8 an ounce last week at $1,540 while Silver was off 39 cents at $35.90.  The U.S. Dollar Index rallied during the week but pulled back half a point Friday to close at 74.98.  It was up slightly for the week.  Crude oil has softened, hitting a six-week low of $93.

The Gold market will be focused on the Greek situation next week as well as Tuesday’s FMOC meeting and comments from Bernanke that emerge from that.  Technically, Gold is showing tremendous support at $1,500.  The market seems to be getting quite comfortable with that psychologically important price level which has to be considered bullish.

Gold demand continues to be strong.  First quarter world Gold demand grew 11% from the same period a year ago to 981.3 metric tons, according to the WGC in its quarterly supply/demand trends report released recently.  Much of the increase was due to investment demand with a 52% jump in purchases of bars and coins more than offsetting a decline in holdings of exchange-traded funds.  Jewelry interest also rose with China and India collectively accounting for nearly two-thirds of the global jewelry demand.

The WGC issued a included a separate section on China in the quarterly supply/demand trends report (data was compiled by the consultancy GFMS).  In the spring of last year the WGC issued a report stating it expected Chinese Gold demand could double over the next decade.  “With the sustained momentum in Chinese Gold demand, this target will probably be achieved in a shorter time scale,” according to Eily Ong, investment research manager with the WGC.  Gold demand grew by a whopping 32% in China last year despite a concurrent 25% rise in the average local currency Gold price.

Demand for Gold in China was so strong during the first quarter that for the first time the country outpaced the combined total of the developed West. If you lump together the Gold demand of the U.S., France, Germany, Italy, Switzerland, the U.K. and other European countries (despite large  increases in demand from France, Germany and Switzerland), the sum of these countries is still outpaced by China.

A slight pullback in prices during the middle of the first quarter and “persistent high inflation levels” pushed China into the position as the world’s largest market for Gold investment. Chinese citizens devoured nearly 91 tons of Gold bars and coins, more than double the amount of a year ago.

This isn’t exactly a new phenomenon in China. From 2007 to 2010, investment demand grew at a compounded annual growth rate of 68 percent, according to the CPM Group. The firm forecasted Chinese investment demand to increase 34.7 percent during 2011 but based on this new data, it may need to adjust its forecast.

Song Qing, director of Shanghai-based Lion Fund Management, told Bloomberg news that, “Gold has taken on a new role in China amid concern about inflation.  Just imagine the total wealth in China and even a small percentage of that choosing to buy Gold. This demand is going to be enormous.”

Central bank buying of Gold throughout emerging markets has been one of many contributing factors to the metal’s rise.  These banks have excess reserves and are looking for ways to diversify away from paper currencies for protection.  Last year was the first net positive year for central banks’ buying of Gold since 1985. They’ve chosen to own Gold over trying to guess whether Portugal or Greece’s debt is the best investment.

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 dropped as low as $1,522 overnight but has strengthened over the past couple of hours…as of 8:45 am Pacific, the yellow metal is up $9 an ounce at $1,538…Silver is 14 cents lower at $35.45…crude oil, which had technical support at $95, has slipped $1.52 to $93.43 while the U.S. Dollar Index is off half a point at 74.97…while the euro zone and the IMF try feverishly to nail down a bailout package for Greece, Greek President George Papandreou continues to fight political battles at home…he shuffled his cabinet this morning and replaced an unpopular finance minister…it looks increasingly unlikely that there is a willingness among the Greek population or the broad political support in that country to take the fiscal medicine necessary to avoid a hard sovereign debt default…U.S. consumer sentiment worsened more than expected in June on renewed concerns about the outlook for the economy, while worries about inflation eased modestly, according to the Thomson Reuters/University of Michigan monthly survey released this morning…the IMF has cut its forecast for U.S. growth in 2011 for the second time in two months, warning that further setbacks to a recovery pose growing threats to the world economy, along with potential contagion from the European debt crisis…the U.S. economy will grow 2.5% this year and 2.7% in 2012, down from the 2.8% and 2.9% projected in April, the IMF said today, citing higher commodity prices and bad weather in the first quarter and a weak housing market…the Washington-based IMF now sees the world economy expanding 4.3% this year, down from 4.4% percent two months ago…it left a 4.5% forecast for next year unchanged…“Global activity is projected to slow in the second quarter of 2011, and then reaccelerate in the second half of the year,” the IMF said in an update of its World Economic Outlook report…”Greater-than-anticipated weakness in U.S. activity and renewed financial volatility from concerns about the depth of fiscal challenges in the euro area periphery pose greater downside risks”…while we focus almost exclusively on the TSX Venture Exchange (CDNX) at BMR, this morning John has a chart on the Dow that offers some encouragement…momentum indicators and the ADX all support a possible reversal which shows a more bullish investor psychology…

The CDNX is unchanged at 1889 and has touched its rising 300-day moving average (SMA) for the first time since July of last year…this important moving average has provided huge support for the CDNX in bull markets over the last decade…important market bottoms have occurred very soon after the Index has dropped slightly below its rising 300-day…John’s updated CDNX chart shows this is really a time to be bullish, not bearish…a reasonable expectation is that the CDNX will trade just marginally below its 300-day for a short period of time as part of the bottoming process…we must be patient…

Yesterday, we pointed out the solid drill results released just before the start of trading by Adventure Gold (AGE, TSX-V) and Mazorro Resources (MZO, TSX-V) from the Lapaska Gold Property 20 kilometres east of Val d’Or…MZO can earn up to a 70% interest in the project from AGE by incurring a total of $7.7-million in exploration expenditures, issuing 3 million shares of MZO, paying $250,000 in cash and an additional $2 million (in cash and shares) to AGE over the next six years…AGE will be the operator until MZO earns the 70-per-cent interest…Mazarro gained a nickel yesterday to 27 cents and jumped as high as 35 cents this morning…it’s looking good on the charts though it may need to consolidate a bit before potentially charging higher…it’s currently up another nickel cents at 32 cents and is one of the most active stocks on the CDNX…Lapaska looks interesting and the story probably has some legs with plenty of drill results still to come…Adventure Gold, meanwhile, continues to look very solid and is up 3 pennies at 56 cents…Visible Gold Mines (VGD, TSX-V) dropped as low as 20 cents this morning, where there is strong technical support, but has bounced back to trade at its high of the day…it’s currently off a penny at 22 cents…we have little interest in the company’s Silidor Property, especially after yesterday’s results, but we are immensely interested in VGD’s Joutel Property which is a joint venture with Agnico-Eagle Mines (AEM, TSX)…VGD is making Joutel the focus of its exploration over the remainder of the year and understandably so…Joutel, a significant former producer, is to VGD what Granada was and still is to Gold Bullion Development (GBB, TSX-V)…in fact, the Joutel land package is more than 10 times the size of Granada and includes three major zones that were mined between the early 1970’s and early 1990’s…the operation was shut down prematurely by Agnico-Eagle which wanted to focus on development of its huge LaRonde Mine…Slow Stochastics on GBB are now at levels they were when the stock bottomed at 35 cents in March and May…the fundamentals are very positive, so enjoy this GBB “Rollback Sale” while it lasts…GBB is down half a penny at 38 cents on light volume…

8:00 pm Pacific – link to interview at bottom

As BMR readers know, I’ve taken a great deal of interest over the last year-and-a-half in exploration opportunities in northwest Quebec, one of the world’s most prolific and friendly areas for mining and exploration.   I’ve had my boots on the ground at several properties there, battling everything from deep snow and freezing temperatures in the winter to black flies and beaver dams in the summer – all in an attempt to get a feel for the next potential major discovery.  This “Indiana Jones” style research allowed BMR to identify Gold Bullion Development’s (GBB, TSX-V) Granada Property as a possible multi-million ounce Gold discovery, well before the Coffin Brothers and others jumped on the story, and the stock soared from under a dime to 93 cents late last year (from a market cap of $6 million to $140 million) and became a 10-bagger for some of our readers.  We were also (and continue to be) ahead of the crowd on the potential of Richmont Mines‘ (RIC, TSX) growing Wasamac deposit, a watershed development for that company with much more, we’re sure, to unfold at that exciting project.

Gold Bullion was overlooked and unloved at 7 cents.  Right now there’s another stock with a northwest Quebec focus that’s overlooked and unloved, sitting at 23 cents for a market cap of just $11 million – only a few million dollars above its cash value.  In our view this company represents one of the most intriguing opportunities we’ve seen since we uncovered GBB in December, 2009.  Visible Gold Mines (VGD, TSX-V) isn’t on too many radar screens at the moment which is good – we expect that to change soon as developments on the ground fundamentally shift the dynamics of this play.

We started following VGD earlier this year and with the TSX Venture Exchange now sitting at its 300-day moving average (SMA), where it bottomed out last year, now is the ideal time for investors to take a close look or another look at this company, especially after today’s news that VGD now plans to focus its exploration efforts on its Joutel Property which is a joint venture with Agnico-Eagle Mines (AEM, TSX).  Joutel is a jewel.  Not only does this former producer have outstanding geological potential, but our research and market intuition suggest this is a story that is going to resonate with investors in a major way.  Joutel, 150 kilometres north of the famous mining community of Rouyn-Noranda, has all the right ingredients to spark excitement in VGD and once again highlight the incredible exploration opportunities in this part of the world where it’s safe to invest.

Robert Sansfacon, VGD‘s senior geologist, was instrumental in the discovery of Osisko’s Canadian Malartic Deposit, the largest in Canada and just an hour’s drive down the Golden Highway from Rouyn-Noranda.  I sat down with him a while back for lunch on one of my trips to the area.  He’s a genius when it comes to understanding geological structure and chasing after a deposit, and I know he’s incredibly eager to tackle Joutel.  It’s a massive land package – more than 10 times the size of Granada – with three former deposits on it.  The mining operation there was shut down prematurely after production of more than a million ounces of Gold plus some Silver.  Major parts of the Joutel land package have never been properly explored, not to mention the ground under the village that is no longer there.  Mining veterans I’ve spoken to believe the village was built right on top of another deposit.

Sansfacon is highly respected in Quebec geological circles.  I believe he’s the reason Agnico-Eagle elected to put Joutel – the property that gave birth to AEM – into the hands of Visible Gold Mines.  Sansfacon’s theory proved correct at Canadian Malartic – now his aim is to unlock the value of Joutel and discover a multi-million ounce deposit there.

Below is an interview I just recently conducted with Visible Gold Mines‘ President and CEO Martin Dallaire.  It runs about 20 minutes and gives a good overview of the company with a significant portion devoted specifically to Joutel.  As always, perform your own due diligence but we believe the interview, which is quite revealing, will assist you in that process.

BMR Interview With VGD’s Martin Dallaire

Note: The writer and interviewer (Jon) holds a position in VGD.  No compensation was paid to BMR by Visible Gold Mines for this interview in accordance with BMR policy.  Our stock coverage is for informational purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. Please read our disclaimer.

Welcome to our site, or at least the initial version of it!  BMR has been online for nearly two years and strictly through word-of-mouth we have built a loyal following. 

We’re continuing with our plans to ultimately build a very unique investment and money-management resource site that goes considerably beyond what we have now.  While we focus a lot on the Gold market and trends in the global economy, and of course the technical health of the TSX Venture Exchange (CDNX), an important component of this site will always be original research on small and undiscovered junior resource companies, mostly in the Gold exploration space, that offer very real and significant upside potential. We are extremely selective in the companies we feature and put forward to investors – we prefer quality over quantity.  However, investors must understand that these are still highly speculative situations.  Our stock coverage is for informational purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. Please read our disclaimer at the bottom.

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

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

God Bless,

Terry Dyer

Owner/Publisher, www.BullMarketRun.com

Disclaimer:

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