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Gold is off sharply this morning after Friday’s big run…we cautioned investors over the weekend not to get too excited by Gold’s jump Friday as the yellow metal does appear to be in a short-term consolidation phase…as of 7:55 am Pacific, Gold is down $36 an ounce at $1,793…Silver is off 80 cents to $40.70, Copper is off 12 cents to $3.97 on concerns that moves to curb credit growth and curb inflation in China may reduce demand for raw materials, Crude Oil is up $1.73 to $87.10, while the U.S. Dollar Index has declined one-fifth of a point to 73.60…Morgan Stanley views Gold’s correction as a “buying opportunity” and states that Gold is “an insurance policy against a rising probability of worsening global systemic risks”…Gold jumped $58 an ounce Friday and while readers know we’re extremely bullish on the yellow metal’s overall prospects, we believe Gold is in a consolidation phase for the short-term before likely shooting higher later in the year…John’s updated chart, which we first posted yesterday morning in Part 1 of our Week In Review And A Look Ahead, explains why Gold will likely consolidate for possibly a couple of months…

During previous periods of some short-term technical weakness in Gold, it has benefited from strong physical buying which has limited the potential downside…we’ll have to closely track the physical side of the market in the coming days and weeks…August is traditionally a slow month for Chinese jewelers, but Reuters reported this morning that Gold sales in China over the last few weeks have been surprisingly strong with shoppers seemingly unfazed by Gold’s recent stellar performance…the attitude of Chinese consumers, expected to soon overtake Indians as the world’s top buyers of Gold, will certainly be an important influence on longer-term trends…expect central banks to continue buying Gold as well…the World Gold Council recently highlighted that central banks were very active buyers of Gold during the first six months of the year…in February and March, the Bank of Mexico accumulated almost 94 tonnes of Gold, representing the largest accumulation of Gold by a central bank in over a decade…the second-largest growth in the precious metal’s accumulation was made by South Korea in June…with the exception of the Philippines, every central bank has reported increased reserve holdings through the first half of the year…Kazakhstan’s central bank has plans to add to its Gold reserves by exercising its right to buy the Central Asian state’s entire bullion output, according to Mineweb…

Amid all the recent doom and gloom, some encouraging economic news this morning…U.S. consumer spending rebounded strongly in July to post the largest increase in five months on strong demand for motor vehicles, a Commerce Department report shows, supporting views the U.S. economy is not falling back into recession…the Commerce Department said consumer spending increased 0.8%, the largest gain since a matching increase in February, after slipping 0.1% in June…economists polled by Reuters had expected spending, which accounts for about 70% of U.S. economic activity, to rise 0.5%…when adjusted for inflation, spending rose 0.5% last month, the largest gain since a matching increase in December, 2009, after being flat in June…the data was the latest to suggest the economy started the third quarter with some strength after growth almost stalled in the first half of the year…

Though volumes are still low, the CDNX is showing some renewed technical strength as John outlined in a chart yesterday…trading activity should pick up very soon as the calendar flips from August to September…as of 7:55 am Pacific, the CDNX is up 14 points at 1766…

Visible Gold Mines (VGD, TSX-V) is currently off half a penny at 34 cents but we see a strong likelihood of a near-term breakout in this play given the bullish chart patterns and activity on the ground as VGD continues to drill its Wasa Creek Property, adjacent to Wasamac, with more results pending…drilling also begins soon at Joutel which could be a stellar project for this company…VGD was up 49% in July and is up again slightly in August, quite a remarkable achievement given the fact the CDNX was down 11.5% this month through Friday…that shows confidence in VGD and a better overall market going into September should allow it gain additional momentum…there’s a good chance Richmont Mines (RIC, TSX) will be releasing a major exploration update on its Wasamac Property this week, so we’ll be watching for that…RIC is off 17 cents at $9.39 in early trading after climbing as high as $9.75…

BMR has interviewed Currie Rose Resources‘ (CUI, TSX-V) consulting geologist Mike Griffiths, and we’ll be posting Part 1 of that discussion by approximately 8:30 am Pacific…Currie Rose reported last Wednesday that it has completed 20 holes at its Mabale Hills Project in Tanzania (16 at Sisu River and 4 at Dhahabu) with each and every hole intersecting disseminated sulphide mineralization…it seems what was observed in the core for the holes drilled in this phase at Sisu River was more encouraging than the visuals from Phase 1 drilling last winter…assays, of course, will tell the real story and they are pending…meanwhile, what has us quite excited is that drilling has finally started at the Sekenke Project (200 kilometres southeast of Mabale Hills) which has significant potential in our view given its proximity to two former high-grade Gold mines…Griffiths is quite optimistic about Sekenke, as well, as you’ll hear in the interview…Currie Rose will be drilling numerous quartz reefs at Sekenke, some of which are even larger than those that developed at the nearby historic mines as the map below shows…

What’s also interesting is that Sekenke offers potential for more than just Gold as Griffiths confirmed in the interview…it’s a rich geological area that has been under-explored…the mining industry in Tanzania has exploded only over the last dozen or so years – it’s likely that many deposits have yet to be discovered…CUI is currently half a penny higher at 18.5 cents…

We don’t often mention non-resource companies but one situation we have been following in recent months is iSign Media Solutions (ISD, TSX-V) which is up 3 pennies at the moment to 30.5 cents…John updates the ISD chart below for those, like us at BMR, who are following developments with this interesting company…

Visible Gold Mines (VGD, TSX-V)

Visible Gold Mines appears poised for a breakout…VGD was up 49% in July and is also up for the month of August, quite a remarkable achievement given the state of the overall market…it gained three-and-a-half pennies last week on total volume of just over 1 million shares (all Canadian exchanges) to close at 34.5 cents…the stock has stayed above its 100-day moving average (SMA) at 29 cents for the last 12 sessions, since the news August 11 regarding Wasa Creek and Wasa East…the 100-day is flattening out and the rising 50-day SMA has caught up to it…from a technical analysis perspective, what it appears we’re about to see with VGD is a bullish crossover commonly referred to as a “Golden Cross” (when the shorter-term SMA crosses above the longer-term SMA)…that’s additional evidence supporting our bullish view regarding the near-term direction of this stock…at the moment VGD has to be considered the most exciting play in the BMR “stable”…the company came out with more news August 16, this time regarding its Joutel Extension Property where a 7,500-metre, Phase 1 drill program is almost set to begin…we love this property because three former Gold mines (one open-pit, two underground) and two former copper mines are within the immediate vicinity just a few kilometres to the northwest and the southwest, respectively…it’s hard to imagine there aren’t more deposits in the area, ones that simply weren’t discovered in the 70′s, 80′s and 90′s…and we can’t think of a better geologist to find one or more new deposits there than Robert Sansfacon whose re-interpretation of Canadian Malartic helped Osisko (OSK, TSX) nail down a 10 million+ ounce monster…Sansfacon is challenging some previous geological assumptions concerning Joutel and he’s applying a new model, taking a structural approach rather than a stratigraphic one as Agnico-Eagle (AEM, TSX) did previously…two-thirds of the Phase 1 drilling will test the extension of a northwest-southeast mineralized structural pattern that based on geophysical surveys appears to strike directly southeast of Agnico-Eagle’s past-producing Telbel, Eagle and Eagle West mines for two kilometres and may extend farther to the former village of Joutel and beyond…the Joutel mines gave birth to Agnico-Eagle, and the major would love nothing more than to see this old mining camp come back to life…if anyone can make that happen, it’s Sansfacon who’s highly regarded in Quebec mining circles…meanwhile, down south along the Cadillac Trend, VGD continues to aggressively drill its Wasa Creek Property…9 holes were completed as of mid-month with results pending on 8 of those holes…two rigs are on the property, drilling in all directions around LBWC-11-03 (the first hole completed)…what impresses us the most about LBWC-11-03 is that it was essentially a “blind hole” – this property has been virtually ignored in terms of any previous exploration and on the very first hole, VGD intersects several zones of significant Gold mineralization…of particular interest is the 16.4-metre section that shows the same style of mineralization as Richmont’s (RIC, TSX) Wasamac deposit – close co-existence of Gold and pyrite disseminated in an altered shear zone…it’s still very early in the game for VGD at Wasa Creek but at least now they have a trail of mineralization to follow, and that’s important…the market has plenty to speculate about with a lot more assays coming…you have to like the fact the prolific Cadillac Fault runs right under the middle of the 650-hectare Wasa Creek Property…in addition, VGD geologists believe they may have discovered some sort of connection between the Wasa Shear and the Cadillac Fault at Wasa East with that property right in between those two Gold-bearing systems…given developments at Wasa Creek and Wasa East, along with Joutel of course, news flow should be strong with VGD and some drama could quickly build…in addition, Richmont is expected to provide a major exploration update on its Wasamac Property this coming week…technically, VGD is looking very strong…VGD has momentum, along with $6 million in working capital, and is being driven by some exploration stories that appear to have some serious “legs”…

Cadillac Mining (CQX, TSX-V)

Cadillac has been held back because of its poor cash position and the fact the company has yet to put its strategic Wasa claims, adjoining the northern boundary of the Wasamac Property, into play…we emphasize “yet” because our hope is that something may happen soon…Wasamac is hot and Cadillac must seize the opportunity…an expected Wasamac update from Richmont this coming week may have positive implications for Cadillac…CQX gained half a penny last week, closing at a dime…with a market cap of just $2.7 million, CQX certainly offers major upside potential simply given its current deal with VGD which allows CQX to retain a 40% interest in Wasa Creek, Wasa East and the entire Lucky Break/Cadillac Break Projects…what could really cause CQX to explode, however, is if it’s able to raise some cash and/or put its 100%-owned seven Wasa claims adjoining the northern portion of Richmont’s Wasamac Property into play…that’s what CQX has to do for the benefit of its shareholders…the company had a glorious opportunity to raise cash and build shareholder value earlier this year because of Wasamac and failed to do so…now they have another opportunity…second chances don’t come often in life but Cadillac management has been blessed with one in this instance, and hopefully they take advantage of it…we give CQX credit for securing an excellent project (Goldstrike) in Utah on fabulous terms but several million dollars is going to be required to explore Goldstrike in the right way…the best solution in our view is for Cadillac to cut a deal with another company for exploration of its Wasa claims and the natural partner for that appears to be VGD which has all the money and expertise necessary to unlock the value of those claims and create excitement in the market…Cadillac could let others do all the heavy lifting at and around Wasamac and then focus its energies on developing the Goldstrike Project…Victor Erickson and Audre Audet are smart mining people and have done an admirable job protecting the company’s tight share structure…this is not their own private company, however, and they owe it to their shareholders, for whom they serve, to build value and not let the company treasury run dry…

Abcourt Mines (ABI, TSX-V)

Patience continues to be the name of the game here…Abcourt was unchanged at 10.5 cents last week…ABI faces stiff overhead resistance with a declining 100-day moving average (SMA) at 12.5 cents and a declining 200-day SMA at 15 cents…if you’re bullish on Silver and zinc prices, however, which we are, you have to love this play as the current market cap ($15.6 million) really doesn’t take into account the value of the company’s Abcourt-Barvue Silver-Zinc deposit near Val d’Or…ABI is ripe for an eventual takeover given the value of its assets and management’s obvious inability to unlock that value which is why we still view this company with considerable interest…we love the assets…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…the company released more results from Abcourt-Barvue August 2 including 2.1 metres grading 422.35 g/t Ag…drill results to date should significantly upgrade and increase all-category reserves and resources, most of which can be mined by open-pit…four years ago, GENIVAR produced a very positive feasibility report for the project which showed robust economics…more drilling will take place at the property this year…the rig was temporarily moved to the Vendome Property (Gold, Silver, Copper, Zinc) approximately 13 kilometres south of Abcourt-Barvue where 4 holes were drilled to confirm historical data…results were announced August 9 and included 33 metres grading 1.69 g/t Au…more results were released July 5 from the company’s Elder-Tagami Gold Property near Rouyn-Noranda including 8.50 metres grading 3.71 g/t Au…that was from the Tagami area to the north which 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 dropped as low as 15 cents on light volume and closed down half a penny for the week at 17.5 cents…the declining 100 and 200-day moving averages (SMA) at 19 and 23 cents, respectively, will provide stiff technical resistance until news or a dramatic change in the markets alter the dynamics…the company released its June 30th financials Thursday which show working capital of $7.3 million or 16 cents per share…our gut feeling is that something is cooking here…President and CEO Tony Roodenburg has been quiet for too long, but knowing the conservative Roodenberg he may wait until the markets stabilize and turn higher before he launches into anything in a major way…the fact Roodenburg is no longer at the helm of Seafield Resources (SFF, TSX-V) is a positive development in our view for Greencastle…he had been trying to ease his way out of Seafield since 2009 without much success until a few months ago…he’s now 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 VGN forward and boost shareholder value and we’re confident Roodenburg will do it, sooner or later…Greencastle’s market cap of $8 million means the stock is now trading just 2.5 cents per share above its working capital…history shows that whenever VGN is trading right around its working capital, a great buying opportunity has opened up though investors must be patient…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 strong working capital, three Gold properties (including land near the Blackwater Project and a couple of very good Nevada properties) and monthly (albeit very modest) 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 encouraging with strong support zones and a still-rising 300-day SMA…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 runs in the stock and adds further credence to our view that we haven’t seen the highs in this cycle yet from Greencastle…the stock is up 25% since we added it back in to the BMR model portfolio last October…

Sidon International (SD, TSX-V)

Still nothing new to report here…we’re all entitled to have one dog in our portfolio and Sidon is that dog for us at the moment, though it did increase five-fold for us last year and still holds potential…things remain very quiet on the Sidon front with the stock up half a penny last week at 3.5 cents on continued light volume…the company 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…there has been no news from the company since March 14 – they have effectively “sat out” the correction in the CDNX – 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 6 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 4 deeper holes with results for those still pending…what the initial 6 holes have given Sidon, however, is a better understanding of the Morogoro geological structure which could 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 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 is not encouraging…the climb back up won’t be easy and the company potentially may have to look at a consolidation of its capital or even a new group to come in and take things over…Sidon ran as high as 26.5 cents last winter but is now off 1.5 pennies since we introduced it to BMR readers in the spring of last year at a nickel…the company currently has approximately 140 million shares outstanding for a market cap of $4.9 million…

Gold Bullion Development (GBB, TSX-V)

GBB appears to be stuck in a trading range at the moment between the mid-30’s and 40 cents, just below its still-declining 100-day moving average (SMA)…the stock closed at 37.5 cents Friday, off 2.5 cents for the week, though it enjoyed one of its best volume days in a few months on Thursday when it gained a penny-and-a-half on over 700,000 shares (all exchanges) after news came out on the Castle Silver Project…while the stock continues to face some stiff technical headwinds, the fundamentals look good, especially with Gold trading where it is…GBB has a very valuable asset – Gold in the ground and close to surface at Granada…just how much of it remains to be seen but we’re optimistic as a 43-101 resource estimate from GENIVAR draws closer…one important point is very certain in this current equity and Gold environment…many producers, big, medium and small, are sitting on large piles of cash and are looking to add ounces to their production profiles…any junior with an advanced property like GBB possesses, and a 43-101 resource to back it up, could be the target of a potential takeover…takeover activity in this sector is likely going to increase substantially in the months ahead…GBB has received approval from the TSX Venture Exchange to lower the exercise price of a total of nearly 8 million share purchase warrants to 58 cents (7.4 million from last October’s financing were priced at 75 cents)…these warrants expire October 27, 2011…having those warrants exercised would bring another $5 million or so into the GBB treasury, so a resource estimate by sometime in September would be timely…a move through the mid-50′s would also constitute a major technical breakout for the stock but that’s going to require a strong 43-101…GBB’s last drill results were released July 13…there was nothing spectacular in those numbers but hole #165, collared approximately 50 metres northeast of hole #108, offered encouragement with regard to the very promising northern portion of the Eastern Extension…#165 returned 141.5 metres grading 0.31 g/t Au (from 155 to 296.50 metres) with no high-grade spikes, showing an apparent consistency of mineralization…it included a 20.5-metre section grading 1.2 g/t Au…assays have yet to be reported on 8 more important holes drilled in this general area (168, 178, 183, 241, 243, 246, 254, 257) according to GBB’s most recent drill map…along with additional results, GBB’s 43-101 resource estimate is going to be critical along with the Castle spin-off and potential discoveries in LONG Bars Zone 2…infill drilling is GBB’s focus at the moment with drill hole spacing tightening (which could help to improve grade) in preparation for a resource calculation…the company’s current market cap of $62.5 million which 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…this property continues to offer incredible potential…the company provided an update on its Castle Silver Mine Project on Thursday…a total of 12 holes were completed in Phase 1 drilling…while GBB chose not to release all the assay results, they did report that the best Silver intersection was 189 ounces per tonne (6,476 g/t Ag) over 3.09 metres which included a half-metre super high-grade section of 1,194 ounces or 40,944 g/t Ag (hole CA11-08)…the company also stated that numerous strong calcite veins and vein systems were drilled, and many of these were independent of the existing mine workings…more exploration work of course is planned and much will be required in order to advance Castle…GBB plans to spin-off this asset into a separate publicly traded entity…GBB is up 4346% since we introduced it to BMR readers in late December, 2009…

Currie Rose Resources (CUI, TSX-V)

It was a good week for Currie Rose which enjoyed its best volume day in nearly a month on Wednesday following an exploration update on its Tanzanian properties…CUI posted its second consecutive weekly advance, gaining another penny to 18 cents…the stage appears to be set for a potential breakout through the low 20’s, particularly if sentiment turns bullish in the overall markets going into early September…Currie Rose reported that 20 RC holes have been completed at Mabale Hills (16 at Sisu River, 4 at Dhahabu) while drilling is now shifting to the Sekenke Project approximately 200 kilometres to the southeast…what we found especially encouraging about the news is the fact that disseminated sulphides were intersected in all 16 holes at Sisu River, unlike Phase 1 drilling there last winter…the initial stage of drilling at Sisu River gave the company some important geological clues and it’s quite possible that assay results will turn out much better this time around…each of the 4 holes at Dhahabu also intersected disseminated sulphides…drilling has yet to commence at Mwamazengo…geochemical analysis has outlined a continuous anomaly over a few hundred metres that runs parallel to the west of a previously reported discovery at Mwamazengo where 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…we’re most excited, however, 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 also 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…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 has been conducting an 8,000 metre drill program at the Scadding Gold Property near Sudbury…Trueclaim, which continues to release decent 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…TRM announced July 26 that it has intersected a previously unknown area of Gold mineralization at Scadding with hole #48 assaying 5 metres grading 4.54 g/t Au (from 98 to 103 metres, assumed to be true width)…about 25 metres below that interval was a 10.25-metre section grading 1.37 g/t Au…TRM has drilled the North Zone, the South Zone and the Currie Rose Zone with promising results (the Central Zone, which could get really interesting, has yet to be drilled)…CUI announced a joint-venture deal January 25 with Australian-based Liontown Resources for Currie Rose’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…it was announced last Wednesday that Liontown has now started drilling at Jubilee…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 $16 million, what hasn’t changed is the quality of this company’s project portfolio which remains as high as ever…Currie Rose‘s June 30th financials (6 months) were released Thursday and the company has all the cash it needs (nearly $2 million as of June 30) to complete an initial major round of drilling (10,000 metres) in Tanzania this summer…

Adventure Gold (AGE, TSX-V)

AGE remains one of our favorites with several exciting projects on the go…our theory is that there’s a very good chance at least one of those projects will “hit”…Pascalis-Colombiere is our pick…the stock has traded mostly in the 40’s over the last month and closed Friday at 46 cents, a loss of 1 penny for the week though volume was very light…we recently spoke with President and CEO Marco Gagnon and we’re continuing to perform some additional research on AGE in advance of some postings in the near future, particularly during our upcoming trip to Rouyn-Noranda…initial Phase 2 results from Pascalis-Colombiere should be out shortly…Gagnon is a sharp operator who knows how to maximize every dollar the company spends…he also has the strong backing of Montreal investment firm Windermere Capital which holds just under 20% of AGE as disclosed January 21…the company has five active key projects, two of which are in the hands of joint venture partners Lake Shore Gold (LSG, TSX) and Agnico-Eagle Mines (AEM, TSX)…AGE started a 5,000 metre Phase 2 program in late May at its very promising Pascalis-Colombiere Property near Val d’Or…on May 31 the company reported more highly encouraging Phase 1 drill results from this former producer including 4.8 g/t Au over 33.1 metres in hole #20 (plus lower grade halos over significant widths)…the Phase 2 program was designed 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 nearby)…we found a comment from Gagnon in AGE’s 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”…we believe Richmont Mines (RIC, TSX) could be very interested in this project as they are looking for an acquisition, preferably in the general area of their Camflo Mill…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…we believe a lot of Gold was overlooked in that area…in addition, the geometry of the deposit is such that mining costs should be relatively low…considerable infrastructure is also in place…meanwhile, Agnico-Eagle has completed its 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…also of immediate interest is AGE’s partnership with Lake Shore Gold 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 had reached a core length of 2500 metres as of mid-June with another 500 metres to go…if a discovery is made, AGE will instantly explode higher…AGE has completed an 8-hole Phase 1 program at the Lapaska Property near Val D’Or…results released July 21 for the remaining 6 holes at Lapaska were very mediocre compared to the first 2 holes (MZO-TSX-V has an option to earn up to a 70% interest in the property) but Lapaska still holds good potential…the Granada Extension Property will be worked on later this year…AGE’s latest financials, released June 29, show the company with $3.3 million in working capital as of April 30, a $300,000 improvement in working capital over the quarter ending January 31…we first mentioned Adventure Gold to our readers in an article September 29 last year, 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…AGE is clearly a keeper for the long haul and we wouldn’t be surprised to see a major breakout in this play next month as results begin to flow in…

GoldQuest Mining (GQX, TSX-V)

GoldQuest dropped as low as 13.5 cents last week which is really quite amazing…it closed Friday at 14.5 cents, a drop of 2.5 pennies for the week…technically, GQC has clearly become oversold as demonstrated by RSI(14) and the Slow Stochastics Oscillator…this is a company with strong management and a superb portfolio of properties in the Dominican Republic and Spain, so a $15 million market cap – down from about $50 million earlier this year – makes GQC look exceptionally attractive…the 200-day moving average (SMA), currently at 29 cents, is now in decline but the 300-day (SMA) at 25 cents continues to rise…support for the stock has been very strong in the upper teens, so a drop below that area last week brought out some additional sellers who made the classic mistake of panicking and dumping stock…there’s no question in our view that GQC presents a great opportunity for patient and long-term investors…Chairman Bill Fisher has been buying GQC stock on the open market, his latest purchase being 20,000 shares July 12…he has bought nearly 250,000 shares over the past couple of months 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…last week the company provided an update on its exploration activities, though no timeline was specified for the re-commencement of drilling in the DR…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 stopped all drilling in the DR during the spring in order to complete extensive ground geophysical (IP) surveys over Escandalosa and magnetic surveys over other properties…overall assay results from Escandalosa were decent though far from spectacular…the final set of assays for 7 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…however, the company drilled 3 holes at the Hondo Valle target 1.6 kilometres to the north (outside the resource area) and all 3 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 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 70% 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…meanwhile, GQC has been granted the Lago exploration concession, as reported last July 19, which is only a 30-minute drive northeast of Toral…the Lago property is the first permit granted of three applications by GoldQuest…securing an exploration concession for Lago, where mineralization is similar to that of Toral, is another important step for GoldQuest in building its assets in that region…a comprehensive mapping, geochemical sampling and ground geophysical program will be initiated at Lago to define both infill drilling and new targets that may warrant drilling in the vicinity of the known hydrothermal lead and zinc mineralization that remains open along strike and at depth…GQC is down a nickel since we added it to the BMR model portfolio last fall…

Seafield Resources (SFF, TSX-V)

Seafield’s new President and CEO Carlos Lopez continues to put the building blocks together with this company…we’re impressed with his actions over the last few months as he has strengthened Seafield both on the ground and in the office by adding some key personnel…he has also put his money where his mouth is, buying significant amounts of stock in the open market…Seafield gained a penny-and-a-half last week to 25 cents…the stock has bounced up and down between the low 20′s and the low-to-mid-30′s the past few months…liquidity is certainly there for traders to play the rather predictable swings this stock has been experiencing…the company’s June 30th financials were released Friday, showing SFF with $18 million in cash…Seafield announced August 11 that Giovanny Ortiz, the former exploration manager of the Angostura Project, has been appointed General Manager of the company’s operations in Colombia…heavy selling came into the SFF market July 25 when the company announced drill results from Dos Quebradas which were disappointing, though we caution it’s still early in the game for that property…Seafield is currently drilling a promising area at Dos Quebradas approximately 250 metres wide (east to west) and more than 300 metres long (north to south)…the zone is open at depth and is interpreted to plunge to the north…meanwhile, Seafield has added a second drill rig at Miraflores in order to expedite a Phase 2 program there which is designed to better define the shape of the orebody, increase the resource confidence and extend mineralization…a total of 10 holes or 6,200 metres is expected to be completed by November (the rock is hard at Miraflores, so the drilling is slow which is why a second rig has been added)…the company announced July 5 that it has hired SRK Consulting for a preliminary economic assessment or scoping level study on Miraflores for completion by the first quarter of next year…SRK will evaluate the potential positive economics of developing an open-pit and underground operation at the property…it will also provide recommendations to advance the project to prefeasibility…Seafield released an updated 43-101 resource estimate for Miraflores May 26…the 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)…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 in a very strong cash position…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 317%% since we made it the first company in the BMR model portfolio two years ago…its current market cap is $42 million, just a little more than twice the company’s cash value…

TSX Venture Exchange and Gold

The Venture Exchange was off 13 points for the week but finished on a positive note with a 4-point gain Thursday followed by a 13-point advance Friday.   At 1752, the CDNX is down a whopping 11.5% for the month of August but as John’s chart shows (we first posted it Friday night), a recovery appears to be underway.  A lot of quality “merchandise” on the CDNX has been priced down considerably this month – that’s usually a good time to buy – and a tsunami of exploration results is expected to hit the market over the next several weeks.  Vacations are ending and lackluster trading volumes will pick up.  So we do expect an improved environment for the speculative juniors heading into September even if Gold is in a consolidation phase.  The performance divergence between the junior and venture stage mining companies relative to their senior peers has not seen such spreads since the 2008 credit crisis – another reason to expect the quality speculative plays to rebound.

Fed Chairman Ben Bernanke’s speech at Jackson Hole Friday seemed to calm the nerves of the market, at least for now.  The Dow was down as much as 221 points prior to Bernanke’s speech and then abruptly reversed course, finishing 135 points higher for the day and lifting the CDNX with it.  Bernanke signaled, in our view, that the Federal Reserve is carefully weighing its options and could announce some new stimulus measures following an extended two-day meeting in about three weeks.  However, he also made it clear that smart fiscal policies need to be implemented in order to address the U.S. economic slowdown and that means President Obama and Congress need to act wisely and as soon as possible.  The question is, will that happen?  Below are some of Bernanke’s comments and a link to the full text of his speech:

“In addition to refining our forward guidance, the Federal Reserve has a range of tools that could be used to provide additional monetary stimulus. We discussed the relative merits and costs of such tools at our August meeting. We will continue to consider those and other pertinent issues, including of course economic and financial developments, at our meeting in September, which has been scheduled for two days (the 20th and the 21st) instead of one to allow a fuller discussion. The Committee will continue to assess the economic outlook in light of incoming information and is prepared to employ its tools as appropriate to promote a stronger economic recovery in a context of price stability.

“The quality of economic policymaking in the United States will heavily influence the nation’s longer-term prospects. To allow the economy to grow at its full potential, policymakers must work to promote macroeconomic and financial stability; adopt effective tax, trade, and regulatory policies; foster the development of a skilled workforce; encourage productive investment, both private and public; and provide appropriate support for research and development and for the adoption of new technologies.

“Economic policymakers face a range of difficult decisions, relating to both the short-run and long-run challenges we face. I have no doubt, however, that those challenges can be met, and that the fundamental strengths of our economy will ultimately reassert themselves. The Federal Reserve will certainly do all that it can to help restore high rates of growth and employment in a context of price stability.”

http://www.telegraph.co.uk/finance/economics/8725076/Ben-Bernankes-2011-Jackson-Hole-speech-in-full.html

The emerging market growth story continues which is a fact highlighted recently by Bank of Canada Governor Mark Carney.  That’s positive for commodities and overall global growth, and helpful of course for the CDNX.  Copper, which closed at $4.09 Friday, has held up quite well considering all the recent doom and gloom.  Scotiabank estimates that emerging markets now account for 67.8% of world copper consumption (China alone accounts for 37.3% while U.S. copper consumption has slipped to 9.1% of the world total).  As investors, more than ever, we must maintain a global perspective.

Gold

What a week for the yellow metal.  On Monday, Gold came within just $20 or so of John’s near-term Fibonacci target of $1,938.  It then corrected rather violently, suffering its largest 2-day absolute fall in more than three decades.  Gold found support at $1,700 and then immediately reversed to the upside Thursday and Friday, posting a whopping $58 gain Friday to finish at $1,829. After all of these ups and downs, Gold posted a weekly loss of just $24.

Last Sunday (August 21) in this space we posted the following:

“John’s near-term Fibonacci target is $1,938 and we could see that as early as tomorrow – who knows.  However, Gold has become hugely overbought technically at the moment.  It has simply gotten ahead of itself, albeit only temporarily.  A 10% correction would be a healthy development and certainly wouldn’t be surprising.  Gold is making its longest run of weekly gains since April, 2007.  That’s when pullbacks usually happen, and Gold has also climbed abnormally above its 200-day moving average (SMA).  The mainstream media are also now jumping on the Gold ‘story’ and that’s another sign that we have just seen, or we’re about to see, a short-term top.  We emphasize short-term because, as we have repeated many times in this space, our belief is that we are witnessing the bull market of a lifetime in Gold and $3,000 an ounce as early as next year can’t be ruled out.”

Where To From Here?

So, after last week’s correction and then a two-day reversal, what’s next for Gold?

Don’t get too excited by Friday’s $58 jump.  We’re convinced that Gold is now in a consolidation phase and while that likely won’t last very long, the downside risk is about $1,620 an ounce which we believe will then be followed by a dramatic and perhaps parabolic move to the upside.  Those who are stating that the “bubble” in Gold is over are in for the surprise of their lives – the “bubble” hasn’t even started yet.  First, Gold needs to consolidate.  Then it’s all-systems go for lift-off.  Below, John shows us what to expect during this consolidation phase.

Silver was down $1.40 an ounce last week to $41.50.  Crude Oil was up $2.81 a barrel to $85.07 while the U.S. Dollar slipped one-quarter of a point to 73.99.

The “Big Picture” View Of Gold

As Frank Holmes so effectively illustrates at www.usfunds.com, Gold is being driven by both the Fear Trade and the Love Trade.  The transfer of wealth from west to east, and the accumulation of wealth particularly in China and India, is having a huge impact on Gold.

The fundamental case for Gold remains incredibly strong – currency instability and an overall lack of confidence in fiat currencies, governments and world leaders in general, 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.

What’s also driving Gold is the weakness of the United States, brought on in no small part by one of the most ineffectual Presidents the nation has ever been saddled with.  America has lost its way and the recent S&P downgrade is both a real and a symbolic reflection of that.  Since the summer of 2009, the U.S. economy has produced a net total of just two million jobs while federal spending has gone through the roof.  Throughout its incredible history, the United States has demonstrated an amazing resiliency and the ability to bounce back from major economic, social and political troubles.  It will do so again but this will take time and a real Commander-in-Chief in the White House by November, 2012.  By then Gold will have climbed another 50% or more.

As we prepare for our upcoming visit to northwest Quebec, and during that visit, we will likely be sending out some special BMR eAlerts.  We are also adding a regular new eAlert feature each Monday morning beginning tomorrow.

We are also in the process of updating our list.  If you wish to be included in the BMR eAlert system, which sends out important and timely market information that’s not always posted on our site (or before it’s posted on our site), simply click on the “Contact Us” button you see in the top right hand corner of this page, type in “Alert” in the subject line, give us your first name, and hit the send button.  We send out only occasional eAlerts but when we do, they are significant.  Your email address is not given out to any other party.

Again, use the “Contact Us” button you see in the top right hand corner of this page or send us an email at:  alert@bullmarketrun.com

IMPORTANT:  If you are already an eAlert subscriber, or if you’re about to become one, please ensure you add “bullmarketrun@hotmail.com” to your email contact list.

Welcome to our site, or at least the initial version of it!  BMR has been online for 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 very much 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 and entail considerable risk, volatility and unpredictability.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. Always perform your own due diligence and 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 and entertainment 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.

The “dog days of August” will soon be behind us and this is typically the time of year when the TSX Venture Exchange can reverse very suddenly and forcefully to the upside, propelled by a fresh discovery or a shift in sentiment.  The CDNX is off 11.5% so far in August, the TSX has declined 4.8%, the Dow is off 7% while the Nasdaq has slipped 10%.  From a contrarian standpoint, the high level of bearishness among investors suggests right now is a classic buying opportunity.  We’ve seen this before.  Would you rather buy something on sale or wait for a couple of weeks and pay much more?

John has a new chart on the CDNX this evening which shows the Index appears to be ready to make a significant run.  It looks like it’s time to saddle up the horse.

Gold has recovered nearly half of its losses from earlier this week…as of 8:00 am Pacific, the yellow metal is up $15 an ounce at $1,787…it climbed as high as $1,797 this morning…Silver is off 30 cents to $40.82…Copper is unchanged at $4.08 a pound, Crude Oil is down $1 to $84.30 while the U.S. Dollar Index is slightly lower at 74.05…the New York Yankees became the first team in major league history last night to hit three grand slams in one game…today Ben Bernanke didn’t hit a grand slam at Jackson Hole, Wyoming, but at least he didn’t strike out in the eyes of the market…that’s the early consensus…Bernanke said the Federal Reserve stands ready to use additional tools to help the U.S. economy in its weak recovery but he stopped short of explicit talk that another round of monetary easing is forthcoming…citing “a range of tools that could be used to provide additional monetary stimulus,” he said the Fed “will continue to consider those and other pertinent issues, including of course economic and financial developments, at our meeting in September, which has been scheduled for two days instead of one to allow a fuller discussion”…Bernanke walked a fine line today but certainly implied, in our view, that the Fed is positioning itself for some sort of action…just what that could be remains to be seen…Bernanke is in a tough spot which is really no fault of his own…with a President seemingly incapable of providing economic leadership, that role to some extent has fallen on Bernanke’s shoulders…what more can the Fed do?…we’ll see how creative Bernanke and the Fed can get…U.S. corporations have been hoarding cash and many are sitting on record profits…the household savings rate in the U.S. has climbed to more than 5% from zero before the 2008 financial crisis though the cost of borrowing, of course, is at record low levels…households are busy deleveraging…additional stimulus at this point, it seems, needs to come more from fiscal policy than monetary policy, and that’s where there’s a major problem given the political gridlock in Washington and Obama’s shortcomings on economic issues…he doesn’t have an entrepreneurial mindset or a real understanding or appreciation of how wealth is created…Obama is set to make a speech regarding the U.S. jobs and growth deficit immediately after Labour Day which should prove to be very interesting…unfortunately at the moment, there is no obvious potential Republican replacement for Obama in 2012…the U.S. is in dire need of a major structural course change in everything from overall taxation policy to the proper role for government in society…that will come – the only question is when…

The U.S. economy grew much slower than previously thought in the second quarter as business inventories and exports were less robust, a Commerce Department report showed this morning, although consumer spending was revised up…gross domestic product growth rose at annual rate of just 1%, a downward revision of its prior estimate of 1.3%…it also said after-tax corporate profits rose at the fastest pace in a year…economists had expected output growth to be revised down to 1.1%…in the first quarter, the economy advanced only 0.4%…the growth story continues, however, in the emerging markets and investors should not lose sight of the importance of that…

Barclays Capital is forecasting Gold-price averages of $1,725 for the current quarter, $1,875 for the fourth quarter and $1,930 for the first quarter of 2012…investors added 58 tonnes of Gold to the top 25 Gold ETF’s from August 1-19…in the week to Wednesday, however, that reversed with redemptions reaching 56 tonnes as Gold fell $200 an ounce…as John showed in his charts yesterday, we believe Gold is in a consolidation phase for the moment and could decline to just above $1,600 an ounce before likely exploding again to the upside later in the year…this would suggest that equities, after getting pummeled this month, should strengthen over the next several weeks…

For followers of the TSX Venture Exchange (CDNX), it’s important to keep a close watch on the performance of the CRB Index which of course tracks a broad range of commodities…there’s a strong correlation between the CRB Index and the CDNX…during the spring, the CRB Index started a “Wave 4” downtrend that has coincided with the weakness in the CDNX, just like what occurred in a “Wave 2” downtrend in 2010…there is potential for the CRB Index to drop a little more (to the 50% Fibonacci level like 2010 as John points out) but the worst of the “Wave 4” decline certainly appears to be over…there is also the possibility that it has bottomed out already…we’ll let you decide by looking at this important chart…

Volume on the CDNX has slowed to a crawl as August winds down…of course, a lot of investors and brokers are away until after Labour Day and that’s part of the problem…the CDNX is currently off 1 point at 1738…there’s a lot of cash sitting on the sidelines, waiting for a reason to jump back into the equity markets after the losses we’ve seen in August…the seeds of a rally are always planted during times such as this, with so much bearishness and negativity, so the potential of an explosion to the upside in the very near future has to be considered a strong possibility…there are two things investors should be sharply focused on…news of a major discovery which history shows often comes around this time of year, and those companies on the CDNX which have been robust performers over the last couple of months, moving against the trend of the overall market…devote a few hours to researching the top performers recently and you’ll come up with a valuable list of stocks to perform some due diligence on…some of our favorites in this category include Visible Gold Mines (VGD, TSX-V), Silver Quest Resources (SQI, TSX-V), Pacific Ridge Exploration (PEX, TSX-V), Currie Rose Resources (CUI, TSX-V), Adventure Gold (AGE, TSX-V), Spanish Mountain Gold (SPA, TSX-V) and Galway Resources (GWY, TSX-V), among others which we’ll mention in the days ahead…the companies that have generally out-performed the overall market in recent months can be expected to be among the first to move in a significant way as soon as a CDNX turnaround kicks in…the last opportunity to pick up producers at favorable prices could come on any additional weakness in Gold which we do expect as the yellow metal continues to consolidate…producers could really take off by October/November if John’s analysis proves correct…

Canaco Resources (CAN, TSX-V) came out with more positive news this morning from Magambazi in Tanzania…Magambazi is shaping up to be a world class deposit, yet the stock has dropped by more than half from its all-time high of $6.45 per share…