BullMarketRun.com

Rouyn-Noranda, Quebec

One of the most exciting but still overlooked Gold exploration success stories along the prolific Cadillac Trend right now is Wasamac, a small former producer 15 kilometres west of here that has the potential of developing into a multi-million ounce deposit for TSX and AMEX-listed Richmont Mines (RIC).  Wasamac and the surrounding area have been hugely under-explored and offer tremendous exploration upside as both Richmont and Visible Gold Mines (VGD, TSX-V) are discovering.  They are the two most active drillers in the area – Richmont has five rigs at Wasamac while VGD is busy to the immediate west and east with Wasa Creek and Wasa East, getting encouraging early results from both.

A mine and a mill at Wasamac, a question now only of “when” and not “if”,  would profoundly alter the dynamics for Richmont and would also have major positive implications for Gold as well as base metal exploration throughout the area.  In fact, we’re already beginning to see those effects with RIC climbing to an all-time high Friday of $12.15 per share and Visible Gold Mines garnering much increased attention as the #1 “area play”.  Geologists we’ve spoken to believe there’s a very good chance that multiple deposits could be found in the vicinity of Wasamac.

Click on the link below to listen to Part 2 of Jon’s interview, entirely on Wasamac, with Richmont Mines‘ President and CEO Martin Rivard.  It runs approximately 16 minutes.

BMR Interview (Part 2, Sept. 18) With Richmont CEO

Richmont Mines' President and CEO Martin Rivard with a Wasamac map in the Richmont board room.

Rouyn-Noranda, Quebec

Adventure Gold (AGE, TSX-V) has significantly outperformed the CDNX this year (AGE is up 12% while the CDNX is down 23%) and it seems likely that AGE will continue to do well given its strong portfolio of properties.  On Friday, the company announced that Lake Shore Gold’s (LSG, TSX) deep drilling program at AGE’s Meunier-144 Property (contiguous to the western boundary of LSG’s Timmins Property) is now about 2,600 metres in core length and with recent wedging appears to be on track to potentially hit the intended target by late next month.  Meanwhile, AGE continues to enjoy exploration success at its Pascalis-Colombiere Gold Property near Val-d’Or.  Initial Phase 2 drill results released last week included 7.1 g/t Au over 4.3 metres and 4.5 g/t Au over 9.3 metres.  The former L.C. Beliveau Mine, which produced nearly 170,000 ounces for Cambior between 1989 and 1993, remains open at depth and other significant extensions are being discovered to this system both near-surface and at depth.

Pascalis-Colombiere is immediately adjacent to Richmont Mines‘ Beaufor Property and mine.  During Jon’s interview with Martin Rivard Friday, the Richmont President and CEO made it quite obvious he’s keeping an eye on developments at Pascalis.

“I don’t have any specific comments on other companies’ exploration.  What I could say is that the recent results from Adventure Gold just confirm the regional potential around Beaufor where we have a very large land package.  Our focus has always been near the infrastructure of the mine.  We have a shaft going down to 2,000 feet.  This is key infrastructure for us, so most of our exploration so far been around the area of the shaft.  But at the same time, if you look at what’s going on with exploration around the Beaufor Property, it just speaks highly of the potential Richmont has on its own property.  This is why we’re expanding our drilling efforts and looking at different targets on the property outside the immediate mine area.” – Martin Rivard, Sept. 16 BMR interview.

Adventure Gold not only has strong fundamentals but technically the stock continues to look very bullish.  John examines a 1-year weekly AGE chart below.

Volume picked up marginally last week in the CDNX, and the Index bounced back from a minor sell-off Monday to close Friday at 1763, a loss of 22 points for the week.  The Index has strong support at 1700, as John shows in the 2.5-year weekly chart below, and the possibility of a bullish “Wave 5” move still exists.

The share price doesn’t reflect this at the moment, but Seafield Resources (SFF, TSX-V) is a stronger company now than it was earlier this year with new President and CEO Cesar Lopez at the helm.  Lopez took over in early May and since then, among other initiatives, he has ramped up the company’s exploration efforts and has also recruited some key personnel.  In addition, Lopez has put his money where his mouth is and has bought a significant amount of SFF stock in the open market.  Interestingly, Seafield at 21 cents is now trading right at important support, as John’s chart shows below, and it’s also just a penny-and-a-half above its rising 1,000 day moving average (SMA) which it has managed to stay above since late 2009.  The company was sitting on $18 million in cash at the end of June.  Its Quinchia Project in Colombia has multi-million ounce potential.

GoldQuest Mining (GQC, TSX-V), which closed at 16.5 cents Friday, has solid long-term prospects in the Dominican Republic and also holds important assets in Spain including a NI-43-101 resource at its Toral lead-zinc-silver project.  The stock fell as low as 13.5 cents in late August before rebounding recently to its declining 100-day moving average (SMA) at 19 cents.  With just over $2 million in working capital as of June 30, GoldQuest will likely have to raise more money before year-end in order to set itself up for an aggressive new round of drilling in the DR.  The company does have a strong management team with a proven track record in the DR.  Below is John’s updated GQC chart.

Due to our northwest Quebec visit, our regular 3-part Week In Review And A Look Ahead will not be posted this weekend.  We will, however, be examining a few charts in addition to posting more articles related to our visit which will continue well into next week.

Rouyn-Noranda, Quebec

Richmont Mines‘ (RIC, TSX) has been one of the best-performing stocks on the entire TSX this year and for many good reasons.  This is a well-managed company with a growing production profile.  It’s benefiting tremendously from record-high Gold prices as well as exploration success at Wasamac.  Richmont, which expects Gold sales of 80,000 to 85,000 ounces this year, closed today at a new all-time high of $12.15 on the TSX for a gain of exactly $1 per share. The company has just 31.7 million shares outstanding with a third operating mine (Francoeur) scheduled to commence commercial production during the first quarter of next year.  Wasamac is expected to eventually take Richmont to 200,000+ ounces in annual production.

Today we had the pleasure of sitting down for more than an hour with Richmont President and CEO Martin Rivard.  Part 1 of Jon’s discussion with Martin is about 17 minutes in length and focuses on the company’s financials as well as the Island Gold Mine and the Beaufor Mine.  A fascinating discussion regarding Wasamac will be posted in the next two or three days.

BMR Interview With Richmont CEO (Part 1, Sept. 16)

Richmont Mines' President and CEO Martin Rivard with a Wasamac map in the Richmont board room.

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

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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.

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