BullMarketRun.com

From Rouyn-Noranda, Quebec

Gold has traded in a range between $1,762 and $1,799 so far today…as of 10:30 am Eastern, the yellow metal is up $7 an ounce at $1,797…Silver is up 60 cents at $40.51…Copper has gained 2 pennies to $3.98…Crude Oil has slipped 15 cents to $89.25 while the U.S. Dollar Index has jumped one-quarter of a point to 76.57…with the unpredictable situation in the euro zone, volatility in Gold and the equity markets is expected to continue…Gold remains in a consolidation phase and some additional weakness down to at least the $1,730 area is certainly possible as John outlines in this updated chart…

China has set its first national standard for Gold at 99.999% purity, state media Xinhua reported today, citing the National Gold Standardization Technical Committee…the national standard, which is in line with requirements for Gold bars set by the London Bullion Market Association, is seen by industry observers as another step towards liberalization of the country’s booming Gold sector, paving the way for the opening up of a physical trading market in the future…”Chinese Gold bars are now only recognized by local exchanges but not by the international market,” said a physical Gold dealer in Singapore…”One of the requirements for recognition by the international market is 99.999% purity…I think this is a necessary step to link up with the rest of the world”…

Global stocks are recording their fourth straight day of gains as traders bet that policymakers’ attempts to address the euro zone fiscal crisis have succeeded in reducing stresses in the financial system…U.S. Treasury Secretary Timothy Geithner told EU finance ministers in Poland today that they should end loose talk about a euro zone break-up and work more closely with the European Central Bank to tackle the debt crisis…”What is very damaging (in Europe) from the outside is not the divisiveness about the broader debate, about strategy, but about the ongoing conflict between governments and the central bank, and you need both to work together to do what is essential to the resolution of any crisis,” Geithner said…”Governments and central banks have to take out the catastrophic risks from markets …(and avoid) loose talk about dismantling the institutions of the euro”…

Poland’s finance minister made some chilling remarks on CNBC late yesterday…a collapse of Europe’s monetary union would likely lead to a breakup of the European Union as a whole, posing significant risks to the region and even raising the possibility of war in the long term…”If the euro zone were to fall apart then it’s hard to exclude the possibility of EU falling apart as well,” Jacek Rostowski told CNBC in an interview…”The EU has been one of the two great pillars of European peace and security of the past 60 years…therefore the danger in a longer-time horizon, in 10-20 years, in the absence of one of the key elements of our security system and one of the key elements of our political system, which ensures we deal with problems in this peaceful, democratic way we’ve developed, the risk of all sorts of authoritarian political movements, and therefore even war, in the long horizon, rises,” he said…

In light of the obvious failure of big government and the European welfare state, it’s quite incredible that Denmark yesterday embraced to an even greater extent a robust welfare system financed by high taxes…a left-leaning bloc led by Social Democrat Helle Thorning-Schmidt (now Denmark’s first female prime minister – she is backed by the Socialist People’s Party) gained a narrow majority in the country’s parliamentary elections yesterday…Thorning-Schmidt wants to protect the welfare system by raising taxes on the rich…outgoing Prime Minister Lars Loekke Rasmussen said tax hikes would harm the competitiveness of a nation that already has the highest tax pressure in the world…Denmark, like some other countries, is about to learn the hard way when it comes to insane fiscal policy that kills jobs and investment…

The CDNX staged a nice intra-day reversal yesterday and is up 1 point as of 10:30 am Eastern to 1765…the TSX Gold Index found support at 415 yesterday and is up 5 points at the moment to 428…

Below is an aerial view of Richmont Mines‘ (RIC, TSX) Francoeur mine site, situated approximately 7 kilometers west of Wasamac and 22 kilometres west of Rouyn-Noranda, taken from our helicopter fly-over of the Cadillac Trend…BMR will be interviewing Richmont President and CEO Martin Rivard today and we’ll be posting Part 1 of that interview and a related article by Monday as our northwest Quebec trip continues…

Commercial production at Francoeur will commence during the first quarter of 2012. Annual production for the estimated 4-year mine life is expected to be about 35,000 ounces.

Richmont has been unwinding an overbought condition after the stock soared recently to an all-time high of $12.10, just 6 cents shy of John’s Fibonacci target…it fell as low as $10.78 yesterday before reversing to the upside…it’s up another 28 cents at the moment to $11.43…John believes a retracement down to the Fibonacci 61.8% support level of $9.90 is possible…should that occur, back up the truck and load it up with RIC…Visible Gold Mines (VGD, TSX-V) suffered its second straight daily loss yesterday but overall the stock is still looking very healthy from a technical standpoint…it has experienced a normal decline in an ongoing up-trend as the stock simply backed off to its rising 20-day moving average (SMA) which is providing strong support…below that the rising 50-day at 34 cents provides superb support…RSI and Stochastics have come down as well which has helped to cleanse a somewhat overbought technical condition…VGD’s strong technicals and fundamentals support John’s near-term Fibonacci level assessment of 51 cents (that’s not a BMR price target, as we don’t give price targets, but a theoretical Fibonacci level based on technical analysis)…Adventure Gold (AGE, TSX-V) came out with an update this morning on its Meunier-144 Property in West Timmins…the initial deep hole being drilled by Lake Shore Gold (LSG, TSX), which was started in August of 2010, is now about 2600 metres in core length and with recent wedging it appears to be on track to potentially hit the intended target at 2400 metres vertical depth by late October…this hole is targeting potential zones down-plunge and on strike to mineralization at LSG’s 100% owned Timmins Mine Gold deposit where LSG has previously announced intercepts of up to 13.55 g/t Au over 50.8 meters and 61.35 g/t Au over 15 metres, and where LSG has announced further drilling results relating to their Thunder Creek Project (Rusk Zone) of up to 75.14 g/t Au over 18.6 metres…AGE is currently unchanged at 57 cents…keep an eye on Seafield Resources (SFF, TSX-V) which is very close to its supporting 1,000-day rising moving average (SMA) right around 20 cents…check it out on a chart, it’s quite interesting…SFF closed at 21.5 cents yesterday and hasn’t traded yet today…another company we like in Colombia, Batero Gold (BAT, TSX-V), released more drill results from its Batero-Quinchia Project this morning including 751 metres grading 0.54 g/t Au in hole #14…a newly discovered higher grade zone of mineralization was encountered at depth in that hole comprising 0.96 g/t Au and 0.14% copper over 121.89 metres starting at 310.93 metres…BAT is currently off a penny at $3.24…

Gold is weak today but don’t let that be discouraging…this consolidation phase is necessary in our view in order to set the table for higher prices during the fourth quarter…as of 11:35 am Eastern, Gold is off $44 an ounce at $1,777…Silver is $1.30 lower at $39.45, Copper has gained 4 pennies to $3.95, Crude Oil is 68 cents higher at $89.59 while the U.S. Dollar Index has lost half a point to 76.40…according to a London-based metals consultancy, Gold could reach $2,000 by year-end…in its report titled Gold Survey 2011 Update 1, Thomas-Reuters GMFS stated that investment growth is expected to rise further in the second half of this year with investment demand of all types forecast to reach a record of just over 1,000 metric tons…using an average price forecast of $1,815 an ounce, that means it would equate to a value of $60 billion, the consultancy said…in the first half of 2011, the group put investment demand at 624 tons, a value of $29 billion…

Global central banks have joined forces to provide dollar liquidity to the market, a move that could ease funding pressure on European banks…the European Central Bank said today it would lend euro zone banks dollars in three separate three-month loans to ensure they had sufficient funding until the end of the year….“The Governing Council of the European Central Bank has decided, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three U.S. dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year,” the ECB said in a statement…the central banks are certainly going to be put to the test in the coming weeks…

President Obama’s American Jobs Act includes an attempt to block Canadian firms from bidding on government infrastructure contracts, a typical Democrat-style protectionist move (in this instance coming directly from the White House) that is foolish and extremely short-sighted…Obama’s Jobs Act contains measures that require all “iron, steel and manufactured goods” used in public buildings or works to be supplied by American firms…the Harper government plans to address this issue vigorously and attempt to gain an exemption for Canadian firms…

As of 11:35 am Eastern, the CDNX, after starting out higher this morning, is off 6 points at 1748…the Dow and TSX are both up but the TSX Gold Index has declined 11 points to 417 in sympathy with the drop in Gold…the  Index has strong support around the 400 area, above the rising 100-day moving average (SMA) and just below the rising 50-day SMA…as John has noted, a drop in Gold to $1,700 is certainly possible during this consolidation…volatility is high…

We have made a visit to Adventure Gold’s (AGE, TSX-V) very promising Pascalis-Colombiere Property, adjacent to Richmont Mines‘ (RIC, TSX) Beaufor Mine near Val-d’Or, and we’ll be going into some detail in the coming days on what we see shaping up there…AGE came out with initial Phase 2 drill results Monday which were very supportive of the contention that there are considerable extensions to the former L.C. Beliveau Mine which produced nearly 170,000 ounces of Gold for Cambior between 1989 and 1993…Pascalis is coming together very nicely and it has to considered AGE’s flagship property at the moment even though the company has many other high quality projects…AGE is up 2 pennies at the moment at 57 cents…

Some of the Adventure Gold crew (including President and CEO Marco Gagnon in the middle) at drill rig at Pascalis. Phase 2 drilling is now complete and more assay results are pending.

Tomorrow, we’ll be sitting down with the President and CEO of Richmont Mines, Martin Rivard…that interview should shed an enormous amount of light on what’s happening at Richmont’s Wasamac Property as well as the immediate area around it…we’ve been bullish on Richmont all year and RIC has been one of the best-performing stocks on the entire Toronto Stock Exchange…we’ve spoken with several geologists from different companies during this northwest Quebec visit so far…the consensus is this:  not just one but several new gold deposits – perhaps even a large massive sulphide deposit – are likely to be discovered in the previously under-explored Wasamac area west of Rouyn-Noranda…just a few companies have tied up most of that ground…besides Richmont, the most aggressive explorer in this area is Visible Gold Mines (VGD, TSX-V)…it actually fell 3.5 cents yesterday to 39.5 cents on a technical pullback…a close examination of the fundamentals and the technicals for VGD tells us it makes sense to buy into any weakness with this play at the moment..in fact, no matter what the overall markets do, Visible Gold Mines has the potential to explode to the upside because this company is drawing closer to a possible significant discovery, and at more than just one property, as each day passes…yes, there are no guarantees in the exploration business and there is always a high degree of risk which is important to understand…at the moment, however, the risk-reward ratio with VGD looks particularly attractive…understanding structure is critical in nailing down a potential deposit…there is no one better in our view at understanding structure than Robert Sansfacon, VGD’s senior geologist, who has spent most of his life working on the Cadillac Trend…Monday’s news from VGD was remarkable in the sense that in just three short months, the company’s understanding of what’s happening at Wasa Creek has grown exponentially…the right ingredients are there for the discovery of a new deposit in the area…Wasa Creek is displaying some classic geological “signatures”…geologists believe there is an important “bend” in the Cadillac Fault that runs directly underneath the property…it goes in a northeast direction and then it bends to the east…this has created intense heat, pressure and fracturing – the perfect recipe for producing a concentration of mineralization…in addition, secondary north-south faults have been identified at Wasa Creek…some chalcopyrite mineralization has also been observed in drill core…in fact, significant pyrite mineralization (same mineralogy as the Wasamac deposit) was discovered in the first hole drilled at Wasa Creek (LBWC-11-03, assays released August 11) and has been observed over a wide area at the property from LBWC-11-05 in the west to LBWC-11-11 in the east – a distance of 2300 metres…more assay results are pending…but structure is critical and the impressive structural patterns observed at Wasa Creek are valuable clues that this property’s potential is much, much greater than previously thought…that’s why Visible Gold Mines has already committed to an aggressive Phase 2 drill program before assays on 12 of the 13 holes drilled in Phase 1 have even been received…as of 11:35 am Eastern, VGD is up half a penny at 40 cents…

Kaminak Gold Corp. (KAM, TSX-V) continues to make excellent progress with its Coffee Project in the White Gold District of the Yukon…drilling this year has more than doubled the strike length of the Latte Zone to at least 1,350 metres and it now reaches 275 metres vertically below surface…assay results from 44 diamond drill holes from the Latte zone were released yesterday…many holes host multiple intercepts and mineralization remains open in all directions…assay highlights include 31 metres grading 2.6 g/t Au in CFD-87 and 2.1 g/t Au over 59 metres in CFD-115A…of particular significance, it’s apparent that mineralization at Latte West becomes wider and higher grade at depth, implying a west plunge along the Latte structural zone…additional drilling is planned this season to test the down-plunge depth extent of Latte west mineralization…KAM is currently off 8 cents at $4.07…

Wildcat Silver (WS, TSX) reported more solid drill results this morning from its Hermosa Property in Arizona…drill hole HDS-184, located in an area of sparse drilling within the resource area, cut two significant zones of silver/manganese mineralization…the lower zone intersected 19.8 metres of 420.6 g/t silver, 15.8% manganese, 2.8% zinc, 2.3% lead and 0.3% copper… the upper zone returned 27.4 metres of 289.0 g/t silver, 10.9% manganese, 4.1% zinc, 2.0% lead and 0.1% copper…meanwhile, drill hole HDS-174, which helps expand the Hermosa mineralization to the north and east, encountered four zones of silver mineralization…of note, the two lower zones contained significant silver, manganese and base metals…they returned 23.9 metres of 127.3 g/t silver, 21.14% manganese, 2.88% zinc,1.02% lead and 0.06% copper, and 3.0 metres of 379.0 g/t silver, 3.93% manganese, 5.35% zinc, 2.95% lead and 0.17% copper, respectively…WS currently has five rigs at Hermosa and an updated resource estimate is expected prior to year-end…WS is up a penny at 58 cents…

Prodigy Gold (PDG, TSX-V) has received strong results from metallurgical testing on representative Gold mineralized samples from its 100% cent-owned Magino Mine Project in Ontario…a total of 20 samples were subjected to the testing program…for the 10 samples with feed grades greater than 0.35 g/t Au (cut-off grade for the resource), combined gravity and cyanide Gold recovery was 95% (range was 86% to 99%)…average Gold recovery for all 20 samples in the test program was 92%…for the 10 samples with grades less than cut-off, average recovery was 89%, ranging from 63% to 99%…the data shows that potential Gold recoveries in a conventional milling circuit at Magino are excellent, especially for Gold mineralized rock above the cut-off grade for the deposit..the fact that mineralized rock below the current cut-off grade also exhibits good Gold recoveries provides future operational flexibility…PDG is expected to deliver an updated Preliminary Economic Assessment for Magino within a couple of months…PDG has gained 2 pennies to 55 cents…

The Dave Keon Arena in Rouyn-Noranda, home of the Quebec Major Junior Hockey League franchise in this community. However, the team is forced to play out of a smaller 2,000 seat facility in the city at the new season begins as construction work has been delayed. Corporate suites and additional seating are among the revovations at the Dave Keon Arena, named after the former Leafs' star and Hall of Famer who was born in Rouyn-Noranda.

From Rouyn-Noranda, Quebec

Gold has traded in a range of $1,814 to $1,839 so far today…as of 12:00 pm Eastern, the yellow metal is down $13 an ounce at $1,821…Silver is off 35 cents at $40.78…Copper has slipped 7 cents to $3.90…Oil is $1.45 lower at $88.76 while the U.S. Dollar Index is down slightly at 77.01…the CDNX is off 9 points at 1752 after a strong day yesterday…news out of the euro zone continues to be watched very closely…two French banks, Societe Generale and Credit Agricole, have been downgraded by Moody’s today…Moody’s had put them on review about three months ago amid fears over exposure to Greece but has since become worried about the banks’ funding and liquidity profiles…a conference call today between Angela Merkel, Nicolas Sarkozy and Greek Prime Minister George Papandreou will likely shape a crucial meeting in Poland Friday of euro zone finance ministers and U.S. Treasury Secretary Tim Geithner…the Financial Times reported this morning that the U.S. Treasury would effectively accommodate a possible Federal Reserve stimulus to drive down long-term interest rates, citing people “familiar” with the matter…of course the Fed meets next Tuesday and Wednesday…the Treasury would play a crucial role if the Fed decided to launch “Operation Twist” where the central bank would buy more longer-term Treasury securities to drive down long-term interest rates by reducing the amount of such debt available to other investors…more Americans were living in poverty in 2010 than at any time since at least the 1950’s with the overall poverty rate climbing to 15.1% – a 6% jump in just one year – according to Census figures released yesterday…the Census Bureau’s annual report showed nearly 1-in-6 people in poverty, reflecting sustained long-term unemployment and the failure of the U.S. economy to kick into gear following a crippling recession…

How Gold In Quebec Was Discovered – The Story of Edmund Horne

The important turning point in the geological exploration and economic development of the Rouyn-Noranda district came during the 1910’s…on the left is a picture of the pioneering prospector Edmund H. Horne who began exploring the Rouyn area in 1911…Horne was an experienced miner and prospector before he ventured into the wilderness of northwestern Quebec, having worked in Nova Scotia, Labrador, northern B.C., Colorado, California and England…in 1908 he joined the Gold rush in northern Ontario and worked in the booming Cobalt mining camp…he then prospected in the Kirkland Lake and Cobalt areas to seek his own fortune, and liked what he saw in the rock formations…he wondered what mineral riches lie across the provincial boundary in Quebec while others prospected in northern Ontario…Horne later recalled, “Well, it didn’t seem sensible to believe that all the good geology would quit at the Ontario border, just because somebody had drawn an imaginary line there”…coming from the Ontario side along the Ottawa River, Horne and another prospector, Bob Bryden, canoed through the Kinojevis waterway in 1911…the unexplored country of northwestern Quebec left favorable impressions in Horne’s mind…he believed the area held great promise for mineral wealth…he returned in 1914 with two prospector partners, Bert Armstrong and Bert McDonnell…this time they found a showing of mineralized and heavily fractured rhyolite along the shore of Lake Osisko, which later became the Horne Mine…with more sampling and prospecting in the following years, Horne was convinced that he was onto a major mineral discovery…lacking the financial resources for a grubstake expedition to stake claims and do the assessment work, he had to wait for better financial times after World War 1…he initially found few backers for his venture…it was only in 1920 that Horne was able to secure funds to stake the ground…he raised the money through the Tremoy Lake Prospecting Syndicate which Horne founded with a total of 12 partners in the Grand Union Hotel in New Liskeard, Ontario…the syndicate was established to finance Horne’s venture in Rouyn Township to develop the Horne property, which eventually became Noranda Mines Limited…further surface work and trenching led to the discovery by diamond drilling of the giant “H” orebody in 1923 which triggered a prospecting rush and a subsequent mining boom throughout the Abitibi region…Horne, with the Mine now bearing his name, and the Noranda company were on the way to fame and fortune and a prominent place in the economic geology and mining history of Canada…the Horne Mine went on to produce a whopping 10 million ounces of Gold, about 2.5 billion pounds of copper and some Silver…at today’s prices, that equates to about $30 billion in resource value…at the site of the former mine is now Xstrata’s Horne Smelter which is treating more and more electronic recycling…

The northern boundary of Visible Gold Mines‘ Stadacona East Gold Property is within just one kilometre of the former Horne Mine…VGD is currently drilling the unexplored eastern part of the property in an effort to upgrade and expand resources…an initial NI-43-101 resource estimate was released earlier this year and showed nearly 1 million tonnes grading 5.19 g/t Au at a cut-off grade of 2.5 g/t Au…Stadacona-East is an extension of the past producing Stadacona Mine…VGD’s flagship projects, however, are Lucky Break and Joutel…at Lucky Break, the company is enjoying impressive early exploration success at both Wasa Creek and Wasa East which are on either side of Richmont Mines‘ (RIC, TSX) growing Wasamac deposit approximately 15 kilometres west of Rouyn-Noranda…our interview yesterday with VGD President and CEO Martin Dallaire was posted last night and Dallaire confidently predicted that “five or six more deposits” will be discovered in the Wasamac area over the next five or six years…though it’s still very early in the game, one of those could turn out to be at Wasa Creek where some highly intriguing structural features have been discovered with mineralization also observed in drill core over a wide area as reported by the company on Monday…with the intense fracturing and displacement at Wasa Creek, north-south faults and a “bending” of the Cadillac Fault that runs right underneath the property, the geological recipe is for not only Gold but a potential massive sulphide discovery as Dallaire mentioned in the interview…these are interesting times for Visible Gold Mines and the company’s aggressiveness on the ground has allowed it to make an incredible amount of progress at both Wasa Creek and Wasa East in a short period of time, especially considering these properties were previously unexplored…VGD is unchanged as of 12:00 pm Eastern at 43 cents…

Gold Bullion Development (GBB, TSX-V) has released more assay results from the LONG Bars Zone this morning…we haven’t yet had the opportunity to fully review everything but at first glance there are some impressive widths which means the interpretation of Granada as a potential high-tonnage, low-grade deposit remains intact…we’ve been on the look-out for results from some key holes in the northern area of the Eastern Extension…one of those holes (#178) was reported this morning and it returned 183.50 metres grading 0.50 g/t Au including 45.50 metres grading 1.12 g/t Au…#178 was collared approximately 40 metres northwest of hole #108, so this northern section of the Eastern Extension continues to look very promising…GBB’s Slow Stochastics have declined to a level not seen since early to mid-May when GBB was also in the mid-30’s before rebounding into the 50’s, so on the chart’s it’s clearly very attractive at the moment as it trades at 33 cents, down 2.5 pennies…the 52-week low is 31.5 cents…Manitou Gold (MTU, TSX-V) is up sharply this morning following release of initial drill results from the high-grade hole 26 area at its Kenwest Project southwest of Dryden, Ontario…Manitou is another company like VGD that is extremely active on the drilling front at some interesting land packages and the stock is currently up 13.5 cents to 57 cents on CDNX volume of over 800,000 shares…MTU reported 9 metres grading 26.9 g/t Au including a high-grade interval of 0.70 meters grading 316 g/t Au…that new intersection is positioned up dip from the very high grade cut from hole 26 earlier this year… results from 3 holes were released this morning with 15 more to come…MTU says all holes (KW-11-46 thru 63) intersected the mineralized structure…Bellhaven Copper (BHV, TSX-V), which we haven’t mentioned for a while, enjoyed a strong day yesterday as it gained 14 cents after releasing an initial NI-43-101 inferred resource estimate of 1 million ounces of Gold and 1.6 million equivalent ounces at its La Mina Project in Colombia…these announced resources occur at the La Cantera prospect, one of several porphyry Gold-copper targets at La Mina and the only one drilled sufficiently to date to allow for the calculation of resources…there’s also some Silver at La Cantera (2.6 million ounces in the inferred category)…Bellhaven is led by the very respected Paul Zweng…BHV definitely worth keeping on one’s radar screen…as of 12:00 pm Eastern, it’s off 4 pennies at 60 cents…we’ll be checking in with Abcourt Mines‘ (ABI, TSX-V) President and CEO Renaud Hinse in the coming days…ABI has some significant assets in its portfolio and trying to unlock that value is the company’s challenge right now…ABI is unchanged this morning at 10.5 cents…

Visible Gold Mines (VGD, TSX-V) is rapidly advancing its understanding of the Wasa Creek and Wasa East Properties, optioned from Cadillac Mining (CQX-TSX-V) and immediately adjacent to Richmont Mines‘ (RIC, TSX) growing Wasamac deposit which has rekindled exploration interest in this under-explored area west of Rouyn-Noranda.

Jon had a fascinating discussion with Dallaire late this afternoon as the VGD President and CEO sipped on a Tim Horton’s coffee and elaborated on Monday’s news concerning exciting developments at Wasa Creek in particular.  Simply click on the link below to listen to the 14-minute interview (a second interview focusing on the Joutel Project will be conducted in the coming days).

BMR Sept. 13 Interview With VGD’s Martin Dallaire

Note: The interviewer holds a position in Visible Gold Mines. 

VGD President and CEO Martin Dallaire.

As we continue our visit to northwest Quebec, we will likely be sending out some special BMR eAlerts.  We have also added a regular new eAlert feature at the beginning of each trading week.

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.

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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.

Forward Looking Statements:

All statements in BMR’s reports, other than statements of historical fact, may be forward-looking statements. These statements relate to future events or future performance. Forward-looking statements are often but not always identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.

One intriguing company we’ll be exploring in greater detail during our visit to northwest Quebec is Globex Mining Enterprises (GMX, TSX) which has been a project of President and CEO Jack Stoch, well-known in Quebec mining circles, for nearly a quarter of a century.  The company, which was listed only about a month after the 1987 stock market crash, has just 22 million shares outstanding and has gone through no rollbacks. GMX gives new meaning to diversification – it seems an investor has exposure to just about the entire periodic table with Globex.  Wasamac is also a big part of the equation for this company and Stoch agrees that Richmont’s property has multi-million ounce potential.

Mining in Quebec has certainly been profitable for Stoch.  Just recently, Osisko Mining (OSK, TSX) purchased back a 1% royalty interest from “Geoconseils Jack Stoch Limitee” (his private company) in consideration for the issuance of 460,000 common shares of Osisko (do the math, at $14 a share that’s a lot of money – Stoch will pay more in taxes that most people will ever earn in a lifetime).  The royalty was encumbering a portion of the Canadian Malartic and Barnat deposits and is part of a 2.5% gross metal royalty interest that was granted as a result of the acquisition of certain claims of the Canadian Malartic property in March, 2006.

Stoch, a bright geologist and businessman, was gracious with his time with me as our interview lasted for more than an hour.  At one time he was reported to be the largest private mineral rights holder in Quebec, so he knows this business and the area like the back of his hand.  Over the course of the next week, as we continue our visit to northwest Quebec, we’ll be posting more segments of the interview but below is a short 3-minute excerpt.  Stoch is bullish on the Wasamac area and Globex holds 5 strategic claims (the potential eastern extension of the Wasamac deposit) that it recently optioned to Richmont for a hefty price.

BMR Sept. 13 Interview With Jack Stoch (excerpt)

Note:  The writer and interviewer does not hold a position in Globex Mining.

Rouyn-Noranda, Quebec

Greetings from Rouyn-Noranda, Quebec, where one can feel fall beginning to set in…the forecast temperature high for Thursday is just +7 Celsius (45 Fahrenheit)…Gold has cooled off as well recently as the consolidation phase we were anticipating has taken hold…this is a healthy development, however, from a technical perspective and should pave the way for higher prices and a breakout beyond the $2,000 level sometime during the fourth quarter…as of 11:00 am Eastern, Gold is up $9 an ounce at $1,823 after dropping as low as $1,794…Silver is 26 cents higher at $40.65…Copper is up slightly at $3.99…Crude Oil is $1.34 higher at $89.53 while the U.S. Dollar Index is off marginally at 77.12…the situation in Europe continues to spook the markets with cracks starting to show in the resilience of the copper market…Chile’s Codelco, the world’s largest copper producer, stated that some of its clients in Europe and the United States have asked to cancel orders, showing that debt troubles and stagnant economies in those areas are starting to spread through the metals industry…continued robust growth in the emerging markets, however, should keep demand healthy…the global economy needs the likes of China and India to keep moving forward, and we suggest our readers check out an excellent piece by Frank Holmes of U.S. Global Investors last weekend (Investor Alert) that debunks the myth that China cannot maintain its strong rate of growth…

Osisko Mining’s (OSK, TSX) massive Canadian Malartic discovery, now the largest commercial mine in the country, has sparked a real Gold rush in this part of the Abitibi which has also helped to double home values in Rouyn-Noranda in just the last few years…mining is part of the culture of this community of 40,000 and our first visit to the area was in early 2010, shortly after Gold Bullion Development’s (GBB, TSX-V) discovery at Granada…GBB went from a market cap of $7 million, when we first brought it to our readers’ attention, to nearly $150 million and even with the drop in the CDNX over the last six months it still commands a total market capitalization of $60 million…President and CEO Frank Basa has been quiet recently but we suspect he’s going to let GENIVAR’s upcoming 43-101 resource estimate for Granada do the talking…Granada remains a massive project with enormous potential…it’s a multiple vein structure system with far more veins discovered since early 2010 than geologists ever thought existed…mineralization also occurs between these many vein structures…some analysts who have never visited the property have questioned the grade distribution, which can be somewhat erratic at times, but the 43-101 report should put a lot of those fears to rest in our view…mineralization is low-grade but widespread (open in all directions) and near-surface at Granada…the deposit has also not been properly tested at depth – it would be very interesting to see what could be 2,000 metres underground…the LONG Bars Zone multi-million ounce potential remains intact and the 43-101, which will be based on tens of thousands of metres of drilling by GBB as well as historical work, should give Gold Bullion a strong foundation of value…

A view of the western edge of the Granada deposit including some of the site infrastructure and a portion of the waste pile which has been the target of considerable drilling over the past year.

We’re optimistic regarding GBB and Granada…if we had to pick another junior in the area that has 10-bagger potential, it has to be Visible Gold Mines (VGD, TSX-V) which has all the necessary ingredients for success – the properties, a very strong geological team that includes Robert Sansfacon whose ability to understand structure was an important factor in the discovery of Canadian Malartic, and the capital and business savvy that are necessary in order to succeed both on the ground and in the market…later today, we’ll be interviewing President and CEO Martin Dallaire which should prove particularly interesting in light of yesterday’s news from VGD…we expect to be able to post the interview by sometime this evening…in just a couple of months, VGD has made very impressive progress at its Wasa Creek Property which borders part of the southern and western boundaries of Richmont Mines‘ (RIC, TSX) Wasamac deposit…as our readers know, we have been extremely bullish regarding Wasamac for nearly a year and now the results are proving us correct – the Wasamac deposit, with several zones that remain open at depth and to the east, clearly has multi-million ounce potential…(RIC’s initial 43-101 resource estimate in February outlined an all-category resource of 1.4 million ounces)…a critical point to keep in mind is that much of the land west of Rouyn-Noranda out to Wasamac, Francoeur and beyond has been hugely under-explored over the years…Richmont’s results (one of the most recent intersections was 31.4 metres of true width grading 7.28 g/t Au) prove that out, but this is also due in part to some errors in historical geological interpretation as the Cobalt sediments over certain sections of the area west of Rouyn-Noranda aren’t quite as extensive or as deep as originally feared…as far as Wasa Creek is concerned, Visible Gold Mines painted a very clear geological picture yesterday of what appears to be unfolding there…we covered the highlights in a separate piece last night…visuals of core are encouraging (10 distinct zones in LBWC-11-12 for example with mineralized shear zones up to 13 metres in length and a quartz carbonate vein structure near the end of the hole)…the mineralized sections contain 2-5% pyrite and some chalcopyrite…mineralization has been observed in core over an area covering at least 2300 metres…VGD states there is a “bend” in the Cadillac Fault that runs underneath the middle of the property and that’s highly significant…a “bend” can create intense pressure, heat and fracturing and that’s what leads to the creation of deposits…the discovery of north-south faults at Wasa Creek, in our view, could mean that VGD geologists are drawing a possible connection between the Wasa Creek structure and the former Alderman copper-Gold-silver-zinc mine 2.5 kilometres immediately to the north…so we have plenty of questions for Martin Dallaire when we interview him later today…Wasa East continues to look very interesting and drill targets continue to be lined up there…meanwhile, VGD has started drilling its promising Joutel Project 150 kilometres north of Rouyn-Noranda…as of 11:00 am Eastern, VGD is up 2.5 pennies at 42.5 cents on continued strong volume…

Adventure Gold (AGE, TSX-V) released initial drill results this morning from Phase 2 of its program at Pascalis-Colombiere, showing mineralization extends at depth below the former producing L.C. Beliveau Mine…hole PC-11-15A cut an impressive 7.1 g/t Au over 4.3 metres…there are also extensions at depth to the west with results showing 4.5 g/t Au over 9.3 metres and 5.2 g/t Au over 3.7 metres…new ENE trending structures have also been intersected up to 550 metres depth – 5.8 metres grading 4.1 g/t Au, 3 metres grading 4.7 g/t Au, 3 metres grading 4.3 g/t Au, and 6.8 metres grading 3.1 g/t Au…the Pascalis package is coming together nicely and includes both underground and open-pit potential…16 holes were completed in Phase 2 and results are pending for 10 additional holes…a 43-101 resource estimate is being worked on…we’ll have more on this potential new producer adjacent to Richmont’s Beaufor Mine in the coming days…AGE is off 2 cents at the moment on light volume at 58 cents…

Richmont President and CEO Martin Rivard has agreed to an interview with BMR on Friday which we are very much looking forward to…Richmont has done a tremendous job developing its Wasamac deposit and Rivard will also be able to give our readers some additional insight into the area in general…Richmont has become an earnings machine with its producing Beaufor and Island Gold Mines plus Francoeur which is going into commercial production by early next year…if you’re a believer in much higher Gold prices, as we are, then accumulating Richmont on any weakness makes perfect sense…RIC has been one of the best-performing stocks on the TSX this year and it should continue to be a leader given its strong growth prospects…it’s a quality company in every respect…

Canaco Resources (CAN, TSX-V) cut a nice hole at its Magambazi deposit in Tanzania, 49 metres grading 3.92 g/t Au as reported yesterday…we can’t help but think this is shaping up to be a fabulous deposit…seven rigs continue to drill there…one of our other favorites in Tanzania, of course, is Currie Rose Resources (CUI, TSX-V) and initial results should be coming soon from drilling at Sisu River and Dhahabu at the company’s Mabale Hills Project…CUI is currently unchanged at 18 cents…drilling is underway at Sekenke and that’s definitely a positive development for Currie Rose…Spanish Mountain Gold (SPA, TSX-V) continues to look good, breaking through the important 85-cent area that John had mentioned was critical in a recent chart…SPA is currently down a penny at 86 cents…we seldom mention non-resource stocks but one company whose technology intrigues is iSign Media Solutions (ISD, TSX-V)…for those who have been following this play, John has an updated chart this morning…ISD is off 2.5 cents at 30 cents as of 11:00 am Eastern…