At BMR, we have been consistently bullish on Seafield Resources’ (SFF, TSX-V) Quinchia Gold Project in Colombia for more than a year. The slow start to a 2010 drill program and a long wait for initial assay results were quickly forgotten earlier this month, however, when Seafield released Hole #3 from Miraflores – 449 metres grading 1.3 g/t Au. The stock skyrocketed from the low 20’s to an all-time high of 77 cents on incredible volume (90 million shares, CDNX and ALPHA, December 3). Seafield’s goal at Quinchia is to define at least three significant deposits in close proximity to each other – Miraflores, Dos Quebradas and Chuscal – that provide a total resource of five million ounces or more. Dos Quebradas, rich in porphyry targets over a wide area, has the best potential of the three in our view. The first three holes have now been completed at Dos Quebradas and Seafield has reported positive visuals. A total of 12 holes were drilled at Miraflores and results are pending on nine of them. The trading action in Seafield over the last couple of weeks has been very bullish in the eyes of our technical analyst. The stock closed today at 54 cents (an 800% increase from when we first introduced Seafield) and the company is in the process of closing a $15 million financing at 50 cents. With a current market cap of only $58 million, this is a very attractive play for 2011 as John outlines in the chart below.
