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November 25, 2009

BMR Morning Market Musings…

We’ve been extremely bullish on the Venture Exchange and commodities in general for several months now, and continue to be…we expect a rather dramatic move to the upside in the Venture Exchange during the first quarter of next year, so any weakness over the next few weeks will likely be the “last chance” entry point before a serious blast-off beginning right after Christmas…gold has hit another record high today but it’s clearly in overbought territory and a minor correction could soon set in…we are firmly in the camp however that believes gold is ultimately headed to $2,000 an ounce…we were buyers of Noront Resources (NOT, TSX-V) last week at $1.79, just as it began its run to nearly $2.50, and we will be buying more on any additional weakness in the days ahead…it has been trading between $2.03 and $2.16 today…any dip below $2.00 should be brief and supported by a rising 100-day moving average around $1.85…Noront continues to come out with outstanding results from McFauld’s, and we expect the Ring of Fire to really heat up early next year…if Freewest (FWR, TSX-V) can be taken over for $150 million, what will the take-out price ultimately be for Noront? As nickel prices firm up, and the Venture Exchange overall continues to head higher, we see no reason why Noront can’t hit new all-time highs next year which will mean $8 or better…Probe Mines (PRB, TSX-V) and MacDonald Mines (BMK, TSV-V)
are excellent Ring of Fire opportunities as well…we are currently finalizing a very dynamic report on Seafield Resources (SFF, TSX), clearly outlining our case for a valuation of one to three dollars on this stock in 2010…

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