BullMarketRun.com

Gold has recovered somewhat after dropping as low as $1,340 on news of more monetary tightening in China…as of 9:40 am Pacific, the yellow metal is down $2 an ounce to $1,351…Silver is unchanged at $26.99 while the U.S. Dollar is up slightly to 78.64…the CDNX was weak out of the gate this morning, likely due to some profit taking after strong moves Wednesday and Thursday, but it’s firming up mid-day and is now up a point at 1989…the action in the CDNX this week clearly demonstrates that Gold’s next big move is higher, not lower…Gold Bullion Development (GBB, TSX-V) came out with stellar news this morning regarding its LONG Bars Zone Eastern Extension…in what we would describe as a typical knee-jerk and foolish sell-on-news mentality, some traders/investors obviously hit the sell button without even fully reading the news from GBB or absorbing it…we will be getting into much more detail over the coming days with regard to what we now see developing in the LONG Bars Zone, but the case for a potential multi-million ounce deposit continues to build in a major way…we all know the potential of the Eastern Extension going further east, but what Gold Bullion is now beginning to prove through assay results is that the Eastern Extension also likely has a powerful north-south dynamic…it appears that mineralization extends significantly to the north, northeast and northwest of Phase 1 Discovery Hole #17 based on results from Hole #55 and Hole #108 and visuals of other holes in that area for which assay results are pending…this also suggests to us that Gold Bullion’s 2.4 to 2.6 million ounce Preliminary Block Model area (potential non-compliant ounces) may extend significantly to the north…this is something the market just hasn’t picked up yet from this morning’s news – the overall northward extension of mineralization…if mineralization extends north of the Eastern Extension, then it also in all probability extends north of the Block Model…those who have been following the story will also know that Gold Bullion has also been recently finding good grades and intersections over a substantial portion of the northern half of the Block Model, and at fairly shallow depths…the other big news this morning was Hole #86…this is the 2nd most southerly hole drilled in the Eastern Extension and produced a solid grade of 1.00 g/t Au over 84.6 metres near-surface…this is very comparable to Hole #17 which is approximately 350 metres to the north…Hole #86 was collared 180 metres southeast of the Preliminary Block Model which means there could be an extension to Vein #2…in any event, the discovery of significant near-surface mineralization in the south is a major development in the LONG Bars Zone and indicates there is further potential in that direction…the scale of the LONG Bars Zone is indeed becoming even bigger, as Basa commented in the news release…GBB is currently off  a nickel at 63 cents on over 2 million shares…stock is moving from weak hands into strong hands and we suspect GBB may have a very good week next week as investors take a couple of days to absorb the news…the latest drill results from Granada are also good news for Adventure Gold (AGE, TSX-V) whose property is right on strike with hole #86, less than 200 metres away…AGE has a small but strategic position in the Eastern Extension plus additional land west of the Block Model and further south…Granada is going to heat up…elsewhere on this busy morning, Currie Rose Resources (CUI, TSX-V) is unchanged at 22.5 cents…we’ve been following this company closely since it was trading at a dime and it continues to look very strong technically and fundamentally…GoldQuest Mining (GQC, TSX-V) continues to hold up nicely as it builds a strong base  in the mid-to-upper 20’s…it’s currently off half a penny to 27.5 cents…drilling should be in full swing at GQC’s Dominican properties by January and we just love the potential for this company next year…we strongly suggest investors familarize themselves with GQC and do some proper due diligence on it…