BullMarketRun.com

Gold is off its lows of the morning and at 8:10 am Pacific time is trading at $1,097 per ounce, down $0.50 after falling as low as $1,084…Gold Bullion Development Corporation (GBB, TSX-V) came out with a convoluted news release but encouraging initial results this morning from its drill program at the Granada Gold Property near Rouyn-Noranda, Quebec…the “sell on news” adage seems to apply here as some traders, we suspect, simply read the headline and dumped some stock at the opening bell – an unfortunate mistake, we believe, but that’s what makes a market…the company was drilling for structure at this stage, not necessarily grade, and they have been successful…we will be going into more detail on this in the days ahead…assays were released on the first three of 25 holes drilled and included 32 metres of 1.74 g/t and some longer intersections of lower but definitely mineable grade…significantly, these first three shallow holes were drilled east of Pit #1…this is the first drilling Gold Bullion has done at Granada and we suspect the assays on the remaining 22 holes will demonstrate that this largely unexplored property (2 km x 7 km) has enormous potential as a bulk tonnage deposit…this morning’s release stated “all holes intersected significant intense silicification and sericitization alteration associated with quartz veining in sediments and porphyritic felsic intrusives. Most holes have had visible gold associated with quartz veining and detailed logging is progressing”…Gold Bullion is down two cents to .085 as of 8:00 am this morning…it has very strong technical support at its rising 100-day moving average of 8 cents which we consider to be an extremely attractive entry point…the Venture Exchange is off 21 points so far this morning, which also has not helped Gold Bullion, to 1,526…it’s “settlement day” for accounts which often can bring some additional selling into the CDNX…we suspect the market will find support around this level (the Dec. 31 close was 1,521) and firm up in the days ahead as our earlier analysis laid out…