There is no question that Currie Rose Resources (CUI, TSX-V) is exploring in a highly prospective geological environment in Tanzania. Their large land package in the Lake Victoria Greenstone Belt is surrounded by some major mines and deposits. And the company has already proven it is very capable of making a significant discovery – five years ago Currie Rose intersected exceptional near-surface Gold mineralization (the Mwamazengo Discovery) at its Mabale Hills Project including 63 metres grading 2.59 g/t Au and 31 metres of 5.97 g/t Au. Currie Rose is going to revisit Mwamazengo, which clearly warrants considerable additional exploration, but first they’re going after a target (Sisu River) just a few kilometres to the northeast of Mwamazengo that we believe holds excellent potential for a discovery that could really ignite this company and re-energize its mission in Tanzania.
A 3,000 metre RC drill program is currently in progress at Sisu River where “significant ‘in-situ’ Gold mineralization” exists according to a 2005 Technical Report. Sisu River has never been fully or properly explored and the current drill program is expected to deliver some answers regarding this property, in particular the extent of the Gold mineralization. The Sisu River target is hosted within felsic volcanic rocks generally considered to be favorable hosts for Gold in greenstone belts around the world. Rock chip sampling by a previous operator returned values as high as 553 g/t Au. Random grab samples recently collected by Currie Rose’s geologist, over an area 150 metres by 30 metres, also returned interesting numbers with 6 of 13 results grading better than 5 g/t Au including one as high as 89 g/t Au. Gold is present at Sisu River and it’s close to surface (artisanal miners made their own discovery there about a year ago). Currie Rose has a well thought out drill plan and the first round will blanket the anomaly with 25 or so holes drilled to depths of approximately 100 to 125 metres. Of course there are never any guarantees in this business, but we like the odds of a “hit” at Sisu River. The potential clearly exists.
There is much more to like about Currie Rose and we’ll be exploring this very interesting company in detail in an audio interview with President and CEO Harold Smith that we’re conducting tomorrow. We’ll have it uploaded to our site by late evening tomorrow or early Friday morning. Currie Rose has 79 million shares outstanding, $1 million cash in the bank, and a market cap of $13 million based on yesterday’s closing price of 16.5 cents. For speculative investors this a company definitely worthy of serious consideration and due diligence. The stock recently broke out of a horizontal trend channel and has an attractive chart as outlined by BMR’s Technical Analyst below:
John: Yesterday, CUI opened at 17 cents, drifted to a low of 15.5 cents, climbed as high of 17.5 cents and then closed at 16.5 cents, down half a penny on total CDNX volume of 841,000 shares.
Looking at the 6 month daily chart we see that CUI suddenly came to life at the end of July after several months of listless trading in the 4 to 6 cent range. On August 18, with a huge relative volume of over 7 million shares, it broke above the 7 cent resistance level and traded as high as 10 cents. Since that time it has traded in an upsloping channel denoted by a blue top line (resistance) and a green lower line (support). Note that the trading pattern is such that major “up” moves in the channel are made in 1 or 2 days on higher than average volumes with consolidation periods interspaced.
I have drawn a resistance band between 17 cents and 20 cents (2 thin horizontal lines) which is pivotal resistance from 2 previous highs in August, 2008, and October, 2009. Two sets of Fibonacci levels (blue horizontal lines) are shown indicating 2 targets – 1 at 20 cents which coincides with the resistance band and the other at 30 cents.
Looking at the indicators: The RSI looks strong at 67% with room to move up without becoming overbought – bullish.
The Chaikin Money Flow (CMF) indicator has become bullish in the last 4 sessions after spending 12 sessions consolidating (brown – below zero). This shows buying pressure is picking up – bullish.
The ADX trend indicator looks very strong with the +DI (green line) at 32 and above the -DI (red line) at 5. The ADX trend strength indicator (black line) is high at 47, climbing and looking strong. The indicators are in bullish orientation and have been since the major breakout in July.
Outlook: CUI is looking very bullish with no overbought or extreme conditions. High volume is required to allow Currie Rose to overcome the resistance band outlined above.
