(Part 1 of 2)
Our main focus at www.BullMarketRun.com is to uncover special situations in the junior resource sector, primarily undervalued, undiscovered companies that have the potential to increase 10-fold in value. Companies with excellent management, outstanding properties, and the ability to progress rapidly. Gold Bullion Development Corporation (GBB, TSX-V) meets those criteria and it is our next Seafield Resources (SFF, TSX-V – we first recommended Seafield when it was sitting at just 6 cents and it is now at .21). We have made some brief mentions of Gold Bullion on our site recently, and this morning we’re issuing an urgent alert as we believe a powerful new upleg in this stock is set to begin. Gold Bullion closed Friday, December 18, at .075. Christmas is right around the corner and we suggest you give yourself a gift and fill your own stocking this week with a bunch of Gold Bullion Development shares.
We have been examining Gold Bullion very closely for over a month now and performing our usual due diligence. Here are the factors that will drive this stock significantly higher in the coming days and weeks:
1. Cashed up – $1.5 million raised. Money in the bank makes a huge difference;
2. Drill program underway at Granada Gold Mine and a substantial expansion of exploration is expected there with the company in a much stronger financial position;
3. Blue sky potential – Gold Bullion has assembled a very attractive land package at least 2 km wide and 7 km long around the Granada Mine which is on trend with Osisko’s massive Canadian Malartic Deposit (6 million + ounces) approximately 40 miles to the east. The non-compliant 1994 A.C.A. Howe Ltd. estimate of 280,000 ounces (all categories, 2.38 million tonnes at 4.08 g/t) at the Granada Mine represents less than 7% of Gold Bullion’s current land package in the area which exhibits similar geological characteristics to the Malartic Deposit. What we’re saying is, the potential exists for not just a few hundred thousand ounces of mineable gold at the Granada Property but a massive, low cost, open pit, large tonnage deposit;
4. CEO is heavily invested: Judging from Gold Bullion’s Dec. 8th news release, it appears that Frank Basa has further increased his already substantial holdings in this company. We like the fact the President and CEO holds a lot of shares;
5. Super strong technicals – a technical analysis of GBB shows that this stock has emerged from a classic bottom pattern earlier this year and the price now appears ready to accelerate rapidly. Massive accumulation has been taking place, all moving averages are in bullish alignment, and the next major resistance we see on the chart is around 18 cents. From a technical standpoint, this stock is a classic slam-dunk buy. Stochastics and RSI are essentially neutral which is excellent – despite the heavy accumulation of late, this stock has a long way to go before it’s technically overbought.
We have to assume by Gold Bullion’s Dec. 2nd news release that a 1,000 metre drill program at Granada is either well underway or possibly nearing completion. The additional private placement for nearly $1 million announced Dec. 8th tells us that Gold Bullion will likely expand its current drill program and exploration at Granada, which is only going to further raise the interest level in this stock.
With its $950,000 private placement expected to close shortly, Gold Bullion will have approximately 81 million shares outstanding for a market capitalization, based on Friday’s closing price of 7.5 cents, of only $6 million – chicken feed compared to what this could be worth as exploration is ramped up at Granada and the real potential of this property is revealed.
We’re hoping to interview Gold Bullion President Frank Basa early this week for a follow-up story (Part 2) by mid-week here at www.BullMarketRun.com. In the meantime, do your own due diligence, as always, but this is a special opportunity we are extremely bullish on and we encourage our readers to take advantage of it. This is our Christmas present to you!!!
