The BMR Portfolio:
Gold Bullion Development (GBB, TSX-V)
Gold Bullion bucked the overall trend Friday with a half cent gain on impressive volume of 2.8 million shares…sellers are around but there are also plenty of buyers…what was interesting Friday was Jordan Capital’s buying spree…Jordan was the earliest player in the Gold Bullion market prior to the LONG Bars Zone discovery…they handled the December financing and since early November last year through yesterday they’ve bought 8,529,000 shares and sold only 1,816,000 for the highest net position of 6,713,000…Jordan picked up 929,000 additional GBB shares yesterday at an average price of 35 cents…that was a whopping 16% single-day increase in their net position…Jordan remains hugely bullish on GBB and that is a very positive sign…Gold Bullion closed at 36 cents yesterday, its first weekly drop in a month, and the stock’s 10-day moving average is declining for the first time since late January/early February…however, Gold Bullion is underpinned by very strong technical support between 33 and 35 cents…its 20, 50, 100 and 200-day moving averages are all in bullish alignment and 20,000 metres of new drilling is now underway at Granada…this is a tremendously resilient stock with great liquidity that will be a leader in a new CDNX uptrend which could be just around the corner…Gold Bullion has traded at least a million shares a day for 22 consecutive trading days…
Seafield Resources (SFF, TSX-V)
Seafield continues to struggle and for no apparent reason other than the fact the Colombian exploration plays have cooled off considerably for the time being…we’re expecting a day of “capitulation” with Seafield that drives this stock down to as low as 12 to 14 cents where there is extremely strong support…the 300-day moving average is just above 14 cents….this stock will recover strongly in due course and perhaps rather quickly with the ramping up of its exploration projects in Colombia this month…this is not a stock to be dumping at current levels – makes no sense…Seafield closed Friday at 17 cents, a 2-cent loss on the week, and it’s currently in heavily oversold territory…we recommend “stink” bids in the 12 to 14 cent area…
Kent Exploration (KEX, TSX-V)
Kent dropped to 17.5 cents on low volume Friday to finish the week down 3.5 cents…investors are waiting for the spinoff of its Gnaweeda Gold Project into Archean Star Resources, expected almost any time now…Kent shareholders will receive one share of Archean Star for every four shares of Kent they own with the “effective date” yet to be announced…we remain extremely bullish on the prospects for both Kent and Archean Star…the quality of the projects these companies will be focusing on in the months ahead will drive shareholder value for both…Kent will be drilling its Alexander River Gold Project in New Zealand which holds 1 million+ ounce potential in addition to generating cash flow from its Flagstaff Barite Property in Washington State…Gnaweeda has huge potential and the possibility of a major discovery there is very real, so Archean Star should be a strong performer…the dividend from the spinoff makes Kent a no-brainer investment at current levels, plain and simple…
Sidon International (SD, TSX-V)
Sidon pulled back a little last week in sympathy with the overall markets but the drop in its share price was on relatively low volume…the stock closed Friday at 6.5 cents, down 1.5 cents for the week…the company is very close to finalizing a $750,000 private placement at a nickel…the stock has strong support at 6 cents and we’re expecting big things out of Sidon which has an option to purchase an 80% interest in the high grade Morogoro East Gold Property in Tanzania…
Richfield Ventures (RVC, TSX-V)
Investors’ reaction to Richfield’s news on Thursday was peculiar to say the least but understandable in the context of the extreme market volatility that day…Richfield announced it had deepened Hole BW-59 by an additional 36 metres…BW-59 graded 1.25 g/t Au over 361 metres…over 455 metres, the grade is 1.03 g/t Au and 4.3 g/t Ag…that’s an incredible hole by any standards, yet the stock sold off from $1.94 to $1.57 (near its 100-day SMA) intra-day…some common sense returned Friday as RVC finished the week at $1.78, down 23 cents for the week…Richfield’s 25,000 metre drill program continues and with Gold moving higher and more good results expected from Blackwater, there’s no reason this stock can’t go much higher…we view any weakness in Richfield as an attractive buying opportunity…
North Arrow Minerals (NAR, TSX-V)
North Arrow enjoyed its highest volume day ever last Monday when it touched 26 cents…the stock pulled back on the CDNX reversal and closed the week at 21 cents, a 3.5 cent drop…this is a great company to get positioned in now – especially on any additional overall market weakness – as there’s an excellent chance North Arrow’s attractive package of properties (diamond, lithium, base metals and gold) will deliver a significant discovery…North Arrow is led by mining legend Gren Thomas who co-founded the rich Diavik diamond deposit in the Northwest Territories in the early 1990’s…North Arrow holds 100,000 highly prospective acres at Lac de Gras where another mining icon, Dr. Chris Jennings, has identified 70 high priority kimberlite targets with his proprietary technology…North Arrow is also currently conducting a follow-up drill program at its Beaverdam Lithium Property in North Carolina where Phase 1 results were very encouraging…
Colombian Mines (CMJ, TSX-V)
Like Seafield, CMJ has become heavily oversold as investors appear to have lost some of their enthusiasm for Colombian exploration plays after problems encountered by Ventana and Greystar…generally, we believe Colombia is still very attractive for gold exploration but the system is slow down there with a degree of uncertainty and risk…it never ceases to amaze us how governments can mess things up…CMJ holds a large and very attractive package of properties and understands the Colombian system well…they’re getting good results out of their Yarumalito Property but the market has shown waning interest lately…we see no reason to sell CMJ which closed Friday at 90 cents, a 24-cent drop for the week…the likely worst case scenario for this stock is that it falls to 70 cents, its 200-day moving average…
Greencastle Resources (VGN, TSX-V)
Not much to report on Greencastle other than the fact the stock dropped another 1.5 cents this week to 12.5 cents…for long-term investors, Greencastle is a safe and very attractive buy at its current price but predicting when this stock is going to make a major move is virtually impossible…in the event of any major market upheavel, a 10-cent “stink” bid is a smart move with Greencastle which is sitting on approximately 11 cents per share in cash right now…