The BMR Portfolio
Gold Bullion Development (GBB, TSX-V)
Gold Bullion closed Friday exactly at its rising 50-day moving average (54 cents) and is sitting comfortably in a strong zone of technical support…it was down 4 cents on the week, somewhat surprising considering the news of July 29, but Gold Bullion bulls hold the upper hand with initial drill results imminent from the LONG Bars Zone eastern extension where GENIVAR has likely hit some “sweet spots”…the visuals on all these holes drilled east of the Preliminary Block Model (27 as of July 28) have been very encouraging as detailed in Gold Bullion’s latest news release…given the geological information we have on that area through various historical and technical reports, we’re convinced there’s a high probability GBB will deliver some spectacular results from this growing zone which has been drilled over an area nearly 400 metres north-south and nearly 400 metres east-west…all of this is outside the 2.4 to 2.6 million ounce Preliminary Block Model (potential non-compliant resource) where infill drilling continues…August, we believe, will prove to be Gold Bullion’s most exciting and important month yet as we expect initial results from the eastern extension will clearly demonstrate the multi-million ounce possibilities of the LONG Bars Zone and the Granada Gold Property as a whole…this is why we’re heading back to Granada very shortly…Gold Bullion is up an incredible 671% since we first introduced this company to BMR readers and anyone who would listen last December…if the LONG Bars Zone is what we think it is, that move is just the opening act…Osisko 2.0 is coming together…
Sidon International Resources (SD, TSX-V)
Sidon has become another BMR “home run” and is up 200% since we first introduced it just over 4 months ago…Sidon’s Morogoro East Gold Property is in an under-explored and highly prospective area of eastern Tanzania approximately 100 kilometres south of Canaco’s (CAN, TSX-V) very promising Handeni Project…an update on Sidon’s exploration plans for Morogoro East can’t be far off…plenty of blue sky potential here and a stock that is highly liquid…Sidon was down a penny on the week at 15 cents…we believe it’s only a matter of time before it breaks through a zone of resistance between 15 and 18 cents…its recently overbought condition is unwinding…
Richfield Ventures (RVC, TSX-V)
Richfield has been a very strong performer lately and was up another 22 cents this week to $1.73…the stock has essentially doubled since its late June low of 87 cents…RVC has been up 9 of the past 11 sessions and has not had a “down day” since July 21…clearly, Richfield is technically overbought at the moment but it does have a tendency to reach extreme overbought conditions before reacting…further upside potential therefore exists as a new trading week begins but we advise against chasing this stock at the moment…a wiser strategy would be to wait for a pullback that could test the 100-day moving average around $1.50…we are very bullish on the prospects for Richfield’s Blackwater Project in central British Columbia, so we do see exciting developments in store for this company over the balance of the year as its 25,000 metre drill program continues…
Seafield Resources (SFF, TSX-V)
Seafield has firmed up slightly and volume is starting to increase as initial drill results from Miraflores draw closer…they will likely be out sometime this month…Seafield closed Friday at 18 cents, its highest weekly close since late June…the stock’s 50-day moving average, which has been in decline since early May, has now flattened out at 17.5 cents…investors need to be patient with this one…Seafield could deliver some huge returns before the year is out, but investors will need to wait until conditions on the ground really start to come together and that means more drilling and good results at the Quinchia Project in Columbia…we expect this story will really heat up during the 4th quarter (October through December)…
North Arrow Minerals (NAR, TSX-V)
North Arrow was up 2.5 cents this past week to 19 cents…the company made a couple of announcements…they essentially doubled the size of a private placement financing due to heavy interest ($360,000 to $712,000) and also nailed down a gold property in north-Central Yukon, 70 kilometres west of ATAC Resources’ (ATC, TSX-V) newly discovered Rau (Tiger) Zone…North Arrow’s flagship diamond property at Lac de Gras is the major focus of investor interest and attention at the moment…the company is waiting for a drill permit for Lac de Gras which they hope to receive later this month…upon receipt of that approval, North Arrow will start a 1,500 metre drill program to rest around a dozen or so high priority kimberlite tagets laid out by Chris Jennings…
Colombian Mines (CMJ, TSX-V)
Colombian is showing great support at 60 cents, right around its rising 300-day moving average…the stock closed the week at 64 cents, down a couple of pennies, on light volume…CMJ has been getting encouraging results from its Yarumalito Gold Property and has an impressive portfolio of gold, gold-copper and polymetallic projects in Colombia covering more than 150,000 hectares…the company’s entry into Colombia was early and timely which allowed it to secure such a high quality land package…the stock is down considerably off its high of the year ($1.62) but we see a good chance for a significant discovery at Yarumalito or elsewhere at one or more of CMJ’s properties in Colombia…
Kent Exploration (KEX, TSX-V)
Kent was quiet again this past week and fell half a cent on low volume to 11.5 cents…there have been 2 positive developments recently with Kent…the company completed a $1 million financing (unfortunately however at 10 cents) and has also announced the start of mining operations at Flagstaff where it has a substantial high grade barite deposit…in New Zealand, Kent is still waiting for approval to drill its promising Alexander River Gold Project (this approval process has dragged on far too long for our liking) and we’re not certain what the next step is with regard to the Gnaweeda Gold Project in Australia…the proposed spin-off of Gnaweeda into Archean Star Resources last spring was of course derailed by the Labour Government’s proposed new mining tax which has since been watered down…technically, the stock faces a lot of overhead resistance and we don’t see where the “sizzle” is going to come from to move this forward in a big way anytime soon…
Greencastle Resources (VGN, TSX-V)
Greencastle was unchanged on the week at 12.5 cents, so the stock continues to trade at cash value where it has always proven to be a great long-term buy…we don’t anticipate any near-term developments with Greencastle…this is one of those “buy and hold” situations that could take 6 months or more to pan out…