The BMR Portfolio
Gold Bullion Development (GBB, TSX-V)
Gold Bullion is on the rebound and starting to look stronger technically after falling as low as 53 cents in the last half of September…the stock has successfully bounced off its rising 100-day moving average and will likely test its declining 20-day moving average at 60 cents this coming week…GBB continues to consolidate within a 4-month channel, currently trading at the lower end of that channel…a reversal in the 20-day SMA appears to be on the horizon sometime during the first half of this month and that would signal another potential significant move to the upside…this could coincide with the closing of the company’s $6 million financing at 54 cents…rumor has it the financing is fully spoken for and could be oversubscribed…we anticipate more drill results sometime this month and an announcement regarding the launching of a Phase 3 drill program that should be even larger than the Phase 2 program which was expanded to 25,000 metres and is nearing completion…the addition of 1 or 2 more drill rigs, preferably RC, would be a welcome development…the LONG Bars Zone is all about volume so the quicker and more that Gold Bullion drills, the better…
GoldQuest Mining Corporation (GQC, TSX-V)
GoldQuest became the 7th stock in the BMR Portfolio this past week as it was added at 19.5 cents Thursday…the stock closed the week at 21 cents for a gain of 3.5 cents on CDNX volume of 7 million shares…this is a company we’ve watched closely for quite some time and we first mentioned it at BMR September 24 when it was trading as low as 15 cents…at the beginning of last week it broke out of a 2-year consolidation phase on high volume – as the saying goes, the longer the base, the stronger the case…GoldQuest has been exploring in the Dominican Republic for nearly a decade and has several outstanding targets in 3 separate districts in that country…one of those properties is Las Tres Palmas which recently delivered some impressive drill results including 53 metres grading 3.02 g/t Au (LTP-41) and 26 metres grading 11.39 g/t Au (LTP-39)…assay results also included silver, copper and zinc credits in all holes…more drilling is planned for this quarter at GoldQuest’s Dominican Republic properties…in Spain, GoldQuest has a valuable asset in the Toral Project which has an historical non-compliant resource of 5.4 million tonnes grading 9% zinc, 6% lead, and 45 g/t Ag…this was based on over 40,000 metres of diamond drilling and it’s still open along strike and downdip…GoldQuest has commissioned Micon International to prepare a 43-101 resource calculation for Toral…GoldQuest has also secured a 2nd polymetallic project, also in northwest Spain with similar characteristics to Toral, and further details on this will be announced by the company after full title has been received from the Spanish authorities…GoldQuest had $2.4 cash as of June 30…it has 92 million shares outstanding and the next major area of resistance on its chart is around 50 cents…the stock has a history of quick and big moves…in early June, 2006, on drill results from Las Animas, GQC gapped up from just under 40 cents to $1.20…
Seafield Resources (SFF, TSX-V)
Seafield traded within a range of 21.5 cents and 27 cents last week and closed unchanged at 25 cents…Friday’s trading was interesting as the stock declined to a weekly low of 21.5 cents (testing its rising 200-day moving average ) and then quickly reversed to close at 25 cents…an exploration update is expected soon from the company’s Quinchia Project in Colombia where drilling started late last June at Miraflores…Seafield has 3 major properties at Quinchia – Miraflores, Dos Quebradas, and Chuscal…the company’s goal, which we believe is very achievable, is to develop at least 3 significant deposits at Quinchia (in in very close proximity) totaling 3 to 5 million ounces…the company controls an area of nearly 70 square kilometres in a region known for hosting major gold-copper deposits…
Richfield Ventures (RVC, TSX-V)
Drilling at Richfield’s Blackwater Project in central British Columbia continues to impress with long intersections of mineable grade…the company released results on 4 more holes this past week…highlights included 199 metres of 1.47 g/t Au and 8.6 g/t Ag in hole #75, and 152 metres grading 1.23 g/t Au and 8.2 g/t Ag in hole #78…Richfield has nearly $20 million cash in the bank after completing a $14.6 million financing last month at $1.95 (CDNX approval was received last week)…the company now has 36 million shares outstanding for a total market cap of $100 million based on Friday’s close of $2.80 (a 4-cent gain for the week)…we view Richfield as a potential takeover candidate with a possible multi-million ounce deposit at Blackwater…
Sidon International (SD, TSX-V)
Sidon has had a rough few weeks with the stock enjoying only 2 “up” days over the last 13 trading sessions…SD declined 2.5 cents this past week to close at 10.5 cents, just above its rising 100-day moving average…the stock has extremely strong technical support at 10 cents and is more oversold now than it has been at anytime since March when it traded as low as 3 cents…the company and the stock have come a long way since then but often in this kind of a situation there can be a sharp pullback which we have just recently witnessed…Sidon’s Morogoro East Property in Tanzania has major exploration upside and with its improved financial position (Sidon raised approximately $1.7 million last month) the company can now get to work on that property and make some things happen…
Colombian Mines Corporation (CMJ, TSX-V)
Colombian Mines closed Friday at 86 cents, a 6-cent loss for the week but a 42% increase since BMR added CMJ to its portfolio late last year (the stock got as high as $1.62 in March)…more drill results are expected soon from Colombian’s flagship Yarumalito Gold/Copper Property in the Marmato Mining District…broad zones of gold/copper mineralization have been intersected at Yarumalito this year including 141.4 metres grading 0.77 g/t Au in YAR-11…the company had just over $3 million in working capital at the end of July, so it’s well positioned to continue drilling Yarumalito through the end of the year as well as advance some other projects in its very large Colombian land package (over 150,000 hectares)…interest in Colombian plays is heating up again and we expect CMJ will be a very strong performer in the months ahead…
North Arrow Minerals (NAR, TSX-V)
North Arrow showed some signs of life this past week as volume improved and the stock got as high as 19 cents…we’ve been very patient with this company which has essentially drifted aimlessly since we introduced it to BMR readers last April…the biggest disappointment for us has been North Arrow’s inability to carry out a drill program this summer/early fall at its Lac de Gras diamond property in the Northwest Territories…the company recently received a drill permit but says it’s now too late in the year to drill at Lac de Gras and has rescheduled drilling there until next spring…the company has some other properties in its portfolio and President and CEO Gren Thomas has also been searching for new opportunities…there is great potential with North Arrow and at this point we’re hoping Thomas can pull a rabbit out of the hat in the very near future and take advantage of a strong market… we’re not giving up on NAR just yet…
