The BMR Portfolio
Gold Bullion Development (GBB, TSX-V)
Gold Bullion was the second most active stock on the CDNX Friday (right behind another BMR gem), gaining 3 cents on volume of 4.5 million shares to close the week at 58 cents…for the week, GBB was up 9 cents or a very respectable 19%…its 10 and 20-day moving averages, which were in decline for much of the month, have now swung positive which bodes well entering the month of August…all of GBB’s moving averages are now once again in bullish alignment…for those investors who may have been expecting a much more dramatic move in Gold Bullion today, following yesterday’s stellar exploration news from Granada, our advice is to keep focused on the “Big Picture” that’s clearly unfolding here and let this “play itself out”…day-to-day moves can sometimes be unpredictable for different reasons…a lot of dynamics can be at play in this type of situation and the market has to digest information…the bottom line, in our view, is that Gold Bullion is on track for a huge discovery at Granada…this is speculation on our part but there is a strong case for the LONG Bars Zone containing at least 5 or 6 million ounces…assay results from the east-northeast area, where significant zones of altered feldspar porphyry have been intersected in each and every hole as well as visible gold in many of those holes, will go a long way toward confirming that prediction of at least 5 or 6 million ounces…some of the core must look outstanding as GENIVAR has already confirmed that the geological structure of the LONG Bars Zone extends east of Phase 1 discovery hole GR-10-17, and Gold Bullion reaffirmed in yesterday’s release that mineralization at Granada remains open in all directions and appears broad-based and near-surface…analyzing previous news releases, the pace of drilling in the east-northeast has picked up by approximately 40% per day (from 100 metres per day to 140 metres per day) over the last two weeks which is another bullish sign indicating a sense of confidence and urgency on the part of GENIVAR…in otherwords, they keep hitting the right kind of structures…they are also drilling down to 350 metres vertical depth in some cases and they wouldn’t be doing that unless they were seeing the right stuff…this is an extremely compelling geological story and what has developed so far could very well be just the tip of the iceberg…there is still LONG Bars Zone 2 to explore, 1500 metres east of GR-10-78, plus much more prospective ground…the Preliminary Block Model with a potential non-compliant resource of 2.4 to 2.6 million ounces is looking very solid…stellar assay results were released yesterday on Holes 33 and 41 – the best assays so far from Granada…these holes were drilled in areas where only limited historical drilling has taken place…with a market cap of just $71 million and a possible multi-million ounce open-pit deposit on its hands, in the world’s best jurisdiction for mining and exploration, Gold Bullion’s upside potential is truly enormous…
Part 3 in our Week In Review And A Look Ahead will be posted by noon Pacific time tomorrow as we look at the other 7 companies in the BMR Portfolio including current high-fliers Sidon International (SD, TSX-V) and Richfield Ventures (RVC, TSX-V)…
