The BMR Portfolio (1st of 2 parts)
Gold Bullion Development (GBB, TSX-V)
Gold Bullion recorded its 3rd straight weekly advance, gaining 3 more pennies to close at 66 cents on CDNX volume of 3.8 million shares (there was also significant GBB volume through the ALPHA market)…bears tried but failed to drive GBB below important and strong support at 60 cents last Monday and Tuesday, and an intra-day reversal Tuesday sent the stock as high as 66 cents…on Wednesday GBB touched 69 cents where there is stiff resistance (right around the $100 million market cap area)…GBB’s chart is a picture of beauty, however, which is why we believe there is a much greater probability of a powerful move through resistance than a collapse below support…GBB’s chart shows a slow but steady progression since the late June/early July 40% correction…all of GBB’s moving averages are once again in bullish alignment with the RSI and Stochastics at reasonable levels…the Chaikin Money Flow (CMF) indicator shows buying pressure has steadily increased throughout the month…all in all, the technical evidence suggests that Gold Bullion is in the midst of a new up-leg…fundamentally, the latest drill results demonstrate that the LONG Bars Zone is widening…this is important for the geometry of the deposit…it’s our theory that the mineralization GENIVAR is discovering in the northern portion of the Eastern Extension actually begins to the west above the Preliminary Block Model…the drill rig, the “truth machine”, will confirm in due course if that is indeed the case…at this point there’s no question there’s strong new potential for the LONG Bars Zone going north, and Hole #86 (1 gram over 84.6 metres near-surface) shows there is also new potential going south…to the east, of course, it’s all “blue sky” as Gold Bullion has several kilometres of highly prospective strike length still to explore (LONG Bars Zone 2 is nearly 2 kilometres east of Phase 1 discovery hole #17)…BMR has been pounding the table on GBB since December of last year when the stock was sitting at just 7 cents, so it’s nice to see respected writers such as Jay Taylor begin to take an interest in the story…we truly believe these are still the very “early days” for Gold Bullion and Granada with much more excitement to come…BMR followers who listened to our interview with Everton Resources (EVR, TSX-V) President and CEO Andre Audet over the weekend may have picked up on his comment near the end of the interview that Granada is “the making of an area play”…Audet knows the Cadillac Trend very well and we think he made that statement because he genuinely believes it, not just because he happens to be a large shareholder in Adventure Gold (AGE, TSX-V)…
Adventure Gold (AGE, TSX-V)
We first mentioned Adventure Gold to our readers in an article September 29 when the stock was trading in the low 20′s and just a couple of days after the company announced it had acquired land at Granada…we officially added AGE to the BMR Portfolio at 34 cents October 28…our interest in Adventure Gold goes far beyond the company’s involvement at Granada, as exciting as that is…Adventure Gold has been around only since late 2007 and we are impressed by the company’s strong portfolio of properties (19 in 6 strategic areas in Quebec and Ontario) including its recently announced partnership with Agnico-Eagle (AEM, TSX) at Dubuisson…it also has a partnership with Lake Shore Gold (LSG, TSX) on the Meunier 144 Property where deep drilling is currently testing the down plunge extension of Gold zones located at the Timmins and Thunder Creek deposits…Lake Shore provided an update on this project last week…the current initial deep drill hole onto the Meunier JV property is continuing and when completed is estimated to provide a deep cut on the projected target area at about a vertical depth of 2,600 metres…this will enable shallower wedge cuts to be considered if significant mineralization is found to be present in this area…the initial deep hole was collared on LSG’s Timmins mine property last August and is now about 1,700 metres in depth….this hole is targeting potential zones down plunge and on strike to mineralization at LSG’s 100% owned Timmins Mine Gold deposit where LSG has recently announced intercepts of up to 13.55 g/t Au over 50.8 metres and 61.35 g/t Au over 15 metres…the Timmins deposit straddles a volcanic/sedimentary/ultramafic contact zone within a folded sequence that plunges 54 degrees to the west-northwest toward the Adventure Gold Meunier JV property…AGE was up 2.5 cents for the week to close at 45.5 cents…it has a powerful chart with rock-solid support in the low 40’s…
Currie Rose Resources (CUI, TSX-V)
It was an incredible week for Currie Rose which gained 15 cents or 67% to close at 37.5 cents on volume of nearly 12 million shares on the CDNX…we first mentioned CUI to our readers over 2 months ago when it was sitting at a dime…the kind of volume we witnessed last week and the powerful move through resistance in the low 30’s are extremely bullish indicators…technically, the stock now has a new support area (low 30’s), the 2008 high…what’s driving this interest in Currie Rose, we believe, is a growing appreciation of the company’s potential in Tanzania where it is focusing on 2 major projects (Mabale Hills and Sekenke), approximately 200 kilometres apart, in the prolific Lake Victoria Greenstone Belt…with the Sisu River Gold Property, which is part of the Mabale Hills Project, investors are looking for a possible repeat of Currie Rose’s early success in 2005 just 8 kilometres to the southwest at Mwamazengo…14 holes totaling nearly 1,500 metres were completed through mid-November at Sisu River and initial assay results are pending…Currie Rose is using a lab in the local area, a short distance from Mabale Hills, and they’ve been able to get assay results very quickly in the past…drilling at Sisu River started just over a month ago and the company also reported that “good source rocks have been intersected beneath the ‘mbuga’ clays…we can’t help but think a discovery could be in the making here, perhaps similar to what occurred at Mwamazengo in 2005…the drill program at Sisu River is focusing on an area that has returned excellent sampling results and where artisanal miners made a discovery in the fall of last year…the quartz porphyry target at Sisu River is hosted within felsic volcanic rocks, generally considered to be favorable hosts for Gold in greenstone belts around the world…in mid-November Currie Rose also gave more details on its Sekenke Gold Project which is 200 kilometres southeast of Mabale Hills…we are extremely bullish on this major land package as it runs in between and surrounds 2 former producing high grade mines…the company has already identified a large structure (12 km by 800 metres) within a shear zone on the margins of a large granite intrusion that hosts numerous vertical quartz reefs of the same type that developed at the nearby former mines…Currie Rose is ready to initiate significant pre-drilling work (high resolution satellite imagery, geophysics, etc.) at Sekenke in order to prioritize drill targets for the spring…
Richfield Ventures (RVC, TSX-V)
It was an incredible week as well for Richfield which surged 57% to as high as $5.10 before closing the week up a whopping $1.75 at $4.99…RVC is now up 315% since we introduced it to BMR readers nearly a year ago at $1.20…we believe the company’s objective is to ultimately find a buyer for its potential multi-million Gold deposit at Blackwater in central British Columbia…if good drill results continue, we’re confident that objective will be met and the takeover price could be significantly higher than the company’s current market cap of $180 million…Richfield announced very positive metallurgical results last week and more outstanding drill results including 171 metres (from 8 to 179 metres) grading 3.13 g/t Au in BW-91…this hole was collared 50 metres south of BW-87 which cut 115 metres grading 2.59 g/t Au and demonstrates the southward continuity of strong near-surface mineralization between the 2 holes and the potential for a further extension to the south…the deposit is also expanding to the east as BW-90 intersected 148 metres grading 1.77 g/t Au…all in all, this is shaping up to be a major deposit which also has silver and copper values…it looks like it’ll be a cold and snowy winter in British Columbia, but Richfield has a fully winterized camp and should be able to drill with at least 2 rigs without any interruptions throughout the winter…
Greencastle Resources (VGN, TSX-V)
Strength in Richfield spilled over into Greencastle last week as VGN acquired property recently in the area near the Blackwater deposit…Greencastle was up 5 cents or 21% for the week, closing at 29 cents Friday…technically, VGN is strongly underpinned by a rising 20-day SMA just above 24 cents…the company’s latest financials came out Friday and show cash on hand (as of September 30) of $5 million and working capital of nearly $6 million or 13 cents per share…in clockwork-like fashion, Greencastle has experienced 3 powerful moves (very sharp spikes) over the last 7 years (late 2003, early 2006 and mid-2008)…2006 was more intense than 2003, and 2008 was stronger than 2006…we’re certain that a very powerful fourth move is now underway, driven by Greencastle’s recent shift in corporate strategy to get much more active in the Gold exploration space…volume has picked up dramatically in VGN since late October, which is what one would expect in the early stages of a major move…Greencastle has regular monthly oil royalty revenue in excess of $100,000 and 2 very promising Gold properties in Nevada to go along with its new acquisition near Richfield’s Blackwater Project…VGN has a current market cap of only $13 million and is already up 107% since we added it to the BMR Portfolio just over a month ago…
