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Gold Bullion Development (GBB, TSX-V)

Gold Bullion posted a weekly gain for the first time since early February as the stock closed Friday at 46 cents, an increase of a nickel over the previous Friday…on another positive note, the 10-day moving average (SMA) has reversed to the upside…however, the 20-day (currently 46 cents) continues to decline while a more troubling issue is that the 200-day, after rising for more than a year-and-a-half, has now started to fall and that’s going to intensify the overhead resistance and possibly create some downward pressure on the stock…the company added board strength last week as Ronald Goguen Sr., the founding shareholder of Landdrill International Inc.’s predecessor company and Atlantic Canada’s Entrepreneur-of-the-Year in 1995, became a GBB director…Gold Bullion also announced it remains focused on generating a 43-101 resource calculation for the LONG Bars Zone by early summer and that “more detailed press releases will be issued on each property (Granada and Castle) shortly”…as our recent article demonstrated, results from over 80 drill holes clearly demonstrate that the LONG Bars Zone continues to have multi-million ounce potential…mineralization remains open in every direction with six kilometres of untested strike length going east…continuity between the Preliminary Block Model and the Eastern Extension has been established in our view, though much more drilling in the Eastern Extension is still required…at 46 cents, Gold Bullion’s market cap is only $73 million…this seems cheap given the 2.4 to 2.6 million ounce potential of just the Preliminary Block Model area as outlined by GBB nearly a year ago…the 43-101 will help…while we’re disappointed GBB isn’t in a stronger cash position and that there are still just two drill rigs at Granada nearly a year after the Phase 2 program started, the fact remains that Gold Bullion is sitting on a potentially huge near-surface Gold deposit in one of the best jurisdictions in the world for mining and exploration and during the greatest bull market in history for the yellow metal…

Cadillac Mining (CQX, TSX-V)

Cadillac fell for the third week in a row, closing Friday at 19 cents for a loss of a penny-and-a-half for the week…the opportunity with Cadillac is immense in our view given the company’s strategic land package in northwestern Quebec, the astute acquisition of a former Gold-Silver mining camp in Utah, and the tight share structure…the current market cap is only $4.85 million which allows for plenty of upside potential…management’s challenge is to “seize the moment” and capitalize on the excellent opportunities the company clearly has in order to drive shareholder value…technically, while the chart has suffered some short-term deterioration recently, the stock is strongly supported by a rising 200-day SMA at 15 cents…Richmont’s (RIC, TSX) success at its Wasamac Property west of Rouyn-Noranda is very bullish for Cadillac which is now preparing an exploration program including diamond drilling for its adjacent 100%-owned “Wasa” claims…Richmont has started a new 35,000 metre drill program of its own to upgrade and further expand resources at the growing Wasamac deposit where the principal structure hosting Gold mineralization plunges north at a dip between 50 and 55 degrees toward Cadillac’s claims…while there’s no guarantee, of course, there’s certainly the possibility that Cadillac’s Wasa claims at depth could host a significant high-grade extension of Richmont’s deposit…this is what Cadillac will be examining…in addition they’ll be going after some highly prospective VMS targets on the property…the infamous Horne Creek fault runs right through the Wasa claims and Cadillac discovered a zone last year (by deepening the only hole they’ve ever drilled on the property) that’s interpreted to be a feeder system typical of those seen under VMS systems in the Noranda camp…Cadillac’s Wasa clams have excellent potential and we’re pleased to see they intend on proceeding with a drill program…actions speak louder than words, however, and investors want to see some positive developments as quickly as possible…other CQX ground along the Cadillac Trend is about to be drilled…Visible Gold is expected to start a 9,000 metre drill program by the end of the coming week as part of the agreement they worked out with Cadillac in December on over 7,000 hectares of land in the Rouyn-Noranda region…the first four holes of that program will be drilled on ground adjacent to Vantex’s (VAX, TSX-V) Moriss Zone discovery at the Galloway Project west of Wasamac…we encourage readers to listen to our informative interview with Cadillac President and CEO Vic Erickson posted March 4…Part 2 of that interview is coming soon…

Abcourt Mines (ABI, TSX-V)

It was an interesting week for Abcourt…the stock appeared to be on the verge of breaking out Thursday when it got through resistance at 23 cents on an intra-day basis…it climbed to a new 52-week high of 25.5 cents on volume of over 4 million shares but then closed at 23 cents before dropping Friday on news the company has filed a preliminary short form prospectus to raise between $3.5 and $5.5 million at an undetermined price…this took the wind out of the sails of the stock which fell 3.5 cents Friday to close at 19.5 cents, a gain of 1.5 cents for the week…boosting its cash position will help Abcourt but this is a company that needs to tell its story more effectively in order to maximize shareholder value…Abcourt is sitting on some tremendous assets that simply aren’t being fully valued by the market…technically, all the moving averages are in bullish alignment and the stock has closed above its 100-day SMA, currently at 17 cents, since the first trading day of the year…the 50-day SMA at 19 cents provides support and there is also a very strong zone of technical support from 14.5 cents (the 200-day SMA) through to 17 cents…Abcourt released more positive assay results recently from its ongoing 10,000 metre drill program at its Elder-Tagami Gold Project near Rouyn-Noranda…mineralization continues to expand to the west of the former underground Elder Mine…the Tagami area to the north, meanwhile, has major potential so by later this year we’re expecting a substantial increase in resources at this project…the latest 43-101 resource estimate of 216,000 ounces was released in the summer of 2009…the possibility of Abcourt expanding that resource beyond 500,000 ounces certainly exists given the encouraging results to date…Abcourt released assay results February 15 from six more holes at its Abcourt-Barvue Silver-Zinc Property near Val d’Or, and results continue to be very encouraging…the holes were all drilled 150 to 200 metres from surface and five of them intersected two zones of high-grade silver and zinc…Hole #16 cut 152.26 g/t Ag over 12.7 metres…the heavy accumulation that began in Abcourt in December was no fluke in our view…this is a company with significant assets that could justify a substantially higher valuation…nearly 60 million shares of ABI changed hands on the CDNX in December and January – record volume for this stock, accompanied by a price jump from 14.5 cents…we’ve seen these type of volume surges before and they are always a very positive sign…Abcourt is being accumulated, and our best guess is that some savvy players like the assets in the ground…the 10,000 metre drill program at Abcourt-Barvue continues with the goal of upgrading and augmenting existing 43-101 reserves and resources…the company is also trying to justify an expansion of the proposed mill from 650,000 tonnes to one million tonnes…Abcourt-Barvue is a former producer and one of the best silver assets in the country with nearly 20 million ounces in all-category reserves and resources (plus nearly 300,000 tonnes of zinc)…continued drilling success and even higher prices for Gold, silver and zinc would be exciting developments for this stock which has a history of major moves…from mid-2005 to early 2006, Abcourt rocketed from 15 cents to nearly $1.40…

Currie Rose Resources (CUI, TSX-V)

Currie Rose was unchanged for the week at 15 cents…the stock is now trading between its 200-day SMA at 16.5 cents and its 300-day SMA at 12.5 cents…both long-term moving averages are rising which is a positive sign though the 100-day has recently started trending downward…the rainy season has not been as severe as usual in northwest Tanzania and that’s good news as Currie Rose prepares to launch a major drill program during the second quarter…one of the key technical events we’re looking for with CUI over the coming weeks is a reversal in the 50-day SMA which has been in sharp decline since January and is now starting to flatten out at 17.5 cents…significant accumulation started in Currie Rose during February as demonstrated by the CMF indicator…while its Tanzanian properties are the market’s major focus, Currie Rose could benefit over the coming weeks and months from continued good exploration news from Trueclaim Exploration (TRM, TSX-V) which is currently conducting an 8,000 metre drill program at the Scadding Gold Property near Sudbury…Trueclaim, which released assay results March 4 including 15.78 metres grading 5.36 g/t Au near-surface, is in the process of earning a 51% interest in Scadding by carrying out a $2 million work commitment…Trueclaim can acquire a full 100% interest by completing a feasibility study, paying $2 million to Currie Rose, and giving Currie Rose a 3% net smelter royalty…CUI announced a joint-venture deal January 25 with Australian-based Liontown Resources for Currie’s Jubilee Reef Gold Project in Tanzania…CUI’s focus is on the Sekenke and Mabale Hills Projects, so finding a partner for Jubilee Reef made sense…the deal commits Liontown to at least 5,000 metres of drilling at the property this year which will give Currie Rose a minimum of 23,000 metres of drilling at all of its properties in 2011…while Currie Rose has had its market cap shaved considerably, from a high of nearly $40 million to the current $13 million, what hasn’t changed is the quality of this company’s project portfolio which remains as high as it ever was in our view…Currie Rose has all the cash it needs ($2 million) to complete an initial major round of drilling (10,000 metres) this spring and summer in Tanzania, so there will not be any dilution of the stock at current levels as confirmed by President and CEO Harold Smith…

Richfield Ventures (RVC, TSX-V)

Richfield has been on fire recently (we suspect funds have been accumulating) and finally cooled off slightly last week, losing 16 cents to close Friday at $6.48…over the immediate term, technicals suggest the stock is likely to at least test its 20-day SMA and possibly even its 50-day SMA but any weakness should be viewed as an opportunity given the fact this company is developing such a world class deposit…Richfield released a 43-101 resource estimate for Blackwater on March 2…using a 0.4 g/t Au cut-off grade, the estimated global indicated resource is 1.83 million ounces of Gold (53.46 million tonnes grading 1.06 g/t Au) with an additional 2.34 million ounces in the inferred category (75.45 million tonnes grading 0.96 g/t Au) for a total of 4.17 million ounces…some 20 million ounces of silver are also in the indicated and inferred categories…initial metallurgical testwork has indicated an average of 92-per-cent Gold recovery using conventional whole ore direct cyanidation…the company has also contracted a series of consultants to prepare a Preliminary Economic Assessment (PEA), planned for completion in the fourth quarter of 2011…the study will consider the potential for a large-scale, open-pit mine and ore processing facility…with cash on hand of nearly $17 million, the company has ample reserves to complete a 30,000 metre drill program this year as well as the PEA…given the state of the Gold market and the likelihood of continued exploration success at Blackwater, Richfield’s current market cap of $281 million still gives it considerable upside potential for the balance of 2011… we were very pleased to see that Richfield got a well-deserved buy recommendation recently from GMP Securities which has initiated coverage on RVC with a 12-month target price of $11.10 per share…BMR introduced Richfield to its readers in December, 2009, when the stock was trading at only $1.20…the gain since then has been 440%…the primary trend remains up with Richfield and there’s every reason to expect more excellent drill results throughout 2011…we believe the company’s ultimate objective is to find a buyer who can put this deposit into production…if good drill results continue as we expect they will, we’re confident that objective will be met and the takeover price could be significantly higher than the current $6.48 per share…