The BMR Portfolio:
Gold Bullion Development (GBB, TSX-V)
Gold Bullion enjoyed a strong day Friday and what we found particularly encouraging was Jordan Capital’s renewed foray into the market…Jordan, of course, was first on the scene with Gold Bullion late last year and was the force behind the financing at 7 cents that got the ball rolling with this company and allowed it to begin drilling Granada…Jordan has been a huge buyer of GBB all year and their activity in the Gold Bullion market is important to watch…in the opening hour of Friday’s trading, they purchased 196,500 of the 211,200 shares that traded (93%)…they finished the day with 439,500 shares on the buy side and sold nothing…also interesting to note with Gold Bullion is the second symmetrical triangle of the year that has formed on the charts – very similar to the one we saw in January and February prior to the March 1 breakout (check John’s updated TA on GBB August 19)…Gold Bullion closed the week at 53 cents, a drop of just 1 penny…there is obviously very strong technical support around current levels as investors wait for more news from Granada…
Sidon International (SD, TSX-V)
It was not a great week for Sidon as the stock fell 3 cents from the previous Friday, closing at 12.5 cents – its lowest close since July 28…for the first time since early July the stock is also trading below its still-rising 20-day moving average…the turning point for the week came Thursday when Sidon opened at 15 cents, up a penny, climbed another half penny to 15.5 cents, and then headed south on high volume to close the day at 13 cents, down 1 cent…the company issued a “news release” after the close of trading Wednesday which we felt contained some positive information pertaining to a “gold rush” around its Morogoro East Property in Tanzania, but the release seemed rather “amateurish” – so much so that BMR sent an email to Sidon President Kamal Alawas seeking clarification that this was indeed a legitimate Sidon news release…Kamal replied in the affirmative and also added he had received “over 65 emails and several phone calls and all but two (you are one of them) did not like the PR”…whether we liked the news release or not was actually quite irrelevant…the activity in the market on Thursday and Friday should have sent a strong message to Sidon that it needs to improve its messaging…on the positive side, Sidon has an exciting property in an under-explored region of a country that has dramatically increased its gold reserves over the last decade and where foreign investment is welcome…Canaco (CAN, TSX-V), getting great results from its Handeni Project approximately 100 kilometres north of Morogoro East, is clearly showing the potential for gold explorers in Tanzania, and (sadly) we’d much rather invest in that country than, say, Australia…
Seafield Resources (SFF, TSX-V)
Seafield finished up half a cent on the week to 16.5 cents…BMR’s technical analyst took a fresh look at Seafield in an article posted earlier today, so we suggest you check that out if you haven’t already…fundamentals will drive this company forward – specifically, if Seafield can grow ounces in the ground at its Quinchia Project in Colombia which we like a lot…drilling continues right now at Miraflores where Seafield has a 43-101 inferred resource of nearly 800,000 ounces…the drill program is aimed at increasing that resource to a million ounces…initial assay results are expected sometime next month…drilling should also start soon at Dos Quebradas which has an in-house non-compliant resource of 800,000 ounces…Chuscal completes the “triple play” in this game – it’s a highly prospective property – but drilling may not commence there until next year…it makes sense to us that Seafield has a good chance of at least doubling its current market cap of $15.5 million by year-end if it can show it’s on track to increase its compliant inferred resource at Quinchia from 800,000 to 2 million ounces…ultimately, as Seafield itself has claimed, this is a project that has the potential of proving up 3 to 5 million ounces…
Richfield Ventures (RVC, TSX-V)
Another low grade, high-tonnage gold prospect we like very much is Richfield’s Blackwater Project in central British Columbia…Blackwater also has silver and copper values as well…we see that respected newsletter writer Jay Taylor has finally discovered this company (about 8 months after we did) and issued a Richfield buy recommendation August 16 at $1.46…Richfield closed up a dime on the week at $1.65 and reported 2 developments…it has finally added a second drill rig at Blackwater, which will provide a much-needed boost to exploration speed, and the company also expects to release additional assay results (5 more holes) by the first week of September at the latest…Blackwater has multi-million ounce potential and the next few months should prove interesting with Richfield…the company is in the midst of a 25,000 metre drill program and is set-up to drill the property year-round…
North Arrow Minerals (NAR, TSX-V)
North Arrow had a quiet week as investors wait for news regarding the company’s Lac de Gras drill permit…a decision on that is expected by the end of the month…upon approval, drilling is expected to begin almost immediately…North Arrow has several interesting projects in its portfolio but the Lac de Gras diamond play is the most exciting and also holds the greatest potential…NAR closed the week down a penny at 19 cents on very low volume…
Colombian Mines Corporation (CMJ, TSX-V)
Like Seafield, Colombian seems to have found bottom just slightly below its rising 300-day moving average…CMJ fell 3 pennies this past week to 63 cents but continues to trade in an area of very strong technical support…patience is again the key here…the company has an excellent portfolio of exploration properties in Colombia – topping that list is Yarumalito where drilling continues…with a market cap of only $14.5 million, almost identical to Seafield’s, there appears to be more upside potential than downside risk with CMJ at current levels…well-managed, CMJ is also in a good cash position and knows how to maneuvre in Colombia which is critical…
“Watch List”:
Excel Gold Mining (EGM, TSX-V) had a strong week, finishing up half a penny to 16.5 cents on total weekly CDNX volume of 6 million shares…during the week the stock also hit a new 52-week high of 18 cents…Excel is developing its Montauban Mining Camp Project approximately 120 kilometres west of Quebec City…this project includes the former producing Montauban Mine which features near-surface gold, silver, zinc and copper mineralization…we believe there’s an exciting geological story in the works here and we’ll be visiting Montauban in the near future during our upcoming trip to Quebec…Excel is taking a fresh approach to Montauban…other successful companies in Quebec, the most notable of course being Osisko (OSK, TSX), have demonstrated the best place to find a new mine is near an old mine…we like the potential of Excel – its chart is also phenomenal – and we look forward to further due diligence on this company…
