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Gold Bullion Development (GBB, TSX-V)

Gold Bullion released fresh drill results from Granada last week which were consistent with previous numbers but the stock remained under pressure in this current overall weak market…GBB was off 2.5 cents for the week, closing Friday at its 500-day moving average (SMA) of 36.5 cents…hole #173 was the star of Thursday’s batch of 25 holes…it provided additional evidence that the north and northeastern parts of the Eastern Extension are highly intriguing…#173 cut 80 metres grading 1.36 g/t Au within a total intersection of 363 metres of 0.35 g/t Au…a 1-metre section of high-grade (89.83 g/t Au) was hit near the bottom of the hole below 300 metres…#173 was collared approximately 115 metres northeast of #55 and 100 metres east-northeast of #108, two stellar holes released last fall…this is critical – assays are still pending on 9 holes (165, 168, 178, 183, 241, 243, 246, 254, and 257) north of #55 drilled over an east-west distance of about 250 metres and a north-south distance of 200 metres…results from those nine holes will go a long way toward confirming just how prospective these parts of the Eastern Extension are…#241 is the most northerly of those holes…meanwhile, hole #200 in the southeast portion of the Eastern Extension (northeast of discovery hole #86) returned an impressive interval of 48.50 metres grading 1.68 g/t Au within a total intersection of 210.5 metres of 0.44 g/t Au…results from the second most northerly hole drilled north of the Preliminary Block Model suggest more drilling is definitely required in that area…hole #31 hit a modest 18.5 meters grading 0.64 g/t Au close to surface (36 to 54.15 metres) and another 28 metres grading 0.59 g/t Au between a depth of 125 to 153 metres…where’s there’s smoke, there’s fire, and our theory is that there could be a significant trail of mineralization running north of the Preliminary Block Model and connecting with what has been discovered over the northern part of the Eastern Extension…six more holes (213, 214, 215, 217, 221 and 224 and 224) from the southwest portion of the Preliminary Block Model returned mixed results – we were hoping to see a couple of exciting holes from that area but that hasn’t materialized yet…overall, Gold Bullion continues to hit long intersections of lower grade mineralization over a wide area at Granada…this is a massive project with much more drilling required but the multi-million ounce model that Frank Basa has in mind remains intact…the 43-101 resource estimate, expected sometime over the summer, should give this play more focus and a big lift…drilling is also underway now in LONG Bars Zone 2 near the old Aukeko Property (2 kilometres east of Phase 1 discovery hole #17) and if Gold Bullion is able to connect these two zones, look out…GENIVAR’s Nicole Rioux, the head geologist for Granada, is genuinely excited about the Aukeko area and she is normally quite conservative in sizing things up…a couple of excellent results from this area could really ignite this play and based on all the historical information we have reviewed from “LONG Bars Zone 2”, the chances of a “hit” in this area have to be considered very good…

Cadillac Mining (CQX, TSX-V)

We have little to add regarding Cadillac today other than the fact new results released by Richmont Mines (RIC, TSX) last week for its Wasamac deposit add further value to the “Wasamac play”…unfortunately, to our utter astonishment and frustration, up to this point in time Cadillac has completely dropped the ball on this incredible opportunity…in this business, one must “seize the moment” – Cadillac was handed a great “moment” and so far it has failed to capitalize on that opportunity and execute a strategy…Richmont has been one of the best performing Gold stocks on the entire TSX this year and Wasamac is a big reason why…the principal structure hosting Gold mineralization at Wasamac plunges north onto seven strategic claims held 100% by Cadillac…it’s possible the company could be holding out for a terrific deal on these claims and we hope that’s the case as that’s the only justification management has for not pushing forward aggressively by now on exploration there…by so far not seizing the opportunity at Wasamac (including doing a much-needed financing at significantly higher prices), Cadillac is also seriously undermining investors’ confidence that it has the ability to make a success out of the Utah Gold-Silver project it put together in January and that’s very unfortunate…so they are in effect potentially jeopardizing two excellent projects…the stock’s 100-day SMA is now in a sharp decline…the rising 500-day moving average (SMA) at 9 cents represents the next major support area…on April 29 the company updated drilling progress by partner Visible Gold Mines (VGD, TSX-V) on the Cadillac Break Project that was optioned to VGD last December…two holes have been completed on the Kanasuta claims within 800 metres of Vantex Resources‘ (VAX, TSX-V) Moriss Zone discovery at its Galloway Project in Dassarat township, approximately 30 kilometres west of Rouyn-Noranda…Visible Gold is expected to drill two more holes before moving that rig eastward to ground within 2,800 metres of Richmont’s growing Wasamac deposit…no mention was made in the Cadillac news release of its claims that are tied on to Wasamac…at the end of February the company announced it was “getting ready” for an exploration program at its Wasa claims and that it expected to announce details of its exploration program in the “near future”…in our view, Cadillac would be far better off optioning those claims as well to Visible Gold which is in a much better position in every way to aggressively tackle the great potential of that property…Wasamac helped propel Richmont’s share price to an all-time high of nearly $10… Cadillac’s current market cap of only $3 million allows for plenty of upside if management can deliver…

Abcourt Mines (ABI, TSX-V)

Abcourt closed down another penny last week to close at 12 cents…the stock, which now has 149 million shares outstanding for a market cap of $18 million, has had only one “up” day over the last 12 sessions…the decline has coincided with the closing of a financing (35 million units at 18 cents), a sharp drop in Silver, and overall CDNX weakness…technical support exists at 11 cents…a declining 50-day moving average (SMA) has been putting some pressure on the stock which still has rising 100, 200 and 300-day SMA’s above the current share price…the 100-day, however, is in imminent danger of reversing to the downside after advancing for more than eight months…ABI released more drill results April 26 from its Abcourt-Barvue Silver-Zinc Property near Val d’Or…the results from five additional holes suggest growing open pit reserves and resources…two zones continue to produce significant grades including 9.1 metres of 171.73 g/t Ag and 3.48% Zn in hole #20 (zone 1) and 7.3 metres grading 196.32 g/t Ag and 3.73% Zn in hole #19 (zone 1)…the 10,000 metre drill program continues…the last set of results from the company’s Elder-Tagami Gold Property near Rouyn-Noranda came out March 3…mineralization continues to expand to the west of the former underground Elder Mine which is now being dewatered as announced by the company last week…the Tagami area to the north, meanwhile, has untapped potential including some higher grades…the latest NI-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 (look what Richmont has done at Wasamac)…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 has been under significant accumulation and our best guess is that some savvy players like the assets in the ground…continued drilling success and 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)

We still view Currie Rose as one of our best near-term opportunities given its bullish chart patterns and the pending start of a major drill program at its properties in Tanzania…the stock bucked the overall trend and was up a penny last week at 17 cents…the 50-day moving average (SMA) has flattened out and what we’re looking for is a reversal to the upside in the very near future which would be another bullish development in addition to the just completed “cup with handle” formation…we are particularly excited about Currie Rose’s Sekenke Project in northwest Tanzania which we regard as the company’s #1 play as it holds major blue sky potential…Sekenke covers a lot of promising ground and runs in between and surrounds two former high grade Gold mines including Tanzania’s original producer…as often is the case, chances are that much was overlooked at and around the former mines which were in operation during the first half of the 20th century…Sekenke will likely be the first target of CUI’s upcoming drill program…while its Tanzanian properties are the market’s major focus, Currie Rose could also 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 continues to release encouraging assay results, has earned a 51% interest in Scadding and 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 late last year to the current $15 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, moving of course in step with New Gold Inc. (NGD, TSX), was off another 34 cents last week to close at $8.26, almost exactly at its rising 50-day moving average (SMA) which has provided  consistent support throughout RVC’s incredible bull run since last summer…last Tuesday, Richfield announced more positive drill results from its Blackwater Project in central British Columbia including 378 metres grading 1.09 g/t Au over the northern section which Silver Quest Resources (SQI, TSX-V) holds a 25% interest in…of course at the beginning of April, Richfield announced a plan of arrangement with New Gold for a takeover of Richfield (in NGD stock) valued at that point at $10.38 per RVC share or $550 million…the drop in New Gold’s share price has partly been due to a knee-jerk reaction to some potential share dilution without investors properly considering the enormous possible benefits down the road to this company if it were to add Blackwater as a producer…we had been speculating on a potential buyout of Richfield for some time…the proposed deal is certainly a very positive fit for New Gold whose New Afton Project in the interior of British Columbia, not far from Blackwater, is on target to start production by the middle of next year…New Gold sees some obvious synergies between the two deposits…Richfield recently outlined approximately 4 million ounces of Gold in the indicated and inferred categories at Blackwater in a NI-43-101 resource estimate released March 2…the New Gold deal is expected to close next month (no competing offers for Richfield have yet been made)…New Gold recently released its first quarter results which showed continued solid growth, lower costs and earnings of six cents per share…the company expects to double its cash flow when production begins at New Afton next year…Richfield is up 588% since we introduced it to BMR readers in December, 2009, at $1.20…the Blackwater Gold District is still full of opportunity for investors and we encourage readers to check out the web site, www.BlackwaterGoldDistrict.com…