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The BMR Portfolio (2nd of 2 parts)

GoldQuest Mining (GQC, TSX-V)

GoldQuest, one of our favorites going into 2011, is looking very strong technically and fundamentally…GQC gained a nickel this past week to 31 cents on improved volume (813,000 shares traded Friday on the CDNX)…all moving averages are in bullish alignment and the rising 50-day SMA (now at 25 cents) has provided excellent support throughout the stock’s move which started in September at 12 cents…the possibility of an imminent breakout to a new 52-week high (above 32.5 cents) certainly exists…GoldQuest’s Gold properties in the Dominican Republic and its zinc-lead-silver deposit in Spain have us very bullish on this company going forward…GoldQuest, whose largest shareholder is Gold Fields Ltd., is well established in the DR and its property package there is a geologist’s (and an investor’s) dream…they have spent nearly a decade identifying many highly prospective targets, one of them being La Escandalosa (formerly Las Tres Palmas) where an inferred resource of 400,000 ounces of Gold has already been outlined (announced Nov. 16) based on just 25 drill holes at Escandalosa Sur from 2006 through 2010…La Escandalosa  is open both to the south and to the north toward another discovery of Gold mineralization by the company at Hondo Valle, approximately 1.2 kilometres away…GoldQuest now has all the permits in place for more drilling throughout La Escandalosa and a major program is set to begin…there is strong potential to substantially increase the initial inferred resource estimate for this intriguing deposit…Gold there occurs as a flat-lying stratiform zone at shallow depth with mineralization interpreted to be part of a larger intermediate sulphidation replacement-style system which has now been defined intermittently over a strike length of 2,100 metres…the source of the mineralizing fluids remains unknown at La Escandalosa, leaving open the possibility of the discovery of mineralization in structural feeder zones or perhaps in a porphyry copper-Gold type system…GoldQuest has many other targets of considerable merit throughout its large DR land package including Las Animas which has a 43-101 inferred resource of 129,000 ounces of Gold, 2.5 million ounces of silver, 106 million pounds of copper and 130 million pounds of zinc…in Spain, Goldquest holds the Toral zinc-lead-silver deposit which has an historical (non-43-101 compliant) resource of 5.4 million tonnes grading 9% zinc, 6% lead and 45 g/t Ag…a 43-101 on Toral is currently being prepared…GoldQuest has also acquired a second polymetallic project in the area (Lago, just a 20-minute drive from Toral), and more details are expected upon approval from the Spanish government of a mineral rights application for the property…BMR’s interview with Andre Audet of Everton Resources (EVR, TSX-V, another company in the DR), posted Friday evening, will give investors some valuable insight into mining and exploration in the Dominican Republic, a mining-friendly jurisdiction which hosts the largest Gold deposit in the Western Hemisphere…GoldQuest is up 59% since we added it to the BMR Portfolio 2 months ago…

Sidon International (SD, TSX-V)

Sidon was up a penny for the week, closing at 11.5 cents, and showed new signs of life with improved volume Thursday and Friday…Friday’s CDNX volume of 2.4 million shares was the highest since mid-October…technically, the stock has traded almost the entire month of November between its rising 100-day SMA (just above 11.5 cents) and its rising 200-day SMA at 8.5 cents…significantly, it appears the stock’s 50-day SMA could soon reverse to the upside after being in decline since late September…this is certainly something to watch out for…SD climbed above its declining 50-day Friday for the first time in nearly 2.5 months, another sign it could soon be ready to begin a fresh move to the upside…Sidon hasn’t released a lot of news on its Morogoro East Gold Property in Tanzania the last few months but the latest news (Nov. 15) confirmed that Sidon is advancing this interesting project very methodically…the company has a new web site it’s launching soon (likely by year-end) and it has also hired an investor relations person – 2 obvious signs that activity could soon ramp up…Sidon has some promising geological targets at Morogoro East and we believe this will be an interesting story to follow in the coming months…Sidon has increased 130% since we added it to the BMR Portfolio last spring…

Seafield Resources (SFF, TSX-V)

Seafield woke up out of its doldrums last week and closed Friday at 22.5 cents, a 4-cent gain from the previous Friday…newsletter writer Brien Lundin had some positive comments regarding Seafield which is developing its Quinchia Gold Project in Colombia, just a short distance (less than 10 kilometres) from Medoro’s (MRS, TSX) Marmato deposit which has a measured, indicated and inferred resource of 9.7 million ounces of Gold (Medoro is expected to come out with an updated resource estimate by year-end)…Seafield has been an under-performer this year (country manager Ian Park has not been nearly aggressive enough with the company’s exploration program) but we see a lot of fundamental value with its Quinchia properties, so we’re holding tight with Seafield…it would nice if Seafield gave investors an exploration update in the near future…Park put himself front and centre with investors last July with a conference call and has let down those investors since then…Seafield is ahead 275% since we made it the first stock in the BMR Portfolio in the summer of 2009…

Excel Gold Mining (EGM, TSX-V)

Nothing new to report with regard to Excel which declined half a penny this past week to 13.5 cents…EGM may take a little longer to really get going than we originally hoped but the good news is that drilling is underway at the company’s Montauban Mining Camp Project, 120 kilometres west of Quebec City…when the drills are turning, anything’s possible…we like Montauban a lot and if anybody can unlock the value of this project, it’s Frank Basa…Excel just recently named Basa as President…the Gold Bullion President and CEO has some cleaning up to do with Excel but he has certainly proven himself with Gold Bullion and we’re confident he’ll turn Excel into a major success though this won’t happen overnight…the company recently finalized a $763,000 flow-through financing to fund its current drill program…drill targets were selected based on information provided by the most extensive historical compilation of geological data (including over 900 drill holes) ever assembled on Montauban which is a former Gold, silver and base metals producer…Excel is down 2.5 cents since we added it to the BMR Portfolio early last month…

Colombian Mines (CMJ, TSX-V)

Colombian was up a penny for the week, closing at exactly its rising 50-day SMA of 83 cents…we see the potential for a near-term technical breakout with CMJ…since mid-September the stock has traded between its 100 and 200-day SMA’s…the 100-day has now started to reverse to the upside…a breakout will be confirmed if and when CMJ closes above 95 cents, an area that has provided stiff resistance…on Nov. 17 the company announced that recent channel sample results have extended high grade Gold-silver-copper mineralization over a much larger width than indicated by historic information at its 9,300-hectare El Dovio project in Colombia…all samples returned significant polymetallic mineralization…6 samples contained Gold in excess of 10 grams per tonne, with individual 2-meter channel samples assaying up to 25.55 grams per tonne Gold, 66.88 grams per tonne silver and 13.5 per cent copper…on October 13 the company reported assay results for 7 more holes at its Yarumalito Property with the best result being a 151 metre section in porphyry from YAR-24 grading 0.64 g/t Au…YAR-14 returned 95.5 metres of 0.70 g/t Au…Yarumalito continues to show promise but these are still early days and much more drilling is required…CMJ is one of the best positioned companies in Colombia with a history in that country and a large package of properties…the stock is up 40% since our introduction of it late last year (it was up as much as 170% at $1.62 in March)…