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The BMR Portfolio (Part 2 of 2)

GoldQuest Mining (GQC, TSX-V)

GoldQuest was up 4 cents this past week, closing Friday at 38 cents, and hit a new 52-week high Thursday of 42.5 cents…with strong precious and base metal exposure, along with major new discovery potential, GQC is one of our top picks for 2011… the company is currently preparing to launch a drill program in the Dominican Republic and build on its recently released 43-101 inferred resource for its La Escandalosa Project (formerly Las Tres Palmas)…technically the stock is extremely well supported in the 30’s where accumulation makes a lot of sense right now…we expect once 2011 arrives, GQC could be in full flight…the next major technical resistance is at 50 cents…all of GoldQuest’s properties in the Dominican Republic and its zinc-lead-silver deposit in Spain have us very bullish on this situation going forward…the company, 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 precious and base metal targets, one of them being La Escandalosa 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…it’s important to stress the 43-101 was completed on La Escandalosa  at a very early stage and the possibility of a discovery well in excess of a million ounces is possible as this is such an attractive geological target…the deposit is open at depth as well as to both the south and 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…the resumption of drilling at La Escandalosa and fresh results should get the market very excited…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…GQC has more drilling to do there as well…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… GoldQuest is up 95% since we added it to the BMR Portfolio near the end of September…

Adventure Gold (AGE, TSX-V)

Adventure Gold pulled back slightly this past week but astute investors will pick up on the fact that AGE‘s 5-cent weekly drop to 47 cents has brought it right to its supporting 20-day SMA where it has bounced off from repeatedly since September…the RSI(14) for AGE is also at an attractive point, just above the 50 level where there has been continuous support over the last 3 months…in otherwords, now is as good a time as any to be stepping up to the plate with this…we first mentioned Adventure Gold to our readers in an article September 29, just a couple of days following the company’s announcement that it had acquired land at Granada, when the stock was trading in the low 20′s…we officially added AGE to the  Portfolio at 34 cents October 28, so the gain since then is 38%…our interest in Adventure Gold goes far beyond the company’s involvement at Granada, as exciting as that is…they do hold a small but strategic slice of land in the Granada Eastern Extension and also more property west and south of GBB’s Preliminary Block Model area…they’ve already produced some very interesting prospecting results on their land in the west…Adventure Gold has been around only since late 2007 and we are impressed by the company’s solid 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 recently provided an update on this project…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…if this deep hole succeeds, AGE could absolutely explode…

Seafield Resources (SFF, TSX-V)

It was another great week for Seafield which climbed 11 cents to 68 cents on total CDNX volume of more than 90 million shares…the company announced Friday it has increased its financing at 50 cents to 30 million units to raise gross proceeds of $15 million…this is almost a doubling of the original amount of $8 million which was announced a day earlier…as we discern that situation, we can’t help but come to the conclusion that some serious “heavy-hitters” are stepping into the picture here to grab as much cheap paper as they possibly can…this is extremely bullish going forward for Seafield…interest in this stock, we believe, is also going to spill over into a related company, Greencastle Resources (VGN, TSX), which of course is also part of the BMR Portfolio…Tony Roodenburg has scored huge with Seafield and that’s going to make it a lot easier for him to do something big with Greencastle (see our Dec. 6 article regarding that)…Seafield is prominently featured on the front page of the Dec. 13-19 issue of The Northern Miner (“Seafield Soars on Colombian Gold Hits“, by Anthony Vaccarro)…Seafield came out with more encouraging exploration news this week to follow up on the previous week’s announcement of a blockbuster hole at Miraflores (449 metres grading 1.3 g/t Au)…the first 3 holes have been completed at Dos Quebradas, a highly prospective property with numerous porphyry targets just a few kilometres northwest of Miraflores…Seafield is in the process of drilling 8 holes at Dos Quebradas and the company has reported that the first 3 holes show similar styles of mineralization to an historical hole drilled by AngloGold that returned an interval of 39.5 metres grading 1.67 g/t Au…Dos Quebradas, in our view, gives Seafield its “blue sky” potential as it is rich in targets over a wide area…this was evident from historical work by AngloGold and confirmed by Seafield earlier this year through soil geochemical surveys and magnetic surveys which are crucial to discovering hidden porphyries in areas of very little outcrop…Seafield also released results this week from trenching in 1 location from the southern end of the gold-in-soil anomaly that defines the northern extension of the Dos Quebradas porphyry…1.75 g/t Au was returned over 94 metres…results on 9 more holes from Miraflores are still pending, so conditions are ideal for some serious speculation…the $15 million financing is going to turn up the heat on Seafield to ramp up exploration efforts at Quinchia which is a good thing…our only criticism of the company has been that Colombian manager Ian Park has not been nearly aggressive enough in drilling these properties…Seafield has to seize the moment right now and Park has to be given his marching orders and display a new sense of urgency…there is big potential here and a lot of new money at stake…

Colombian Mines (CMJ, TSX-V)

We’ve been predicting this for a while now and it finally came true…Colombian staged a breakout this past week, overcoming some major resistance at 95 cents and on no news…the stock closed Friday at $1.01 for a gain of 17 cents for the week…what this suggests to us is the potential for CMJ to really kick into high gear again anytime over the next month…with just 23 million shares outstanding, this could get interesting…we like CMJ because it’s an experienced operator in Colombia with a large land position (more than 150,000 hectares) covering many excellent geological targets…its flagship property is Yarumalito, just north of Medoro’s Marmato deposit and of course close to Seafield’s Quinchia Project…drilling continues at Yarumalito…2 months ago the company reported assay results for 7 more holes 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…the company’s El Dovio Property, approximately 100 kilometres southwest of Yarumalito, also has our attention…last month the company announced that recent channel sample results have extended high grade Gold-silver-copper mineralization over a much larger width than indicated by historical information at the 9,300-hectare El Dovio Property…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…CMJ, which reported cash on hand of over $3 million as of July 31, is in good position for a strong 2011…the chart is telling us that positive developments are on the way…CMJ is up 68% since we added it to the BMR Portfolio a year ago…

Sidon International (SD, TSX-V)

It was an active and volatile week for Sidon which exploded to 26.5 cents Tuesday on news that drilling had commenced at its Morogoro East Gold Property in east central Tanzania…the company reported encouraging visuals from the first hole which was being drilled to intersect the extension of the vein adjacent to the vein workings of artisanal miners…metasedimentary rocks were intersected in the first hole with strong silicification and up to 10 per cent pyrite, arsenopyrite, pyrrhotite and chalcopyrite being observed…all the right ingredients for a potentially good hole…Sidon reported that this hole is well above the artisanal mined vein (estimated to be at between 95 to 100 metres down the hole) and represents a significant envelope of mineralization associated with the contact and the mineralized vein…visuals, of course, can sometimes be deceiving but these are encouraging early indications of the potential of this initial 1,500 metre drill program…the drill bit is the “truth machine” and everyone will be eagerly anticipating results…near the end of the week Sidon announced another property acquisition (an “option” at this stage it appears) with a hefty price tag…the company has secured a block of land (13.8 square kilometres) contiguous to Morogoro East (northwest of MEG) with similar geological characteristics…the terms of the deal for this new property aren’t as favorable as the apparent geology ($5 million, 10 million Sidon shares and $5 million in exploration expenditures over the next 5 years) unless of course Sidon has seen something in Morogoro that is so incredibly encouraging (possible) that they felt it was a strategic necessity to tie up this additional land on those rather expensive terms…only time will tell if this was a stroke of genius or a mistake…Sidon closed the week at 18.5 cents, a gain of 2 pennies for the week on total CDNX volume of approximately 33 million shares…the stock is currently in an area of strong technical support which was resistance last summer…Sidon is ahead 270% since we introduced it to BMR readers last spring…

Excel Gold Mining (EGM, TSX-V)

Excel has been our worst performer over the last 2 months (it’s down 16% since we added it to the BMR Portfolio in early October) and at 13.5 cents the stock now seems trapped between its rising 200-day SMA of 11.5 cents and its 100-day SMA of 15.5 cents which is beginning to flatten out…there are clearly better opportunities in the market right now than Excel…having said that, this is a company with a terrific asset – the Montauban Mining Camp Project, 120 kilometres west of Quebec City…inept management has prevented Excel from unlocking the value of this asset which is why the company’s recruitment of Frank Basa and Jacques F. Monette, another Gold Bullion director, got us so fired up about this situation…Excel seems to be following a pattern very similar to Sidon which ran hard to 18 cents and then gradually traded down very close to its 200-day SMA before reversing again to the upside…Excel’s 50-day SMA is still in decline and the turnaround for this stock will come when that reverses…the company recently finalized a $763,000 flow-through financing to fund its current drill program at Montauban…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 was off 1 penny for the week…