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GoldQuest Mining (GQC, TSX-V)

GoldQuest was off 2.5 cents for the week at 42 cents but this company’s stock chart is looking extremely bullish with a well-established uptrend and an exceptionally strong support level between 40 and 42 cents…we’re expecting important news very soon – initial drill results from the La Escandalosa Gold Property in the DR and a 43-101 resource estimate for the Toral deposit (zinc-lead-silver) in Spain…GQC has more than doubled since we introduced it to our readers several months ago and it’s one of our favorite picks for the balance of this year…GoldQuest has a pipeline of high quality projects in the mineralization-rich Dominican Republic where it has been exploring for over a decade…management, led by new President and CEO Julio Espaillat and Chairman Bill Fisher, has a proven track record in the DR as demonstrated by the nearly $200 million takeover of GlobeStar late last year, their previous project…the company is also building a strong and valuable presence in northwest Spain where its base metal/silver properties are not yet fully appreciated by the market…in the DR, drilling continues at La Escandalosa where the company’s goal is to upgrade and expand resources substantially beyond the 400,000 compliant inferred ounces  outlined in late November…this is a flat-lying ore body and “the economics could be really quite compelling,” Fisher told BMR…it’s important to stress the 43-101 was completed on La Escandalosa  at a very early stage and the possibility of a discovery of one million ounces or even more is very 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…Gold at La Escandalosa 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 current inferred resource is over a 25-hole section 350 metres long…successfully linking this central mineralized zone to the north and the south is what could take this deposit to the million ounce plus category which would allow for production of 100,000 ounces per year…no major infrastructure or political hurdles…the regulatory framework in the DR is conducive to mining…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 will be drilling Las Animas immediately after Escandalosa…that will be followed by a drill program at Jengibre, a promising target about 30 kilometres southeast of Escandalosa…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 due very soon…GoldQuest has also acquired a second polymetallic project in the area (Lago, just a 20-minute drive from Toral)…GoldQuest, which has nearly $4 million in the bank, is up 115% since we introduced it to our readers near the end of September…this is a stock that got as high as $1.80 ($100 million market cap) in mid-2007 on less than what it has now…initial drill results from La Escandalosa and the 43-101 on Toral could come by the end of this month, or certainly prior to PDAC, and Fisher has promised strong news flow throughout the year…GQC has all the ingredients to become a huge winner this year as the bull markets in Gold and the CDNX intensify…

Greencastle Resources (VGN, TSX-V)

Greencastle was down 3 pennies for the week, closing at 22 cents, but John’s chart earlier today shows how the stock has strong technical support at current levels and limited downside risk…Greencastle tripled in value over a six-week period from late October to early December…since the beginning of January, though, the stock has struggled due mostly to impatient investors frustrated with the lack of news…there hasn’t been news from Greencastle since November 30…however, with approximately $6 million in working capital, three Gold properties and monthly cash flow from an oil royalty, it doesn’t take a rocket scientist to figure out that VGN is a bargain at current levels…volume has been low on the move down which confirms there’s nothing to be concerned about here…Greencastle will have its day in the sun again soon enough…the long-term chart remains very bullish with rising 100, 200 and 300-day moving averages (SMA) that are in no danger of reversing…it’s also interesting to note that President and CEO Tony Roodenburg, a large shareholder in VGN, has refrained from selling any of his holdings in recent months despite the fact the stock price more than tripled in value on high volume…this is different from past runs in the stock and adds further credence to our view that we haven’t seen the highs in this cycle yet from Greencastle – it’s poised for what we believe could be a massive breakout sometime during the first half of this year…Pinetree Capital has also accumulated more shares in Greencastle, so there’s every reason to be very optimistic regarding this company’s prospects in the days, weeks and months to come…Greencastle is up 57% since we added it back in to the BMR model portfolio four months ago…

Adventure Gold (AGE, TSX-V)

John correctly called a breakout for Adventure Gold which ran from a low of 48.5 cents Monday to an all-time high of 80 cents two days later…the stock then pulled back and closed Friday at 59 cents which was still a healthy 9-cent gain for the week…some of the results from Granada released by Gold Bullion Tuesday have positive implications for Adventure Gold and we’ll be going over that in more detail as part of a major article this week…of course AGE is also waiting for some drill results from one hole drilled completely on its property (eastern extension) and a few others that intersected that property at depth…there’s a lot more to Adventure Gold, however, than just Granada…a 2,500 metre drill program started at Pascalis-Colombiere (eastern part of Val d’Or mining camp) in December and is testing the former L.C. Beliveau Mine at depth (below 300 metres) as well as near-surface parallel Gold structures to the west…Pascalis-Colombiere is just 1.5 kilometres east of Richmont’s (RIC, TSX) operating Beaufor Gold Mine which has produced over one million ounces in its lifetime…it’s safe to assume Richmont will be watching developments at Pascalis-Colombiere with interest…Adventure Gold’s property has significant upside exploration potential…the geological setting is favorable for the identification of new high-grade Gold bearing veins and structures or bulk-style ore shoots…there are many untested areas and excellent potential at depth…L.C. Beliveau was a very profitable former producer…if AGE can prove up something significant through extensions to this deposit, we see a potential deal with Richmont which would be the natural choice to bring the mine back into production…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 BMR model portfolio at 34 cents October 28, so the gain since then is 74%…Adventure Gold has been around only since late 2007 and we are impressed by the company’s solid portfolio of properties (19 in six strategic areas in Quebec and Ontario)…also of immediate interest is AGE’s 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…the current initial deep drill hole onto the Meunier JV property is continuing…when completed it’s estimated the hole will 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 has passed the 2,000 metre mark in depth…if this deep hole succeeds, AGE could absolutely explode…

Sidon International (SD, TSX-V)

Sidon closed exactly at its 200-day moving average (SMA) last Tuesday at 12 cents and then exploded the following day to 16.5 cents on volume of over 7 million shares…the stock pulled back over the following two days, closing at 14 cents Friday for a weekly gain of 1.5 pennies…there was no news last week, so the powerful move Wednesday may have been due to speculation regarding upcoming drill results…it may also have been technically driven or perhaps a combination of both…in any event, a new uptrend seems to have set in and we’ll watch closely for confirmation of that this week…the stock has shown clear trading patterns since the spring of last year and has been quite volatile…however, the primary trend remains up and Sidon has consistently found support at or just above the 200-day SMA…BMR will be interviewing President and CEO Kamal Alawas in the near future but a date for that has not yet been confirmed by Alawas who could be waiting for news prior to speaking with us…results are pending from drilling at Sidon’s Morogoro East Gold Property…the company reported zones of disseminated sulphides of pyrite and pyrrhotite as well as some chalcopyrite and arsenopyrite over intervals of 30 to 70 metres throughout all six holes drilled…we caution that visuals are not always reliable but there’s reason to be optimistic that Sidon could be on to something…the company is also trying to develop a placer operation at Morogoro and has also acquired ground near Canaco’s discovery…this company has come a long way since last March when we first introduced it to BMR readers at a nickel, and its new web site is just one more indication of how impressively Sidon has developed and matured…we see exciting possibilities for 2011…the company raised over $1 million through the exercise of options and warrants in November and December…

Seafield Resources (SFF, TSX-V)

Seafield got hammered last Tuesday thanks to an article that put Ian Park, the company’s Colombian Country Manager, as well as the affairs of Seafield in an unfavorable light…the article was very unfortunate in our view and failed to make any mention of Park’s impressive exploration track record in Colombia…he’s a geologist and a geophysicist but the piece referred to him only as a “promoter”…the timing of the article was also suspect as it was released during the trading day and only a few hours after Seafield came out with more drill results from Miraflores…the wolf came out of nowhere and quickly scared the chickens away…the stock went up after the Seafield news release, reaching a high of 46.5 cents, but then tanked after the article hit the wire as a lot of nervous retail investors pressed the sell button…fear and greed rule the markets and it’s critically important to understand that when dealing with these speculative exploration stocks…those who have done their homework and know the underlying value of Seafield jumped in at the height of the fear Monday/Tuesday and picked up some cheap stock…Seafield recovered from a low Monday of 31 cents to close at 42 cents Friday, a gain of half a penny for the week…the recovery was aided by a Seafield conference call Tuesday and impressive drill results Thursday from neighbor Batero Gold (BAT, TSX-V)…what excites us most about Seafield is its Dos Quebradas Property as well as the adjoining Santa Sofia and La Loma targets…drilling continues at Dos Quebradas while a second rig is being brought in to commence drilling at Santa Sofia…the geological case for Seafield’s Quinchia land package is compelling and we’re looking forward to this project’s continued development this year…