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Visible Gold Mines (VGD, TSX-V)

Visible Gold Mines finished the week on a bullish note with gains on Wednesday and Thursday to close at 37 cents, a loss of a penny-and-a-half for the week…Thursday’s trading was particularly encouraging…the stock dipped as low as 34 cents, nearly touching its rising 300-day moving average (SMA), then quickly reversed on its best CDNX volume of the week of 585,000 shares…drill results from VGD’s Silidor Gold Property were released following the close of trading Wednesday…each of the first 10 holes at Silidor intersected mineralization and Hole #8 is of particular interest as four sections of Gold were hit between depths of 70.85 metres and 130.5 metres including 2.70 metres grading 5.45 g/t Au and 1.5 metres grading 5.70 g/t Au…this area has never been drilled before and it’s 700 metres southwest of the former Silidor mine…a total of 23 holes have now been completed (assays pending for 13 of them) and drilling continues in a northeasterly direction toward the former mine…things could get extremely interesting in a real hurry at Silidor with geologists of the opinion they could be closing in on a series of ore shoots…Silidor is just one of four major properties Visible Gold Mines is currently advancing…the others are Joutel, Cadillac Break and Stadacona-East…Joutel, a significant former producer that gave birth to Agnico-Eagle Mines (AEM, TSX), has the potential to become a huge winner for VGD…this is a company that’s rapidly developing as one of the most aggressive Gold explorers in northwestern Quebec…the President and CEO of Visible Gold Mines is Martin Dallaire, a very successful entrepreneur in Rouyn-Noranda with an engineering degree who understands the mining industry and what an exploration company needs to do to succeed and build shareholder value…Dallaire is fluently bilingual, presents himself extremely well and knows how to run a business and make money…he thinks big but is focused…he has also recruited some key people including Robert Sansfacon, one of the most respected geologists in the country who honed his skills for many years with Lac Minerals…Sansfacon played a critical role in the discovery of Osisko’s (OSK, TSX) Canadian Malartic deposit…in short, Dallaire has put something together you don’t often see in the junior speculative market – a powerful dynamic of business, geological and marketing expertise with a strategic plan to rapidly build value…the company’s niche and sole geological focus is northwestern Quebec where it has acquired several promising land packages, mostly west and north of Rouyn-Noranda…Dallaire is taking an aggressive approach to exploration and is currently armed with $8 million in working capital (17.5 cents per share)…he’s targeting under-explored areas and past producing mines where major new extensions are possible…

GoldQuest Mining (GQX, TSX-V)

Another great opportunity has opened up with GoldQuest as the stock slid 8 cents or 25% last week to 24.5 cents after initial results were released from the company’s La Escandalosa Project in the Dominican Republic…17 holes are in with seven more pending…results confirm the 43-101 resource model with mineralization remaining open to the north toward Hondo Valle, a distance of 1200 metres…best assays included 36.5 metres grading 2.74 g/t Au in hole #62, 16 metres grading 2.45 g/t Au in hole #47, and 9.2 metres grading 3.54 g/t Au in hole #48…the fact that any potential southern extension of La Escandalosa may have been displaced by faulting, as reported, is not a big surprise or a major concern as the ground going north has always been considered more prospective and provides GoldQuest with all the opportunity it needs to achieve its goal of a 1 million+ ounce deposit…another round of drilling at Escandalosa is scheduled for the second half of this year…in the meantime the company has other highly prospective targets in the DR to explore including Las Animas and Jengibre…GoldQuest’s potential has not diminished whatsoever yet investors chopped 25% off the company’s market cap ($33.5 million to $25.2 million) last week…GoldQuest has strong technical support in the low 20’s…the 300-day SMA is at 23 cents while the 500-day SMA is at 20 cents which has got to be considered the floor…GoldQuest released a 43-101 resource estimate March 2 on its Toral zinc-lead-Silver deposit in Spain…it showed slightly lower grades but much higher overall tonnage than the previous historical non-compliant estimate…as a result, total resources came out 15% higher…resources in the indicated category are 4.04 million tonnes grading 11.8% lead and zinc (5.3% lead, 6.5% zinc) as well as 41 g/t Ag and 0.11% Cu… inferred resources are 4.67 million tonnes grading 9.8% lead and zinc (4.44% lead, 5.4% zinc), 32 g/t Ag and 0.14 Cu…Toral has significant exploration and development upside as a majority of the historical drilling (40,000+ metres) was conducted over one relatively small part of the property…the zone of sulphide mineralization is open along strike to the northwest toward a known lead deposit as well as along strike to the southeast and downdip…the project is also an ideal candidate for a fast-track to production…the deposit is close to a power line, highway and rail line…a large smelter is located just 300 kilometers away by rail…despite last week’s setback, GoldQuest is up 26% since we introduced it to BMR readers last fall at 19.5 cents…

Greencastle Resources (VGN, TSX-V)

Greencastle was off half another half penny last week at 23 cents on light volume…the stock has been trading above its 50-day moving average (SMA) in April for the first time since January…the 50-day has flattened out but the all-important reversal in that SMA has yet to kick in…the yearly low of 17.5 cents March 17 is looking more and more like the “bottom” for VGN which soared as high as 44.5 cents last December…VGN’s strong underlying fundamental value is clearly shown in the latest financials which were released March 24…as of December 31, Greencastle held $5.1 million in cash and $2.6 million in marketable securities…some of those securities are likely shares in Seafield Resources (SFF, TSX-V) while the company disclosed it held 1,148,000 shares of Evrim Resources Corp. (EVM, TSX-V), formerly Avaranta, which started trading on the Venture Exchange January 25…at 23 cents, Greencastle’s market cap ($10.5 million) exceeds its working capital by less than $3 million…the potential of higher oil prices in the coming months could bolster Greencastle’s monthly cash flow of approximately $130,000 as it receives royalties from heavy crude production at Primate in Saskatchewan…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…patience is required here…over the years the successful strategy with Greencastle has been to accumulate on weakness when the stock is near cash value and then sell into strength when something develops…with $8 million in working capital, three Gold properties (including land near Richfield’s Blackwater Project) and monthly cash flow from an oil royalty, it doesn’t take a rocket scientist to figure out that Greencastle offers excellent value at current levels…the long-term chart remains very encouraging with rising 200 and 300-day SMA’s 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 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…investors need to be patient, however, as they often do with Roodenburg’s plays…Greencastle is up 64% since we added it back in to the BMR model portfolio six months ago…

Adventure Gold (AGE, TSX-V)

Adventure Gold was off a penny last week to 62 cents on relatively light volume…this was the second straight weekly loss but the overall uptrend remains firmly intact…the AGE chart has some similarities to GBB’s chart last year and the rising 100-day SMA, currently at 55 cents, is providing rock-solid support…the company released good results from two more holes April 7 from its recently completed Phase 1 drill program at the Pascalis Colombiere Gold Property near Val d’Or…hole #17 intersected four separate zones of mineralization at depths ranging from 6 metres to 187 metres (5.7 g/t Au over 4.3 metres, 4.6 g/t Au over 5.7 metres, 12.9 g/t Au over 8 metres, and 5 g/t Au over 6.1 metres)…hole #16 intersected 5.5 g/t Au over 5.9 metres…results from five more holes are pending…follow-up drilling will commence once all assays have been received and reviewed…a NI-43-101 resource calculation is planned for later this year…AGE’s latest financials, released April 1, show the company with $3 million in working capital at the end of January…AGE runs an efficient operation and knows where to direct its energies…we expect AGE will begin drilling its Granada Extension Property in the near future…results from Gold Bullion reveal exciting potential over the far western portion of GBB’s Preliminary Block Model which supports Adventure Gold’s geological interpretation that it holds part of the western extension of the LONG Bars Zone…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 just 34 cents October 28…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 still 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 and is on track to reach the 2,400 metre target level by the end of next month…if a discovery is made, AGE could explode…

Sidon International (SD, TSX-V)

All remains relatively quiet on the Sidon front (volume this month has been the lowest in over a year) as investors wait for the company to close a proposed $2 million financing at 8 cents…the stock was off a penny-and-a-half last week, closing at 6 cents…Sidon has yet to recover from a sharp drop early last month following disappointing assay results from its Morogoro East Gold Property in Tanzania…since then the company has announced the proposed PP and the fact it has signed an option to acquire 80% of a property adjacent to Canaco’s (CAN, TSX-V) Handeni Project…the six shallow holes drilled in December at Morogoro East did not produce significant results, the best hole showing 3 metres grading 1.7 g/t Au…the company has drilled four deeper holes with results for those still pending…what the initial six holes have given Sidon, however, is a better understanding of the Morogoro geological structure which will aid in any future drilling…exploration, especially at such an early stage, is never easy and disappointing early results don’t necessarily mean a property doesn’t hold excellent potential…the company is also trying to develop a placer operation at Morogoro…there is certainly hope here for better days ahead for Sidon…from a technical standpoint, previous support between 9 and 10 cents will now provide resistance…Sidon is up 20% since we introduced it to BMR readers a year ago at a nickel…the company currently has approximately 140 million shares outstanding for a market cap of $8.4 million…

Seafield Resources (SFF, TSX-V)

Seafield lost another 2.5 cents last week to close Thursday at 29.5 cents…a declining 50-day moving average (SMA), currently at 35 cents, and a rising 300-day SMA at 29 cents continue to define the current trading range…the downside risk from here appears very limited, perhaps the mid-20’s at worst, based on technical and fundamental considerations…in otherwords, the risk-reward ratio at the moment is looking extremely attractive with SFF…investors should note that Seafield warrants (SFF.WT) begin trading Monday morning on the Venture Exchange…each warrant entitles the holder to purchase one common share at a price of 75 cents per share and will expire on Friday, Dec. 21, 2012…the company announced April 5 that drilling has commenced at Santa Sofia, about one kilometre north of Dos Quebradas where drilling continues…Seafield geologists have identified a promising porphyry target measuring 1,050 metres in length and 850 metres in width at Santa Sofia with soil values up to 2.3 g/t Au…on March 7, assays were reported from the first three holes completed at Dos Quebradas with hole #2 intersecting a whopping 511 metres grading 0.58 g/t Au…the hole ended in mineralization…hole #1 delivered 269 metres grading 0.37 g/t Au while hole #3 was drilled to define the eastern limit of mineralization and returned no significant results…a total of 10 holes were completed at Dos Quebradas as of early this month…significant intercepts well outside areas of historical drilling would start to get the market excited…the geological case for Seafield’s Quinchia land package is compelling and we’re looking forward to more results from Dos Quebradas as well as initial assays from Santa Sofia…the company has already outlined a NI-43-101 inferred resource of nearly 800,000 ounces at its Miraflores Property, a number that’s expected to increase following the 12-hole, 4,000 metre program completed late last year…patient investors have an opportunity to do extremely well with this play given the geological merits of Quinchia and the real potential for 5 million+ ounces from several potential deposits…the company is sitting on at least $15 million in cash and has a very modest market cap of $45 million…Seafield has gained 392% since we made it the first company in the BMR model portfolio in the summer of 2009…it’s encouraging to see that Anglo-Ashanti Ltd., the world’s third largest Gold producer, plans to spend $300 million over the next three years on further exploration in Colombia…