The BMR Portfolio (Part 3 of 3, GBB was covered separately in Part 2)
Seafield Resources (SFF, TSX-V)
Seafield is up just over 50% from its lows of last month, closing Friday at 25 cents (unchanged for the week) on total weekly CDNX volume of 4 million shares (half of that on Friday)…we have followed this company very closely over the last year after we first uncovered this gem for BMR readers at just 6 cents…Seafield holds an impressive land package with some advanced properties in the Quinchia District of Colombia, part of the prolific mid-Cauca Belt where some major gold/copper deposits have been discovered…the company has a clear game plan and the right people on the ground (Ian Park and Stewart Redwood) with the experience and expertise to develop the Quinchia Project to its fullest potential…Seafield believes it has an excellent chance to define a series of deposits at Quinchia that can combine for a total resource in the neighborhood of 3 to 5 million ounces…prior to Seafield starting any drilling at Quinchia, Miraflores and Dos Quebradas already had a combined compliant and non-compliant inferred resource of 1.6 million ounces…Dos Quebradas holds tremendous blue sky potential along with a third property, Chuscal…so the geological case for Seafield is a strong one. …the current market cap of just under $25 million offers a lot of upside potential if these 3 major properties can deliver – we believe the odds are very good that they will…
Richfield Ventures (RVC, TSX-V)
In less than 3 months Richfield has more than tripled in value and after Friday’s close of $2.76, RVC is up 130% since we introduced this company to BMR readers last December…Richfield is awaiting final CDNX approval on its recently completed $14,625,000 financing at $1.95…the company now has close to $20 million in the bank, a substantial war chest to develop its potential multi-million ounce Blackwater Project in central British Columbia…Peter Bernier’s strategy with Richfield was made very clear in a news release last Monday when the company announced than Rob Pease was appointed an “adviser” to Richfield’s board of directors…the second paragraph of the release stated, “He (Rob Pease) was instrumental in the takeover of Terrane Metals by Thompson Creek Metals Company Inc., which is planned to close in the coming weeks”…Bernier is priming Richfield for a potential takeover but what must come first is a 43-101 resource estimate for Blackwater which the company is working toward…Richfield’s current market cap is approximately $100 million…the potential takeover price would be considerably higher if Richfield is able to outline at least 4 million ounces at Blackwater which also contains copper and silver credits…given many long intersections of 1 g/t Au reported over the last year, the possibility of at least 4 million ounces of Gold at Blackwater certainly exists…
Sidon International Resources (SD, TSX-V)
Sidon was hit with some selling this past week (why, we’re not really sure but that’s the market), falling as low as 12 cents and closing Friday at 12.5 cents – a 1 penny drop for the week on total CDNX volume of approximately 9 million shares…for the first time since early July Sidon has closed below its rising 50-day moving average…the stock is trading within a tremendous area of technical support, however, and we just can’t see it dropping below 10 cents…bargain hunters should be watching this one closely for the possibility of buying into any additional weakness in the immediate future…we anticipate a very strong final quarter of the year for Sidon as it begins to work aggressively on exploring its Morogoro East Gold Property in Tanzania…the stock is up 150% since we introduced it to BMR readers last spring at a nickel…
Colombian Mines Corporation (CAJ, TSX-V)
Colombian Mines closed Friday at 92 cents, a 3-cent gain for the week and a 53% increase since BMR added CMJ to its portfolio late last year (the stock got as high as $1.62 in March)…more drill results are expected soon from Colombian’s flagship Yarumalito Gold/Copper Property in the Marmato Mining District…broad zones of gold/copper mineralization have been intersected at Yarumalito this year including 141.4 metres grading 0.77 g/t Au in YAR-11…the company had just over $3 million in working capital at the end of July, so it’s well positioned to continue drilling Yarumalito through the end of the year as well as advance some other projects in its very large Colombian land package (over 150,000 hectares)…interest in Colombian plays is heating up again and we expect CMJ will be a very strong performer in the months ahead…
North Arrow Minerals (NAR, TSX-V)
This is the final week for North Arrow in the BMR Portfolio unless it begins to flex its muscles and shows us something…we’ve been very patient with this company which has essentially drifted aimlessly since we introduced it to BMR readers last April…the biggest disappointment for us has been North Arrow’s inability to carry out a drill program this summer/early fall at its Lac de Gras diamond property in the Northwest Territories…the company just recently received a drill permit but says it’s now too late in the year to drill at Lac de Gras and has rescheduled drilling there until next spring…the company has some other properties in its portfolio and President and CEO Gren Thomas has also been searching for new opportunities…there is great potential with North Arrow but it seems increasingly likely that this company will continue to drift until sometime next year… we’ll make another check on things with NAR this week before making a final decision on its status in the BMR Portfolio…
“Watch List”
Excel Gold Mining Inc. (EGM, TSX-V)
We continue our due diligence on Excel which closed the week at 16 cents…there is a lot we like about this company which holds the former Montauban Mine in Quebec (gold, silver and base metals) along with a large land package surrounding it…to no one’s surprise, Excel has announced that Gold Bullion President and CEO Frank Basa has joined its board of directors (along with another Gold Bullion director, Jacques Monette)…we were first tipped off to this potential development a few months ago when Basa’s private company (Grupo Moje) was awarded stock options (in a consulting capacity) in Excel (June 25 news release)…we’ve seen what Basa has done with Gold Bullion at Granada…his involvement with Excel should be very positive for that company…there appears to be strong local support for the re-starting of production at Montauban and the company is confident it will discover extensions to the mineralized structures at the former mine…Excel reported some very encouraging results earlier this year from a shallow drill program at Montauban…it’s currently compiling historical data on the former mine in advance of another drill program in the final quarter of this year…
As of NAR.VN, you can check what has SBW.VN done last week.Same thing could happen to it.Although they can’t drill Lac de Gras this year, they did successfully raise the money.Meanwhile, We are glad to see NAR opens eyes for gold opportunities. White gold results might be interesting. mentioning SBW, NAR could also get into MIDWAY gold area if they want. They have similar management teams. Another thing we should not forget is its Lithium properties. It has pretty decent drill results from phoenix and beaverdam. Market is valuing lithium stocks up. some junior lithium plays like WLC.VN CLQ.TO PL.VN RM.VN EFG.VN all had decent gain recently. the last thing we would like to remind is it can earn up to a 60% interest in silvertip project from SBW.VN. Silver is getting hot these days and Silvertip had some decent drill results before like 136g/t silver over 72.5 meters. with all the projects and cash North Arrow has and it’s current trading price 16 cents we rate a buy and hold for it.
Comment by North Arrow — September 27, 2010 @ 4:27 am