BMR Portfolio (continued)
Sidon International (SD, TSX-V)
Sidon pulled back early in the week but found strong support at 10 cents, as BMR’s technical analyst predicted, and roared higher Thursday and Friday to close the week at 16 cents, a 4-cent increase over the previous Friday…there is clearly a lot of interest in the high grade Morogoro East Gold Property in Tanzania that Sidon has an opportunity to purchase outright in an option agreement with a private company…Sidon was the most active stock on the CDNX Friday, trading a whopping 9.7 million shares (Gold Bullion was the 2nd most active with 4.5 million), after an 8 million share day Thursday…Sidon is currently trading in a zone of resistance up to 17 cents – more huge volume will be required to overcome that resistance either immediately or a little further down the road…we added Sidon to the BMR Portfolio back in March at just a nickel and we took some heat for that from certain quarters as the company has not had a great track record in terms of advancing projects…but Sidon has never had a project with such blue sky potential as Morogoro East which is in an under-explored, highly prospective region of eastern Tanzania along the same geological belt (or a parallel belt) as Canaco’s (CAN, TSX-V) extremely promising Handeni Project which is the focus of a lot of investor attention right now…often with these early-stage situations like Sidon (Gold Bullion and Seafield too when we first introduced them) you see certain blemishes (horrible web sites, projects in the past that may not have panned out, etc.) but you need to look beyond that try to envision how the company’s future may unfold with a really attractive project that it can focus on and develop – something with real merit and a lot of potential sizzle…going forward, we believe Sidon will be able to raise the money necessary to explore and develop Morogoro East and will also beef up its “people infrastructure” which is critical – the right people on the ground (as Gold Bullion and Seafield have) to move the project along successfully and unlock all of its potential…Sidon is very speculative, like many of the other companies we follow, but the geological potential of the area that Morogoro East covers cannot be disputed…could Sidon become another Canaco?…yes, anything’s possible, just like Gold Bullion is now starting to show Osisko-style potential…
Richfield Ventures (RVC, TSX-V)
Richfield enjoyed a great July…it bottomed out at 90 cents early this month and has since risen 68% with Friday’s close of $1.51…Friday’s trading was very important technically – the stock finally blasted through resistance at its 200-day moving average ($1.35) and its 50-day SMA has swung positive after a decline that started in early May…looking at RVC’s chart, you can see how it formed a classic bottoming pattern through June and July…the company provided a drilling update on its Blackwater Gold Project at the beginning of the week and reported excellent intercepts in 3 out of 5 holes released:
BW-64: 1.57 g/t Au over 260 metres
BW-65: 0.88 g/t Au over 198 metres
BW-68: 1.51 g/t Au over 227 metres
The drill results showed continuity of grade and expand the size of the mineralized area, enlarging it to the east and south from the Dave zone…Blackwater has the potential to host several million ounces of gold, along with some copper and silver, and with a second rig arriving on the property next month, the pace of drilling will pick up considerably which has been an issue since the 25,000 metre program started in April…
Seafield Resources (SFF, TSX-V)
Seafield continues to languish but the fundamentals of this story are too good for that to continue much longer…the stock closed Friday at 15.5 cents, a 1-cent loss on the week…volume has dried up a lot over the last couple of weeks which is actually a good sign – there aren’t a lot of eager sellers around current levels…the company has been drilling its Miraflores Property at Quinchia in Colombia since near the end of June…each hole is taking approximately 7 to 10 days to complete, according to Seafield’s IR department, which means the first 3 or 4 holes have likely been completed… at Miraflores, Seafield is conducting infill dilling in order to boost the current 43-101 inferred resource of nearly 800,000 ounces to a million ounces – a 25% increase…drill results from the first couple of holes could be out as early as mid-August…by the end of August or early September, Seafield should be able to commence drilling at Dos Quebradas (with a 2nd rig) which has a lot of interesting showings and an Anglo in-house non-compliant estimate of 800,000 ounces…Seafield also has the very promising Chuscal Property which could complete a “triple play” for SFF at Quinchia and realistically provide a total resource of anywhere between 3 to 5 million ounces in that area…Seafield has a very good chance of proving up 2 million ounces by year-end and that in itself should give the stock a significant boost…there’s excellent underlying value here at 15.5 cents which puts Seafield’s market cap at just $15 million…the company is well financed…
North Arrow Minerals (NAR, TSX-V)
North Arrow’s time has not quite arrived yet but is drawing closer, providing investors with an opportunity to continue to accumulate positions in advance of an expected start to diamond dilling at Lac de Gras by early September…the company is currently ground-truthing targets laid out by Dr. Chris Jennings who identified 70 high priority kimberlite targets on North Arrow’s property through proprietary technology…the nearby Diavik diamond deposit trends right through the middle of North Arrow’s property where the belief is that kimberlite pipes do exist – the only question is, will they be economic?…exploration of this highly prospective property is in the best hands possible – Jennings is unquestionably one of the sharpest in the world at diamond exploration, and he and North Arrow President and CEO Gren Thomas teamed up of course to find one of the world’s richest kimberlite pipes at Diavik in the early 1990’s…they know what they’re doing and they’re very confident they can make another major discovery… approval of North Arrow’s drill permit is the only thing standing in the way at the moment – a decision on that is expected during the last half of August….North Arrow also has other attractive projects in its portfolio including the Beaverdam Lithium Property in North Carolina…the stock closed Friday at 16.5 cents on low volume, a drop of 1.5 cents for the week…
Kent Exploration (KEX, TSX-V)
Kent has raised nearly a million dollars over the last month or so, putting the company on a much more solid footing…the stock declined half a cent on the week to 12 cents on low volume…from a technical perspective, Kent has suffered some significant damage recently…its 200-day moving average, just below 17 cents, is now beginning to decline and that’s going to create a lot of overhead resistance…we’re concerned that a drill permit has not yet been received for the company’s Alexander River Gold Project in New Zealand, and we’re not certain what the plan is for Gnaweeda in Australia after the Archean Star Resources proposed spin-off hit a major snag…the Flagstaff Barite Property in northeastern Washington State holds potential but production has yet to commence…Kent has good long-term possibilities but this company has been BMR’s biggest disappointment of the year, though it’s down only 25% from when we introduced it last fall…that’s why it’s never wise to put all your eggs in one basket…
Colombian Mines Corporation (CMJ, TSX-V)
CMJ came out with news Friday, announcing it’s expanding its drill program at its Yarumalito Gold-Copper Project in Colombia which has been delivering encouraging results…the stock has been trading in a tight range lately and seems to be building a nice base of support in the immediate vicinity of its rising 300-day moving average just above 60 cents…Colombian closed Friday at 64 cents, down 1 penny on the week…with Yarumalito and a very large portfolio of grassroots projects in Colombia, CMJ does offer considerable upside potential…we added CMJ to the BMR Portfolio late last year at 60 cents and it climbed as high as $1.62 in March…the company is making progress on the ground in Colombia even though the current share price is near its low for the year…
Greencastle Resources (VGN, TSX-V)
For long-term investors, Greencastle at 12 cents is about as safe as any investment you can find and also offers the possibility of a very significant upside move…that’s why President and CEO Tony Roodenburg has been an active buyer of the stock recently to add to his already significant holdings…Greencastle is generating over $100,000 a month in royalties from the Primate oil field in Saskatchewan and also has gold properties in Nevada, a coal property in Manitoba and shale gas interests in Quebec…it’s impossible to say when Greencastle will start moving again, so this is an investment only for patient investors who are prepared to wait until sometime in 2011 to see something develop here…
