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Kent Exploration (KEX, TSX-V) is ready for an imminent upside move with a reversal in its 20-day moving average and drill programs commencing soon at two highly prospective properties – Gnaweeda in Australia and Alexander River in New Zealand.  This morning’s article briefly reviews Alexander River which we believe could become a company-maker for Kent.  Like Gold Bullion Development’s Granada Property, Alexander River is a former producer.  Quite often, as we have seen with GBB’s Granada, the best place to find a new mine is near an old mine.  Kent’s strategy, we believe, is going to pay off tremendously for Kent shareholders in the same way that Gold Bullion’s strategy has paid off for its shareholders.

Folks, the market has yet to fully appreciate the significance of this particular property, which quite possibly could eventually rival OceanaGold’s (OGC, TSX) very successful Globe Progress Mine located just 20 kilometres to the north.  Ironically, Oceana gave up Alexander as a result of the 2008 market meltdown when it had to cut costs and go into survival mode.

The Alexander Prospect, which includes the old Alexander Mine that produced about 40,000 ounces of gold prior to closing in 1943, was estimated by Macraes Mining (the precursor to OceanaGold) to contain an inferred (non-compliant) resource of 643,000 ounces of gold.  Macraes reported that an auriferous halo of sulphide hosted mineralization exists around the early mined reefs (similar, by the way, to Globe Progress) and that there is an inferred resource of approximately four million tons grading more than five grams per ton.

A significant portion of the Alexander Prospect has yet to be systematically explored, however, and that has Kent President/CEO Graeme O’Neill thinking this property may have one million-plus ounce potential.  “From what we’re seeing here, this could go on for 2.5 kilometres (double the Macraes’ figure),” O’Neill told us in an exclusive interview.   ” While we were reviewing some of the historic data, Nancy (Nancy Reardon, Kent geologist) noted that there was a pan concentrate taken about three quarters of a kilometer away that ran 30 grams.  That’s a pretty significant pan concentrate, and it’s in another watershed…there appears to be least two parallel structures.  The whole gold belt stretches something like 40 or 50 kilometres north to south and over 100 small mines have been in operation.”

“The New Zealand government is good to deal with, very professional people,” explained O’Neill.  “After many years of unfriendly governments, they changed their whole mindset.  They’ve made a big commitment.  It’s a supportive environment, similar to Saskatchewan.  What I like to do, I like to go into an area and have someone say, ‘How can I help you’, and that is what I got there.  I was very impressed.”

Kent completed some trench sampling at Alexander River late last year and in January reported impressive results including 24.6 g/t Au over 3.2 metres, 6.4 metres grading 6.87 g/t Au, 8 metres of 10.56 g/t Au, and 12.8 metres grading 4.5 g/t Au.  Significantly, these numbers confirmed historical numbers from Alexander River – even better in some cases.

Given how resources at other mines in the area have often been doubled by a fresh exploration approach, there’s no question Alexander River could become a huge winner for Kent which in turn could become very appealing for OceanaGold.

Kent’s market cap of just under $6 million is stuningly palty for the potential that exists here. The stock closed yesterday at 17 cents.

Yesterday’s 65% move by Gold Bullion (GBB, TSX-V) on massive volume – 10.5 million shares –  is clearly a harbinger of things to come for this stock which still trades for less than half the market cap of its northern neighbor, Yorbeau Resources (YRB.A, TSX), which rocketed from 10 cents to 35 cents very quickly last September when it, too, reported a significant discovery.  Two rigs are currently working away on Yorbeau’s property.

Based on the flood of emails we were receiving at BullMarketRun yesterday – and who they were from – and reports from various sources, Gold Bullion has caught the attention of the “big boys” – market “power players”.

Gold Bullion’s wide intersections, the mineable grades (some of them similar to Osisko’s Canadian Malartic Deposit), drill hole locations and the astonishingly near-surface mineralization at Granada are key factors driving this exciting new exploration play on the CDNX that was first uncovered at BullMarketRun last December when GBB was a fledgling and virtually ignored 7-cent stock.   Our many hours of research on Granada and the area  have paid off handsomely and that’s what smart investing is all about.  Gold Bullion is now up 171% from when we initiated coverage just over two months ago.

Gold Bullion was drilling for “structure” and came up with stellar holes – #12 was 300 metres southwest of #17, and number 17 – which opens up a vast area to the east – was 100 metres southeast of #15 which opens a path to the north toward Yorbeau.    Wow.  Geologically, it is a fact that the grades are going to get even better with tighter spacing of the drill holes.

This is the real thing, folks, and from a geological standpoint we can’t imagine how it’s not going to get even better.  We stated that back in January and we were correct.  We are emphasizing that again this morning.  The upcoming expanded drill program at Granada is going to be a “whopper”, and Gold Bullion is guided here by one of the best geological groups there is – GENIVAR.

Gold Bullion “gapped up” significantly yesterday and closed strong at 19 cents after making an intra-day high of 20.5.  From a technical perspective, the volume and price breakout – underpinned by fundamental factors – has major implications.  Gold Bullion is also rapidly closing in on a three-year high of 25 cents as shown on the chart below.  A move through 25 cents on heavy volume would be hugely significant from a technical standpoint.

And just in case anyone is silly enough to think this is a “pump-and-dump” and not the real thing, BullMarketRun has confirmed there were NO insider sales of Gold Bullion stock yesterday.  Not a single share was sold by insiders into yesterday’s massive volume and price move.  What does that tell you??????  What that tells us, and what we clearly understood from our interview Monday that was posted here with Gold Bullion President/CEO Frank Basa, is that insiders have huge faith in this property and its ability to deliver a large bulk tonnage, open pit deposit. That’s encouraging and exciting to know.  Insiders control approximately 12% of GBB’s 81 million outstanding shares.

A chart tells a thousand words, so we don’t really have to write a whole lot more this morning!

An exploration discovery is one of the most exciting events a mining investor can experience.  There is so much more to report on Gold Bullion and Granada in the days ahead, and we look forward to staying on top of this story as we have from right after the drills first started turning at Granada.

Gold, which we indicated over the weekend is on the verge of a significant breakout, is up $6.00 an ounce to $1,124 as of 5:50 Pacific time this morning…a close above resistance at $1,130 would be extremely bullish…we expect that gold will challenge its December high sometime this month, a move that has been telegraphed by the action over the past two-and-a-half months in the CDNX…Gold Bullion Development (GBB, TSX-V) should enjoy a strong and active day after releasing very encouraging drill results post-market yesterday from its Granada Gold Property near Rouyn-Noranda, Quebec…we believe the news was a “company-changer” for Gold Bullion which has a great opportunity to discover a major bulk tonnage, open-pit deposit at Granada…we first uncovered Gold Bullion in December when it was a fledgling 7-cent stock and no one else was looking at…we did a tremendous amount of research on its Granada Gold Property and the former Granada Mine along with the area in general…Gold Bullion is truly a special situation with very significant “blue sky” potential…there is much more to report on GBB and it’ll be a major focus of our attention in the coming days…back in December we boldly stated GBB would become our “next Seafield (SFF, TSX-V)” which has jumped nearly 500% since we initiated coverage on it last summer…another company sitting on a former producing mine that we really like is Kent Exploration (KEX, TSX-V)…Kent is one of the best-managed junior exploration companies we’ve ever come across and has a lot of attractive components to it including the Alexander River Project in New Zealand, a short distance from OceanaGold’s (OGC, TSX) Globe Progress Mine…Alexander River has a historical non-compliant resource of 640,000 ounces of gold and Kent is slated to begin drilling operations there very soon…we’ll be reporting much more in the near future on why we are so bullish on the Alexander River Property, as well as Kent’s Gnaweeda joint-venture with Teck in Australia…Kent’s market cap is a paltry $6 million…the stock closed yesterday at 15.5 cents and is technically very oversold and resting securely just above extremely strong support at 14 cents, its 200-day rising moving average…we expect news from Kent very soon…

Wow, what a bolt of lightning after the market closed yesterday from Gold Bullion Development (GBB, TSX-V)!  The company, which we first uncovered at 7 cents for BullMarketRun.com readers back in December, released stellar drill results from its Granada Gold Property located six kilometres south of Rouyn-Noranda, Quebec, along the prolific “Cadillac Trend”.  This stock is now in serious play and many more eyes are now going to be focused on it (just remember where GBB was first mentioned!).

There can be no question now that Gold Bullion’s Granada Property has major potential as a large, open-pit bulk tonnage deposit.  They are drilling economic grades (very similar to Osisko) over significant widths and at shallow depths.  There is limited overburden at Granada which would also reduce mining costs.  Yes, this is still the very early stages at this intriguing property, but Gold Bullion has investors excited now.

Tom Petty’s song, “Into The Great Wide Open”, came to me last night while pondering Gold Bullion’s results.  Granada is The Great Wide Open right now.  More specifically, Discovery Hole #17  leads Into The Great Wide Open (and so too does #15!)

Someone should construct a big sign and post it beside Hole #17 with an arrow pointing east and the words, “This Way to the Golden Highway”.

Just by looking at the drill map below, even a novice mining investor can understand why Hole #17 is so hugely significant.  It was the easternmost hole drilled by Gold Bullion in its recent 25-hole program and delivered a near-surface result of 65.5 metres grading 1.21 grams per tonne gold within a wider interval of nearly 100 metres of almost 1 g/t Au (99 metres of 0.953).  This was in an area never previously drilled at Granada (this has been Gold Bullion’s first-ever drill program at Granada, previous operators focused on only a small footprint around the original mine workings).  Hole 17, we believe, is less than a mile from the property’s western border.  Directly to the east (on the way to Osisko’s Canadian Malartic Deposit) is several miles of virgin territory. Hole 17 could be the Gateway to a Golden Frontier at Granada.

Astute investors may have noticed an error on Gold Bullion’s previous drill map.  Holes 14 and 15 were reversed.  The most northerly hole, then, is actually #15 – 90 metres northwest of #17.  GR-10-15, a little over half a mile we suspect from the Gold Bullion-Yorbeau border, opens up great possibilities for GBB’s northern ground. This hole, reported February 8, intersected 73.8 metres of 0.88 g/t Au at shallow depths including 8 metres grading 6.34 g/t Au and 60.83 g/t Au over 0.8 metres.

To the south, GR-10-12 – 300 metres southwest of GR-10-17 – returned 68.8 metres of 1.07 g/t Au (from 16.2 to 85 metres) including 44 metres grading 1.54 g/t Au and 14 metres grading 4.28 g/t Au.  This, too, was also a shallow hole.

East, north and south – Gold Bullion has scored a hat trick.

GBB Granada Drill Map

What’s also exciting is that not only are results for 13 more holes still pending, but Gold Bullion announced yesterday it is already planning and preparing for a large (our emphasis) Phase 3 drill program.  “The immediate priority,” the news release stated, “will be to return to the east-northeast area of the LONG Bars Zone and continue further north and east with the goal of expanding this potential new resource.”

Oh yes, there’s that name – the LONG Bars Zone.  We don’t know who came up with that catchy phrase – perhaps some Hollywood marketing whiz – but LONG is an acronym for “Lots of New Gold“.   And there may very well indeed be lots of new gold at Granada.

We have stated this before:  The best place to find a new mine is near an old mine.  Just ask Aurizon Resources (ARZ, TSX) which recently released a NI-43-101 Pre-Feasibility Study of its Husco Deposit (two million ounces measured, indicated and inferred) at its Joanna Project just 20 kilometres to the east of Granada.  Husco had even more humble beginnings than the Granada Mine.  In 1948 and 1949, 45,872 tonnes of ore grading 6.58 g/t Au was mined at Husco in a 100-tonne-per-day operation, yielding 9,000 ounces.  In 1973, ore reserves at Husco were estimated to be 955,000 tonnes grading 5.4 g/t.  Very little happened with that fledgling property until Aurizon took it over with a fresh approach in 2006.  After drilling nearly 500 holes they had a two million ounce deposit on their hands.

Can you imagine what Gold Bullion may potentially have after drilling 500 more holes???????????

A few sentences we really liked in Gold Bullion’s company-changing news release:

“Additional drill results from the recently completed exploration program…have confirmed the growing magnitude of this potentially large, near-surface bulk tonnage structure.”

“Gold Bullion’s drilling since December, and its land acquisition program, has greatly expanded the potential scale and geometry of Granada beyond what the Company first envisioned when it started with the old mine workings in 2006.”

“Mineralization has been encountered in each and every hole drilled so far by Gold Bullion and remains open in all directions.”

“It now appears this system is massive (Basa quote) which is why we increased our land package to 2,300 hectares and will explore it systematically with a great deal of anticipation and excitement.”

“A prominent zone of deformation, hyrdothermal alteration and quartz-veining extends for at least five kilometres around the old mine workings.”

Wow.  Gold Bullion closed yesterday (prior to news) at 11.5 cents, giving it a market cap of only $9.3 million.  At BullMarketRun.com, we don’t get into price targets.  But we’ll say this:  Gold Bullion’s northern neighbor, Yorbeau Resources (YRB.A, TSX) has a current market cap of almost $40 million.  Yorbeau has jumped substantially since last summer after putting out some very good results as well.   However, we believe that Gold Bullion’s Granada Property now has more going for it with its near-surface, widespread mineralization.

Let the fun begin.

Folks, we were very fortunate to track down Gold Bullion Development (GBB, TSX-V) President/CEO Frank Basa this afternoon who consented to about a 10-minute audio interview after this afternoon’s “whopper” of a news release.

We are truly excited about Gold Bullion and, admittedly, it’s a great feeling to have uncovered this gem for our readers back in December when it was languishing at 7 cents…and to see now a discovery in the making.  We congratulate those investors who have stayed patient with this one over the last month – that patience is definitely going to be rewarded handsomely.

This is a fascinating interview, exclusive to www.BullMarketRun.com readers – simply click on the link below.  It is in MP3 format.

Gold Bullion Interview

We are continuing to analyze Gold Bullion’s news release issued this afternoon, and as mentioned earlier we’re working on another article that will be posted prior to the market open tomorrow.

Welcome to our site, or at least a sneak preview of it! The final version will look much different than this as we develop a fully-integrated and very unique business, investment and money-management resource site.

An important component of this site is going to be original research on small and undiscovered junior resource companies that offer very real and significant upside potential. We are extremely selective in the companies we feature and put forward to investors – we prefer quality over quantity. Management is the first thing we look at – it’s our #1 criteria – because without superb or solid management, a company with the best properties in the world is either going to underperform or flat-out fail. As simple as that. So we look for superior management guided by strong business ethics and integrity, followed by an outstanding portfolio of projects.

Disclaimer:

BullMarketRun.com is completely independent from any companies we cover. We accept no compensation of any kind from any groups, individuals or corporations mentioned on our site. Our stock coverage is for informational purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. No investment opinion or other advice is being rendered on any stock or company. We strongly recommend that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research before making any investment decisions. The stocks we cover, by definition, are highly speculative and potentially very volatile. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks. We are not Registered Securities Advisors. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.  It should be assumed that BullMarketRun.com writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time.

Confirming our theory on the Granada Gold Property, Gold Bullion Development Corporation (GBB, TSX-V) has come out with STELLAR news this afternoon, following the market close, with intersections and grades on drill results that are the best ever seen at this property and confirm its immense upside potential.

As bullish as we have been on this property, this news has even take us a little by surprise this early on in the exploration stage.  We are pouring over the numbers and also desperately trying to get in touch with Gold Bullion President/CEO Frank Basa for an interview we can post here at www.BullMarketRun.com.

We’ll be coming out with a much more detailed analysis by tomorrow morning, prior to market open, but here are the highlights from a quick review of the release:

1.  Some of these grades and intersections are very comparable to Osisko’s early results from the 10 million+ ounce Canadian Malartic Deposit;

2.  All this mineralization is at very shallow depths – mineable grades and near-surface.  This is extremely significant.

3.  An eastern-northeastern extension to the Granada Property has clearly been confirmed, and keep in mind GBB has stepped out only half a mile or so to the east which continues for another several miles.  Talk about “blue sky” – this could be HUGE.

4.  The easternmost hole drilled to date has Granada – GR-10-17 – has intersected 65.5 metres of 1.21 g/t Au over a wider interval of almost 100 metres grading almost 1 g/t Au;

5.  GR-10-12, drilled 300 metres southwest of GR-10-17, has returned 68.8 metres of 1.07 g/t Au including 44 metres grading 1.54 g/t Au and 14 metres grading 4.28 g/t Au.

6.  GR-09-08, 46 metres east-southeast of GR-10-12, has intersected 32.5 metres of 1.27 g/t.

7.  Assay results on 13 more holes are yet to come – you’re going to see major speculation here, folks, after these results today;

8.  Mineralization is open in all directions at Granada;

9.  Gold Bullion is now “planning and preparing to launch a large third phaase drill program”.

10.  “It now appears this system is massive (our emphasis)” – quote from Basa;

11.  This is the first time Gold Bullion has ever drilled this property which is showing increasingly strong potential as a major bulk tonnage, open-pit deposit (or series of deposits);

12.  WOW.  Yorbeau Resources (YRB.A, TSX), Gold Bullion’s northern neighbor, has a current market cap of nearly $40 million and does NOT have, in our view, what Gold Bullion appears to now have.

Bottom line:  This stock is now seriously “in play” and volume tomorrow could be massive.  We will post a complete analysis prior to the market open tomorrow, and we hope to post an interview with Frank Basa later this afternoon (we are on Pacific time).

The markets are off to a good start this first day of March…gold was a little soft earlier this morning but is currently up $3.00 an ounce to $1,121 as of 9:15 am Pacific time…the CDNX is off 2 points at 1,529 but should strengthen by the close…Gold Bullion Development (GBB, TSX-V) remains under “Alert” status based on our technical analysis of the stock and fundamental factors as more Granada drill results are expected soon…GBB is unchanged this morning at 11.5 cents on volume of 321,000 shares…bring on those assay results, we say, because we are convinced the Granada Property is going to be a big winner…Kent Exploration (KEX, TSX-V) is up a penny to 16 cents…we believe Kent will be a strong performer this month after a very weak February…with the stock’s oversold condition, plus the fact it’s trading at very strong support levels, now is clearly the time to be accumulating Kent which should at least challenge its 52-week high of 24.5 cents this month as speculation builds over drill campaigns starting soon at both Gnaweeda in Australia and Alexander River in New Zealand…Kent has less than 40 million shares outstanding and is rather tightly held, so it has real potential to move forecefully in a hurry…Seafield Resources (SFF, TSX-V), which enjoyed a great week last week, is off 1.5 cents this morning to 31 cents on fairly light volume for this stock of 240,000 shares…Richfield Ventures (RVC, TSX-V) is up 2 cents to $1.50…