BullMarketRun.ca

Gold has traded between $1,363 and $1,387 today…as of 5:45 am Pacific, the yellow metal is up $17 an ounce to $1,384 on fears the European sovereign debt crisis may worsen…Silver is also stronger while the greenback continues to push higher…the U.S. Dollar Index is trading at 81.41, up half a point…despite an 8% mini correction in mid-November, the CDNX is poised to post its 5th consecutive monthly advance today…the Index goes into the final day of the month up 100 points from its October close…we are in the midst of one of the greatest bull markets we’ve ever seen in the junior mining sector, so this is a time to continue to think “BIG” and prepare for the potential of another spectacular move in the CDNX over the next few months…this Index is up 53% since the July low of 1343 and another 50% surge to 3000 by the end of February is very possible…the “masses” aren’t yet in this market – they’re still smarting from the Crash of ’08, but greed will draw them in soon enough…the CDNX still has a lot of catching up to do with Gold which was trading at half the levels it is now in 2007 when the CDNX was over 3000…with emerging market and Fed dynamics, the Perfect Storm has formed for an acceleration in the Commodities Super Cycle entering 2011 and this is profoundly bullish for the CDNX…Gold Bullion Development (GBB, TSX-V) has more than doubled its land position in the Granada area, announcing yesterday it has added 4 properties totaling 6,200 hectares…the maps on the GBB web site are certainly interesting and show how Frank Basa has also surrounded Threegold Resources‘ (THG, TSX-V) Adanac Project to the east…BMR is continuing to perform due diligence on all companies with any property in the general vicinity of Granada in preparation for a major report…GBB’s chart is a picture of beauty with the Chaikin Money Flow (CMF) indicator also showing that buying pressure has been increasing steadily through the month of November…GoldQuest Mining (GQC, TSX-V) enjoyed another strong day yesterday, hitting a new 52-week high of 37 cents and closing at 35.5 cents for a gain of 4.5 cents…the market is a forward-looking machine and it’s telling us that 2011 could be a spectacular year for GQC which has positioned itself extremely well for success with its projects in the Dominican Republic and Spain…preparations are underway for a major new drill program at GoldQuest’s La Escandalosa Property (formerly Las Tres Palmas) in the DR where the company is building a significant Gold resource with substantial upside potential…we’ll be reviewing the possibilities of La Escandalosa in more detail in the coming days, and that’s just one of numerous highly prospective properties GQC has in the DR…in Spain, it’ll be interesting to see what develops with GoldQuest’s Toral Project, a significant zinc-lead-silver deposit, after a 43-101 resource estimate is announced in the near future…another company we like in the Dominican Republic that we suggest investors do their due diligence on is Everton Resources (EVR, TSX-V)…Everton, like GoldQuest, has explosive potential as demonstrated by its chart…EVR is also currently drilling its APV Property which is immediately adjacent to the massive Pueblo Viejo deposit under development by Barrick and Goldcorp…Currie Rose Resources (CUI, TSX-V) fell for the first time in 9 trading sessions yesterday, dropping 1.5 cents to 36 cents…the stock has very strong technical support in the low ’30’s as proven yesterday when it reacted after touching 33.5 cents…we don’t believe you’ll see President and CEO Harold Smith sell a single share of CUI anytime soon as he is extremely focused and committed to building this company into a huge winner in Tanzania with its Mabale Hills and Sekenke assets…Sidon International (SD, TSX-V) enjoyed a powerful day yesterday as it traded over 8 million shares on the CDNX on news that it has signed a contract with Simba Drilling Company Ltd. to begin a 1,500 metre drill program at the company’s Morogoro East Property…our speculation over the weekend of a potential near-term breakout in Sidon, based on technical indicators, proved correct…it appears Sidon could have a very strong finish to 2010…we’re keeping a close eye on Seafield Resources (SFF, TSX-V) which has shown some recent strength including a reversal in its 20-day SMA and a dramatic surge in buying pressure as revealed by the CMF…the stock closed unchanged at 22.5 cents yesterday…SFF does face strong technical resistance in the 24 to 27 cent range, as we saw in September and October, so it will take a major development for this stock to break that barrier…the current technicals, however, suggest Seafield should be watched closely right now…

Gold has traded in a range of $1,354 to $1,370 so far today…as of 8:25 am Pacific, the yellow metal is unchanged at $1,364…Silver is ahead 18 pennies to $26.88 while the U.S. Dollar Index continues to surge, up more than half a point to 80.96 and now at its highest level in over two months…there is very strong technical resistance at 82 on the Index as John pointed out in his article last night…Gold has been holding up extremely well in the face of a stronger U.S. Dollar and that certainly bodes well for the yellow metal…at BMR we believe the primary trend for the greenback is down…a higher Dollar also goes against the Fed’s determination to avoid a deflationary scenario in the United States…European finance ministers have backed a $112.2 billion aid package in order to shore up Ireland’s troubled banking sector and stem investors’ growing fear of a Euro Zone debt crisis…the broader markets are weak today which has spilled over into the CDNX, currently off 12 points at 2045 as of 8:25 am Pacific…the winning strategy with the CDNX over the last several months has been to accumulate on weakness…Gold Bullion Development (GBB, TSX-V) has more than doubled its Granada-area land package from 4,900 hectares to over 11,000 hectares…this was announced this morning, and at BMR we see this as a very positive development…this is just pure speculation on our part, but Gold Bullion may have picked up the extra ground on indications from GENIVAR that they are seeing something significant in the overall structure of the LONG Bars Zone…regardless, Gold Bullion is solidifying its position around what it calls “an emerging mining camp”…what we also found interesting is that GBB made reference to “recent prospecting” (we assume by Adventure Gold, AGE, TSX-V) that has also demonstrated “new potential going west”…things appear to be heating up around Granada…GBB is currently up a penny at 67 cents…Currie Rose Resources (CUI, TSX-V) is taking a bit of a breather today after a powerful move last week (67%)…CUI is currently off 3 pennies to 34.5 cents…the chart shows strong technical support in the low 30’s near the 2008 high…last week’s volume and breakout above the 2008 high was a very bullish technical development…this is going to be a very interesting story to watch as Currie Rose focuses on development of two very promising projects (Mabale Hills and Sekenke) in northwest Tanzania’s prolific Lake Victoria Greenstone Belt…GoldQuest Mining (GQC, TSX-V) has hit a new 52-week high today of 36 cents…GQC recently came out with an NI-43-101 inferred resource estimate (400,000 ounces of Gold) for its La Escandalosa Project (formerly Las Tres Palmas) in the Dominican Republic…the estimate was based on just 25 holes at Escandalosa Sur with considerable additional potential around that area and going both north and south…GoldQuest has been active in the DR for over a decade and has assembled a quality pipeline of advanced and early stage exploration projects in that mining-friendly country…a 43-101 resource estimate is also expected soon for GoldQuest’s zinc-lead-silver project (Toral) in northwest Spain…drilling starts up again soon at GQC’s DR properties…the stock is ahead 4 more cents this morning to 35 cents…another company in the DR we like a lot, and encourage investors to examine, is Everton Resources (EVR, TSX-V) which is stronger this morning at 37.5 cents (up 2.5 cents)…EVR is currently drilling its APV Property immediately adjacent to the Western Hemisphere’s largest Gold deposit (Pueblo Viejo) that Barrick and Goldcorp hope to put into production by the end of next year…Pueblo Viejo is the largest development project in the DR with the total capital expenditure expected to be around $3 billion…Sidon International (SD, TSX-V) is up 2 pennies to 13.5 cents and showing renewed technical strength…the company is developing its Morogoro East Gold Property in Tanzania which has high grade potential…

Welcome to our site, or at least a sneak preview of it!  The final version may look much different than this as we continue to develop a very unique investment and money-management resource site.  An important component of this site is original research on small and undiscovered junior resource companies, mostly in the gold exploration space, 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.

We use a combination of fundamental and technical factors in determining the value and potential of a stock.  In terms of fundamentals we look for a company with a superb project supported by strong management.  Management must possess integrity, solid ethics and a determination to succeed and build shareholder value.

At BullMarketRun (BMR) we approach the handling of money from a biblical perspective and this is an important topic we will be sharing with our readers (and listeners) as the site continues to develop.

Disclaimer:

BullMarketRun.com is completely independent from any companies it covers.  BMR accepts no compensation of any kind from any groups, individuals or corporations for coverage of any company mentioned on this site.  We accept no advertising either.  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 BMR personnel, writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time.  Owner/Publisher of BullMarketRun.com is Terry Dyer of Langley, British Columbia.

If you listened to our interview over the weekend with Everton Resources‘ (EVR, TSX-V) President and CEO Andre Audet, you can’t help but be excited by the exploration opportunities in the Dominican Republic.  This is a mining-friendly, mineralization-rich country that hosts one of the world’s largest Gold deposits – Pueblo Viejo is actually the biggest development project in the DR right now ($3 billion is being invested by Barrick and Goldcorp with production expected to commence by late next year).

We’ve already brought GoldQuest Mining (GQC, TSX-V) to the attention of our readers – in fact we added GQC to the BMR Portfolio 2 months ago and it has performed very well (it’s one of our favorites going into 2011).  GoldQuest has over a decade of exploration experience in the DR and has a terrific pipeline of advanced and early stage projects.  Everton is another company we like a lot in the DR (we first mentioned it several months ago when it was trading in the mid-20’s).  It has a land package in excess of 300 square kilometres and its APV Property, where drilling is underway, is literally a stone’s throw from the Pueblo Viejo deposit.   Tonight, John takes a look at EVR technically with a detailed chart analysis:

John: Friday, Everton Resources (EVR, TSX-V) opened at its low and during the day climbed as high as 36 cents before closing at 35 cents for a gain of 3 pennies (7.69%) on CDNX volume of 499,000 shares.

Looking at the 4-month daily chart we see that the share price broke above a horizontal trend channel on Sept. 3 at 23 cents and proceeded to climb to a high of 28 cents on Sept.16. Then it started to consolidate into a downsloping flag until Oct. 20 when it began to trade in a horizontal trend channel through Nov.5 between 24.5 cents and 26 cents.   On Nov. 8, Everton broke to the upside and over the next 6 sessions it climbed to a high of 34 cents.   It consolidated  into a pennant over the following 9 sessions.  On Friday, Everton broke to the upside out of this pennant to close at 35 cents.

There are 2 sets of Fibonacci levels shown. The first set (blue) stretches from the base at 20 cents to the 100% level at 28 cents. This is the seed wave. The first target from this seed wave is 33 cents. Also the downsloping flag declines down to the 50% level at 24 cents. This was to be expected. The next move to the upside goes to a new high of 34 cents, just one penny more than the first Fibonacci target. From that point the trading pattern becomes a consolidation continuation pennant with a blue top line and a green bottom line.  Friday we saw the breakout to the upside to a new high of 36 cents.

The EMA(20) moving average is providing close bullish support. The volume on Thursday and Friday (each day) was nearly 500,000 shares, about 2x the daily average of recent sessions. This is bullish.

Looking at the Indicators:

The RSI is at 71% with a “W” formation and plenty of room to move higher –  very bullish.  The ADX trend indicator has the +DI (green line) pointing up at 34 and above the -DI (red line) at 9. The ADX (black line), the trend strength indicator, is at 33 and climbing.  The bullish trend is increasing in strength, a very bullish orientation.

The Chaikin Money Flow (CMF) indicator shows that the buying pressure is increasing and will get stronger as the volume increases with this breakout.

Outlook: With the breakout Friday the stock price should continue to move up toward the Fibonacci target of 41 cents (this is not a BMR price target as we don’t give price targets but a theoretical near-term Fibonacci target based on technical analysis as a guide for investors).  Everton is at its highest level in over 2 years and the overall technical outlook for this stock is very positive.

John: Recently, much has been written about the U.S. Dollar.   On the one hand the monetary theorists look ahead and predict the demise of the greenback but on the other hand politicians around the globe demand that the U.S. Dollar not be allowed to deteriorate in value as the Federal Reserve (if not the Obama Administration) seems to desire.  There are competing forces at work here.

At BMR we believe it’s important to keep a close eye on the value of the U.S. Dollar as there is generally an inverse relationship between the Dollar and Gold.  It appears Gold is going to move higher no matter what the U.S. Dollar does (the 2 can move in tandem), but a weakening Dollar gives Gold additional fuel and can accelerate a rise in the yellow metal.  Commodities in general will also rise when the Dollar falls in value.

Today we analyze the chart of the U.S. Dollar Index to find out what to expect in the near future.   The Dollar Index is a method of determining a relative value for the U.S. Dollar in terms of a weighted basket of other currencies – the Euro, Canadian Dollar, Japanese Yen, Swedish Krona, British Pound and the Swiss Franc.

On Friday the Dollar Index opened at 79.79, drifted down to a low of 79.72, and then climbed to a high of 80.52 before closing at 80.36 for a gain of 0.61 (0.76%).

Looking at the 6-month daily chart we see that from mid-June to the first week of November, the Index declined in a 3-wave Corrective Phase from 88 down to a low of 75.58. Since then it has reversed and on Friday it made a significant move by breaking above the 80 level (green line) which was resistance and now support.  Also shown are resistance levels (blue horizontal lines) at 81, 82 and 83.5. The daily SMA(200) moving average (blue), currently at 81.74, makes the 82 level particularly strong resistance.

A set of Fibonacci levels are shown covering Wave #3 of the Corrective Phase. This wave reversed and retraced to the 50% level, declined and then continued up to a high of 80.52, the same as the 61.8% Fibonacci level. This demonstrates how reactive the Index is to Fibonacci retracement levels. The Index is now moving in the band between 80 and 83.5 which is a resistance band with the 82 level providing very strong resistance.

Looking at the Indicators:

The RSI is pointing up at 67 indicating we can expect the Index to move higher – bullish.

The Slow Stochastics has the %K (black line) at 95%, poised to break down over the %D (red line) at 94%.  This is creating an “M” formation, similar to the one in August.   This formation usually precedes a decline in the Index.

The ADX trend indicator has the +DI (green line) at 29 and above the -DI (red line) at 23 with the ADX (black line) trend strength indicator at 23. This orientation indicates a weak bullish trend.

Outlook: The chart and indicators show we can expect the Dollar Index to continue to climb in the immediate future but it will encounter very strong resistance around the 82 level and likely resume its primary downtrend from there.

The BMR Portfolio (2nd of 2 parts)

GoldQuest Mining (GQC, TSX-V)

GoldQuest, one of our favorites going into 2011, is looking very strong technically and fundamentally…GQC gained a nickel this past week to 31 cents on improved volume (813,000 shares traded Friday on the CDNX)…all moving averages are in bullish alignment and the rising 50-day SMA (now at 25 cents) has provided excellent support throughout the stock’s move which started in September at 12 cents…the possibility of an imminent breakout to a new 52-week high (above 32.5 cents) certainly exists…GoldQuest’s Gold properties in the Dominican Republic and its zinc-lead-silver deposit in Spain have us very bullish on this company going forward…GoldQuest, whose largest shareholder is Gold Fields Ltd., is well established in the DR and its property package there is a geologist’s (and an investor’s) dream…they have spent nearly a decade identifying many highly prospective targets, one of them being La Escandalosa (formerly Las Tres Palmas) where an inferred resource of 400,000 ounces of Gold has already been outlined (announced Nov. 16) based on just 25 drill holes at Escandalosa Sur from 2006 through 2010…La Escandalosa  is open both to the south and to the north toward another discovery of Gold mineralization by the company at Hondo Valle, approximately 1.2 kilometres away…GoldQuest now has all the permits in place for more drilling throughout La Escandalosa and a major program is set to begin…there is strong potential to substantially increase the initial inferred resource estimate for this intriguing deposit…Gold there 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…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…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 currently being prepared…GoldQuest has also acquired a second polymetallic project in the area (Lago, just a 20-minute drive from Toral), and more details are expected upon approval from the Spanish government of a mineral rights application for the property…BMR’s interview with Andre Audet of Everton Resources (EVR, TSX-V, another company in the DR), posted Friday evening, will give investors some valuable insight into mining and exploration in the Dominican Republic, a mining-friendly jurisdiction which hosts the largest Gold deposit in the Western Hemisphere…GoldQuest is up 59% since we added it to the BMR Portfolio 2 months ago…

Sidon International (SD, TSX-V)

Sidon was up a penny for the week, closing at 11.5 cents, and showed new signs of life with improved volume Thursday and Friday…Friday’s CDNX volume of 2.4 million shares was the highest since mid-October…technically, the stock has traded almost the entire month of November between its rising 100-day SMA (just above 11.5 cents) and its rising 200-day SMA at 8.5 cents…significantly, it appears the stock’s 50-day SMA could soon reverse to the upside after being in decline since late September…this is certainly something to watch out for…SD climbed above its declining 50-day Friday for the first time in nearly 2.5 months, another sign it could soon be ready to begin a fresh move to the upside…Sidon hasn’t released a lot of news on its Morogoro East Gold Property in Tanzania the last few months but the latest news (Nov. 15) confirmed that Sidon is advancing this interesting project very methodically…the company has a new web site it’s launching soon (likely by year-end) and it has also hired an investor relations person – 2 obvious signs that activity could soon ramp up…Sidon has some promising geological targets at Morogoro East and we believe this will be an interesting story to follow in the coming months…Sidon has increased 130% since we added it to the BMR Portfolio last spring…

Seafield Resources (SFF, TSX-V)

Seafield woke up out of its doldrums last week and closed Friday at 22.5 cents, a 4-cent gain from the previous Friday…newsletter writer Brien Lundin had some positive comments regarding Seafield which is developing its Quinchia Gold Project in Colombia, just a short distance (less than 10 kilometres) from Medoro’s (MRS, TSX) Marmato deposit which has a measured, indicated and inferred resource of 9.7 million ounces of Gold (Medoro is expected to come out with an updated resource estimate by year-end)…Seafield has been an under-performer this year (country manager Ian Park has not been nearly aggressive enough with the company’s exploration program) but we see a lot of fundamental value with its Quinchia properties, so we’re holding tight with Seafield…it would nice if Seafield gave investors an exploration update in the near future…Park put himself front and centre with investors last July with a conference call and has let down those investors since then…Seafield is ahead 275% since we made it the first stock in the BMR Portfolio in the summer of 2009…

Excel Gold Mining (EGM, TSX-V)

Nothing new to report with regard to Excel which declined half a penny this past week to 13.5 cents…EGM may take a little longer to really get going than we originally hoped but the good news is that drilling is underway at the company’s Montauban Mining Camp Project, 120 kilometres west of Quebec City…when the drills are turning, anything’s possible…we like Montauban a lot and if anybody can unlock the value of this project, it’s Frank Basa…Excel just recently named Basa as President…the Gold Bullion President and CEO has some cleaning up to do with Excel but he has certainly proven himself with Gold Bullion and we’re confident he’ll turn Excel into a major success though this won’t happen overnight…the company recently finalized a $763,000 flow-through financing to fund its current drill program…drill targets were selected based on information provided by the most extensive historical compilation of geological data (including over 900 drill holes) ever assembled on Montauban which is a former Gold, silver and base metals producer…Excel is down 2.5 cents since we added it to the BMR Portfolio early last month…

Colombian Mines (CMJ, TSX-V)

Colombian was up a penny for the week, closing at exactly its rising 50-day SMA of 83 cents…we see the potential for a near-term technical breakout with CMJ…since mid-September the stock has traded between its 100 and 200-day SMA’s…the 100-day has now started to reverse to the upside…a breakout will be confirmed if and when CMJ closes above 95 cents, an area that has provided stiff resistance…on Nov. 17 the company announced that recent channel sample results have extended high grade Gold-silver-copper mineralization over a much larger width than indicated by historic information at its 9,300-hectare El Dovio project in Colombia…all samples returned significant polymetallic mineralization…6 samples contained Gold in excess of 10 grams per tonne, with individual 2-meter channel samples assaying up to 25.55 grams per tonne Gold, 66.88 grams per tonne silver and 13.5 per cent copper…on October 13 the company reported assay results for 7 more holes at its Yarumalito Property with the best result being a 151 metre section in porphyry from YAR-24 grading 0.64 g/t Au…YAR-14 returned 95.5 metres of 0.70 g/t Au…Yarumalito continues to show promise but these are still early days and much more drilling is required…CMJ is one of the best positioned companies in Colombia with a history in that country and a large package of properties…the stock is up 40% since our introduction of it late last year (it was up as much as 170% at $1.62 in March)…

The BMR Portfolio (1st of 2 parts)

Gold Bullion Development (GBB, TSX-V)

Gold Bullion recorded its 3rd straight weekly advance, gaining 3 more pennies to close at 66 cents on CDNX volume of 3.8 million shares (there was also significant GBB volume through the ALPHA market)…bears tried but failed to drive GBB below important and strong support at 60 cents last Monday and Tuesday, and an intra-day reversal Tuesday sent the stock as high as 66 cents…on Wednesday GBB touched 69 cents where there is stiff resistance (right around the $100 million market cap area)…GBB’s chart is a picture of beauty, however, which is why we believe there is a much greater probability of a powerful move through resistance than a collapse below support…GBB’s chart shows a slow but steady progression since the late June/early July 40% correction…all of GBB’s moving averages are once again in bullish alignment with the RSI and Stochastics at reasonable levels…the Chaikin Money Flow (CMF) indicator shows buying pressure has steadily increased throughout the month…all in all, the technical evidence suggests that Gold Bullion is in the midst of a new up-leg…fundamentally, the latest drill results demonstrate that the LONG Bars Zone is widening…this is important for the geometry of the deposit…it’s our theory that the mineralization GENIVAR is discovering in the northern portion of the Eastern Extension actually begins to the west above the Preliminary Block Model…the drill rig, the “truth machine”, will confirm in due course if that is indeed the case…at this point there’s no question there’s strong new potential for the LONG Bars Zone going north, and Hole #86 (1 gram over 84.6 metres near-surface) shows there is also new potential going south…to the east, of course, it’s all “blue sky” as Gold Bullion has several kilometres of highly prospective strike length still to explore (LONG Bars Zone 2 is nearly 2 kilometres east of Phase 1 discovery hole #17)…BMR has been pounding the table on GBB since December of last year when the stock was sitting at just 7 cents, so it’s nice to see respected writers such as Jay Taylor begin to take an interest in the story…we truly believe these are still the very “early days” for Gold Bullion and Granada with much more excitement to come…BMR followers who listened to our interview with Everton Resources (EVR, TSX-V) President and CEO Andre Audet over the weekend may have picked up on his comment near the end of the interview that Granada is “the making of an area play”…Audet knows the Cadillac Trend very well and we think he made that statement because he genuinely believes it, not just because he happens to be a large shareholder in Adventure Gold (AGE, TSX-V)…

Adventure Gold (AGE, TSX-V)

We first mentioned Adventure Gold to our readers in an article September 29 when the stock was trading in the low 20′s and just a couple of days after the company announced it had acquired land at Granada…we officially added AGE to the BMR Portfolio at 34 cents October 28…our interest in Adventure Gold goes far beyond the company’s involvement at Granada, as exciting as that is…Adventure Gold has been around only since late 2007 and we are impressed by the company’s strong portfolio of properties (19 in 6 strategic areas in Quebec and Ontario) including its recently announced partnership with Agnico-Eagle (AEM, TSX) at Dubuisson…it also has a 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…Lake Shore provided an update on this project last week…the current initial deep drill hole onto the Meunier JV property is continuing and when completed is estimated to 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 is now about 1,700 metres in depth….this hole is targeting potential zones down plunge and on strike to mineralization at LSG’s 100% owned Timmins Mine Gold deposit where LSG has recently announced intercepts of up to 13.55 g/t Au over 50.8 metres and 61.35 g/t Au over 15 metres…the Timmins deposit straddles a volcanic/sedimentary/ultramafic contact zone within a folded sequence that plunges 54 degrees to the west-northwest toward the Adventure Gold Meunier JV property…AGE was up 2.5 cents for the week to close at 45.5 cents…it has a powerful chart with rock-solid support in the low 40’s…

Currie Rose Resources (CUI, TSX-V)

It was an incredible week for Currie Rose which gained 15 cents or 67% to close at 37.5 cents on volume of nearly 12 million shares on the CDNX…we first mentioned CUI to our readers over 2 months ago when it was sitting at a dime…the kind of volume we witnessed last week and the powerful move through resistance in the low 30’s are extremely bullish indicators…technically, the stock now has a new support area (low 30’s), the 2008 high…what’s driving this interest in Currie Rose, we believe, is a growing appreciation of the company’s potential in Tanzania where it is focusing on 2 major projects (Mabale Hills and Sekenke), approximately 200 kilometres apart, in the prolific Lake Victoria Greenstone Belt…with the Sisu River Gold Property, which is part of the Mabale Hills Project, investors are looking for a possible repeat of Currie Rose’s early success in 2005 just 8 kilometres to the southwest at Mwamazengo…14 holes totaling nearly 1,500 metres were completed through mid-November at Sisu River and initial assay results are pending…Currie Rose is using a lab in the local area, a short distance from Mabale Hills, and they’ve been able to get assay results very quickly in the past…drilling at Sisu River started just over a month ago and the company also reported that “good source rocks have been intersected beneath the ‘mbuga’ clays…we can’t help but think a discovery could be in the making here, perhaps similar to what occurred at Mwamazengo in 2005…the drill program at Sisu River is focusing on an area that has returned excellent sampling results and where artisanal miners made a discovery in the fall of last year…the quartz porphyry target at Sisu River is hosted within felsic volcanic rocks, generally considered to be favorable hosts for Gold in greenstone belts around the world…in mid-November Currie Rose also gave more details on its Sekenke Gold Project which is 200 kilometres southeast of Mabale Hills…we are extremely bullish on this major land package as it runs in between and surrounds 2 former producing high grade mines…the company has already identified a large structure (12 km by 800 metres) within a shear zone on the margins of a large granite intrusion that hosts numerous vertical quartz reefs of the same type that developed at the nearby former mines…Currie Rose is ready to initiate significant pre-drilling work (high resolution satellite imagery, geophysics, etc.) at Sekenke in order to prioritize drill targets for the spring…

Richfield Ventures (RVC, TSX-V)

It was an incredible week as well for Richfield which surged 57% to as high as $5.10 before closing the week up a whopping $1.75 at $4.99…RVC is now up 315% since we introduced it to BMR readers nearly a year ago at $1.20…we believe the company’s objective is to ultimately find a buyer for its potential multi-million Gold deposit at Blackwater in central British Columbia…if good drill results continue, we’re confident that objective will be met and the takeover price could be significantly higher than the company’s current market cap of $180 million…Richfield announced very positive metallurgical results last week and more outstanding drill results including 171 metres (from 8 to 179 metres) grading 3.13 g/t Au in BW-91…this hole was collared 50 metres south of BW-87 which cut 115 metres grading 2.59 g/t Au and demonstrates the southward continuity of strong near-surface mineralization between the 2 holes and the potential for a further extension to the south…the deposit is also expanding to the east as BW-90 intersected 148 metres grading 1.77 g/t Au…all in all, this is shaping up to be a major deposit which also has silver and copper values…it looks like it’ll be a cold and snowy winter in British Columbia, but Richfield has a fully winterized camp and should be able to drill with at least 2 rigs without any interruptions throughout the winter…

Greencastle Resources (VGN, TSX-V)

Strength in Richfield spilled over into Greencastle last week as VGN acquired property recently in the area near the Blackwater deposit…Greencastle was up 5 cents or 21% for the week, closing at 29 cents Friday…technically, VGN is strongly underpinned by a rising 20-day SMA just above 24 cents…the company’s latest financials came out Friday and show cash on hand (as of September 30) of $5 million and working capital of nearly $6 million or 13 cents per share…in clockwork-like fashion, Greencastle has experienced 3 powerful moves (very sharp spikes) over the last 7 years (late 2003, early 2006 and mid-2008)…2006 was more intense than 2003, and 2008 was stronger than 2006…we’re certain that a very powerful fourth move is now underway, driven by Greencastle’s recent shift in corporate strategy to get much more active in the Gold exploration space…volume has picked up dramatically in VGN since late October, which is what one would expect in the early stages of a major move…Greencastle has regular monthly oil royalty revenue in excess of $100,000 and 2 very promising Gold properties in Nevada to go along with its new acquisition near Richfield’s Blackwater Project…VGN has a current market cap of only $13 million and is already up 107% since we added it to the BMR Portfolio just over a month ago…

CDNX and Gold

The incredible strength and resiliency of the CDNX was clearly on display Friday when markets across the board were under pressure – Toronto, New York, precious metals and commodities in general were all quite weak and finished the day down – and the CDNX bounced back from a 16-point loss early in the day to finish with a gain of 8 points.  It closed the week at 2057, just 13 points shy of the November 9 high, for a strong weekly gain of 61 points.  This market has already regained the 8% it lost during the brief mini-correction over 6 sessions between November 9 and 16.

Since the CDNX has proven to be such an accurate leading indicator of future activity in precious metals and even the broader markets, what does this tell us?  It confirms what we’ve been saying all along – we’re in the midst of a bull run of historic proportions that is likely going to intensify very soon.  January and February could be spectacular for the CDNX and a move to 3000 on the Index over the next 3 months cannot be ruled out.  Don’t forget, the CDNX has a lot of catching up to do.  This market was over 3,000 in 2007 when Gold was trading at half the levels it is now. The chart patterns we’re seeing with the CDNX are very similar to the Nasdaq run from the summer of 1999 to March of 2000 when that market doubled in value.

Over the past 4 months, since early August, the CDNX has been supported by a consistently rising 20-day SMA (simple moving average) and until that changes this market is going to continue to power higher.  Investors who sold in panic when the CDNX briefly dropped below its still-rising 20-day SMA in mid-November made a serious mistake.  The 2000 level is now new technical support for the CDNX though it’s quite possible we may not touch that area again.  The “masses” have not yet picked up on what’s happening and they will be the ones giving this market the fresh buying and additional fuel it needs to challenge the 3000 level in early 2011.

Gold

Gold took a bit of a hit Friday but still finished ahead for the week (by $10)  at $1,364, ending a 2-week slide.  This was particularly encouraging given the fact the U.S. Dollar has climbed to its strongest level against the Euro in 2 months.  The Gold market is so strong, it can very easily still rise in tandem with the U.S. Dollar.  The European sovereign debt issue (who’s next to follow Ireland in seeking financial aid?) and renewed hostilities on the Korean peninsula caused some safe-haven buying to flow into the greenback this past week, and into Gold, but the “big picture” negative outlook has not changed for the U.S. Dollar.  The Fed is also determined to maintain a low Dollar in an effort to rekindle inflation in the United States.

The Americans, of course, have a major debt problem of their own which surprisingly hasn’t fully sunk in with everyone yet.  Sooner or later, a debt crisis will erupt in Washington.   U.S. federal debt has doubled over the past 7 years to almost $14 trillion (this doesn’t include all the unfunded liabilities of the U.S. Government which means the situation is actually far worse).  This year, combined spending on Social Security, Medicare and Medicaid are expected to make up 45% of primary federal spending compared with only 27% in 1975.  If no action is taken, statistics show that U.S. federal debt held by the public could rise from 62% of GDP this year to 185% by 2035.  With more than 70% of U.S. treasury obligations held by private investors scheduled to mature in the next 5 years, an erosion in investor confidence could lead to sharp increases in government and private borrowing costs.  The new Congress won’t be focused on the debt issue at the moment though – greasing the wheels of the economy, including extending all the Bush tax cuts, and getting Americans back to work will be front and centre come January.

Frank Holmes, President and CEO of U.S. Global Investors, is one of the most intelligent commentators there is on the Gold market and commodities in general and we suggest BMR readers bookmark his site – www.usfunds.com.  One of Holmes’ recent articles appeared on Kitco November 18 and we’d like to quickly summarize it.

The World Gold Council’s latest quarterly recap shows Gold demand is getting stronger despite rising Gold prices – the yellow metal rose 28% to record the highest average price for a quarter ever at $1,226.75.  Gold demand jumped 12% on an annualized basis to 921.8 tonnes during the quarter.  Jewelry demand, which increased 8% on a year-over-year basis, accounted for 57% of overall demand while investment demand rose 19% to account for 31% of total demand.  Consumers and investors, especially in emerging markets such as China, India and Russia, are growing accustomed to higher Gold Prices.  The chart below shows the consistently rising demand for Gold in China and India: