BullMarketRun.ca

Gold has traded between $1,369 and $1,382 so far today…as of 8:55 am Pacific, the yellow metal is off $3 an ounce at $1,373…tensions between North and South Korea are likely to limit any potential pullback in Gold…Silver is down 4 cents at $27.47 while the U.S. Dollar Index is up one-tenth of a point at 79.72…the CDNX continues to hold above 2000 which is positive…the Venture is ahead 7 points at 2009…markets are up significantly in Toronto and New York…on the day before American Thanksgiving, the Dow is posting a triple digit gain…there were some positive economic reports out of the U.S. this morning…consumer sentiment rose to its highest level since June on tentative signs of improved job conditions and early discounts for retailers…new U.S. single-family home sales fell unexpectedly in October, however, and prices dropped to a 7-year low…Gold Bullion Development (GBB, TSX-V) is unchanged at 65 cents after staging a strong rally from the 60-cent level yesterday…GBB got a boost from a Jay Taylor interview with Frank Basa…Taylor has a solid reputation and we’re glad to see he may finally be picking up on the story…BMR will be doing its own interview with Basa in the near future…Basa confirmed in the Taylor interview what we’ve been reporting the last several days since the release of more drill results last Friday from Granada…the LONG Bars Zone is indeed widening (north to south) with several kilometres of very prospective strike length to the east still to explore…volume on GBB is actually higher on the ALPHA market today (424,000) than the CDNX (299,000)…Basa made an indirect reference to Adventure Gold (AGE, TSX-V) on the Taylor show, saying other companies are getting good results in the general area around Granada…we spoke with Marco Gagnon from Adventure Gold last night and he’s very excited about what’s developing at Granada…investors should take a close look at AGE’s chart which is extremely impressive as John pointed out in his article last night…AGE is currently unchanged at 45 cents…Currie Rose Resources (CUI, TSX-V), one of our favorites at the moment, has hit a new 52-week high of 28 cents…this is an exciting, pure Gold exploration play with serious potential to uncover another discovery at its Mabale Hills Project in northwest Tanzania where drilling continues at Sisu River…initial drill results are pending – this is one to watch very, very closely…Richfield Ventures (RVC, TSX-V) is taking a breather after a big move yesterday when it jumped 98 cents on new drill results from Blackwater…we’ve been extremely bullish on Blackwater since December last year when we brought RVC to our readers’ attention when it was trading at $1.20…the stock is currently off 6 cents to $4.47…Seafield Resources (SFF, TSX-V) is firming up again after touching a recent low of 17 cents…the weakness in the stock lately has been frustrating given the potential of its Quinchia property package in Columbia…Seafield is up 2.5 cents at 21.5 cents on over 1 million shares…

Adventure Gold (AGE, TSX-V) has much more going for it than just its recent strategic land acquisitions on Gold Bullion’s doorstep at Granada, but AGE will definitely benefit from the excitement we expect the LONG Bars Zone to generate in the days, weeks and months ahead.  Recent GBB drill results demonstrate the LONG Bars Zone is widening and AGE has found significant Gold mineralization (associated with porphyritic intrusions and/or quartz veins with disseminated sulphides in strongly altered and locally well-deformed sediments) while prospecting west and southwest of the LONG Bars Zone.  Adventure Gold believes these areas are “extensions” to the LONG Bars Zone which seems very plausible to us.  AGE has picked up 200 hectares in total so far at Granada, not a large area but they’re tied on immediately to the west of the LONG Bars Zone and they have also carved out a small slice of the “Eastern Extension” which would definitely form part of any open-pit mining operation at Granada.  Some of Gold Bullion’s Phase 2 Eastern Extension holes were drilled extremely close to what is now Adventure Gold’s Property.  We expect AGE will be doing some of its own drilling to test its Granada extension properties early in the New Year.

We first brought Adventure Gold to our readers’ attention in late September when the stock was trading in the low 20’s.  Today it closed at 45 cents, and the chart looks absolutely phenomenal as John describes in his analysis below.  AGE is far from being technically overbought and as John declares, “Seldom does one see a chart looking so positively bullish with chart patterns and indicators in absolute agreement.”

John: Today, Adventure Gold (AGE, TSX-V) gapped up at the open to 43.5 cents from Monday’s close of 40 cents.   It then drifted down to a low of 40.5 cents and rebounded during the day to close at its high of 45 cents for a gain of a nickle (12.5%) on CDNX volume of 279,000 shares.

Looking at the 2-month daily chart we see that today it broke out to the upside from the resistance level at 42.5 cents. This resistance is shown as a green horizontal line because now it is support. There is resistance at 52 cents, the previous all-time high, shown as a blue horizontal line. The EMA(20) provides close bullish support at 40 cents.

The set of Fibonacci levels (blue horizontal lines) shows the next Fibonacci target level is at 66 cents (this is not a BMR price target as we don’t give price targets but a theoretical near-term Fibonacci level as a guide for investors based on technical analysis). The previous Fibonacci level, not shown on the chart, was at 53 cents.

The volume today, although relatively low, was the highest in the last 5 sessions. A 5-cent move to the upside with only 279,000 shares traded is a very bullish sign.

Looking at the indicators: The ADX trend indicator has the +DI (green line) flat at 28 and above the -DI (red line) which is flat at 12. The ADX trend strength indicator is flat at a high strength value of 44. This orientation is very bullish.

The Slow Stochastics has the %K (black line) at 41 and crossed above the %D (red line) at 36. A crossover at this low value is very bullish as it allows the stock to move a considerable distance before becoming overbought – very bullish.

The Chaikin Money Flow (CMF) indicator has been completely green (bullish) –  above zero – for the past 2 months. The buying pressure has been quite high over the last 11 sessions during the consolidation period. This indicates accumulation – very bullish.

Outlook: Everything about this chart points to a potential major move to the upside in the near future. Seldom does one see a chart looking so positively bullish with chart patterns and indicators in absolute agreement.

Nothing like a little fire-fight between North and South Korea to give Gold a bit of a kick…as of 8:20 am Pacific, the yellow metal is up $7 an ounce to $1,373 after hitting a low of $1,355 this morning…Silver has regained some of its earlier losses but is still off 60 cents to $27.27…the U.S. Dollar Index has jumped nearly a full point to 79.59…it faces very stiff resistance, however, around 80…the CDNX is softer on some profit-taking and selling pressure in Toronto and New York…..the CDNX is off 10 points at 2004…Gold Bullion Development (GBB, TSX-V) continues to show very strong technical support at 60 cents, a level it bounced off from again this morning…GBB is currently off a penny at 61 cents, the middle of its range today…the GBB chart continues to look solid and the LONG Bars Zone is widening which is an important development…it’s all blue sky for several kilometres going east, so the fact GBB is proving the Zone is even wider adds greater value to the project…at BMR, we correctly predicted a discovery for Gold Bullion last December when it started drilling Granada and the stock was trading at just 7 cents…we see the same strong potential for a discovery with Currie Rose’s Gold properties in northwest Tanzania…they are currently drilling into a highly prospective target at Sisu River, approximately 8 kilometres northeast of the company’s Mwamazengo discovery in 2005…it appears Currie Rose is successfully penetrating the highly silicified and sheared quartz porphyry at Sisu River with 14 holes reaching their intended depths as of a week ago…initial assays are pending and the turnaround time should be fairly quick as CUI is using a lab just a short distance from the property…Sisu River forms part of the company’s Mabale Hills Project which is surrounded by several major mines and deposits in the heart of the prolific Lake Victoria Greenstone Belt…200 kilometres to the southeast of Mabale Hills is Currie Rose’s Sekenke Gold Project which has unquestionable potential for developing into a major discovery as it runs in between and surrounds two former high grade producing Gold mines from the first half of last century, including one of Tanzania’s original Gold producers…CUI hit a new 52-week high of 27.5 cents this morning…as of 8:20 am Pacific, it’s up half a penny at 26 cents after breaking through resistance at 24.5 cents yesterday…one of our favorite companies at BMR over the last 11 months has been Richfield Ventures (RVC, TSX-V) which has exploded to the upside this morning on new drill results from its Blackwater Project in central British Columbia…we know how to pick a winner at BMR and Richfield has jumped nearly 300% since we introduced it to our readers last December…a multi-million ounce deposit is indeed taking shape at Blackwater and we see this company as a definite takeover candidate…BW-91 is one of Richfield’s very best intersections to date with the top of the hole cutting 171 metres of 3.13 g/t Au…the stock is currently up $1.00 to $4.55…with a market cap of $170 million, Richfield still has room to move considerably higher over the coming months assuming it’s on its way to discovering a deposit in the range of 5 million ounces…Blackwater also has silver and copper values…other attractive players we like in the area with potential include Troymet Exploration (TYE, TSX-V) and Greencastle Resources (VGN, TSX-V)…

Currie Rose Resources (CUI, TSX-V), one of our favorites, blasted through resistance at 24.5 cents today on CDNX volume of 1.4 million shares (336,000 on ALPHA) to start what appears to be a new up-leg.  The stock hit a new 52-week high of 26 cents and closed at 25.5 cents.

We first alerted BMR readers to Currie Rose when it was trading at a dime in mid-September.  This is a company with Canaco-type potential as it has been active in Tanzania since 2005 and is aggressively exploring a very attractive package of advanced staged and grass roots exploration projects in the prolific Lake Victoria Greenstone Belt of northwest Tanzania.

Currie Rose is currently drilling the promising Sisu River Gold Property at its Mabale Hills Project.  As of a week ago the company had completed 14 holes at Sisu River with drilling intersecting “good source rocks” (it appears they’re successfully penetrating the highly silicified and sheared quartz porphyry beneath the ‘mbuga’ clays) at depths of approximately 100 metres per hole.  Artisanal miners made a discovery at Sisu River just over a year ago and Currie Rose’s random sampling program turned up grades as high as 89 grams per tonne.  This Phase 1 RC drilling at Sisu River will consist of 3,000 metres or approximately 30 holes.  The company is using a nearby local lab, speeding up turnaround times, and initial assay results are pending.

Chances of a discovery at Sisu River, based on the favorable geology of the area, have to be considered good (the exploration business is risky, as our readers know, but we do have an impressive track record at BMR in terms of identifying possible discoveries).  Just 8 kilometres to the southwest, Currie Rose made a near-surface discovery in 2005 at Mwamazengo with results including 31 metres grading 5.97 g/t Au and 63 metres of 2.59 g/t Au.  Mwamazengo remains a target of high interest for Currie Rose.

Approximately 200 kilometres to the southeast of Mabale Hills is Currie Rose’s highly prospective Sekenke Gold Project – a nearly 300 square kilometre land package that runs in between and surrounds two former high grade producing mines.  As the old saying goes, the best place to find a new mine is near an old mine.  CUI has already identified a highly prospective structure (12 km x 800 m) 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 launching a major geophysical program at Sekenke in order to prioritize drill targets for the spring.

Even though Currie Rose has more than doubled since we first brought the company to our readers’ attention more than 2 months ago, we still love the risk-reward ratio here which is why this writer continues to hold a substantial position (270,000 shares).    The situation with Currie Rose has the same “feel” as Gold Bullion (similar trading patterns and the Sekenke Project reminds us of the Granada story – extensions to a former mine) when we introduced GBB at less than 10 cents in December of last year – GBB became a 10-bagger and still has tremendous potential.  Currie Rose has solid management and we’ve interviewed President and CEO Harold Smith twice already on BMR.

Below, BMR’s technical analyst takes a look at the Currie Rose chart after today’s strong move through resistance at 24.5 cents:

John: Today, Currie Rose Resources (CUI, TSX-V) opened at 22.5 cents, its low, and during the day climbed to a new 52-week high of 26 cents before closing at 25.5 cents for a gain of 3 pennies on CDNX volume of 1.4 million shares.

We see from this 2-month daily chart that CUI broke to the upside from a small horizontal channel on October 21 at 13 cents.  It then climbed steadily over the next 13 sessions to reach a 52-week high of 24.5 cents.  Over the next 7 sessions it consolidated and formed a bullish downsloping flag.   A breakout from the flag occurred with a 2 doji followed by today’s white candle.

The downside risk at the moment appears minimal.  There is now strong support at previous resistance around 24 cents.  There is also a very strong support band between 19 cents (the 61.8% Fibonacci level) and 20.5 cents.   The EMA(20) moving average is at 20.6 cents and pointing up, also providing strong support.

The set of Fibonacci levels (green) shows the next target level is at 32 cents (this is not a BMR price target as we don’t give price targets but a theoretical near-term Fibonacci level as a guide for investors based on technical analysis). The volume today was the highest in the last 9 sessions. If the volume stays high we could see the Fibonacci target reached this week.

Looking at the indicators:

The RSI, at 78%, is pointing up and in the overbought region but has room to move higher – bullish.

The ADX trend indicator has the +DI (green line) at 38 and pointing up.  It has plenty of room to move higher.  It’s above the -DI (red line) which is way down at 7.

The ADX (black line) trend strength indicator is high and flat at 61, showing the trend strength is high and constant – very bullish.

The Chaikin Money Flow (CMF) is bullish but the buying pressure has been low for the last 3 sessions.  It has been sufficient, however, to move the stock to a new high and that is very bullish.

Outlook:

CUI is in an excellent position to reach the Fibonacci target of 32 cents in the near future if the volume remains high.

Gold has traded in a range of $1,348 to $1,366 so far today…as of 8:35 am Pacific, the yellow metal is down $2 at $1,352…Silver is off 6 cents to $27.29 while the U.S. Dollar Index is up more than half a point to 78.80…the CDNX has followed up on strength late last week by climbing back above 2000 to 2005, a 9-point increase over Friday…the minor 8% correction that ended last Tuesday was exactly what the CDNX needed to unwind overbought conditions and start a fresh advance…Richfield Ventures (RVC, TSX-V) jumped 36 cents to a new all-time high of $3.60 this morning…the stock has now tripled since BMR picked up on this story just under a year ago…Richfield is developing the Blackwater Gold Project in central British Columbia where a multi-million ounce deposit appears to be in the making…Richfield came out with metallurgical test results this morning showing excellent conventional cyanidation recoveries averaging 92%… Richfield also got high recoveries (up to 94%) of Gold and silver into a bulk sulphide flotation concentrate…this project continues to impress and we continue to wait for the day when a major steps in…Richfield’s market cap is now $126 million with the stock currently up 27 cents to $3.51…at the other end of the country, Gold Bullion Development (GBB, TSX-V) – which also reported metallurgical results recently with recoveries as high as 97% – continues to make consistent progress developing the LONG Bars Zone at the Granada Gold Property, 65 kilometres west of Osisko’s (OSK, TSX) massive Canadian Malartic Deposit…results released Friday by GBB confirm the Eastern Extension is widening from north to south…it remains open in all directions with several kilometres of highly prospective strike length to the east yet to be explored…Hole #108 in the far north of the Eastern Extension returned an interval of 142 metres grading 0.70 g/t Au…this hole was collared 30 metres north of GR-10-55 which included 99 metres of 1.85 g/t Au…nearly 500 metres directly south, Hole #86 intersected 84.6 metres grading 1.00 g/t Au within a near-surface total interval of 128 metres of 0.76 g/t Au…this new north-south dynamic at Granada raises the strong possibility that the Preliminary Block Model (2.4 to 2.6 million potential ounces, non-43-101 compliant) could at least double in width by expanding considerably to the north and quite possibly to the south as well…the updated drill map on the GBB web site shows GENIVAR following a trail of mineralization east to west (outside the Block Model) and south to north (within the Block Model) with holes drilled directly north of the northeastern quadrant of the Preliminary Block Model…a substantial widening of the Preliminary Block Model appears to be in the works which would have major tonnage implications…by our calculations, assay results are pending on approximately 3 dozen Phase 2 holes drilled in the northeastern quadrant of the Preliminary Block Model, directly north of the Block Model and through the northern portion of the Eastern Extension…GENIVAR reported strong visuals on a number of those holes and they were bang-on with Hole #86 and the northern portion of the Eastern Extension…GBB is currently off a penny at 62 cents…Currie Rose Resources (CUI, TSX-V) is strong this morning as it threatens to start a new up-leg…initial drill results from Sisu River are pending – they could literally come at any time now…we’re very bullish on this property which forms part of Currie Rose’s Mabale Hills Project in northwest Tanzania…the company reported last Wednesday that 14 holes have already been completed at Sisu River and “good source rocks” have been intersected…we like the odds here and Sisu River is just part of a large package Currie Rose has assembled that offers tremendous upside exploration potential…we’re very excited with its Sekenke Project, a 300 square kilometre property that runs in between and surrounds two former producing high grade mines…CUI is currently up a penny at 23.5 cents…Colombian Mines (CMJ, TSX-V) is showing new technical strength…the stock is up 3 pennies to 86 cents…a move on strong volume through 95 cents would confirm the start of a major new move for CMJ…

We all know the enormous potential of Gold Bullion Development’s (GBB, TSX-V) LONG Bars Zone going east – several kilometres of highly prospective strike length that includes LONG Bars Zone 2 (the old Aukeko Property) a couple of kilometres to the east of Gold Bullion’s Phase 1 Discovery Hole #17.  If the two zones connect, GBB will have something absolutely enormous on its hands.

But now what is rapidly developing is a multi-directional dynamic at Granada following the latest round of assay results released Friday by the company that confirmed the discovery of significant mineralization in the far north and the far south of the Eastern Extension.

Yes, the LONG Bars Zone could end up being very, very long indeed.  But it’s  also becoming a lot wider, pushing out to the north in particular and even the south.  This is a major bonus for Gold Bullion – President and CEO Frank Basa and his geological team at GENIVAR couldn’t be happier at the prospect of a potential doubling or better of the width of this major structure.  It doesn’t take a rocket scientist to figure out the math in terms of the possible impact on potential ounces.

Here’s what’s happening and how we see it developing.

In the far northern section of the Eastern Extension, about 150 metres outside the northeast border of the Preliminary Block Model, Hole #108 returned an interval of 142 metres of 0.70 g/t Au as reported Friday by Gold Bullion.    This hole was collared 30 metres north of Hole #55 which intersected nearly 100 metres grading 1.85 g/t Au within a wider interval of 360 metres of 0.60 g/t Au.  Assays for 11 Phase 2 holes drilled around this area are pending (many had strong visuals as reported by GBB over the summer), and at BMR we believe there’s a strong probability that mineralization extends not only more to the north in the Eastern Extension, but also in an east-west fashion which means there could be a lot to be discovered immediately north of the Preliminary Block Model which presently covers an area 300 metres in width and 600 metres in length (2.4 to 2.6 million potential ounces as an exploration target, non 43-101 compliant, as announced by GBB April 22).

The Eastern Extension is already 200 metres wider (north to south) than the Preliminary Block Model.  It doesn’t seem reasonable to us that there could be a zone of mineralization to the northeast of the Block Model but nothing to the immediate north.  It seems GENIVAR is of the same opinion as the latest GBB drill map on its web site shows that they are following up drill holes inside the northeastern part of the Block Model with holes to the north outside the Block Model. Patterns are developing.

Gold Bullion news releases in September specifically referenced the northern portion of the Block Model, including the waste pile, as an area of high interest given an assay result from Hole #47, visual observations of specific holes, and known geological structures.

What this all means, we believe, is a probable northward expansion of the Preliminary Block Model just like the Eastern Extension is pushing to the north.  This has significant tonnage implications for this deposit.

Meanwhile, there are new possibilities to the south after Gold Bullion announced results from Hole #86 Friday.  This hole encountered near-surface mineralization in altered feldspar porphyry and brecciated quartz veining (meaning there could be a lot of faulting going on in this particular area).  Hole #86 returned an interval of 1.00 g/t Au over 84.6 metres within a total interval of 127.5 metres (4.5 metres to 132 metres) grading 0.76 g/t Au.  That’s a very solid result and confirms historical information, along with early data from Adventure Gold (AGE, TSX-V) which has claims in the south, that there are likely extensions to the south of Granada Pits #2 West and #2 East which were mined mostly in the 1930’s and most recently, on a smaller scale, just over a decade ago.

Significant mineralization has been discovered in the Eastern Extension, north to south, nearly 500 metres apart with the results from Hole #108 and Hole #86.

The LONG Bars Zone is very long and likely about to get longer in the months ahead.  And it’s also getting wider with a new north-south dynamic which gives fresh credence to Granada developing into a potential multi-million ounce deposit.  Gold Bullion is finding massive structure.

John: This chart should be extremely useful for those who may have panicked Friday when Gold Bullion Development (GBB, TSX-V) came out with very positive news but the stock ended up declining a nickel to 63 cents.  It’s always a mistake to look only at a daily move and not put it in context with the overall trend.    On a day when the Gold Bullion share price goes up, investors are happy but as soon as it has a down day all some can see is doom and gloom (this applies to many stocks and many investors).  I doubt if a lot of investors have taken the trouble to learn about technical analysis which is critical to evaluating the potential of a company. If you understand a few aspects regarding a chart, just a glance will tell you if the general trend is up, down or sideways.   Just looking at the latest trading day statistics tells you very little, and if one basis decisions on these daily trading statistics you’re simply guessing and that’s potentially fatal for your capital.  To prove my point I will show you some positives on the chart from last Friday’s down day for GBB:

On Friday, GBB opened at 65 cents, rose to a high of 68 cents, fell to a low of 60 cents and then closed at 63 cents on CDNX volume of 2.7 million shares. This was a loss of a nickel for the day (traders love to “sell on news”) but a gain of 3 pennies for the week.

Looking at the chart we see that there is resistance at 69 cents (blue horizontal line) and 4 support levels (green horizontal lines)  – 55 cents, 57 cents, 59 cents and 60 cents.   From September 22 to October 28, GBB traded in a horizontal trend channel between 55 cents and 59 cents. At the end of October it broke to the upside to a high of 64 cents, and then it retraced down to a low of 57 cents.   From November 8 it has slowly been moving higher to reach a high of 69 cents before declining Friday.

Also drawn on the chart is an upsloping green dotted line. This is a trendline starting from October 26, so even though since then there has been a decline and several down days, the general trend is up. Also note another positive –  when the share price declined on Friday it stopped and rebounded from the 60-cent support level. This trendline and the resistance at 69 cents is starting to form a bullish ascending triangle.   Yes, the chart is starting to look very bullish for GBB.

Looking at the indicators:

The RSI is at 54% and is bullish because it’s above the 50% level.

The Slow Stochastics has the %K (black line) at 69%, above the %K (red line) at 65% with both pointing up.  There is plenty of room for them to move higher without becoming overbought – bullish.

The ADX trend indicator has the +DI (green line) at 31 and above the -DI (red line) at 20.  The ADX (black line) trend strength indicator is flat at 26. These are in bullish orientation.

Outlook: The Gold Bullion chart indicates that the uptrend for GBB will continue. The formation of an ascending triangle has bullish implications.  This stock’s  share price is expected to gradually increase with the technical outlook supported by consistent and solid exploration results.  Investors with patience will certainly do very well with this company.

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.