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The success of Richmont Mines (RIC, TSX) at Wasamac, a former producer with rapidly growing Gold resources 15 kilometres west of Rouyn- Noranda, has not only been a game-changing development for Richmont (the stock hit a multi-year high of $6.11 today) – but also for Cadillac Mining (CQX, TSX-V) which could be sitting on an extension of the Wasamac deposit at depth.

There’s a lot happening with Cadillac and today we spoke with President and CEO Vic Erickson for the first half of a two-part interview – simply click on the link below:

BMR Interview With Vic Erickson (Cadillac Mining)

Note:  The writer and interviewer holds a position in Cadillac Mining. Please read our disclaimer.  Cadillac Mining has paid no fee or compensation for this interview in accordance with BMR policy.

10:55 am Pacific

Trueclaim Exploration (TRM, TSX-V) has delivered an impressive near-surface result of 15.78 metres grading 5.36 g/t Au in hole #10 from the South Zone at its Scadding Gold Property near Sudbury.  The stock has been displaying good technical strength over the past two weeks and is currently up 2 pennies at 21 cents on strong volume of 1.1 million shares, overcoming some resistance which opens up the possibility of a breakout.

Several other holes intersected significant mineralization including 19 metres grading 2.46 g/t Au in hole #3.  All 10 holes drilled in the South Zone intersected chlorite zones which may suggest continuity between the South Zone and the Central Zone.

This is an interesting property that is worthy of considerable additional drilling.  The current phase of drilling will consist of 8,000 metres, so many more results will be flowing in over the coming months.

Gold has traded in a range of $1,414 to $1,433 so far today…as of 8:30 am Pacific, the yellow metal is near its high of the day at $1,429 for a gain of $14 an ounce…Silver is $1.01 higher at $35.24….the greenback is slightly weaker with the U.S. Dollar Index at 76.47…the U.S. economy added 192,000 jobs last month, the largest gain since last April but in line with expectations, while the unemployment rate fell to a two-year low of 8.9%…the private sector accounted for all the job gains in February with state and local government slashing 30,000 jobs…service industries expanded last month at the fastest pace since 2005 while manufacturing grew at the fastest pace in almost seven years…despite signs of an improving U.S. economy, the Fed is expected to error on the side of caution and maintain its accommodative monetary policy for an extended period which is bullish for precious metals and commodities in general…the Fed will want to see payroll gains in excess of 200,000 for at least six to nine months and a significant decline in unemployment before withdrawing its massive monetary support (QE2)…the current U.S. economic expansion is just 20 months old (expansions since WW2 have tended to be at least 60 months) and there are still significant risks to the economy including troubling high levels of debt at every level of government…interest rate increases in the U.S. appear to be out of the question until at least sometime next year…overall, this is the type of environment that’s very supportive of a speculative market such as the CDNX which is up sharply this morning at 2440 for a gain of 29 points…that puts it through the previous two-and-a-half year high of 2438 February 22…we suggest readers take a look at the chart for Vantex Resources (VAX, TSX-V) which is down significantly from its 64-cent high in early January…Vantex has been supported by its 100-day moving average (SMA) consistently since last July and right now it’s just a couple of pennies above its 100-day at 35 cents…the company is working on an interesting Gold discovery at its Galloway Project west of Rouyn-Noranda…in late December it was disclosed that Robert McEwen had taken a significant position in Vantex…this is definitely a company worth keeping an eye on…Galloway is one of the projects we heard considerable talk about during our most recent trip to Rouyn…we may get some comments on Galloway later today when we interview Victor Erickson, President and CEO of Cadillac Mining (CQX, TSX-V)…we expect to have that interview posted by tomorrow and it should give readers a much better understanding of the direction Cadillac is going and the opportunity it presents…Cadillac is currently off a penny at 30 cents…Abcourt Mines (ABI, TSX-V) released more positive drill results from its Elder-Tagami Project near Rouyn-Noranda after the market close yesterday…the company is on track to significantly increase resources at Elder-Tagami with the goal of restarting production at the former mine by the end of next year…ABI is currently down a penny at 19.5 cents…Gold Bullion Development (GBB, TSX-V) is unchanged at 53 cents…we’ll be posting an article Monday on GBB, reviewing the latest results from the LONG Bars Zone…Trueclaim (TRM, TSX-V) continues to look interesting and is up a penny at 20 cents…Sidon International (SD, TSX-V) is holding steady at its rising 200-day SMA at 12.5 cents…GoldQuest Mining (GQC, TSX-V) has been down seven of the last nine trading sessions, closing yesterday at 39 cents…GQC has the potential of reversing suddenly to the upside as it has tremendous technical support in the upper 30’s…the company is very confident that drilling at Escandalosa will continue to show strong mineralization and expand the resource area…initial results from the new round of drilling at Escandalosa are expected soon…

Gold has pulled back today on profit-taking with the yellow metal down $15 an ounce as of 9:15 am Pacific to $1,421.00 after hitting a new all-time high yesterday…Silver is 27 cents lower at $34.41 while the U.S. Dollar is still under pressure but off its low at $76.57…the U.S. service sector expanded at the fastest pace in five years in February while a drop in jobless claims has also boosted the Dow today which is up strongly…U.S. employment numbers are coming out tomorrow and the expectation is for an increase in non-farm payrolls of 185,000 which would be the largest gain in almost a year and the clearest signal yet that a self-sustaining economic recovery is taking root…global food prices have hit another record high…prices rose in February for the eighth month in a row, up another 2.2%, according to the Food and Agricultural Organization of the United Nations…the European Central Bank held its key rate steady at 1 per cent today but warned of a possible hike next month as inflationary pressures rise…the Euro Zone is in a quagmire, however, as rate increases will be difficult in the midst of fiscal tightening, a fragile banking system and sovereign debt issues…the CDNX is mostly shrugging off the drop in Gold today and is unchanged at 2402 as of 9:15 am Pacific…Adventure Gold has released results from the first two holes at its Pascalis Colombiere Gold Property near Val d’Or…both holes were drilled approximately 150 metres west of the former L.C. Beliveau Mine and intersected Gold-bearing structures at various depths which is encouraging…the system is showing strong similarities to the one observed at L.C. Beliveau…hole #13 returned 5.4 g/t Au over 20 metres which included 2.9 metres grading 34.6 g/t Au…hole #14 intersected 7 g/t Au over 4.8 metres…results from seven more holes are pending…six of them were drilled west of the former mine while the other, which may prove to be very important, was drilled to test the geometry of the Gold system below the underground workings…this former mine was a low cost producer and holds excellent potential for extensions laterally and at depth…it’s still early but Adventure Gold appears to be entirely on track with these initial results…as often is the case, there was a “sell on news” reaction this morning but nothing dramatic…AGE is currently off a nickel at 70 cents…we view any weakness as an opportunity with Adventure Gold which has been a strong performer so far this year…Richfield Ventures (RVC, TSX-V) is off 3 pennies at $6.05 after coming out yesterday with an initial 43-101 resource estimate totaling just over 4 million ounces of Gold at its Blackwater Project in central British Columbia…the stock ran to a new all-time high of $6.15…we first introduced Richfield when it was sitting just over a dollar per share in December, 2009, but even at $6 we still see plenty of upside potential given the likelihood that current resources will be upgraded and expanded as drilling continues…this has turned out to be a world class project that should garner more attention as the year progresses…Troymet Exploration (TYE, TSX-V) is active in the Blackwater area (it has a large property we like) and it’s carrying out a drill program there at the moment…the company provided an update on its exploration activities this morning at Blackwater and elsewhere…GoldQuest Mining (GQC, TSX-V) staged a strong reversal yesterday after falling as low as 36 cents following release of a very positive 43-101 resource estimate for its Toral zinc-lead-silver deposit in Spain…the stock rose from 36 to 42.5 cents before closing unchanged at 40 cents…the market is much more interested at the moment though in GoldQuest’s Dominican Republic Gold properties…the last round of drilling was the most successful yet at Escandalosa as the company appears to be getting closer to finding the centre of the mineralizing system…the current phase of drilling started in December and initial results are expected soon…GQC is unchanged this morning at 40 cents…Gold Bullion Development (GBB, TSX-V) is up a penny at 53 cents…the stock does have strong technical support in the low 50’s and the trading action over the last couple of weeks has helped to reinforce that support…Cadillac Mining (CQC, TSX-V) is quiet so far today and unchanged at 30.5 cents…we have confirmed an interview with President and CEO Victor Erickson this weekend prior to his departure to PDAC…Seafield Resources (SFF, TSX-V) is holding steady, off half a penny at 41.5 cents…technically, we’re seeing hopeful signs with Seafield…the 20-day moving average (SMA) has been in decline since early January but has now flattened out with a possible reversal to the upside in the near future…the long-term uptrend remains intact…Trueclaim Exploration (TRM, TSX-V) has an attractive chart as John outlined yesterday…the company continues to drill the Scadding Gold Mine Property which has the potential of surprising the market with some high-grade numbers…Trueclaim is currently off half a penny at 19.5 cents…

Last night, we provided a detailed look at the fundamentals of Trueclaim Exploration (TRM, TSX-V) through an interview with the company President.  This morning we examine the technical health of the stock, and John has a bullish analysis.  As of 11:30 am Pacific, TRM is trading a penny-and-a-half higher at 20 cents on CDNX volume of 277,000 shares.

John: Yesterday, Trueclaim Exploration (TRM, TSX-V) opened at 19 cents, dropped to a low of 18 cents, rose to a high of 19.5 cents and then closed at 18.5 cents for a loss of half a penny on the day on CDNX volume of 467,000 shares.

Looking at the 6-month daily chart we see that on September 17, Trueclaim broke above resistance at 12 cents and in 2 weeks climbed to 17 cents.  From there it traded in a horizontal trend channel between 15 cents and 17 cents (top blue line, bottom green line) until December 3 when there was a breakout to the upside on very high volume. This volume was repeated on December 4 and the price reached 22 cents.   In 2 days it retraced to 18 cents (Fibonacci 38.2%) only to climb again and reach a high of 23.5 cents on Dec. 14.  From there it retraced down to a low of 16 cents before trading within a horizontal trend channel between Jan. 21 and now.

During the last 9 sessions (entering today) there has been increased trading activity which is always bullish when the price is near the breakout level. The main resistance levels to a move to the upside are at 19 cents, 20 cents and 22 cents (blue horizontal lines). There is strong support at 17 cents (horizontal green line). The black Fibonacci set has a seed wave between 15 cents and 23 cents and shows the first target to be 28 cents (we caution that this is not a BMR price target as we don’t give price targets but a potential and theoretical Fibonacci level based on technical analysis).

Looking at the indicators:

The RSI is flat at 53% (plenty of room to higher) which is to be expected when the price is in a horizontal trend channel.

The Slow Stochastics (SS) has formed a bullish “W” in the last 2 weeks with the %K (black line) at 67%, pointing up and above the %D (red line) at 56% which is also pointing up – bullish.

The Chaikin Money Flow(CMF) shows that the recent selling pressure has abated and now sits at the -0.049 level – bullish.

Outlook: With the price near the top of the channel, increased volume and bullish signals from the indicators, TRM looks poised for a breakout in the near future.

Note: The writer does not hold a position in Trueclaim.

Gold has climbed to a new all-time high of nearly $1,440 an ounce today…as of 8:15 am Pacific, the yellow metal is $6 higher at $1,439 as it continues to benefit from safe-haven investment demand, inflation fears and a weakening U.S. Dollar…Silver is 17 cents higher at $34.86 while the U.S. Dollar Index is off nearly half a point to 76.60…Federal Reserve Chairman Ben Bernanke, testifying before the U.S. Senate Banking Committee yesterday, gave every indication the Fed will continue its very accommodative monetary stance…Richfield Ventures (RVC, TSX-V) has released an initial 43-101 resource calculation for its Blackwater Project in central British Columbia and the stock has responded favorably this morning…total indicated and inferred resources stand at 4.17 million ounces of Gold and 19.4 million ounces of Silver using a Gold cut-off grade of 0.40 g/t…with continued drilling, Richfield has an excellent chance of significantly expanding this impressive resource…the stock is ahead 34 cents to $6.00, giving Richfield a market cap of approximately $260 million which values the Gold in the ground at just $62 an ounce…still plenty of upside potential with RVC in our view…GoldQuest Mining (GQC. TSX-V) released a 43-101 resource estimate on its Toral zinc-lead-silver project in Spain this morning which shows a 15% increase over the historical non-compliant estimate…GoldQuest has yet to do any of its own drilling at Toral which has significant exploration and development upside as a majority of the historical drilling (40,000+ metres) was conducted over one relatively small part of the property…the zone of sulphide mineralization is open along strike to the northwest toward a known lead deposit as well as along strike to the southeast and downdip…the property is surrounded by excellent infrastructure…Toral helps underpin the fundamental value of GoldQuest but the company’s main focus at the moment is on its Gold assets in the Dominican Republic…initial assay results from Phase 2 drilling at La Escandalosa are expected soon…the company produced excellent Phase 1 results from that property but has yet to hit the centre of the mineralizing system…there’s a very good chance they could do so in the current phase…GoldQuest is off 4 pennies to 36 cents this morning which puts it in a zone of strong technical support…GQC has the potential of blasting higher in a hurry…we encourage readers to listen to our interview with Trueclaim (TRM, TSX-V) President and CEO John Carter which was posted last night…Trueclaim, up a penny at 19.5 cents in early trading, has an impressive chart and the company has worked its Scadding Gold Property near Sudbury very diligently, using some innovative exploration techniques…Trueclaim optioned this property from Currie Rose Resources (CUI, TSX-V) and started an 8,000 metre drill program in mid-January…this former small producer has been under-explored but Trueclaim seems to be on track in terms of unraveling the geology…Gold Bullion Development (GBB, TSX-V) is off a penny at 53 cents as it continues to trade in an area of strong technical support…we’re continuing to work on a detailed report on GBB following the latest results and we expect to be able to post that by Monday…Adventure Gold’s (AGE, TSX-V) strength continues…AGE is is up another penny at 73 cents this morning with some strong bids coming in…Cadillac Mining (CQX, TSX-V) is off 2 pennies at 30 cents…any weakness in Cadillac should be regarded as a gift given what we believe this company is putting together…at 30 cents, Cadillac’s market cap is a paltry $7.5 million…

GoldQuest Mining (GQC, TSX-V) is one of our top picks for 2011 based on the Gold and base metal resources the company is building in the mineralization-rich Dominican Republic.  Of particular interest is the La Escandalosa Gold Property, an exciting near-surface deposit that should grow significantly in size in the weeks and months ahead.  A Phase 2 drill program started at Escandalosa in December and initial assay results could come anytime now (the company will be displaying some high-grade intersections from Escandalosa at the PDAC Core Shack March 8 and 9).   GoldQuest has developed a quality pipeline of advanced and early stage exploration properties in the DR after more than a decade of intense geological work in that country.

But GoldQuest’s assets extend beyond the DR and include a very attractive zinc-lead-silver deposit in northwest Spain, the Toral Project.  The company came out with a NI-43-101 compliant resource calculation for Toral this morning that exceeds the historical estimate by 15%.

Resources in the indicated category are 4.04 million tonnes grading 11.8% lead and zinc (5.3% lead, 6.5% zinc) as well as 41 g/t Ag and 0.11% Cu.  Inferred resources are 4.67 million tonnes grading 9.8% lead and zinc (4.44% lead, 5.4% zinc), 32 g/t Ag and 0.14 Cu.

Toral has significant exploration and development upside as a majority of the historical drilling (40,000+ metres) was conducted over one relatively small part of the property.  The zone of sulphide mineralization is open along strike to the northwest toward a known lead deposit as well as along strike to the southeast and downdip.

The project is also an ideal candidate for a fast-track to production.  The deposit is close to a power line, highway and rail line.  A large smelter is located just 300 kilometers away by rail.

“It’s a highly mineralized area that’s been mined since Roman times,” Chairman Bill Fisher told us in an interview with BMR recently.  “The Toral Project is really the stepping stone to increasing our land position in the area.  We’d like to see this as the basis for an area play.  Spain is very easy to work in.  Many of our operational crew are Spanish speaking like I am, so it’s a very easy thing for our company to do.  The skills we have in the company are very transferable to Spain.”

At Escandalosa, the current round of drilling (approximately 40 holes) has an excellent chance of hitting the centre of the mineralizing system and if that happens, look out.  March should prove to be an interesting month for GoldQuest.

As Manitou Gold (MTU, TSX-V) has demonstrated this week, sometimes a company can seemingly come out of nowhere and catch the market by surprise with a stunning drill result. We actually brought Manitou Gold to our readers’ attention last spring, shortly after the stock started trading on the TSX Venture Exchange, but until now liquidity has been a major issue with Manitou.

Another relatively new company that has the potential to produce a property “surprise” is Trueclaim Exploration (TRM, TSX-V), a stock we’ve made reference to on several occasions as it has an agreement with Currie Rose Resources (CUI, TSX-V) to earn a majority interest in the Scadding Gold Property near Sudbury.  Trueclaim started a Phase 2 drill program at Scadding in mid-January, so initial results may not be far off.  A promising Phase 1 program produced multiple high-grade intercepts across significant lengths in holes throughout the five zones identified to date at this former producing mine, including 12.9 g/t Au over 19 metres.

It’s interesting to note that the volume has picked up significantly in Trueclaim over the last nine trading sessions.  There’s more liquidity in this stock now, so we’re more comfortable presenting it in greater detail to our readers for their consideration and due diligence.  The Trueclaim chart is looking strong (John is working on a chart analysis) and I recently had an opportunity to speak with company President John Carter.  He’s a very focused, determined and upbeat individual, crucial qualities for the leader of any company.  He has worked very hard at getting Trueclaim going and has assembled a quality team.  Click on the link below to listen to the interesting conversation I had with John.

BMR Interview With John Carter (Trueclaim)

Trueclaim closed today (Tuesday) at 18.5 cents, down half a penny and just above its rising 100-day moving average (SMA).  An important technical development is that the 300-day SMA (15.5 cents) is now reversing to the upside.  The company has 67 million shares outstanding for a current market cap of $12.4 million.

Note: The writer and interviewer does not hold a position in Trueclaim Exploration.  Please read our disclaimer.  Trueclaim Exploration paid no fee or compensation of any sort for this interview in accordance with BMR policy.