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Gold Bullion Development (GBB, TSX-V)

For the past seven weeks Gold Bullion has traded between its 300-day and 500-day moving averages (SMA), a pattern that seems likely to continue for the immediate future until an event or news produces the most likely scenario which we believe is an upside breakout…GBB closed Thursday at 47 cents for a loss of 6 pennies for the week…investor patience is critical here as this opportunity is as big as ever despite the share price slump which started in mid-February…GENIVAR is expected to complete an initial 43-101 resource estimate for the LONG Bars Zone sometime during the third quarter and that should spark significant new interest in GBB…given the obvious multi-million ounce potential of the LONG Bars Zone, the company’s current market cap of $75 million seems absurdly cheap despite a few miss-steps we believe GBB has made that we’ve already identified…more drill results were released April 5…there were no eye-popping numbers but that’s okay – virtually every hole continues to hit near-surface mineralization and tonnage keeps building…hole #179 (72.25 metres grading 1.25 g/t Au and 156 metres of 0.61 g/t Au) shows mineralization continues to push eastward from Pit #1…six holes drilled just NE and SE of #179 under the waste pile will be important to look for (holes #198, #199, #201, #248, #250, and #253 – assays to come)…hole #97 was a nice cut likely of Vein #2, 46.7 metres grading 1.51 g/t Au…holes like #69, #124, #136 and #193 don’t get most investors excited but they’re very important to the overall picture with long intersections of lower grade (177, 113, 189 and 165 metres respectively grading between 0.31 and 0.42 g/t Au)…Frank Basa will have no problem with those numbers, keeping in mind the “upgrading” effect at Granada…structure is there…more bulk sampling and different types of drilling will quantify and improve the grade…just a few holes reported from the southwest corner of the Block Model with many more to come from there – it continues to be a promising area…there were a smattering of holes from the Eastern Extension but nothing that jumped out at us…many more results are yet to come from the Eastern Extension including the northern part where good visuals were reported earlier…it’s interesting to note that on GBB’s drill map, three step-out holes have been drilled about 90 to 145 metres north of holes #55 and #108…we’ll be watching closely for results from those holes…assay results are now in on nearly half of the 228 holes completed so far (45,000 metres) in Phases 2 and 3…47,730 metres in total have been completed since December, 2009…the case for the LONG Bars Zone remains intact…much, much more drilling lies ahead as this is all about volume (which is why we wanted to see more than two rigs by 2011)…the 43-101 this summer will be extremely helpful in terms of pushing this exciting project forward…Gold Bullion is sitting on a potentially huge near-surface Gold deposit in one of the best jurisdictions in the world for mining and exploration during the greatest bull market in history for the yellow metal…on April 11, Gold Bullion announced its intention to spin off its Castle Silver Mine Property into a separate publicly traded company…such a move makes good strategic sense and Gold Bullion is hoping the proposed transaction will be completed before the third quarter of this year…that could be optimistic as this type of move typically runs into unexpected delays but the important point is that GBB is going in the right direction with this important asset…Castle is a significant former producer with a lot of unexplored potential for cobalt and silver, in particular, in addition to nickel and copper…GBB has gained 571% since we introduced it to BMR readers 16 months ago and much more excitement in our view is yet to come from the LONG Bars Zone…

Cadillac Mining (CQX, TSX-V)

It’s very disappointing that Cadillac has failed to capitalize so far on the opportunity it has with regard to its “Wasa” claims that are tied on to Richmont’s (RIC, TSX) growing Wasamac deposit 15 kilometres west of Rouyn-Noranda…in this business, it’s critical that companies “seize the moment” especially when something is handed to them on a “Golden” platter…shareholders are understandably becoming a little frustrated, as we are, which helps explain why the stock is sitting at 17 cents…CQX was off 4 pennies last week…the stock is now at its 200-day moving average (SMA) with the next major technical support at 13 cents which is also the 300-day SMA…drilling is now underway on Cadillac ground that was optioned to Visible Gold Mines (VGD, TSX-V)…a total of 7,400 hectares are in that package and VGD, which can earn a 60% interest, is starting with four holes within 800 metres of Vantex Resources‘ (VAX, TSX-V) Moriss Zone discovery at its Galloway Project, 30 kilometres west of Rouyn-Noranda…despite our comments above, the opportunity with Cadillac remains immense given the company’s strategic land package in northwestern Quebec, the astute acquisition of a former Gold-Silver mining camp in Utah, and the tight share structure…the current market cap is only $4.25 million which allows for plenty of upside potential…management’s challenge is indeed to “seize the moment” and capitalize on the excellent opportunities the company has been blessed with in order to drive shareholder value…Richmont’s (RIC, TSX) success at its Wasamac Property west of Rouyn-Noranda should be hugely positive for Cadillac which reported two months ago it’s preparing an exploration program including diamond drilling for its adjacent 100%-owned “Wasa” claims…Richmont, which released a NI-43-101 report on Wasamac April 1, is drilling an additional 35,000 metres to upgrade and further expand resources at this growing deposit where the principal structure hosting Gold mineralization plunges north at a dip between 50 and 55 degrees toward Cadillac’s claims…while there’s no guarantee, of course, in theory there’s certainly the possibility that Cadillac’s Wasa claims at depth could host a significant high-grade extension of Richmont’s deposit…this is what Cadillac will be examining…in addition they’ll be going after some highly prospective VMS targets on the property…the infamous Horne Creek fault runs right through the Wasa claims and Cadillac discovered a zone last year (by deepening the only hole they’ve ever drilled on the property) that’s interpreted to be a feeder system typical of those seen under VMS systems in the Noranda camp…

Abcourt Mines (ABI, TSX-V)

Abcourt announced after Thursday’s close that the company has completed its 18-cent financing, raising a total of $6.3 million with the issuance of 35 million shares…the stock was unchanged for the week as it closed at 17 cents…ABI has very strong support at its rising 200-day SMA of 15.5 cents…boosting its cash position will aid Abcourt significantly as the company continues to drill its two flagship projects, the Elder-Tagami Gold Property near Rouyn-Noranda and the Abcourt-Barvue Silver-Zinc Property near Val d’Or…there’s no question Abcourt is sitting on some tremendous assets that simply aren’t being fully valued by the market…with 150 million shares now outstanding, ABI’s market cap has increased to $25.5 million but that’s still cheap given the assets and potential…the most effective strategy for Abcourt moving forward, we believe, is to re-brand itself as an exploration play only and drop any plans for putting any of its properties into production…all they need to do is drill, drill, drill at both Elder-Tagami and Abcourt-Barvue (they have the cash to do that) as both properties still have considerable exploration upside…as resources increase, other companies will be watching and Abcourt can then put itself into play as a potential takeover target…this would be a much simpler strategy and one that we believe would resonate with investors…with the financing out of the way, we expect more assay results in the near future…the last set of results came out March 3 from Elder-Tagami…mineralization continues to expand to the west of the former underground Elder Mine…the Tagami area to the north, meanwhile, has untapped potential including some higher grades…the latest NI-43-101 resource estimate of 216,000 ounces was released in the summer of 2009…the possibility of Abcourt expanding that resource beyond 500,000 ounces certainly exists given the encouraging results to date (look what Richmont has done at Wasamac)…the last results from Abcourt-Barvue were two months ago from six holes and the numbers continued to be very encouraging…the holes were all drilled 150 to 200 metres from surface and five of them intersected two zones of high-grade silver and zinc…Hole #16 cut 152.26 g/t Ag over 12.7 metres…the 10,000 metre drill program at Abcourt-Barvue continues with the goal of upgrading and augmenting existing NI-43-101 reserves and resources…Abcourt-Barvue is a former producer and one of the best Silver assets in the country with nearly 20 million ounces in all-category reserves and resources (plus nearly 300,000 tonnes of zinc)…the heavy accumulation that began in Abcourt in December was no fluke in our view…this is a company with significant assets that could justify a substantially higher valuation…nearly 60 million shares of ABI changed hands on the CDNX in December and January – record volume for this stock, accompanied by a price jump from 14.5 cents…we’ve seen these type of volume surges before and they are always a very positive sign…Abcourt is being accumulated, and our best guess is that some savvy players like the assets in the ground…continued drilling success and even higher prices for Gold, Silver and zinc would be exciting developments for this stock which has a history of major moves…from mid-2005 to early 2006, Abcourt rocketed from 15 cents to nearly $1.40…

Currie Rose Resources (CUI, TSX-V)

Currie Rose was unchanged for the week at 17 cents but John has identified some very bullish technical signs, including an obvious completed “cup with handle” pattern, as detailed in an article posted during the trading day Thursday…we encourage readers to take another look at John’s write-up and the two charts he provided…from a fundamental standpoint, Currie Rose is now preparing to launch a major drill program that could begin as early as next month…we are particularly excited about the Sekenke Project in northwest Tanzania which we regard as the company’s #1 play as it holds major blue sky potential…Sekenke covers a lot of promising ground and runs in between and surrounds two former high grade Gold mines including one of Tanzania’s original producers…while its Tanzanian properties are the market’s major focus, Currie Rose could also benefit over the coming weeks and months from continued good exploration news from Trueclaim Exploration (TRM, TSX-V) which is currently conducting an 8,000 metre drill program at the Scadding Gold Property near Sudbury…Trueclaim, which released assay results March 4 including 15.78 metres grading 5.36 g/t Au near-surface, has earned a 51% interest in Scadding and can acquire a full 100% interest by completing a feasibility study, paying $2 million to Currie Rose, and giving Currie Rose a 3% net smelter royalty…CUI announced a joint-venture deal January 25 with Australian-based Liontown Resources for Currie’s Jubilee Reef Gold Project in Tanzania…CUI’s focus is on the Sekenke and Mabale Hills Projects, so finding a partner for Jubilee Reef made sense…the deal commits Liontown to at least 5,000 metres of drilling at the property this year which will give Currie Rose a minimum of 23,000 metres of drilling at all of its properties in 2011…while Currie Rose has had its market cap shaved considerably, from a high of nearly $40 million to the current $15 million, what hasn’t changed is the quality of this company’s project portfolio which remains as high as it ever was in our view…Currie Rose has all the cash it needs ($2 million) to complete an initial major round of drilling (10,000 metres) this spring and summer in Tanzania, so there will not be any dilution of the stock at current levels as confirmed by President and CEO Harold Smith…

Richfield Ventures (RVC, TSX-V)

Richfield, moving of course in step with New Gold Inc. (NGD, TSX) was up a nickel last week to close at $9.37…it also announced more outstanding drill results from its Blackwater Project in central British Columbia including 82 metres grading 3.29 g/t Au over the northern section which is a joint venture with Silver Quest Resources (SQI, TSX-V)…of course earlier this month Richfield announced a plan of arrangement with New Gold for a takeover of Richfield (in NGD stock) valued at that point at $10.38 per RVC share or $550 million…the drop in New Gold’s share price has been a knee-jerk reaction to some potential share dilution without investors properly considering the enormous possible benefits down the road to this company if it were to add Blackwater as a producer…we’ve been speculating on a potential buyout of Richfield for some time now…the proposed deal is certainly a very positive fit for New Gold whose New Afton Project in the interior of British Columbia, not far from Blackwater, is on target to start production by the middle of next year…New Gold sees some obvious synergies between the two deposits…Richfield recently outlined approximately 4 million ounces of Gold in the indicated and inferred categories at Blackwater in a NI-43-101 resource estimate released March 2…will another company step into the picture and start a takeover battle for Richfield?…the possibility of that can’t be ruled out, especially with Gold as strong as it is and the likelihood in the minds of some that the current resource at Blackwater could be expanded significantly…we’re now living in a world where there is a fierce battle for resources of all types…Richfield is up 681% since we introduced it to BMR readers in December, 2009, at $1.20…the Blackwater Gold District is still full of opportunity for investors and we encourage readers to check out the web site, www.BlackwaterGoldDistrict.com…we also see great value in New Gold which has been exceeding analysts’ expectations with terrific numbers…New Gold’s AGM is May 4 when the company will also be releasing its Q1 results and no doubt commenting on the potential benefits of the proposed Richfield acquisition…

HAPPY EASTER!

CDNX and Gold

The CDNX snapped a 7-session losing streak with a 29-point gain Wednesday and followed that up with a 19-point jump Thursday for a weekly loss of only 9 points.  The Index closed Thursday at its rising 100-day moving average (SMA) of 2282.  The 7-session drop, from the April 11 intra-day high of 2400 to the April 19 intra-day low of 2221, amounted to 179 points or 7.5%.  This was a minor correction compared to the 17% drop we saw over 7 sessions in March.  As John outlined in his most recent CDNX chart last Monday, the Index has very strong support at 2200.

Throughout this bull market, which started in late 2008, the winning strategy with the CDNX has been to embrace these pullbacks as opposed to selling into them out of fear.  As the old saying goes, buy into weakness and sell into strength.  Many investors have not disciplined their minds in that way and often do the opposite.  The horrific 2008 Market Crash still lingers in the minds of many which is one reason why the masses have still not piled into the CDNX, but that time will come.   It’s extremely important to stay focused on the “big picture” and understand that we’re in a long-term bull market that remains completely intact based on technical and fundamental factors.  In our view this is the best time ever to hold shares in high quality junior Gold stocks with the price of Gold expected to continue to climb.  From a broader perspective, the global demand for resources in general is going to fuel this CDNX bull run for several more years at least but not without some corrections (minor and major) and pauses of course along the way.  The primary trend is up.

Gold powered past the psychologically important $1,500 level last week, closing at $1,508 for a gain of $22.  The catalyst for the move to $1,500 and higher appeared to be last Monday’s downgrading of the long-term debt outlook for the United States to negative by Standard and Poor’s which said it believes there’s a risk U.S. policymakers may not reach agreement on how to address the country’s fiscal pressures.  The S&P announcement was no great surprise – we all know the U.S. is in a fiscal mess – and it was just a warning, not an actual lowering of the U.S. debt rating which was affirmed at AAA, the highest level possible.  Nonetheless, S&P has raised the urgency of the issue and has given politicians “cover” to make some difficult choices in the weeks and months ahead.

It’s important to point out also that not only is Washington on a very slippery financial slope but so too are many U.S. states and cities.  Governments all over the world, Canada included, have been engaging in excessive and dangerous spending for far too long (while Canada’s federal public debt to GDP may be the lowest in the developed world, when you add in provincial debts – guaranteed by Ottawa – the ratio is scary.  A year from now, Ontario and Quebec alone will owe more than Ottawa or half a trillion dollars).   “Big Government” goes completely against what the American founding fathers envisioned and they were right.   The coming austerity measures required in the United States, Canada and Europe are going to be painful but necessary.

Which brings us to Fed Chairman Ben Bernanke’s next steps (the FMOC meets Tuesday and Wednesday with Bernanke holding an unprecedented news conference Wednesday).   The wisdom of “quantitative easing” can certainly be questioned but what matters to investors is what’s going through Bernanke’s mind right now and whether or not he’ll end “QE2”, which has been a boon for Gold and commodities across the board, as scheduled in June.  Our thinking, for what it’s worth, is that “QE3” in some form or other is just around the corner.  Bernanke has consistently stated he doesn’t see inflation as a threat at the moment.  Given the coming austerity measures in the United States, stubbornly high unemployment and a housing crisis that has simply not bottomed out yet, the last thing Bernanke is about to do is suddenly turn off the monetary stimulus taps and take actions or say anything that would endanger the “wealth effect” of rising markets.  He may be setting the United States up for inflationary troubles down the road but he’d rather have inflation than deflation. Bernanke has given all of us great opportunities to make bucket loads of money in speculative junior resource stocks over the past two-and-a-half years and we don’t believe that’s about to change.

As far as Gold is concerned, John’s January prediction of $1,650 by June is looking more likely by the day.  Has Gold gotten ahead of itself?  Not at all.  Below is an interesting chart, going back 10 years, that shows that Gold’s move over the past 60 days is within the normal band of volatility, up about 7% over that time period. There’s certainly plenty of room for Gold to move higher over the coming weeks which gives further credence to the yellow metal reaching the $1,650 level as early as June.

Silver, however, has traveled into extreme territory and for that reason could cool off somewhat in the near future.  At the moment Silver seems determined to take a run at its all-time high of just over $50 an ounce set in January, 1980.  For the week Silver was up another $3.63 an ounce to $46.08.  Ultimately during this bull cycle, $100 Silver or more seems highly likely.

The fundamental case for Gold remains incredibly strong – currency instability and an overall lack of confidence in fiat currencies, an environment of historically low interest rates and negative real interest rates (inflation is greater than the nominal interest rate even in parts of the world where rates are increasing), massive government debt from the United States to Europe, central bank buying, flat mine supply, physical demand, investment demand, emerging market growth, geopolitical unrest and conflicts, rising oil prices, inflation concerns…the list goes on.  It’s hard to imagine Gold not performing well in this environment.  The Middle East is being turned on its head and that could ultimately have major positive consequences for Gold.

For those pundits who mistakenly claim that Gold is in a “bubble”, its interesting to note that Gold ownership as a percentage of global financial assets is only 0.7% vs. 0.2% in 2002 at the beginning of the current bull cycle (a majority of that increase has been fueled by Gold’s sharp price appreciation).

As an asset class, Gold is still very much under-owned. And the “masses” still haven’t piled into Gold stocks.  We’re not even close to a bubble in Gold.

A fascinating and important development reported a week ago was the University of Texas endowment fund taking physical delivery of $1 billion of Gold (this amounts to about 5% of its total assets).

“The role Gold plays in our portfolio is as a hedge against currencies. The concern is that we have excess monetary and fiscal stimulus,” Bruce Zimmerman, chief executive officer of The University of Texas Investment Management Company told CNBC television.

While Zimmerman said it was easier and more economical for the fund to physically accept the Gold, which it is paying to store in a vault presumably deep below the sidewalks of New York, rather than the more usual route of buying a derivative contract, the move also must reflect concern about the risk of those contracts not being honored.  To that extent the investment is not only protection against inflation and currency risk, but against market failure as well.

The University of Texas endowment fund has made a long-term investment in Gold.  Look for other endowments and pension funds to do the same moving forward.  Can there be any doubt Gold is headed much, much higher?

Jon: Yesterday (Good Friday, ironically) was “Earth Day” across the world.  Unfortunately, many people on this planet forget about or openly dismiss the creator of the earth.

At BMR, while we focus on opportunities to build wealth within the speculative junior Gold market in particular, we also recognize that money, as important as it is, should never take precedence over our creator.  If your happiness is dependent on the value of your portfolio, if money is controlling you rather than the other way around, you should probably step back and ask God for help.  He’s available 24/7 and you never have to book an appointment.

Nothing is more important in my view than one’s relationship with God through Jesus.  He is the creator of all things and has also provided us, through His precious Word, all the guidance we need for our daily lives, even how we should approach the handling of money and investment matters.  God has nothing against the accumulation of great wealth – examine the lives of Abraham, Joseph, King David, Solomon and many others.  Money is not the root of all evil but the love of money is a dangerous and potentially devastating trap.

This Easter weekend is a great opportunity for each of us to put some time aside and reflect on what Easter is really all about and why we celebrate it.

We wish all of our readers a very special and joyous Easter.  Below is Terry’s Easter Message.

By Terry Dyer

Have you ever asked someone a question and then also asked, “Do you want the good news first or do you want the bad news first?”

I took my car into the garage the other day to have the brakes done.  When the technician called me with the quote he asked me that very question, “Do you want the good news or the bad news?”  He told me that the brakes were only going to cost me $500 but in the next breath he told me that my ball joints needed replacement.  The good news and the bad news.  This Easter we look at both.

Let us look at the bad news first.  We all have sinned and fallen short in the eyes of the Lord (Romans 3:23, New International Version) and since we have sinned we are destined to die “for the wages of sin is death” (Romans 6:23).  We are all sinners and death is our payment for our sin.

When someone offers employment to an employee he offers him a set amount of money to work for him.  Maybe twenty dollars an hour for every hour that employee works.  It is a contract.  It is also a contract when you break the law.  If you are driving your car and you do not stop at a stop sign a police officer will write you a ticket and you will have to pay a set fine.  It’s a penalty for not stopping at the stop sign.  This is true in God’s world as well.  When we sin we are destined for spiritual death.  It is both the wage and the penalty.  Sin is awarded death.

Some may ask what is spiritual death?  Spiritual death is an eternal separation from God.  In the Gospel of Luke, chapter 13, we are told that there will be weeping and gnashing of teeth.  In the book of Revelation we are told that death and Hades were thrown into the lake of fire.  Spiritual death is a bad place to be in and we are told that we are all destined for this.  The apostle Paul writes, “For all have sinned and fall short of the glory of God” (Romans 3:23, NIV).  That is the bad news.  We are all sinners and by the sin that we commit we are destined for Hell.  It doesn’t get any worse.

But wait – there is still the Good News.  Jesus came to the earth fully man and fully God.  When Jesus willingly went to the cross He carried the sin of the world, past, present and future, so that those that believe in Him will be saved from an eternity of death, pain, anguish, and separation from God.  “For God so loved the world that he gave his one and only Son, that whoever believes in him shall not perish but have eternal life.  For God did not send his Son into the world to condemn the world, but to save the world through him.  Whoever believes in him is not condemned, but whoever does not believe stands condemned already because they have not believed in the name of God’s one and only Son”(John 3:16-18, NIV).

Jesus paid the price for your sin, for my sin, and for the sin of the world.  All you have to do is accept Him, put your faith in Him and allow Him to be Lord of your life.  Turn away from the world, your old ways, and toward Jesus.  It doesn’t matter what you have done with your life up until now.  There is no sin too big for Jesus.  All one needs to do is say with a heart of repentance, “I am sorry, Jesus, for what I have done.  Today I ask you into my life. Come and make me whole. I turn toward you.”

This Easter I invite you to accept Jesus into your heart or to renew your commitment to Him.    If you have never prayed to Jesus take a moment now and turn your heart to Him.  If you already know Jesus but want him in your life in a greater way, then by all means pray for that too.  Invite Him into your life in a bigger way.

Let us pray:

Lord Jesus, thank you.  Thank you for this day you have provided.  Jesus, thank you that you willingly went to the cross for my sins, past, present and future.  Jesus, thank you that you paid the price for my sin.  I was destined for a life in eternal punishment and you saved me.  Thank you, Lord Jesus, this Easter Sunday we celebrate your day, the day that you rose again, and the day that you defeated death some two thousand years ago.  Thank you that you love me so much.  You are an awesome God.

“Jesus, I know that I have broken your laws and my sins have separated me from you. I am truly sorry, and now I want to turn away from my past sinful life toward you. Please forgive me, and help me avoid sinning again. I believe that you died for my sins, that you were resurrected from the dead, that you are alive today and that you’re hearing my prayer. I invite you, Jesus, to become the Lord of my life, to rule and reign in my heart from this day forward. Please send your Holy Spirit to help me obey You, and to do Your will for the rest of my life. In Your name I pray, Amen.”

From all of us here at BMR I would like to wish you a very Happy Easter.  May your day be full of love and blessings.  I thank you for your support of BMR as we strive to be of service to you.  From my home to your home, Happy Easter.

Terry Dyer

Publisher/Owner, Langley, BC

BullMarketRun.com

He is Risen Indeed…

The last few months have been relatively uneventful for Currie Rose Resources (CUI, TSX-V) but that could soon change based on fundamental factors and strong clues that John has picked up in Currie Rose’s chart patterns.

The rainy season in northwest Tanzania, typically from December through April, puts a halt to drilling activity but May is just around the corner and that’s when we expect Currie Rose to aggressively begin exploration at its highly prospective Sekenke Project which runs in between and surrounds two former high grade Gold mines.  We’ve written about Sekenke before and we’ll revisit it again in the days ahead – it’s a superb target at the southeastern end of the Lake Victoria Greenstone Belt, about 200 kilometres from Currie Rose’s Mabale Hills Property.

From a technical perspective, John has closely examined the CUI chart and has come to quite a bullish conclusion based on several factors including a “cup with handle” pattern that has just been completed.  As of 9:40 am Pacific, at the time of this posting, CUI is off half a penny at 16.5 cents.

John: Yesterday, Currie Rose Resources (CUI, TSX-V) opened at 16 cents, its low, and then closed at its high of 17 cents on low CDNX volume of 65,000 shares for a gain of 1 penny (6.25%). We will analyze CUI this morning using 2 charts. Chart #1 is a weekly chart to view the big picture and Chart #2 is a daily chart covering the last 4 months of trading in more detail.

CUI Chart #1

Looking at Chart #1, a 27-month weekly chart, we see that after more than 18 months of consolidation, primarily between a low of 2.5 cents and a high of 8.5 cents, a move up began from 3.5 cents at the end of July, 2010.   The share price formed a flagpole from July of last year until December and reached a momentum high of 47.5 cents.   From that time it retraced down to the Fibonacci 38.2% level (16 cents).  From early January of this year it has been in consolidation, validated by declining volume. The chart also shows a bullish crossover of the weekly SMA (50) up over the weekly SMA (200) with both providing close support at 15.5 cents and 14.8 cents, respectively.

Looking at the weekly indicators:

The RSI has completely unwound from being overbought and is now in a strong support band between 40% and 47% – bullish

The Slow Stochastics (SS) has the %K at 23%, pointing up, and above the %D at 14% – bullish.

The Chaikin Money Flow (CMF) indicator shows an increase in selling pressure during the past 2 weeks. As we will see on Chart #2 this is due to the formation of the “handle”.

Now we turn to Chart #2 to take a detailed look at daily trading during the last 4 months.

CUI Chart #2

Looking at this chart we see a “cup with handle” pattern (mauve outline of cup) completely formed with a completed downsloping “handle” which is also a “flag”. We also see a “double bottom” support pattern at 13.5 cents which is very strong support.

It is important to note that the “handle” has only retraced from the top of the right hand side of the cup down to the Fibonacci 38.2% (16 cent) level. The Fibonacci levels are not shown due to space restrictions. The important point here is that if the “handle” had retraced further it would have invalidated the complete “cup with handle” pattern. This pattern is now complete. A resistance level has been shown at 20 cents.

There are two daily moving averages shown, SMA (50) and SMA (200).  Both are at 17 cents, the present trading level.

Looking at the daily indicators:

The RSI at 51% has formed a flat “W” formation – bullish

The Slow Stochastics (SS) has the %K at 45%, looking ready to cross up over the %D at 46% – bullish.

The Chaikin Money Flow (CMF) indicator shows that the buying pressure has declined during ths past 6 sessions during the formation of the “handle” as expected – bullish.

Outlook: The charts indicate that the bullish “cup with handle” pattern is complete and the stock appears ready for a breakout from the “handle” in the near future. For this breakout to be sustainable there must be a large increase in volume.

Note:  John does not currently hold a position in Currie Rose Resources (Jon does).

Gold hit a record high for the fifth straight session today, climbing to $1,510…as of 8:35 am Pacific, the yellow metal is $4 higher at $1,506 an ounce…significant call buying between the $1,800 and $1,900 region in August and October contracts suggests prices could reach those levels within the next six months…in January, John laid out a strong technical case for Gold at $1,650 by June and that seems to be right on track…Silver keeps pushing higher…it’s currently up another 88 cents to $46.11, only about $4 below its January, 1980, all-time high, while the Gold-Silver ratio is now at its lowest level since 1983…the U.S. Dollar Index is trying to hang on to critical support…it’s off its lows of the day but still down over one-third of a point to 73.93…the U.S. Treasury Department projects the government could reach its debt ceiling limit of $14.3 trillion as soon as mid-May and run out of options for avoiding default by early July…the debt ceiling will need to be increased in a hurry…it’ll be very interesting to see how the wrangling in Washington unfolds over the coming months with regard to U.S. fiscal matters…new U.S. claims for unemployment benefits fell last week but held above the key 400,000 level according to a government report this morning…initial claims for state unemployment benefits fell 13,000 to a seasonally adjusted 403,000, the Labor Department said, unwinding some of the prior week’s quarter-end jump…economists polled by Reuters had forecast claims slipping to 392,000…the prior week’s figure was revised up to 416,000 from the previously reported 412,000…the four-week moving average of unemployment claims, a better measure of underlying trends, rose 2,250 to 399,000…we expect the Fed to continue its very accommodating monetary policy given the U.S. employment situation, the deepening housing crisis, major debt problems across every level of government, and Bernanke’s belief that inflation at the moment is not a concern…the CDNX enjoyed a strong day yesterday and the hope is that the 2200 level will hold as support…as of 8:35 am Pacific, the CDNX is up another 10 points to 2273…we’ve seen some wild swings and a lot of unpredictability in the CDNX since early March…we strongly urge our readers to stay focused on the “big picture”…we’re in the midst of a long-term CDNX bull market and the Gold/commodities bull market of a lifetime…you can either try and be a trader, which is very difficult for most individuals, or find some quality companies (we feature quite a few here) and stick with them…GoldQuest Mining (GQC, TSX-V) is just one of many examples…it got knocked down to 25 cents Tuesday on overall market weakness and a not so enthusiastic response to some good drill results from its very promising La Escandalosa Project in the DR…Escandalosa remains an outstanding property and a potential 100,000 ounce per year producer with much more drilling of course required…GoldQuest also has other attractive assets in the DR and a lead-zinc-Silver deposit in Spain with 8.7 million tonnes of indicated and inferred 43-101 resources totaling over 900 million pounds of lead, 1 billion pounds of zinc, and over 10 million ounces of Silver…GoldQuest, which is trading at 25 cents this morning, has excellent management and will be an exciting company to follow throughout this bull market…ditto for Visible Gold Mines (VGD, TSX-V) which is our pick to emerge as one of the top Gold plays in northwestern Quebec (see our story yesterday)…VGD is focused on four key projects (Joutel, Cadillac Break, Silidor and Stadacona-East) and has a top-notch geological team that has the ability to produce a major discovery (senior geologist Robert Sansfacon played a key role in uncovering Canadian Malartic)…VGD is currently off half a penny at 35.5 cents where it should be “load up” time for smart investors if you looked at John’s chart yesterday in addition to our overall analysis…what a day for Gold Canyon Resources (GCU, TSX-V) yesterday as it jumped 62 cents to $3.84 after announcing a $10 million bought deal private placement offering at $3.05 (hard cash) and $3.65 (flow-through)…GCU is developing its world class Springpole Gold Project just over 100 kilometres northeast of the Red Lake mining camp…the stock is off 12 cents this morning at $3.72 but expect buyers to step up to the plate and soak up any loose stock…GCU is a great looking situation…a couple of other companies with advanced projects we suggest investors perform due diligence on are Levon Resources (LVN, TSX-V) and Orko Silver Corp. (OK, TSX-V)…both are looking very promising…a reader brought up Kiska Metals Corp. yesterday (KSK, TSX-V) which has been beaten up recently but it too has an advanced project of merit (copper-Gold porphyry deposit north of Anchorage) and bargain hunters may wish to take a look…Currie Rose Resources (CUI, TSX-V) is giving positive technical signs…John has prepared a couple of charts that we will be posting shortly…with the rainy season just about over in northwest Tanzania, Currie Rose is expected to start its 2011 drill campaign possibly within a few weeks…the project we’re most excited about is Sekenke which runs in between and surrounds two former high grade Gold mines including one of Tanzania’s original producers…CUI is currently off half a penny at 16.5 cents…White Tiger Mining (WTC, TSX-V) released assay results yesterday from hole #21 at its Marshall Lake Property in northern Ontario that were decent but didn’t meet market expectations…from 132 to 190 metres, hole #21 returned 1% copper and 4.4 g/t Ag…assays are still pending for hole #23 which was collared 25 metres south of #21 and was drilled beneath #21…WTC fell 20 cents yesterday and is off another nickel at the moment to 50 cents…it’s a play that is still worth keeping an eye on but lower prices are possible…

Robert Sansfacon is a very respected and successful veteran geologist who has a “nose” for Gold.  He played an instrumental role in the discovery of Osisko’s (OSK, TSX) massive Canadian Malartic deposit and now he’s part of the Visible Gold Mines’ team that BMR believes will catapult this TSX Venture Exchange (VGD, TSX-V) and Frankfurt listed company into a major player in the exciting business of exploration and mining in northwest Quebec, one of the most prolific Gold producing regions of the world.  With Gold at $1,500 an ounce, identifying a company like VGD in the early stages of its development can lead to potential huge returns.  There are risks like with any speculative junior mining stock but VGD has some very special characteristics that in our view greatly enhance its chances for success.

Robert Sansfacon – Visible Gold Mines‘ Senior Geologist

Visible Gold Mines, which has a current market cap of just $17 million with almost half that amount in cash, is focused like a laser beam on four projects (Joutel, Cadillac Break, Silidor and Stadacona-East) covering thousands of hectares of some of the most highly prospective real estate for a potential major Gold discovery that you’ll find anywhere on the planet.  Sansfacon is leading the geological pursuit and we’re confident he’s going to succeed.  He just made an intriguing early-stage drilling discovery at Silidor, as reported by VGD after the close today.  He’s already smelling Gold and Silidor is just the start of it.

I had my boots on the ground for many days in northwestern Quebec recently, searching diligently for the next big “home run” opportunity that BullMarketRun could confidently introduce to its readers.  Last year, of course, we discovered Gold Bullion Development (GBB, TSX-V) when it was trading at just 7 cents.  A major discovery at its Granada Gold Property near Rouyn-Noranda propelled GBB as high as 93 cents in 2010.  At the other end of the country we identified very early on the incredible opportunity in Richfield Ventures (RVC, TSX-V) with its Blackwater Gold Project in central British Columbia.  We introduced that company to our readers just over a year ago when it was trading at $1.20.  Just over two weeks ago New Gold Inc. (NGD, TSX) announced a takeover plan for Richfield valued (April 4) at $10.38 per RVC share or $550 million in NGD stock.

Visible Gold Mines has not yet been discovered by the masses and yes, as I outline in detail below, this aggressive explorer anchored by a powerful management team has the potential to become the next Gold Bullion Development or Richfield Ventures’ success story.

• Well-financed ($8 million in cash)
• Vision, strong leadership and business management skills that few CDNX companies possess
• Talented geological team – lots of ground support to move projects forward quickly
• Large land package with properties of major discovery potential
• Tight share structure
• Aggressive IR strategy
• Attractive chart – record volume for this stock over the last eight months

Visible Gold Mines came out with interesting news today following the market close as the company reported it has drilled into significant mineralization nearly 700 metres southwest of the past producing Silidor Gold Mine on the outskirts of Rouyn-Noranda.  More results are pending and drilling continues in a northeasterly direction toward the former mine. Sansfacon, who honed his skills for many years at Lac Minerals, definitely smells Gold at Silidor.  Only time will tell, of course, if he finds the volume he’s looking for there.  But this project is in the best hands possible and Sansfacon has other irons in the fire as well, namely Joutel, Cadillac Break and Stadacona-East.  We like the odds.  Give a geologist of this caliber four exciting projects and the Law of Averages states he’ll turn one of them into a major success.

VGD TECHNICALS – CHART SHOWS STRATEGIC ENTRY POINT IS RIGHT NOW

We’ll go into more detail on Silidor and VGD’s other major projects shortly.  First, however, let’s examine the “big picture” technical story of Visible Gold Mines.  John, BMR’s chart guru, likes what he sees.  Below is a technical snapshot of the four-year trading history of VGD.  Note the volume surge since September of last year, the support provided by the rising 300 and 500-day moving averages (SMA’s), the unwinding of the RSI and the oversold Stochastics.  The 200-day SMA, not shown here, is rising and at 42 cents.  Simply put, at today’s 36-cent close this is a stock at the low end of a trading range in what appears to be a powerful long-term uptrend. This chart clearly demonstrates the “Golden” potential of Visible Gold Mines.

VGD FUNDAMENTALS – ALL THE RIGHT INGREDIENTS

Now let me explain why Visible Gold Mines has a truly special combination of fundamentals that give this company such a tremendous opportunity to position itself as a major player in one of the greatest Gold producing areas of the world.

• Outstanding Management
  

Visible Gold Mines is one of the few Venture Exchange companies we’ve come across that not only possesses top-notch geological expertise, as outlined above, but two other ingredients that are so critical in terms of being able to maximize shareholder value and create wealth – business savvy and marketing prowess.

I had the pleasure of meeting Martin Dallaire, the President and CEO, on my recent trip to Rouyn-Noranda.  He’s a very successful and well-respected local businessman and entrepreneur.  He earned a degree in engineering from the University of Quebec at Chicoutimi in 1992 and knows the mining industry inside-out.  He’s sharp, determined, organized, focused and fluently bilingual.  He presents extremely well (I attended the VGD AGM) and tells the Visible Gold Mines story in a powerful way.

As soon as you walk into the Visible Gold Mines’ office in Rouyn-Noranda, you get the immediate sense that something is different and special about this company compared to most others on the Venture Exchange – Dallaire means business and has surrounded himself with quality people to achieve his goals.  VGD is no stock promotion – a real company is being built here and one that is growing rapidly – though Dallaire understands how important PR and marketing are to the success of a junior exploration company.  It appears he has all the right people in place to carry out his game plan which is to position Visible Gold Mines as a major player in the northwest Quebec Gold exploration sphere as quickly as possible.  We’re in the Gold bull market of a lifetime and we’re certain Dallaire is going to “seize the moment”.

Dallaire astutely recruited one of the finest geologists in the country in Sansfacon. Simply put, Sansfacon knows how to find Gold and nail down a deposit.  He’s also a major reason why Visible Gold Mines was recently able to cut a deal with Agnico-Eagle Mines (AEM, TSX) on the Joutel Property (more on that below), a past producer that Sansfacon believes has exciting untapped potential.  Sansfacon is supported by a strong team and all the tools he needs on the ground – there is a high level of efficiency and professionalism in this company’s geological work.  The pace is swift.      

• Exceptional Land Package

Visible Gold Mines is focused exclusively on opportunities in northwestern Quebec (mostly in the Rouyn-Noranda region) and has assembled an impressive land package totaling over 20,000 hectares.  Four key projects at the moment are as follows:

1. Joutel Property

Agnico-Eagle likes what it sees in Visible Gold Mines as well.  On March 31, VGD announced a very significant deal with Agnico-Eagle to add to its already impressive land package.  VGD has entered into an option agreement with AEM to acquire a 50% interest in the Joutel Property comprising one lease and 477 claims approximately 150 kilometres north of Rouyn-Noranda.  Joutel’s Eagle and Telbel mines produced over 1 million ounces of Gold at a grade of 6 g/t and some Silver between 1973 and 1993 (Agnico Mines merged with Eagle Mines Ltd. in 1972, allowing for the development of Eagle Mines‘ Joutel mining complex).  Joutel gave birth to Agnico-Eagle which eventually closed the mine prematurely in order to concentrate its efforts on the massive LaRonde Mine.

We believe there are two reasons Agnico-Eagle decided to option Joutel to Visible Gold Mines – Dallaire and Sansfacon, as simple as that.  Chances are, there is considerable remaining Gold at Joutel and significant extensions to the deposits are quite possible as often that’s the case with these situations.  If anyone can unlock the value of this project, it’s Sansfacon.  Visible Gold Mines is not going to waste any time going after a potential major new discovery at Joutel.  Today’s news suggested drilling is not far off.  Success at Joutel in our opinion would also open up the possibility of Agnico-Eagle taking an equity interest in Visible Gold Mines.

2.  Cadillac-Lucky Break Project

Visible Gold Mines optioned 7,400 hectares along the Cadillac Trend, mostly west of Rouyn-Noranda, from Cadillac Mining (CQX, TSX-V) in December of last year.  As announced April 8, drilling is now underway within 800 metres of Vantex Resources‘ (VAX, TSX-V) Moriss Zone discovery at that company’s Galloway Project approximately 30 kilometres west of Rouyn-Noranda.  Given results released to date by Vantex, and after speaking with Visible Gold Mines‘ geologists, there’s a strong possibility that mineralization at Galloway’s “Golden Triangle” extends beyond VAX’s claim boundaries onto ground held by Visible Gold (VGD can acquire a 60% interest in the entire Cadillac-Lucky Break Project from CQX).

Four holes will be drilled near the Moriss discovery (the first one has been completed as announced today) before Visible Gold Mines turns its guns toward Richmont Mines’ (RIC, TSX) Wasamac deposit.  The fact we learned early this month that VGD is drilling so close to the Moriss Zone discovery (Robert McEwen has taken a significant position in Vantex because of Galloway) was interesting enough.  Then the company really raised my eyebrows when it revealed it has some claims to the west of Wasamac (optioned from Cadillac) and will start drilling there as soon as the four holes are completed near the Moriss Zone.

VGD Takes Aim At Wasamac – Connecting The Dots

Watch out for this one – it could be huge.  We’re engaging in speculation here but given Visible Gold Mines’ stated desire to become an “exploration leader” in northwest Quebec, it wouldn’t surprise us if the company attempts to secure as much ground as possible immediately surrounding Wasamac where Richmont is aggressively drilling and recently announced a major expansion in resources (1.4 million ounces in all categories) at this former mine.  Cadillac still holds some very strategic property (the structure hosting Gold mineralization at Wasamac dips northerly toward the four claims held by Cadillac), Globex (GMX, TSX) has claims (see GMX’s March 17 NR) and is selling a lot of its holdings right now, and some land is in other hands as well.

Wasamac is a great story that we’ve been reporting on now for several months.  Richmont’s share price has soared to an all-time high of over $8.00 because of Wasamac.  Given the content and tone of the April 8 news release, it’s possible Visible Gold Mines has plans to strongly enhance its position near this rapidly growing deposit where we believe Richmont will build a plant to serve both Wasamac and its nearby mine (Francoeur) that is slated to go into production within a few months (for now Richmont will have to truck ore from Francoeur to its Camflo Mill near Malartic for processing).

“WE CONTINUE TO INVESTIGATE ADDITIONAL POTENTIAL STRATEGIC LAND PACKAGE ACQUISITIONS” – MARTIN DALLAIRE, ARPIL 8 VGD NEWS RELEASE.

3. Silidor Gold Property

Initial assay results from Silidor came out following the market close today and they are highly significant.  This project is located on the outskirts of Rouyn-Noranda, immediately off the main highway leading out of town.  The property, which we visited during our recent trip to the area, hosts the past producing Silidor Mine which ceased operations in 1997.  VGD acquired the project from Newmont Mining (NMC, TSX) and IAMGOLD (IMG, TSX) last year and made a discovery of high-grade mineralization a considerable distance from the former mine during a field program last year.  The drilling taking place right now is over an area that has never been previously drilled and is progressing in a northeasterly direction toward the former mine. As the saying goes, the best place to find a new mine is near an old mine (there are often extensions to mineralized structures as we’ve seen at Granada and elsewhere).  Early results are highly encouraging as drilling has discovered two new veins nearly 700 metres southwest of the old mine.  Reading between the lines of today’s news release (“the possibility of a series of shoots of gold mineralization is being investigated“), it appears Sansfacon very much likes what he sees and is going after the potential of multiple ore shoots which is sweet music to our ears.  Ore shoots can be very rich in mineralization.

Entrance to the Silidor Gold Property surrounded by excellent infrastructure just off the main highway leading out of Rouyn-Noranda.

Each of the first 10 holes at Silidor intersected mineralization and Hole #8 is of particular interest as four sections of Gold were hit between depths of 70.85 metres and 130.5 metres including 2.70 metres grading 5.45 g/t Au and 1.5 metres grading 5.70 g/t Au.  Remember, this area has never been drilled before and it’s 700 metres southwest of the former mine.  A total of 23 holes have now been completed (assays pending for 13 of them) and drilling continues.  Sansfacon would not keep the drills turning if he didn’t believe he might be closing in on something.  Things could get extremely interesting in a real hurry at Silidor.

4.   Stadacona-East

Earlier this month Visible Gold Mines announced an initial NR-43-101 resource estimate (163,000 inferred ounces) for its Stadacona- East Gold Property, a vein deposit located along a Larder Lake-Cadillac fault shear zone that could be related to other Gold-bearing shear zones just several hundred metres to the west on the site of the former Stadacona Gold Mine.  One kilometre to the north of Stadacona-East is the famous past producing Horne Mine (59.3 million tonnes grading 5.88 g/t Au, 2.2% Cu, and 13 g/t Ag).

Stadacona-East consists of 78 mining titles and covers a 14-square kilometre area.  The company still has numerous geophysical targets to test at this property and plans further drilling this year, so plenty of exploration upside exists.

• Strong Cash Position, No Debt, Tight Share Structure

Dallaire was busy last year raising money and putting all the pieces of the puzzle together in order to put Visible Gold Mines on a strong growth trajectory beginning in 2011.  The company is currently armed with 17 cents per share in working capital ($8 million) after major financings in the fourth quarter last year that raised $4.8 million and $4.9 million at 32 and 80 cents, respectively.  VGD has just 47.5 million shares outstanding with funds holding over 30% of the stock and management and “friends” controlling another 13%, according to the company’s latest corporate presentation.  Sheldon Inwentash was a buyer of the stock in late February (215,000 shares) at 41 cents, some of that for his self-directed RRSP according to insider trading reports.  The latest financials (January 31) show 3.8 million options outstanding (expiry dates from August, 2012, to November, 2015) at prices ranging from 17 to 62 cents while there are 18 million warrants outstanding (15 million at 45 cents expiring in October this year and 3 million at $1.20 expiring in December, 2012).  Yes, Mineralfields did a financing with this company but to get in on this they paid a premium of 80 cents per share.  Some investors are skittish regarding Mineralfields as they have a tendency to dump stock into the market.  However, we have no concerns regarding their position in VGD especially since their financing was at more than double the current share price.  At some point down the road it wouldn’t surprise us if Mineralfields’ position is taken out by bigger players.  Dallaire is a smart operator, he understands the market and has a lot of connections in financial circles.

• Aggressive Approach Focused On Creating Shareholder Wealth
  

We love Dallaire’s style.  His focus is on building shareholder value and creating shareholder wealth by positioning Visible Gold Mines as a major force in the search for Gold in one of the best jurisdictions in the world, geologically and politically, for mining and exploration.  He’s a successful entrepreneur who’s very motivated to make a huge success out of VGD.  He has surrounded himself with very capable people who will help him immensely in making things happen for this company. 

CONCLUSION

Visible Gold Mines is an overlooked situation on the Cadillac Trend and in northwestern Quebec in general.  There is so much upside potential here and the long-term chart clearly shows the trend direction and strong technical support.

• Well-financed
• Vision, strong leadership and business management from Dallaire
• All-star geological team – lots of ground support to move projects forward quickly
• Large land package with properties of major discovery potential
• A major (Agnico-Eagle) that has partnered with the company
• Attractive share structure
• Aggressive IR strategy
• Immediate and long-term bullish technicals

This is a junior exploration company with clear goals and the determination and ability to succeed.

Word is getting out on this opportunity.  We love to put unique situations like this in front of our readers, especially when they’re trading near major support levels which makes for an attractive risk-reward ratio.  Visible Gold Mines is on track to become our next “home run opportunity”.

p.s.   Visible Gold Mines also trades on the Frankfurt Exchange and recently hired respected IR firm Axino AG to increase exposure of VGD in the European investment community.

The writer (Jon) holds a position in Visible Gold Mines.  The stocks we cover are highly speculative and should be considered by experienced investors only who understand the risks involved.  The information above must not be construed as a “buy” recommendation.  As always, perform your own due diligence and please read our disclaimer. 

The perfect storm for Gold has moved the yellow metal above the $1,500 mark…as of 8:20 am Pacific, Gold is $9 higher at $1,504 while Silver has jumped $1.07 to $45.03 as it inches ever closer to an all-time high…crude oil is stronger, up nearly $2 a barrel to $110.19 while the U.S. Dollar Index has tumbled to 74.41, about half a point above critical support…the mix of inflation, low interest rates, currency debasement, debt issues from the euro zone to the United States, geopolitical tension, flat mine supply, demand from emerging markets and other factors are all blending together to provide an incredible underpinning for Gold…if investors get comfortable with Gold at $1,500, look out…John’s January prediction of $1,650 by June is looking very achievable…after seven consecutive days on the downside – a pullback of 179 points or 7.5% given the 2400 high April 11 and yesterday’s low of 2221 – the volatile CDNX is now pushing higher in the first sign that a reversal could now be at hand and that the 2200 level may hold as support…the Index is up 34 points to 2267 as of 8:20 am Pacific…Gold Canyon Resources (GCU, TSX-V) has announced a bought deal private placement of approximately $10 million (flow-through at $3.65, hard cash at $3.05) with a syndicate of underwriters led by Cormark Securities Inc. and Fraser Mackenzie Limited…closing of the offering is expected on or about May 11…GCU is developing a potentially world class Gold deposit with its Springpole Project just over 100 kilometres northeast of the Red Lake mining camp…Fraser MacKenzie’s mining analyst already sees at least 5.5 million ounces at Springpole and Gold Canyon will be releasing an updated 43-101 sometime during the second half of the year…GCU is a “keeper” and it’s currently 21 cents higher at $3.43…Abcourt Mines (ABI, TSX-V) could close a major financing as early as tomorrow at 18 cents and the stock is sitting at 16.5 cents this morning, only a penny and a bit above its rising 200-day moving average (SMA) which provides excellent support…ABI is simply a no-brainer opportunity at 16.5 cents with this company sitting on two highly attractive projects with proven 43-101 resources at Elder-Tagami (Gold) and Abcourt-Barvue (Silver and zinc)…Levon Resources (LVN, TSX-V), which recently announced a $40 million bought deal at $1.95, has hit a new all-time high of $2.30…this is a highly attractive situation worth extensive due diligence…Orko Silver (OK, TSX-V) is a company we haven’t mentioned before that’s also worth a serious look at…Orko is developing one of the world’s largest primary Silver deposits in Durango, Mexico…Spanish Mountain (SPA, TSX-V) is looking very attractive technically and fundamentally…a recent reversal in the stock’s 50 and 100-day moving averages (SMA’s) suggests SPA may take a serious run in the near future at its 2010 high of 83 cents…near-record volume came into the stock last Thursday when SPA got a buy recommendation from an analyst on CNBC…SPA’s current market cap of $90 million is indeed cheap based on the Preliminary Economic Assessment released late last year for this advanced stage, multi-million ounce deposit in south central British Columbia…Gold Bullion Development (GBB, TSX-V) has an even lower market cap than Spanish Mountain but GBB’s initial 43-101 for Granada will be coming out sometime this summer and we’re expecting some robust numbers…GBB’s rising 20-day moving average at 48 cents is providing technical support with the stock currently off half a penny at 48.5 cents…as we’ve stated repeatedly, there is exceptional long-term value with GBB and the LONG Bars Zone…the proposed Castle spin-off is an added bonus…the next rising star along the Cadillac Trend, in our view, is Visible Gold Mines (VGD, TSX-V) which the masses have not discovered yet (it’s always best of course to get in before they do)…there are several reasons why we are so bullish on VGD…Robert Sansfacon, the company’s senior geologist, is highly respected in the industry and played a key role in the discovery of Osisko’s (OSK, TSX) Canadian Malartic deposit…Martin Dallaire, VGD’s President and CEO, is a very successful entrepreneur in Rouyn-Noranda who is extremely well-versed in the mining industry…he has a strong financial background and a clear strategy to build shareholder value…he has assembled an exceptional team and a land package that offers high potential for a significant discovery…we’ll have more on VGD later today in a separate report…the stock is currently up a penny-and-a-half at 37 cents…GoldQuest Mining (GQC, TSX-V) is up half a penny at 26.5 cents on light volume after yesterday’s sell-off that dropped the stock as low as 25 cents….initial results from La Escandalosa yesterday disappointed the speculators but were were strong enough to support continued expansion of this deposit in the Dominican Republic…GQC’s goal is to outline at least 1 million ounces at La Escandalosa and that possibility is still very much intact given yesterday’s news…the fact a possible southern extension to La Escandalosa is now doubtful is not a major issue as the ground going north has always been regarded as more prospective…a lot more work is required at La Escandalosa but this remains a very intriguing project…this company has a lot going for it in both the Dominican Republic and Spain while the stock has shown strong support at 25 cents…for patient investors we see huge potential from here for GQC…the 500-day moving average (SMA) is rising and at 20 cents which shows that the downside potential from current levels is very limited…a reader commented yesterday that Seafield Resources (SFF, TSX-V) is a “dog”…we remember hearing similar comments last year when the stock was struggling under 20 cents and then all of a sudden of course it exploded to nearly 80 cents in December…Seafield is trading at 30 cents this morning and it’s still very early in the game for its Quinchia Project in Colombia where two rigs are currently operating, one at Dos Quebradas and the other at the nearby Santa Sofia target…we’re convinced that both properties will reveal Quinchia’s blue sky potential…results from only three holes have been received from DQ (one was outstanding and confirmed an historical hole) while drilling has just started at Santa Sofia…the company is also sitting on $15 million in cash…bargain hunters who are patient could see this “dog” perform some amazing feats in the not-too-distant future…

Welcome to our site, or at least the initial version of it!  BMR has been online for over a year now and strictly through word-of-mouth we have built a large and loyal following. 

We’re continuing with our plans to ultimately build a very unique investment and money-management resource site that goes considerably beyond what we have now.    An important component of this site will always be 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. The Bible teaches so much about money and how to handle it and invest it –  there are literally thousands of verses on how we should handle the money and possessions that God entrusts us with.  By examining the life of Jesus and reading the Word of God, we can all become fully equipped to be successful investors and handle money wisely in order to make it work for us.  If it’s the other way around –  if you’re a slave to money by being in debt for instance, or if you don’t respect the value of money and spend it foolishly –  you’re in trouble and you’ll never be blessed financially.  We have a God who thinks big – He created the universe – and He wants us to think big  in every area of our lives.  When we handle money from a Biblical perpective (His money that we have been given stewardship of) He will bless our financial decisions and an increase of tenfold or a hundredfold is always possible.  This all begins, of course, with a personal relationship with Jesus Christ by accepting Him as your Lord and Savior and putting Him at the throne of your life.  It is the most important decision you’ll ever make.

God Bless,

Terry Dyer

Owner/Publisher, www.BullMarketRun.com