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Gold has traded in a range of $1,521 to $1,534 so far today…as of 8:20 am Pacific, the yellow metal is down $2 an ounce at $1,529…Silver is off its lows but down 23 cents to $35.58…crude oil, which took a pounding yesterday, is now up 25 cents a barrel to $95.06…the U.S. Dollar Index continues to rally and is up another one-quarter of a point at the moment to 75.74…the greenback, fueled by debt problems in the euro zone, has a good chance of hitting the high 70’s on the Dollar Index according to John’s latest chart…what’s interesting over the last few days is that we haven’t seen the usual inverse relationship between the Dollar and Gold…

Greek Prime Minister George Papandreou was planning to form a new cabinet today and seek a vote of confidence from his fractious Socialist party to try to push through an austerity package and avoid default…he’s facing an uphill battle, however, and may not be able to forge a political consensus…Greece must pass a new round of tax increases and spending cuts to receive a new EU/IMF bailout and a $17 billion aid tranche in order to pay back sovereign debt that matures at the end of next month…interest is growing in one-year credit default swaps that would give investors large returns if indeed there is a hard default on the part of Greece, an outcome that European policymakers will try to avoid at all costs even it means delaying the inevitable…some interesting words from Bank of Canada Governor Mark Carney…without using the word “bubble” to describe a housing market where prices are now 13% above their pre-recession peaks, and without saying the Bank of Canada will take specific measures to cool the red-hot sector, Carney has left little doubt that he’s concerned…“The risk is that expectations become extrapolative, prompting the classic market emotions of fear and greed – greed among speculators and investors, and fear among households that getting a foot on the property ladder is a now-or-never proposition,” he said in a speech to the Vancouver Board of Trade…tellingly, Carney noted that in Vancouver, the country’s priciest market, as in other “globalized” markets like Sydney and Hong Kong, Asian wealth is coming in as investors diversify and look for hard assets, fueling valuations that in some cases are “extreme”…his warning about the housing market comes a day after a report from the Certified General Accountants Association of Canada showed household debt has hit a troubling $1.5-trillion, sparking new fears that the heavy burden on Canadian consumers could curtail spending and hurt the economy…if household debt were distributed evenly across all Canadians, the report said, a two-child household would owe an estimated $176,461, including mortgage costs…the CDNX is off 8 points at 1916…we’re expecting a very strong summer for Gold Bullion Development (GBB, TSX-V), so it’s pullback over the last two days to the 40-cent area presents a clear opportunity in our view…that’s only a nickel above the March and May lows and it makes no fundamental sense that GBB could dip below those levels considering the multi-million ounce potential of the LONG Bars Zone…at 40 cents, GBB’s market cap is only $67 million with an initial 43-101 resource estimate expected sometime during this upcoming quarter…many more assay results are still pending from GBB…more solid numbers from the northern part of the Eastern Extension and a “hit” in LONG Bars Zone 2 at the Aukeko target could send GBB flying through resistance in the mid-50’s…as of 8:20 am Pacific, GBB is unchanged at 39.5 cents…interesting results were reported this morning from Adventure Gold (AGE, TSX-V) and Mazorro Resources Inc. (MZO, TSX-V) from the Lapaska Gold Property 20 kilometres east of Val d’Or…MZO has an option to earn a 70% interest in the project…the property is located along the Cadillac-Larder Lake Gold Break and the first two holes of shallow returned solid results at shallow depths…LP-11-16 returned an interval of 1 g/t Au over 103.4 metres (from 45.3 to 148.7 metres), including 10.3 g/t Au over 3.8 metres, while LP-11-17 returned 1.2 g/t Au over a 156.9-metre interval (25.2 to 182.1 metres)… LP-11-16 included a Gold halo of 564.1 metres grading 0.3 g/t while LP-11-17 featured a Gold halo of 245.5 metres grading 0.8 g/t, providing evidence of a potentially strong Gold system…Mazorro is up a penny at 23 cents while AGE is 2 cents higher at 54 cents…we remain very bullish on the prospects for Seafield Resources (SFF, TSX-V) in Colombia but there are a couple of other companies exploring in that country whose share prices have dropped to quite attractive levels in our view…perform your own due diligence…Batero Gold (BAT, TSX-V) is trading at support at $2.80, less than half its value in early March, while Colombian Mines (CMJ-TSX-V) has to be one of the most technically oversold stocks on the Venture at the moment if you look at its chart…CMJ, which is well-financed and has extensive holdings in Colombia, has had only two “up” days over the last 25 sessions since trading as high as 80 cents May 10…it’s currently unchanged at 54 cents where there is support going back to late 2009…

Gold dropped as low as $1,513 this morning before reversing…as of 8:30 am Pacific, the yellow metal is up $7 an ounce at $1,531…the inability of the EU and the IMF to hammer out a final agreement on a debt and aid package to Greece has given Gold a lift…Euro zone ministers will meet again next week to find an agreement, with the voluntary involvement of private investors the main sticking point…Silver is 47 cents higher at $35.86…crude oil has reversed and is now up 34 cents a barrel to $99.71 while the U.S. Dollar Index has jumped two-thirds of a point to 75.08…some U.S. economic data came out this morning…the Consumer Price Index rose 0.2% last month, down from April’s 0.4% increase…food costs rose 0.4% while energy costs fell 1%, the first drop in nearly a year…over the past 12 months, consumer prices in the U.S. have increased 3.6%, the biggest gain since October, 2008….the so-called core CPI, which strips out volatile food and energy prices, rose just 1.5% over the past 12 months but that’s still the biggest increase for core CPI since January, 2010…meanwhile, a gauge of manufacturing in New York State showed the sector unexpectedly contracted in June, falling to minus 7.79 for the first time since November, 2010, from positive 11.88 in the month before…economists polled by Reuters had expected a gain to 12.50…the U.S. economy has certainly hit a soft patch…Japan supply chain disruptions have clearly been a contributing factor and that situation should certainly improve significantly over the second half of the year…the “expectations” component of the National Home Builders’ Association sentiment survey has dropped four points to tie a record low set back in February, 2009…the CDNX is off a point at 1944…Great Panther Silver (GPR, TSX), which found support at its rising 200-day moving average (SMA) recently, reported earnings of 6 cents per share this morning for Q1…revenue increased 95% for the first quarter to $15.5 million…the stock is currently up 19 cents to $3.13…Gold Canyon Resources (GCU, TSX-V) is charging higher as we expected after becoming deeply oversold…it will face technical resistance around the $3.00 level…GCU is up 28 cents at the moment to $2.88…just beginning to rebound from oversold conditions is Richmont Mines (RIC, TSX) which should have another very solid quarter of earnings…RIC is a great value play with superb growth potential given what’s happening at Wasamac…it’s up 2 pennies to $6.67…on the more speculative front, we spoke this morning with Jules Riopel, Adventure Gold’s (AGE, TSX-V) VP-Exploration, who’s very upbeat about what’s developing at the company’s Pascalis-Colombiere Property near Val d’Or in addition to projects elsewhere…it’s clear to us that Richmont likely has some interest in potential production possibilities at Pascalis-Colombiere (Riopel used to work for Richmont)…Riopel wouldn’t comment on that, but he’s very excited about the second round of drilling at this property and the updated resource calculation that will come from that…Adventure Gold has other irons in the fire as well including of course the deep hole being drilled by Lake Shore (LSG, TSX) at the Meunier 144 Property (the hole will be completed this summer, probably to a depth of about 3,000 metres), the Dubuisson Property where Agnico-Eagle (AEM, TSX) has started a 4,000 metre drill program, and of course Granada where AGE holds some strategic ground…AGE is looking solid on the charts and certainly has the potential of breaking out in a major way on news over the summer…the stock is currently off 4 pennies at 51 cents…any weakness in AGE should be viewed as an opportunity for patient investors…Visible Gold Mines (VGD, TSX-V) is unchanged at 23 cents…we’re just completing the final editing of a long interview with VGD President and CEO Martin Dallaire…VGD is one of the best exploration stories in the Rouyn-Noranda and surrounding area and we’re particularly excited with the company’s Joutel Project…Joutel is a massive land package – some 500 square miles – and includes three former deposits that were mined over two decades beginning in the early 1970’s…VGD senior geologist Robert Sansfacon, who was instrumental in the discovery of Osisko’s (OSK, TSX) Canadian Malartic Deposit, is taking a fresh approach to Joutel and could pull off a repeat of his success at Canadian Malartic…the overall market weakness has driven VGD down into the low 20’s, giving it a market cap of just a few million dollars above its cash…it’s showing signs of being ready to move higher again…it’s currently up a penny at 24 cents…

Gold is trying to bounce off a three-week low this morning after yesterday’s drop…as of 8:50 am Pacific, the yellow metal is up $1 an ounce at $1,516…Silver is 13 cents higher at $34.89…crude oil has climbed 70 cents to $98.00 while the U.S. Dollar Index is off more than one-tenth of a point to 74.34…a slew of economic data came out this morning from the United States and China which has given investors some encouragement…U.S. retail sales fell less than expected and producer prices weren’t as high as expected…meanwhile, China’s industrial output for May jumped 13.3% from a year earlier, slightly topping forecasts…while there are some signs of slowing, China’s economy remains strong and its central bank raised bank reserve ratios today for the ninth time since last October after data showed inflation rising in May to 5.5%, its highest level in almost three years…the central bank increased the ratio for China’s biggest banks to 21.5%, a record high, locking up funds that could otherwise be loaned out and add to inflationary pressures…Chinese leaders have made bringing inflation under control their top priority this year, fearful that rising prices could not only unsettle the world’s second-biggest economy but spark social unrest of the sort seen this week in southern China…data shows that economic growth is China is slowing down but not too quickly, providing relief for financial markets that China will avoid a hard landing and leaving room for Beijing to focus on fighting inflation…non-food consumer prices climbed 2.9% from a year earlier, the fastest pace since records began in 2002, showing inflationary pressures are spreading more broadly in the economy…markets, which have become quite oversold, are up across the board today…the CDNX is 25 points higher at 1941…a “hinge” has formed on the Slow Stochastics for the CDNX, as John pointed out in a chart last night, and this is similar to what was seen prior to turnarounds in late January, late February, mid-March and mid-May…there are many beaten-down situations that offer strong value that should move higher just based on technical factors…Gold Canyon Resources (GCU, TSX-V) has become heavily oversold based on RSI and Stochastics indicators…it’s up 12 cents at $2.54 this morning…it nearly touched its rising 200-day moving average (SMA) the other day which currently sits at $2.25…from a trader’s perspective, GCU could easily rally back to its 100-day SMA near $3.00 where it would encounter resistance…Gold Canyon has a potential multi-million ounce deposit on its hands at its Springpole Project, 110 kilometres northeast of the Red Lake Mining Camp…drilling continues and an updated 43-101 resource estimate is expected by year-end…Richmont Mines (RIC, TSX-V) declined for 10 out of 11 sessions prior to today, falling to a low of $6.40 yesterday which is just below the rising 100-day SMA…Richmont is one of our favorite small producers (80,000 ounces this year) and is becoming an earnings machine…the company has approximately $50 million in cash, no debt, and made 28 cents per share in Q1…production is expected to increase by at least 25% next year and the company continues to work feverishly on its Wasamac Project near Rouyn-Noranda which should add another 100,000 ounces of yearly production down the road…it’s a well-run operation with great prospects…RIC is up 9 cents at $6.60…Adventure Gold (AGE, TSX-V) is delivering excellent results from its Pascalis-Colombiere Gold Property near Val d’Or with long intersections of mineable grade which shows open-pit potential…the property hosts the former underground L.C. Beliveau Mine…AGE’s supporting 200-day SMA is at 48 cents…the stock is up a penny this morning at 52 cents…Spanish Mountain Gold (SPA, TSX-V) has pulled back from the low 70’s to the mid-to-upper 60’s, just above its rising 50-day SMA…SPA is one-third of the way through a drill program that will upgrade resources from the inferred category to measured and indicated at its Spanish Mountain Gold Property in central British Columbia…potential extensions are also being tested laterally and at depth…this is a multi-million ounce low grade deposit with an excellent chance of developing into a producing mine…with a market cap of $88 million, SPA has considerable upside potential given the resource it’s developing…SPA is up a penny at 67 cents…weak markets have driven Batero Gold (BAT, TSX-V) below $3.00 a share, less than half where it was in early March…the company continues to get solid results from its Batero-Quinchia Project in Colombia…a Phase 2, 24,000 metre drill program is in progress at the highly prospective La Cumbre Gold-copper porphyry…BAT is currently unchanged at $2.80, 13 cents below its rising 200-day SMA and about 50 cents above its rising 300-day SMA, so the downside appears to be limited…

John: It is well known that the price of many commodities varies with the seasons. With Orange Juice, for example, the price can increase greatly at the first mention of frost, but what about Gold – does its price vary with the seasons?

To answer this important question I looked at an 11-year monthly chart of Gold with specific interest in the mid-year 4 months of May, June, July and August.

Looking at the chart, we see first of all the present uptrend in Gold started in April, 2001, and has been continuous for the last 10 years. That in itself is truly remarkable. As previously stated I am presently interested in the 4 months of May, June, July and August, so to make identification easy I identified the month of May for each year starting in 2001 by a vertical thin blue dashed line.  A White Candle is an “UP” month and a Red Candle is a “DOWN” month.  Results are below:

2001……….May “W“, June “W“, July “R“, August “W”

2002……….May “W“, June “R“, July “R“, August “W”

2003……….May “W“, June “R“, July “W“, August “W”

2004……….May “W“, June “R“, July “W“, August “W”

2005……….May “R“, June “W“, July “R“, August “W”

2006……….May “R“, June “R“, July “W“, August “R”

2007……….May “R“, June “R“, July “W“, August “W”

2008……….May “W“, June “W“, July “R“, August “R”

2009……….May “W“, June “R“, July “W“, August “R”

2010……….May “W“, June “W“, July “R“, August “W”

2011……….May “R“, June “R”

Overall

May W – 7, R – 4

June W – 4, R – 7

July W – 5, R – 5

August W – 7, R – 5

The above results show that there is a definite seasonal trend in Gold prices during the 4 mid-year months with June being the low month and then price strength picking up in July and getting stronger in August.

What information does the chart give us?  Well, looking at the RSI we see that a divergence between the Gold price and RSI has been identified and suggests that some weakness right now should be expected.    The RSI is high and has plenty of room to move lower before meeting support. The %B is operating in the high part of the stable zone between .75 and 1.0 and has room to drop lower without becoming extreme. The monthly SMA(30) is a close supporting moving average and is used in the %B indicator.

Conclusion:  Given the above results, any weakness over the last half of June should be followed by strength later in the summer, in particular by August.

The CDNX ran up to 1950 in early trading this morning before plunging 34 points from there to close at 1916, a 19-point loss for the day and the 10th “down” day out of the last 11.  A “hinge” has appeared in the Slow Stochastics, as John outlines below, which could indicate a reversal is near.  The rising 300-day moving average (SMA) provides strong support at 1889, though this correction may not end until there’s a drop slightly below the 300-day – just like what occurred at the market bottom in July of last year.

Welcome to our site, or at least the initial version of it!  BMR has been online for nearly two years and strictly through word-of-mouth we have built a 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.  While we focus a lot on the Gold market and trends in the global economy, and of course the technical health of the TSX Venture Exchange (CDNX), 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.  However, investors must understand that these are still highly speculative situations.  Our stock coverage is for informational purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. Please read our disclaimer at the bottom.

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

Disclaimer:

BullMarketRun.com (BMR) 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 adviser, 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 Advisers. 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 Adviser 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.

Gold is showing some softness this morning and trading over the last several sessions suggests it may wish to test the $1,500 level again…as of 8:00 am Pacific, the yellow metal is down $7 an ounce at $1,525…Silver is 75 cents lower at $35.45…crude oil has slipped another 62 cents to $98.67 while the U.S. Dollar Index is off one-quarter of a point at 74.67…Chinese banks extended fewer new loans than expected in May, showing that tightening measures are biting, while broad money supply growth hit a 30-month low as the government kept its foot on the credit brakes in a bid to tame persistent inflation…when adding in all the future liabilities in entitlement programs, the U.S. is actually in worse financial shape than Greece and other debt-laden European countries, Pimco’s Bill Gross told CNBC this morning…the CDNX is off to a positive start to the week after a 6% plunge last week that took the Index to a new yearly low of 1925…this market has major support around 1900 as John’s chart below outlines…while a dip slightly below the rising 300-day moving average (SMA) is possible – this occurred last summer and marked the bottom of the correction then – now continues to be the time in our view to be shopping for bargains…the CDNX is currently up 12 points at 1947…

It’s shaping to be an extremely busy summer of exploration in the Yukon where some 80 companies are expected to spend in the neighborhood of $500 million…Atac Resources (ATC, TSX-V) is off to a good start with news this morning that it has made a significant silver-lead-zinc discovery within the Rau trend (Ocelot target) in the western portion of its 100% owned Rackla Gold Project in the Keno Hill Mining District…results included 145 g/t Ag, 3.36% lead and 11.65% zinc across 41.72 metres in OC-11-09…another hole (OC-11-10) returned 63.44 metres grading 73.81 g/t Ag, 2.44% lead and 8.18% zinc…the primary focus of Atac’s 2011 exploration and 40,000 metre diamond drilling program remains the identification and expansion of Carlin-type Gold occurrences throughout the company’s 185 km long Rackla Gold Belt…the $25 million program is utilizing eight drill rigs…as of 8:00 am Pacific, ATC is up 93 cents to $7.02 on strong volume…more companies reporting stellar drill results such as ATC delivered this morning will give excellent support to the CDNX over the summer…another company active in the Yukon that investors should keep an eye on is Golden Predator (GPD, TSX-V)…GPD has tripled its 2011 budget to $6 million for its 187-square-kilometre Brewery Creek Project due to encouraging winter drilling results…a third rig was expected to be added by the middle of this month…GPD, which hit an all-time high of $1.38 in late April, is currently off 1 penny at 99 cents…Silver Quest Resources (SQI, TSX-V), which has projects in the Yukon as well as a valuable 25% interest in the Blackwater deposit now controlled by New Gold Inc. (NGD, TSX), is looking much better on the charts after some unwinding of its recent overbought condition…it’s currently unchanged at 95 cents…one of our favorite plays under 20 cents continues to be Currie Rose Resources (CUI, TSX-V) which is starting a 10,000 metre drill program during the last half of this month at its properties in the Lake Victoria Greenstone Belt of Tanzania…due to so many potential targets at its flagship Sekenke Project, which CUI will be drilling for the first time this summer, the company will begin drilling at Mabale Hills while additional groundwork pinpoints the most highly prospective targets at Sekenke which surrounds and runs in between two former high grade producing Gold mines…CUI has three major properties at Mabale Hills (Mwamazengo, Sisu River and Dhahabu) and each has the potential of delivering impressive drill results…geochemical analysis has outlined a continuous anomaly over a few hundred metres that runs parallel to the west of the Mwamazengo discovery where previous drill results included notable high-grade intercepts such as 34 metres grading 3.60 g/t Au, 12 metres grading 9.11 g/t Au, 63 metres grading 2.59 g/t Au and 31 metres grading 5.97 g/t Au…CUI’s chart is looking very promising as the company enters its busiest summer of exploration ever…a key technical development is a potential imminent reversal in the stock’s 100-day SMA which has flattened out after being in decline since January…CUI is off a penny at 17.5 cents on light volume through the first hour-and-a-half of trading…

Visible Gold Mines (VGD, TSX-V)

Visible Gold Mines (VGD, TSX-V) was down 3 pennies last week, finishing at 23 cents, and hasn’t enjoyed an “up” week since the final week of March…selling has been technically driven and unrelated to the fundamentals and what’s happening (and about to happen) on the ground – hence we see a major opportunity at the moment with this company trading just a few million dollars above its cash value of approximately $7 million…a week ago we spent time with President and CEO Martin Dallaire at the World Resource Investment Conference in Vancouver (we have an interview we will be posting this coming week)…Visible Gold Mines is in the midst of a 40,000 metre 2011 drill program managed by Robert Sansfacon, one of Quebec’s finest geologists who played a key role in the discovery of Osisko’s (OSK, TSX) Canadian Malartic deposit…VGD is focused exclusively on northwestern Quebec and will soon be tackling a highly prospective project (Joutel) that we believe will generate a great deal of attention and excitement, similar perhaps to what developed last year at Granada…the Joutel Property, a significant former producer of Gold and Silver, is located approximately 150 kilometres north of Rouyn-Noranda…drilling will start this summer and is expected to continue through the remainder of the year at this nearly 500-square mile property where over a million ounces of Gold and Silver were extracted from three zones by Agnico-Eagle (AEM, TSX) between 1974 and 1993…the theory is that there are extensions to those deposits as well as potential undiscovered deposits elsewhere on the large Joutel land package…it’s a geologist’s dream with a great story and it was Agnico-Eagle that actually approached VGD to take on this project through a joint venture – that’s the confidence they have in Visible Gold’s geological team…”When we picked up all the Joutel boxes and maps from the Agnico-Eagle exploration offices, it took us two pick-up trucks for all the data,” Dallaire told us…”We were flooded with data but we love it because we have the capacity to analyze all of it and bring some fresh ideas to the project…the trend is very large and there’s a lot of potential for many new mines in the area”…VGD also has three other projects – Silidor, Cadillac Break and Stadacona – which are equally capable of producing some eye-popping assay results but the company’s flagship project is clearly Joutel and the market hasn’t yet caught on to that story…when it does, VGD won’t be sitting in the 20′s anymore…Dallaire, an engineer and entrepreneur from Rouyn-Noranda, understands the mining industry and what an exploration company needs to do to succeed and build shareholder value…he’s fluently bilingual, presents himself extremely well and knows how to run a business and make money…he thinks big but is focused…he has also recruited some key people including Sansfacon who honed his skills for many years with Lac Minerals…in short, Dallaire has put something together you don’t often see in the junior speculative market – a powerful dynamic of business, geological and marketing expertise with a strategic plan to rapidly build value…the company’s niche and sole geological focus is northwestern Quebec where it has acquired several promising land packages, mostly west and north of Rouyn-Noranda…Dallaire is taking an aggressive approach to exploration and he’s targeting under-explored areas and past producing mines where major new extensions are possible…

Adventure Gold (AGE, TSX-V)

Trading activity in Adventure Gold was particularly interesting last week…despite a poor overall market, AGE climbed 7 cents or 14% for the week to 57 cents…on Wednesday, the stock briefly dropped below its supporting 200-day moving average (SMA) when it slipped to 45 cents before closing the day at 48.5 cents, half a penny above the 200-day SMA…the next day, volume picked up considerably (the highest in 17 sessions) and the stock closed up 6.5 cents…more buying came into the market Friday with AGE up another 2 pennies to close the week at 57 cents…the 10-day SMA has reversed to the upside and the 20-day is ready to do the same…something is stirring here – what could it be?…the company recently reported some significant news regarding its Pascalis-Colombiere Gold Property near Val d’Or…AGE has started a 5,000 metre Phase 2 drill program at the property after releasing more highly encouraging drill results including 4.8 g/t Au over 33.1 metres in hole #20 (plus lower grade halos over significant widths)…the intent of this program is to further define the Gold system, leading to a resource calculation which is already being worked on…Pascalis-Colombiere encompasses the past producing L.C. Beliveau mine (Richmont’s Beaufor Mine is just a few kilomeres away)…we found a comment from AGE President and CEO Marco Gagnon in the June 2 news release quite interesting…”Following positive drill results and the permitting process, an open-pit or an underground operation could be producing in the near future“…earlier this year we met with AGE’s Jules Riopel, VP Exploration, regarding the company’s strong portfolio of properties…he was very keen at that time on Pascalis-Colombiere and given the drill results, his bullishness on this property appears to have been justified…the former L.C. Beliveau Mine was a very profitable operation between 1989 and 1993, producing nearly 170,000 ounces of Gold for Cambior…meanwhile, Agnico-Eagle Mines (AEM, TSX) has started a 4,000-metre drill program at AGE’s Dubuisson Property near Val d’or…Dubuisson is contiguous to the Goldex mine property and also straddles a 5-kilometre segment of the prolific Cadillac-Larder Lake Gold break…AGE’s latest financials, released April 1, show the company with $3 million in working capital at the end of January…AGE runs an efficient operation and knows where to direct its energies…we first mentioned Adventure Gold to our readers in an article September 29, just a couple of days following the company’s announcement that it had acquired land at Granada, when the stock was trading in the low 20′s…we officially added AGE to the BMR model portfolio at just 34 cents October 28…Adventure Gold has been around only since late 2007 and we are impressed by the company’s solid portfolio of properties (19 in six strategic areas in Quebec and Ontario)…also of immediate interest is AGE’s partnership with Lake Shore Gold (LSG, TSX) on the Meunier 144 Property where deep drilling is still testing the down-plunge extension of Gold zones located at the Timmins and Thunder Creek deposits…the current initial deep drill hole onto the Meunier JV property is continuing and is on track to reach the 2,400 metre target level in the near future…if a discovery is made, AGE will instantly explode higher…

Seafield Resources (SFF, TSX-V)

Seafield rocked on Thursday and Friday without news on strong volume to close the week at 27 cents, a gain of 2 pennies from the previous Friday…it traded as low as 21 cents Wednesday and early Thursday before staging a reversal…the company announced the closing of a $3 million private placement at 30 cents May 24 with a “strategic” long-term investor and also released an updated 43-101 resource estimate for its Miraflores Property…that project has gone from an inferred resource of 776,000 ounces (at a cut-off grade of 0.5 g/t Au) to a measured and indicated resource of 1.2 million ounces and an inferred resource of 354,000 ounces (at a cut-off grade of 0.3 g/t Au)…another round of drilling will begin shortly at Miraflores…there was big news out of Seafield May 9 with a change in management which has to be considered a bullish development…Cesar Lopez, who has a strong background in South American exploration management and development, is the company’s new Chief Executive Officer…he replaces Tony Roodenburg who will remain as a director…Tom Henricksen, meanwhile, takes over as Vice-President, Exploration, from James Pirie who also remains as a director…Henricksen has over 35 years of mineral exploration experience and has spent the last 15 years on projects in South America…Seafield exploded from the low 20′s to an all-time high of 77 cents in just one day last December but then proceeded to give up all of those gains…the company’s Quinchia land package in Colombia has a great deal of untapped potential and Seafield is also sitting on approximately $18 million in cash…the company announced April 5 that drilling has commenced at Santa Sofia, about 1 kilometre north of Dos Quebradas where drilling continues…Seafield geologists have identified a promising porphyry target measuring 1,050 metres in length and 850 metres in width at Santa Sofia with soil values up to 2.3 g/t Au…on March 7, assays were reported from the first three holes completed at Dos Quebradas with hole #2 intersecting a whopping 511 metres grading 0.58 g/t Au…the hole ended in mineralization…hole #1 delivered 269 metres grading 0.37 g/t Au while hole #3 was drilled to define the eastern limit of mineralization and returned no significant results…a total of 10 holes were completed at Dos Quebradas as of early this month…significant intercepts well outside areas of historical drilling would start to get the market excited…the geological case for Seafield’s Quinchia land package is compelling and we’re looking forward to more results from Dos Quebradas as well as initial assays from Santa Sofia…patient investors have an opportunity to do extremely well with this play given the geological merits of Quinchia and the real potential for 5 million+ ounces from several potential deposits…we have confidence the new management group will unlock value by bringing fresh insight and new energy to this play along with a more aggressive exploration approach…Seafield has gained 350% since we made it the first company in the BMR model portfolio in the summer of 2009…its current market cap of approximately $44 million is modest given its cash position and resource potential…

Greencastle Resources (VGN, TSX-V)

Greencastle was off a penny for the week at 18 cents on low volume…on Thursday the company released its Q1 financials which show working capital of 16 cents per share ($7.5 million)…oil royalties have declined significantly – just $212,000 for the first three months of 2011 vs. $355,000 over the same period a year ago…the fact Tony Roodenburg is no longer at the helm of Seafield Resources (SFF, TSX-V) is a positive development in our view for Greencastle…Roodenburg had been trying to ease his way out of Seafield since 2009 without much success until last month…he’ll now be able to focus almost exclusively on Greencastle which has been a favorite project of his for many years…we suspect he’s going to take a serious look at spinning out the oil assets or the Gold assets into a separate company…something needs to happen here to boost shareholder value…Greencastle’s market cap of $8.2 million means the stock is trading just 10% above its cash value…history shows that whenever this occurs in VGN, a terrific buying opportunity has opened up though investors must be patient…it’s interesting to note that the stock’s rising 500-day moving average (SMA) and its 1000-day SMA, which has flattened out, have converged at 17 cents where there is exceptional support…Greencastle tripled in value over a six-week period from late October to early December…since the beginning of January, though, the stock has struggled due mostly to impatient investors frustrated with the lack of news…patience is definitely required with VGN or one shouldn’t invest in it…over the years the successful strategy with Greencastle has been to accumulate on weakness when the stock is near cash value and then sell into strength when something develops…with $7.5 million in working capital, three Gold properties (including land near the Blackwater Project) and monthly cash flow from an oil royalty, it doesn’t take a rocket scientist to figure out that Greencastle offers excellent value at current levels…the long-term chart remains very encouraging with rising 200 and 300-day SMA’s that are in no danger of reversing at the moment…it’s also important to note that Roodenburg, a large shareholder in VGN, refrained from selling any of his holdings during the late 2010 run-up in the share price…this is different from past bullish in the stock and adds further credence to our view that we haven’t seen the highs in this cycle yet from Greencastle – it’s poised for what we believe could be a massive breakout sometime this year…Pinetree Capital has also accumulated more shares in Greencastle, so there’s every reason to be very optimistic regarding this company’s prospects…Greencastle is up nearly 30% since we added it back in to the BMR model portfolio last October…

Sidon International (SD, TSX-V)

Sidon simply hasn’t been able to recover yet from its fall in March, one day after the CDNX correction began, on poor drill results from its Morogoro East Gold Property in Tanzania…the stock closed Friday at a 52-week low of 3.5 cents, a loss of a penny for the week…there has been no news from the company since March 14 when it announced a proposed private placement at 8 cents and an option to acquire an 80% interest in a 50-square kilometre property adjacent to Canaco’s (CAN, TSX-V) Handeni discovery in Tanzania…the six shallow holes drilled in December at Morogoro East failed to produce significant results, the best hole showing 3 metres grading 1.7 g/t Au…the company has drilled four deeper holes with results for those still pending…what the initial six holes have given Sidon, however, is a better understanding of the Morogoro geological structure which will aid in any future drilling…exploration, especially at such an early stage, is never easy and disappointing early results don’t necessarily mean a property doesn’t hold excellent potential…the company is also trying to develop a placer operation at Morogoro…there is certainly the possibility of better days ahead for Sidon but the lack of news and the continuing weakness in the share price is not encouraging…from a technical standpoint, previous support between 9 and 10 cents will now provide resistance…Sidon is off 2 pennies since we introduced it to BMR readers just over a year ago at a nickel…the company currently has approximately 140 million shares outstanding for a market cap of $4.9 million…