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Gold Bullion Development (GBB, TSX-V)

Gold Bullion has performed very well recently, especially considering the weakness in the markets…the behavior of the stock over the last few weeks is strong evidence that the mid-30’s was an important bottom, as we have been speculating, and GBB is now slowly working its way higher…a bullish “cup with handle” formation is still in progress on the chart – this remains valid…GBB was off 2 pennies for the week, closing at the now rising 50-day moving average of 45 cents…the stock does have declining 100 and 200-day moving averages but that situation could certainly change sometime over the summer which would add more fuel to the fire…so the technical picture and outlook have improved considerably with GBB after major weakness between mid-February and mid-May…the company provided an update on its Castle Silver Mine Project last week…the 6,000 metre Phase 1 drill program is nearing completion and a strong new vein structure was intersected at the first IP target…a 43-101 technical report on the property has also been released…assay results from the 10 holes drilled so far are still pending…meanwhile, the initial 43-101 resource estimate for the LONG Bars Zone of the Granada Gold Property is expected sometime during the third quarter…the market is a forward-looking machine and those who follow GBB won’t be waiting until after the 43-101 comes out before getting positioned appropriately in the stock…the company’s current market cap of $72 million puts a value of just $24 an ounce on Gold in the ground at Granada if one were to assume the 43-101 will outline approximately 3 million ounces in the measured, indicated and inferred categories…that’s just a hypothetical number on our part at the moment but whatever number GENIVAR comes up with, we believe it should exceed the 2.4 to 2.6 million ounce conceptual figure that Gold Bullion gave in April of last year…based on all the drill results to date, this appears to be shaping up as a half-gram deposit with a higher grade starter pit and massive volume…it’s all about volume at Granada which is why the drills have to keep turning and why we want to see more than just two rigs in the LONG Bars Zone which has such incredible potential…Gold Bullion released fresh drill results from Granada May 12 which were consistent with previous numbers…hole #173 was the star of the batch of 25 holes…it provided additional evidence that the north and northeastern parts of the Eastern Extension are highly intriguing…#173 cut 80 metres grading 1.36 g/t Au within a total intersection of 363 metres of 0.35 g/t Au…a 1-metre section of high-grade (89.83 g/t Au) was hit near the bottom of the hole below 300 metres…#173 was collared approximately 115 metres northeast of #55 and 100 metres east-northeast of #108, two stellar holes released last fall…this is critical – assays are still pending on 9 holes (165, 168, 178, 183, 241, 243, 246, 254, and 257) north of #55 drilled over an east-west distance of about 250 metres and a north-south distance of 200 metres…results from those nine holes will go a long way toward confirming just how prospective these parts of the Eastern Extension are…#241 is the most northerly of those holes…meanwhile, hole #200 in the southeast portion of the Eastern Extension (northeast of discovery hole #86) returned an impressive interval of 48.50 metres grading 1.68 g/t Au within a total intersection of 210.5 metres of 0.44 g/t Au…results from the second most northerly hole drilled north of the Preliminary Block Model suggest more drilling is definitely required in that area…hole #31 hit a modest 18.5 meters grading 0.64 g/t Au close to surface (36 to 54.15 metres) and another 28 metres grading 0.59 g/t Au between a depth of 125 to 153 metres…where’s there’s smoke, there’s fire, and our theory is that there could be a significant trail of mineralization running north of the Preliminary Block Model and connecting with what has been discovered over the northern part of the Eastern Extension…six more holes (213, 214, 215, 217, 221 and 224 and 224) from the southwest portion of the Preliminary Block Model returned mixed results – we were hoping to see a couple of exciting holes from that area but that hasn’t materialized yet…overall, Gold Bullion continues to hit long intersections of lower grade mineralization over a wide area at Granada…this is a massive project with much more drilling required but the multi-million ounce model that Frank Basa has in mind remains intact…the 43-101 resource estimate should reassure investors and give this play more focus and a big lift…drilling is also underway now in LONG Bars Zone 2 near the old Aukeko Property (2 kilometres east of Phase 1 discovery hole #17) and if Gold Bullion is able to connect these two zones, look out…GENIVAR’s Nicole Rioux, the head geologist for Granada, is genuinely excited about the Aukeko area and she is normally quite conservative in sizing things up…a couple of excellent results from this area could really ignite this play and based on all the historical information we have reviewed from “LONG Bars Zone 2″, the chances of a “hit” in this area have to be considered very good…

Currie Rose Resources (CUI, TSX-V)

Currie Rose is looking very promising at the moment as it prepares to commence a 10,000 metre Phase 1 drill program at its properties in the Lake Victoria Greenstone Belt of Tanzania…the stock was off a penny for the week, closing at 18.5 cents, but it held up very well in the face of declining overall markets…in addition, CUI’s recent overbought condition has unwound with the RSI(14) finding support just below 50…Slow Stochastics are in oversold territory…the chart is favorable and suggests a breakout above resistance in the low 20’s is only a question of when, not if…any loose stock is being gobbled up quickly and the Chaikin Money Flow (CMF) indicator shows consistent buying pressure and accumulation over the past four months…the 50-day moving average (SMA), currently at 17.5 cents, has reversed to the upside and the 100-day SMA has flattened out and appears ready to start pointing north as well…from a fundamental perspective, the company is busier than ever with its projects in northwest Tanzania as outlined in a news release Thursday…we’re particularly excited about the Sekenke Project which has “blue sky” written all over it…Sekenke is why we decided to start following CUI when it was trading around a dime last fall…results from satellite imagery provide additional evidence that Sekenke is a highly intriguing geological target and part of the same northwest trending structure that hosts Canaco’s (CAN, TSX-V) Handeni Project…satellite imagery has also shown that the structures at Sekenke are coincident with a strong alteration envelope…what’s unique about this project is that it surrounds and runs in between two former high grade Gold mines including Tanzania’s original producer…this greatly increases the chances of a discovery as it’s unlikely the former mines were fully exploited or explored as techniques a century ago in this industry obviously weren’t what they are today…CUI has a terrific chance to hit it big at Sekenke and we also wouldn’t be surprised if the company takes a shot at acquiring the former Sekenke Mine…that’s speculation on our part but it makes sense from a strategic point of view…pre-drilling exploration work continues at Sekenke to pinpoint the best targets and in the meantime the company will begin drilling at its Mwamazengo discovery at Mabale Hills…geochemical analysis has outlined a continuous anomaly over a few hundred metres that runs parallel to the west of the discovery where previous drill results included notable high-grade intercepts such as 34 metres grading 3.60 grams per tonne gold, 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 also has two other important targets at Mabale Hills, Sisu River and Dhahabu… while its Tanzanian properties are the market’s major focus, Currie Rose could also benefit over the summer from continued good exploration news out of Trueclaim Exploration (TRM, TSX-V) which is currently conducting an 8,000 metre drill program at the Scadding Gold Property near Sudbury…Trueclaim, which continues to release encouraging assay results, 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 by more than half, from a high of nearly $40 million late last year to the current $17.3 million, what hasn’t changed is the quality of this company’s project portfolio which remains as high as ever…Currie Rose has all the cash it needs ($2 million) to complete an initial major round of drilling (10,000 metres) in Tanzania this summer, so there will not be any dilution of the stock at current levels as confirmed by President and CEO Harold Smith…

GoldQuest Mining (GQX, TSX-V)

GoldQuest remains in a consolidation phase which provides a great opportunity for patient and long-term investors…for the week the stock was off half a penny, closing at 19 cents, after dropping as low as 16.5 cents Friday on CDNX volume of just 83,000 shares…the stock has had a difficult four months, falling from a high of 48.5 cents in early February, but the opportunity at current levels has to be considered highly attractive…Chairman Bill Fisher certainly sees value at these lower prices – he recently picked up 210,000 shares in the open market between 19.5 and 20.5 cents…GQC’s prospects remain solid as the company has an outstanding portfolio of projects in the Dominican Republic and Spain…while GQC is now slightly below its 300 and 500-day moving averages, these long-term term SMA’s continue to rise and are in no danger of rolling over anytime soon…technically and fundamentally, the downside risk from current levels is very limited in our view…the 200-day SMA at 30 cents continues to rise and that’s where major resistance can be expected for now on the upside… the 50-day SMA at 24 cents is also an area of resistance…the substantial drop in the share price from a high of 48.5 cents in early February was due to general market weakness and selling from speculators whose expectations may have been too high regarding initial drill results from the company’s La Escandalosa Project in the Dominican Republic…in addition, the company has stopped all drilling in the DR until probably August in order to conduct extensive IP surveys over Escandalosa and other properties…overall assay results from Escandalosa were decent though far from spectacular…the final set of assays for seven holes came out May 16…the best intersection from Escandalosa Sur, where an initial 43-101 inferred resource of 400,000 ounces was outlined last fall, was 20 meters grading 1.32 g/t Au…results from this area overall (21 holes) were somewhat disappointing though more drilling is required and will take place later this year…however, the company drilled three holes at the Hondo Valle target 1.6 kilometres to the north (outside the resource area) and all three intersected significant mineralization including 29 metres grading 2.18 g/t Au in hole #65…that’s the thickest and highest grade mineralized section drilled to date at Hondo Valle…the theory is that mineralization trends north from Escandalosa Sur to Hondo Valle…GoldQuest is now carrying out a 16-square kilometre IP survey and magnetic ground geophysical survey from 2 kilometres north of Hondo Valle to 2.2 kilometres south of Escandalosa Sur…this will be completed by the end of July and GQC will then use the data to pinpoint key targets for an additional 3,000 metres of drilling…GoldQuest also has other promising projects in the DR (in particular, Loma Oculta – formerly Las Animas – where an exploration program aimed at identifying new drill targets is now underway) in addition to its lead-zinc-silver deposit in Spain…GoldQuest’s potential has not diminished whatsoever yet the share price has dropped by more than half from its early February high…the company released a 43-101 resource estimate March 2 on its Toral zinc-lead-Silver deposit in Spain…it showed slightly lower grades but much higher overall tonnage than the previous historical non-compliant estimate…as a result, total resources came out 15% higher…resources in the indicated category are 4.04 million tonnes grading 11.8% lead and zinc (5.3% lead, 6.5% zinc) as well as 41 g/t Ag and 0.11% Cu… inferred resources are 4.67 million tonnes grading 9.8% lead and zinc (4.44% lead, 5.4% zinc), 32 g/t Ag and 0.14 Cu…Toral has significant exploration and development upside as a majority of the historical drilling (40,000+ metres) was conducted over one relatively small part of the property…the zone of sulphide mineralization is open along strike to the northwest toward a known lead deposit as well as along strike to the southeast and downdip…the project is also an ideal candidate for a fast-track to production…the deposit is close to a power line, highway and rail line…a large smelter is located just 300 kilometers away by rail…

Cadillac Mining (CQX, TSX-V)

Cadillac was off a nickel for the week, closing at 10 cents, but on very light CDNX volume of just 19,000 shares…this is a company with tremendous potential given its property packages but management needs to demonstrate that it can take advantage of the opportunities the company has been blessed with…we are frustrated but remain patient for now because the possibilities with CQX are still incredible, especially considering the current market cap which is just $2.5 million…not often does a company get the kind of opportunity that Cadillac was handed (and still has)…CQX holds a 100% interest in a very strategic piece of property that adjoins Richmont Mines‘ (RIC, TSX) Wasamac deposit, 15 kilometres west of Rouyn-Noranda…the principal Gold structure hosting mineralization at Wasamac dips northerly onto the seven claims held by Cadillac…Richmont started drilling Wasamac in the spring of last year and steadily ramped up its drilling due to excellent results…in February of this year, Richmont reported a nearly five-fold increase in resources (from 285,000 to 1.4 million ounces) at Wasamac…as a result RIC has been one of the best performing Gold stocks on the TSX this year…throughout the past year since Richmont started drilling Wasamac, and in particular over the last five months, Cadillac management has completely failed its shareholders by doing essentially nothing (or the wrong things) to take advantage of Richmont’s success at Wasamac…BMR brought the Wasamac situation to the attention of its readers in December…investors got excited about the story and the potential of Cadillac’s “Wasa” claims…the stock ran to 50 cents by early January and the market was clearly eager to see Cadillac pursue this project as quickly and vigorously as possible…in this business, it’s critical to “seize the moment” and take immediate advantage of opportunities like this when they present themselves…the company easily could have leveraged the Wasamac situation into a major financing anywhere between 25 to 40 cents (they began the year with only about $200,000 in the bank)…in order to take advantage of any opportunity, a company must be well-financed and Cadillac management absolutely dropped the ball during the first quarter of this year when they did have a chance to raise at least $1 million (potentially much more) and failed to do so…we give the company credit for securing an excellent project (Goldstrike) in Utah on fabulous terms but several million dollars is going to be required to tackle Goldstrike in the right way…after talking about getting a drilling program going at Wasamac “in the near future” shortly after their mid-February AGM, Cadillac has reversed course and stated in a news release May 16 that it needs more information from Richmont’s work before drilling for down-plunge extensions of the Wasamac main, #1 and #2 zones…President and CEO Victor Erickson’s heart is with the Utah project, not with Wasamac…in retrospect, that has been demonstrated in many ways over the last six months…Erickson would have to admit that himself…one potential solution in our view is for Cadillac to cut a deal with another company for exploration at Wasamac and the natural partner for that appears to be Visible Gold Mines (VGD, TSX-V) which last December entered into a JV with CQX on its other Rouyn-Noranda area properties…VGD has all the money and expertise necessary to unlock the value of Cadillac’s Wasa claims…Cadillac could let others do the heavy lifting at Wasa and then focus its energies on developing the Goldstrike Project…talk is cheap – the onus right now is on Cadillac to show investors that it can “walk the walk” and make things happen, however they decide to proceed…

Abcourt Mines (ABI, TSX-V)

It was another quiet week for Abcourt which was unchanged at 12 cents…Volume has dried up significantly and ABI hasn’t enjoyed a 1 million+ share day since May 16…the drop-off in volume is actually a good sign as that’s what typically occurs near the end of a decline…Abcourt has traded in a narrow range between 11.5 and 13 cents over the last 24 sessions…the stock, which now has 149 million shares outstanding for a market cap of $18 million, has found support at current levels and should begin to firm up over the summer given strong fundamentals and an aggressive exploration program at two properties…ABI’s decline from a 52-week high of 25.5 cents in late March was brought on by the closing of a financing (35 million units at 18 cents), a sharp drop in Silver, overall CDNX weakness, and selling by MineralFields Group…ABI’s 100-day moving average (SMA) is now in decline and will provide resistance for now around 17 cents while the declining 50-day is at 14.5 cents…it’s going to take some significant news or bullish new overall market sentiment to drive ABI through resistance over the next month or two, so investor patience will be required here…the company released more results from its Abcourt-Barvue Silver-Zinc Property May 25 including 4.9 metres grading 300.99 g/t Ag and 3.05% Zn in AB-11-24, and 10 metres grading 129.48 g/t Ag and 3.12% Zn in ABI-11-27…drill results to date should significantly upgrade and increase all-category reserves and res0urces…the 10,000 metre drill program continues…the last set of results from the company’s Elder-Tagami Gold Property near Rouyn-Noranda came out May 16…mineralization continues to expand to the west and the east of the former underground Elder Mine which is now being dewatered…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 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…while the stock price is now slightly below that level, the record volume in ABI since late last year (take a look at a 10-year chart) is still a very bullish sign…Abcourt has been under significant accumulation and our best guess is that some savvy players like the assets in the ground…continued drilling success and 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…

TSX Venture Exchange and Gold

It was an ugly week for the CDNX which went into an abrupt and significant reversal after showing encouraging signs since May 17.  The Index closed at 1935, a loss of 121 points or 6% from the previous Friday, albeit volumes were on the low side.  The drop last week broke a pattern that was astonishingly similar to the 2005 correction.  So what should investors expect now?

What we thought was a 51-day correction of 20.6% that ended May 17 has now stretched to 69 days and 21.9%, making it the third-longest CDNX correction over the past decade.  The 2004 swoon started in early April with the worst of the decline over by mid-May.  The Index traded in a narrow range for a couple of months and then made one final plunge of 10% or so to finally bottom out by late July. In 2008, of course, the CDNX correction started in July and finished in December.

One could also look at the last few months as two separate corrections – a 17% drop over seven trading sessions in March, followed by a 20% slide over the last 43 sessions.  In any event, the worst certainly appears to be over.

It now seems reasonable to suggest that the CDNX could test its rising 300-day moving average (SMA) at 1888 or even drop slightly below that as it did in last year’s correction before finding a bottom.  There is strong support around the 1900 level as demonstrated in November of last year.  Rising 200, 300 and 500-day moving averages, which are in no danger of reversing, are solid evidence that what we’re seeing is just a correction within an ongoing CDNX bull market.  Given historical patterns, there is every reason to believe that the slide which began in early March will indeed conclude sometime this month or July (if it hasn’t already) with not much potential downside remaining.

Times like these are when huge profits are born.  As we’ve pointed out, statistics show that the CDNX has jumped an average of about 30% by the end of the year after the conclusion of a major correction.  If you’re a patient investor who’s not expecting to double his money in three days, now is a fabulous time in our view to be investing in well-run junior Gold companies with strong balance sheets and excellent properties.  There’s a lot of pessimism right now and that’s a good thing from a contrarian point of view.  Based on technical indicators such as RSI and Stochastics, the CDNX is clearly oversold.

Gold

John has an interesting new Gold chart that we’ll be posting later today.  We could see some weakness in the yellow metal over the last half of this month but the “big picture” outlook remains very bullish.  Gold will soon be entering a period of seasonal strength.

Gold was off $10 an ounce last week at $1,532 while Silver declined just 9 cents to $36.29.  The U.S. Dollar Index rallied and gained slightly more than a full point to 74.83.

The big question on investors’ minds, and this obviously has implications for Gold, is whether the global economy has hit just a temporary “soft patch” or if the current slowdown is only the beginning of something much worse that could also cause debt issues in various countries, including the United States, to spiral out of control.  There are plenty of “fear mongers” out there at the moment (most of them can’t see beyond the borders of the United States) who want to scare people.  While there are clearly some major global concerns that will continue to be supportive of Gold, we’re comforted by the fact the CDNX is going through a very normal and healthy correction in terms of magnitude and is supported by long-term rising moving averages.  This is not 2008.

A report last week indicated that the majority of Gold mines in South Africa will shut down within a decade. Despite the bull market of recent years, with the price of Gold rising sharply, South Africa’s Gold reserves are becoming depleted at a rate that within 12 to 14 years would mean the end of the industry for that country.

Gold demand continues to be strong.  First quarter world Gold demand grew 11% from the same period a year ago to 981.3 metric tons, according to the WGC in its quarterly supply/demand trends report released recently.  Much of the increase was due to investment demand with a 52% jump in purchases of bars and coins more than offsetting a decline in holdings of exchange-traded funds.  Jewelry interest also rose with China and India collectively accounting for nearly two-thirds of the global jewelry demand.

The WGC issued a included a separate section on China in the quarterly supply/demand trends report (data was compiled by the consultancy GFMS).  In the spring of last year the WGC issued a report stating it expected Chinese Gold demand could double over the next decade.  “With the sustained momentum in Chinese Gold demand, this target will probably be achieved in a shorter time scale,” according to Eily Ong, investment research manager with the WGC.  Gold demand grew by a whopping 32% in China last year despite a concurrent 25% rise in the average local currency Gold price.

Demand for Gold in China was so strong during the first quarter that for the first time the country outpaced the combined total of the developed West. If you lump together the Gold demand of the U.S., France, Germany, Italy, Switzerland, the U.K. and other European countries (despite large  increases in demand from France, Germany and Switzerland), the sum of these countries is still outpaced by China.

A slight pullback in prices during the middle of the first quarter and “persistent high inflation levels” pushed China into the position as the world’s largest market for Gold investment. Chinese citizens devoured nearly 91 tons of Gold bars and coins, more than double the amount of a year ago.

This isn’t exactly a new phenomenon in China. From 2007 to 2010, investment demand grew at a compounded annual growth rate of 68 percent, according to the CPM Group. The firm forecasted Chinese investment demand to increase 34.7 percent during 2011 but based on this new data, it may need to adjust its forecast.

Song Qing, director of Shanghai-based Lion Fund Management, told Bloomberg news that, “Gold has taken on a new role in China amid concern about inflation.  Just imagine the total wealth in China and even a small percentage of that choosing to buy Gold. This demand is going to be enormous.”

Central bank buying of Gold throughout emerging markets has been one of many contributing factors to the metal’s rise.  These banks have excess reserves and are looking for ways to diversify away from paper currencies for protection.  Last year was the first net positive year for central banks’ buying of Gold since 1985. They’ve chosen to own Gold over trying to guess whether Portugal or Greece’s debt is the best investment.

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, and 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.

11:50 am Pacific

It’s another negative day on the markets but as the fear level rises, so too does our bullishness.  At the very least, this is not a good time to panic and dump your Gold stocks into oversold conditions. As of 11:50 am Pacific, the CDNX is off 31 points to 1928, the TSX Gold Index is down 5 points to 363 while the HUI is 8 points lower at 510.

Gold is struggling today but it’s off its lows…as of 8:00 am Pacific, the yellow metal is down $10 an ounce at $1,534 after dropping as low as $1,525…Silver is weak, too, off 90 cents to $36.67…crude oil has slipped $2.78 a barrel to $99.15 as Saudi Arabia began offering more oil to Asian refiners, easing worries about supply following an inconclusive OPEC meeting…the U.S. Dollar Index has climbed to 74.74, a gain of more than half a point…China reported a smaller than expected trade surplus in May due to soaring imports and weaker global demand growth…China’s sales to the U.S. and Europe slipped to their weakest since late 2009, underscoring the view that the global economy has hit a soft patch…the Fed’s assumption is that the current slowdown is just temporary and that growth will re-accelerate during the second half of the year…it seems reasonable to conclude that a patient Bernanke will wait to see if that proves to be the case and if not, only then would there be the potential for a QE3 or some type of additional Fed support beyond the current monetary policy…Bernanke will also want to see what Congress does in terms of the debt ceiling and spending cutbacks…he is already warned about “excessive” cuts that would act as a fiscal drag on the U.S. economy…the Dow and TSX are each down over 140 points…the CDNX is off 20 points at 1939…the Venture may need to test its rising 300-day moving average (SMA) as it did in July of last year before it finds a true bottom…the 300-day is currently just below 1900…as investors, it’s almost always impossible to get in at the exact bottom of any stock or market so doing some fishing at current levels makes a lot of sense, especially for investors with a longer-term outlook…we continue to be in the midst of a long-term bull cycle for both the CDNX and commodities, and chances are the CDNX is in for a much better second half of 2011…the TSX Gold Index is trading near support at 360 this morning while the HUI is off 13 points at 505…John has prepared a chart on the HUI which offers encouragement though the Index could fall a little lower and test a support band between 490 and 500…

The relative strength of Currie Rose Resources (CUI, TSX-V), Gold Bullion Development (GBB, TSX-V) and Adventure Gold (AGE, TSX-V) demonstrates in our view that these three companies stand a very good chance of being strong performers over the summer and into the fall…all three have excellent properties with the potential of delivering the kind of news the market will like…they should be watched closely…all three have been holding up very well through this market weakness…over the last couple of days, AGE has looked particularly intriguing…it’s up another 2 pennies this morning to 57 cents…below is an updated AGE chart from John through yesterday….

We’ll be reviewing some interesting plays outside the BMR model portfolio by Monday morning that bottom fishers may wish to consider…in the non-resource area, we’re still very bullish on iSign Media Solutions (ISD, TSX-V) which is currently off 3 pennies at 59 cents…ISD is looking very strong…Intertainment Media (INT, TSX-V), which was down for eight out of nine sessions, may have hit bottom yesterday at 67 cents…brave traders who don’t mind swimming around sharks may wish to test the waters on this one…INT certainly became very oversold on the charts…it’s currently up a penny at 81 cents…

Gold has gained some strength over the last 30 minutes…as of 8:30 am Pacific, the yellow metal is up $6 an ounce at $1,544…Silver is 50 cents higher at $37.30 while crude oil remains firm after yesterday’s failed OPEC talks…it’s up 56 cents a barrel at $101.30 as supply concerns mount…the U.S. Dollar Index is up one-third of a point to 74.17…the U.S. trade deficit narrowed unexpectedly in April due in part to a record $3 billion drop in imports from Japan which underscores the economic impact of the triple disaster in that country in March…the European Central Bank has kept interest rates on hold at 1.25% but warned it will remain “strongly vigilant” regarding inflationary pressures, signalling an interest rate rise is probably only a month away…“On balance risks to the outlook for price stability are on the upside, accordingly strong vigilance is warranted,” stated ECB President Jean-Claude Trichet…”On the basis of our assessment we will act in a firm and timely manner”…markets have stabilized this morning…the Venture Exchange is up for the first time in nine sessions while the senior TSX is up for the first time in eight sessions…the CDNX touched yesterday’s low of 1948 and is currently 4 points higher at 1956…as John’s chart showed yesterday, there is a strong support band on the CDNX between 1900 and 1950…given this week’s nasty 100-point reversal after the Index was showing so much promise last week, a drop to or slightly below the 300-day SMA of 1887 can’t be ruled out (the Index bottomed last July just below the 300-day and this has to be regarded as the “line in the sand”)…however, given all the negative sentiment we can’t help but believe this is a fabulous time for patient investors (and savvy traders) to be accumulating positions in quality companies…the outlook for the CRB Index is still positive, given John’s chart below, and that’s a positive factor for the CDNX…

One of our favorite small producers is Richmont Mines (RIC, TSX) which was down for the ninth consecutive session this morning, hitting a low of $6.70 which is just above its rising 100-day SMA…Richmont is headed for another solid quarter of earnings (Q1 earnings were 28 cents per share) and the long-term outlook for this company is exceedingly positive given the Francoeur operation which is coming on stream in about six months and developments at Wasamac which is a property we have been very bullish about for many months…it has the potential of taking Richmont to a 200,000 ounce per-year producer (RIC should produce 80,000 ounces in 2011)…technically, RIC is oversold…it’s currently up a dime at $7.00…with regard to the juniors, Currie Rose Resources (CUI, TSX-V) released an exploration update this morning with satellite imagery providing additional evidence that its Sekenke Project in the Lake Victoria Greenstone Belt of Tanzania is a first-rate geological target and part of the same northwest trending structure that hosts Canaco’s (CAN, TSX-V) Handeni Project…satellite imagery has also shown that the structures at Sekenke are coincident with a strong alteration envelope…what’s unique about Currie Rose’s Sekenke Project is that it surrounds and runs in between two former high grade Gold mines including Tanzania’s original producer…this greatly increases the chances of a discovery as it’s unlikely the former mines were fully exploited or explored as techniques a century ago in this industry obviously weren’t what they are today…CUI has a terrific chance to hit it big at Sekenke and we also wouldn’t be surprised if the company takes a shot at acquiring the former Sekenke Mine…that’s speculation on our part but it makes sense from a strategic point of view… Currie Rose will be drilling its Sekenke Project for the first time this summer…pre-drilling exploration work continues there to ground truth targets and in the meantime the company will begin drilling at its Mwamazengo discovery at Mabale Hills…geochemical analysis has outlined a continuous anomaly over a few hundred metres that runs parallel to the west of the discovery where previous drill results included notable high-grade intercepts such as 34 metres grading 3.60 grams per tonne gold, 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 also has two other important targets at Mabale Hills, Sisu River and Dhahabu…as of 8:30 am Pacific, CUI is up a penny at 17.5 cents…Adventure Gold (AGE, TSX-V) is holding up very well and has firmed up nicely after finding support in the mid-40’s yesterday…AGE is currently up 6.5 cents at 55 cents…look for a potential reversal in the 20-day SMA which has been in decline since the beginning of May…this is a solid company with some valuable projects…Silver Quest Resources (SQI, TSX-V) is up a penny at 93 cents…the stock’s overbought technical condition has eased considerably in recent days after dropping as low as 88 cents in yesterday’s CDNX sell-off…it’s another quality opportunity…keep Romios Gold (RG, TSX-V) on your radar screen…for technical reasons it could drop a little further but the long-term uptrend is intact and the company’s Trek, Dirk and Newmont Lake properties in northwestern British Columbia have excellent geological potential…this is a company Lawrence Roulston spoke about briefly at the Resource Conference in Vancouver and it’s certainly worth our readers’ due diligence…Gold Bullion Development (GBB, TSX-V) is quiet and off half a penny at 45 cents…Gold Canyon Resources (GCU, TSX-V) has been under pressure recently and it’s 50-day SMA has started to decline for the first time since the stock started its climb from 25 cents last summer…this company is developing a multi-million ounce deposit with its Springpole Project in Ontario, approximately 110 kilometres northeast of the Red Lake Mining Camp…the stock is oversold based on RSI and Stochastics indicators but potentially could test its 200-day SMA around $2.25, just above its March low, before reversing…GCU is currently off 3 pennies at $2.59…

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.

One of the bright spots on the CDNX at the moment is iSign Media Solutions (ISD, TSX-V) which we have been tracking closely over the last month or so from a technical standpoint.  This is an interesting company with significant revenue potential.  What has really intrigued us is the amazing chart construction with this play, and it tells us that ISD is likely going higher.  Perhaps much higher but that of course remains to be seen.  This is still a very speculative play and involves risk, but one can’t help but be impressed with the chart.  As of 9:25 am Pacific, ISD is up a penny at 62 cents on CDNX volume of 1.1 million shares.  John, who holds a position in ISD, updates the chart below.

ISD continues to buck the overall CDNX weakness.

Speaking of the CDNX, as we wrote this morning it appears the Index wants to test the May low of 1957.  We see two scenarios at the moment:  #1, the Index drops a little bit more to around 1950 and reverses; or (2) the Index tests the November low of 1900 which also happens to be in the vicinity of the rising 300-day SMA where the market bottomed out in early July of last year.  John’s chart below paints a clear picture.  As of 9:25 am Pacific, the CDNX is down 30 points at 1974.  This is no time to panic.  Investors just need to be patient and let this market do its thing.

Gold has traded in a range of $1,530 to $1,547 so far today…as of 8:50 am Pacific, the yellow metal is down $8 an ounce at $1,537…Silver is also off its lows of the day, trading at $36.56 (down 58 cents)…crude oil has reversed and is now up $1.54 a barrel at $100.63… OPEC talks broke off this morning without an agreement to raise output after Saudi Arabia failed to convince the cartel to lift production…Secretary General Abdullah El-Badri said the effective decision was no change in policy and that OPEC hoped to meet again in three months’ time…Gulf Arab delegates said Iran, Venezuela and Algeria refused to consider an output increase…non-Gulf delegates said Saudi Arabia had proposed an increase on top of April supplies that was too high for them to contemplate…yesterday, the U.S. Energy Information Administration (EIA) projected world oil consumption would rise by 1.7 million barrels per day to 88.43 million bpd in the second half of this year…the latest monthly report is up 300,000 bpd from its growth forecast in May when the agency had actually cut its oil demand outlook…the U.S. Dollar Index is up nearly one-third of a point to 73.94…speaking at a banking conference in Atlanta yesterday, Fed Chairman Ben Bernanke said the U.S. economy had suffered a “loss of momentum” but that he still expected growth to pick up again…the Fed will no doubt be keeping a very close eye on what develops in Congress with regard to fiscal policy and the debt situation…what was unthinkable just a few months ago is seeping into the Republican mainstream, that a brief U.S. default might be an acceptable price to pay if it forces the White House and Democrats to deal with runaway spending…an increasing number of Republicans do not believe the Obama administration’s dire predictions of economic “catastrophe” if the debt limit is not increased…they argue a period of technical default can be managed without plunging markets into chaos…establishment Republicans including Tim Pawlenty, the former Minnesota governor who announced his presidential candidacy last month, are backing a short-term default if it leads to deep, immediate spending cuts…Canadian David Frum, National Post columnist, former speechwriter for President George W. Bush and a Republican advocate for raising the debt limit, is quoted this morning as saying, “I have yet to meet one Republican who actually says a failure to raise the debt limit scares them…it is deeply, deeply troubling the number of Republicans I now talk to – and I include the mainstream – who think a technical default is manageable”…the CDNX is down for the eighth straight day and appears to want to test its May low of 1957 which wouldn’t be such a bad thing…volumes are low, sentiment is bearish and that’s when huge profits are born for those with nerves of steel who can find some bargains – and there are bargains out there…as of 8:50 am Pacific, the Index is off 29 points at 1975 but this is no time to panic or throw good stocks overboard in our view…Gold Bullion Development (GBB, TSX-V) came out with news this morning on its Castle Silver Mine Property near Cobalt, Ontario…GBB has completed a 43-101 report on the property and drilling, which is still ongoing, has intersected several significant vein structures…GBB is in the process of spinning out the Castle asset into a separate publicly-traded company but no updated timeline was given on that in this morning’s release…the stock is up a penny-and-a-half at 47  cents after falling as low as 44.5 cents…Silver Quest Resources (SQI, TSX-V), which we warned was in technically overbought territory when it was trading slightly above $1, is off another 6 pennies to 89 cents this morning…previous resistance in the low 80’s should provide strong support – SQI is a strong play given its 25% interest in the northern portion of the Blackwater deposit and its presence in the Yukon where it has just started a major exploration program…a couple of other situations to watch…Golden Predator (GPD, TSX-V) is a company with excellent prospects in the Yukon…GPD is off a nickel at $1.00…it has been as low as 97 cents this morning, just above its 100-day moving average (SMA) which has been rising and providing strong support over the last nine months…Visible Gold Mines (VGD, TSX-V) is off half a penny at 23 cents, giving it a market cap of only $11 million…VGD is drilling aggressively in northwestern Quebec and has approximately $7 million in the bank…the company’s Joutel Project, a significant former producer of Gold and Silver, covers nearly 500 square miles and will be the major focus of the company’s exploration in the second half of this year…with a strong geological team, VGD is well positioned for success…the company is drilling at least 40,000 metres this year, so it’s hard to imagine they won’t generate excitement at some point…in the non-resource area, iSign Media Solutions (ISD, TSX-V) continues to shine…the stock has a terrific looking chart (far from overbought at the moment) and ISD is up another 2 pennies at 63 cents, bucking the overall market weakness…those with a stomach for volatility and risk may wish to consider Intertainment Media Inc. (INT, TSX-V) which has been hammered hard to the point of being very oversold from a technical perspective…shorts have been attacking the stock and at some point they will have to cover…INT is down another 12 cents to 73 cents on nearly 7 million CDNX shares…