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Gold has traded in a range of $1,536 to $1,551 so far today…as of 8:45 am Pacific, the yellow metal is down $5 an ounce at $1,539…Silver is flat at $36.78, crude oil has slipped 78 cents to $98.22 while the U.S. Dollar Index has hit a one-month low, down nearly one-third of a point to 73.63…comments from a Chinese official that the greenback would continue to weaken versus other major currencies didn’t help the Dollar this morning…Fed Chairman Ben Bernanke is due to speak on the economic outlook at 3:45 p.m. eastern time today, just before the market close, to a bankers’ conference in Atlanta…investors of course will be paying close attention to every word Bernanke speaks…while Fed officials have said recent data was a disappointment, the general consensus seems to be that softness in the second quarter will be short-lived and was brought on by the Japanese supply chain disruptions and higher oil prices…it’s reasonable, therefore, to expect the Fed to be patient…QE2 ends in just a few weeks but the Fed will continue a separate program to reinvest proceeds from its mortgage portfolio in Treasurys, plus it’s undetermined when the Fed may make moves to reduce the size of its balance sheet…Bernanke still has an assortment of tools in his toolbox but the Fed will likely want to see what Washington does in regard to fiscal policy before taking any major new steps, if indeed any are required…a London-based analyst at UBS AG made some interesting comments on Gold in a report today…“All the market participants we met with in China last week expect a slowdown in physical demand before buying picks up again in September,” stated Edel Tully…while there may be “summer headwinds” for Gold, “this would be viewed by most as a short- term correction within a bullish market…it’s very difficult to leave Asia, and in particular China, without feeling bullish about Gold,” he concluded…CDNX action yesterday was disappointing as the market failed to hold support around 2050…volume was very light, however, in the 41-point drop to 2015 and nothing has changed to alter our overall bullish outlook entering the second half of the year…the CDNX is currently off another 6 points at 2009…it’s worth re-posting a Gold–CDNX comparative chart from John that we ran Saturday…note how the CDNX is very close to a support trendline…

There’s a lot of bearish sentiment with regard to the markets and the economy right now, and that has always been the right time to step up to the plate and invest smartly…we’ve seen great examples of that over just the last two-and-a-half years, in late 2008, the spring of 2009 and the summer of 2010…investors must have patience and must keep focused on the “big picture” which Frank Holmes painted so beautifully at the World Resource Conference in Vancouver…he also made another very true comment…”wealth is at attitude and it’s ambilical cord is gratitude…in that state of being thoughtful and thankful, you’ll find opportunities…that’s the magic”…Richmont Mines (RIC, TSX) is headed for another stellar quarter of earnings and, amazingly enough, the stock was down for the seventh straight day today at $7.29…Richmont has solid support around the $7 level and we’re very optimistic about the long-term prospects for this company given its strong earnings, growing production profile and major exploration success at the Wasamac Property near Rouyn-Noranda where the resource has grown from just under 300,000 ounces to 1.4 million ounces (43-101, measured, indicated and inferred)…Richmont, which made 28 cents per share in Q1, has approximately $50 million in cash and no debt with only 31 million shares outstanding…RIC is quickly becoming an earnings machine, so it’s a tremendous play to hold for the long-term in our view…Gold Bullion Development (GBB, TSX-V) and Spanish Mountain Gold (SPA, TSX-V) have both performed very well recently, which shows that there continues to be strong interest in the advanced junior exploration plays that have substantial 43-101 resources or are about to release a 43-101 resource calculation (as is the case with GBB)…GBB is currently off 2 pennies at 46 cents while SPA is unchanged at 71 cents…both look solid from a technical standpoint at the moment and have out-performed the market recently…we see an exciting summer ahead for Currie Rose Resources (CUI, TSX-V) as it sinks its teeth into the Sekenke and Mabale Hills Projects in Tanzania…CUI holds a lot of ground immediately adjacent to the former high-grade Sekenke Mine…we’ve speculated on this before – we wouldn’t be surprised if the company took a run at trying to acquire the former Sekenke Mine which was in operation during the first half of the 20th century…that would be a bold move and could be a company-changer for Currie Rose…their Sekenke package currently consists of nearly 300 square kilometres, surrounding and running in between two former high-grade mines (Sekenke and Kirondatal)…CUI continues to look very promising from a technical perspective…it closed at 17.5 cents yesterday, exactly at its rising 50-day moving average (SMA) which is providing strong support…that’s also where the 100-day SMA is…the 100-day has flattened out and appears ready to reverse to the upside…we were very encouraged Sunday after a lengthy conversation with Visible Gold Mines (VGD, TSX-V) President and CEO Martin Dallaire at the Resource Conference…we conducted a 45-minute interview which we’re currently editing to cut it down to a more reasonable length…the company has major plans for its Joutel Property, a joint-venture with Agnico-Eagle (AEM, TSX), and drilling will commence at Joutel this summer…it’s a massive property – 10 times Gold Bullion’s Granada land package – and includes three zones that were mined by Agnico-Eagle between the 1970’s and the early 1990’s (more than 1 million ounces of Gold plus Silver were produced)…Robert Sansfacon, VGD‘s Senior Geologist, is an expert on structure and he’s very excited about the possibility of discovering extensions to the previously mined zones or new deposits altogether on that massive property…it’s interesting to note that Agnico-Eagle approached VGD regarding Joutel…that shows the kind of confidence they have in Sansfacon who is highly regarded in Quebec geological circles…he played a key role in the discovery of Osisko’s (OSK, TSX) Canadian Malartic Deposit…VGD, armed with about $7 million in cash, has found technical support in the mid-20’s and hasn’t had an “up” week since the end of March, so this is certainly worth watching closely for a potential move initially in to the mid-30’s around the 50 and 100-day moving averages…with so much drilling this year (40,000 metres) over very prospective ground, it’s hard to imagine Visible Gold Mines not coming up with a discovery somewhere in northwestern Quebec…SilverQuest Resources (SQI, TSX-V) is up 3 pennies to $1.00…not only does SQI hold a valuable 25% interest in the northern portion of the Blackwater Deposit, now under the control of New Gold Inc. (NGD, TSX), but the company has also started a $5 million exploration program at its properties in the White Gold district of the Yukon…approximately 80 companies are expected to spend in the neighborhood of $500 million in exploration in the Yukon this summer…a few spectacular drill holes could really light a fire under the CDNX, another reason we see great potential in this market at current levels…

Gold is pushing higher today…as of 8:00 am Pacific, the yellow metal is up $8 an ounce at $1,550…Silver is 87 cents higher at $37.02, crude oil is off $1.06 at $99.16 while the U.S. Dollar Index is up one-fifth of a point to 73.90…the World Resource Investment Conference wraps up today in Vancouver…despite the nicest weather of the year in Vancouver yesterday, turnout for the first day was strong though not quite as busy as we’ve seen it before…we had a chance to listen to two of our favorite speakers, Frank Holmes (CEO of U.S. Global Investors) and geologist, mining industry expert and newsletter writer Lawrence Roulston…both continue to be very bullish regarding the outlook for China which is really shaping the “big picture” as far as commodities are concerned…Holmes talked about the importance of “super city clusters” taking shape in China with high speed rail that “will change everything…it’s the big thing to recognize for all the metals…China is where America was in 1968, very similar metrics”, Holmes stated…$300 billion will be spent over the next decade to build 30,000 kilometres of light railway in China (trains traveling at 240 miles per hour), connecting 700 million people in 250 cities…this will have an enormous impact on economic development…total infrastructure spending in the E7 (China, India, Brazil, Mexico, Russia, Indonesia and Turkey) over just the next three years is expected to be $6 trillion…with low tax rates and little debt throughout the E7, these economies will continue to perform well…rapidly growing urban populations (in China alone, 25 million people a year are moving into the cities), the need for improved transportation systems, demand for commodities, and an affinity for Gold are all key themes in understanding what’s unfolding in the emerging economies in the years ahead…in North America, investors are far too focused on what’s happening in the United States on a day-to-day basis and can’t see the “big picture” which is a lot more positive than the doom and gloom being dished out on CNN and elsewhere…Roulston, who views the current market softness as a buying opportunity, is bullish on the Yukon, Alaska, northern BC, Quebec, the western U.S. and Guyana…one of his favorites, Romios Gold (RG, TSX-V), is looking very promising on the charts as it appears to have bottomed out in a consolidation…RG has just started an aggressive $6 million drilling and exploration program in the Galore Creek area of northwestern BC…the stock is off 2.5 cents this morning to 43 cents, just 7 pennies above its rising 100-day moving average (SMA) which it has not been below since early November of last year…leftist candidate Ollanta Humala has claimed victory in Peru’s presidential runoff as voters overlooked his past support for Venezuela’s Hugo Chavez…Humala has pledged to curb tax evasion and raise mining taxes to finance higher social spending, and claims he’ll resolve conflicts between farmers and mining companies that have caused companies including Southern Copper to shelve investments…capital flees quickly wherever it’s not welcome, so it’ll be interesting to see how things unfold in Peru with Humula as the new President…Peru is the world’s biggest Silver producer, and third in copper and zinc…mining investment helped bring in $7.3 billion in foreign direct investment last year and has helped fuel growth above 7% for 13 consecutive straight months…Bear Creek Mining (BCM, TSX) is encountering delays with the development of its Santa Ana project in Peru and the stock has dropped in half since early March, in part of course also due to the drop in Silver…a Humala regime in Peru is not good news for BCM investors and the stock, which has fallen from a high of $12 in early March, is off another 37 cents this morning to $5.83 after dropping as low as $5.21…Rio Alto Mining (RIO, TSX-V), focused on the development of on the development of its 21,000 hectare La Arena Gold/Copper Project in north central Peru, is the volume leader on the CDNX this morning, down 40 cents to $1.98…so Peru plays are certainly out of favor at the moment…Spanish Mountain Gold (SPA, TSX-V) is looking strong and is up a nickel to 74 cents as it tries to bust through resistance around the 70-cent level…SPA released positive early results last Thursday from infill drilling within the Main and North zones at its Spanish Mountain Gold Project in central British Columbia…it appears SPA wants to challenge its 2010 high of 83 cents…Gold Bullion Development (GBB, TSX-V) is up 1.5 cents at 48.5 cents on strong  volume so far today…we interviewed Visible Gold Mines‘ (VGD, TSX-V) President and CEO Martin Dallaire yesterday at the Resource Conference and we’ll be posting that very interesting discussion as soon as we can…VGD 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…the company 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 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 500 square kilometre 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 mid-20′s anymore…VGD is currently off a penny at 25 cents…the company is armed with about $7 million in cash at the moment…with so much drilling this year in such a prolific area, directed by a strong geological group, it’s hard to imagine the company not making a significant discovery…

Visible Gold Mines (VGD, TSX-V)

Visible Gold Mines (VGD, TSX-V) was unchanged again last week at 26 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 with the stock trading in the mid-20’s…earlier today we spent over an hour with President and CEO Martin Dallaire at the World Resource Investment Conference in Vancouver (our interview with Dallaire will be posted within a couple of days)…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 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 500 square kilometre 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 mid-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…the company is well-financed and reported working capital of $8 million as of early April…

Adventure Gold (AGE, TSX-V)

Adventure Gold was unchanged for the week, closing Friday at 50 cents which is 3 pennies above its rising and supporting 200-day moving average (SMA)…the company reported some significant news, however, 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…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 one of last week’s 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…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 has pulled back after climbing as high as 33.5 cents on strong volume the week of May 24…SFF closed down a nickel for the week at 25 cents, the 20-day moving average (SMA) which should provide technical support…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 gave up all of those gains until last week’s turnaround…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 400% since we made it the first company in the BMR model portfolio in the summer of 2009…its current market cap of approximately $50 million is modest given its cash position and resource potential…

Greencastle Resources (VGN, TSX-V)

Greencastle was down 3 pennies for the week at 19 cents…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…Greencastle’s market cap is only $9 million which means the stock is trading less than 20% 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…VGN’s strong underlying fundamental value is clearly shown in the latest financials which were released March 24…as of December 31, Greencastle held $5.1 million in cash and $2.6 million in marketable securities…some of those securities are likely shares in Seafield Resources (SFF, TSX-V) while the company disclosed it held 1,148,000 shares of Evrim Resources Corp. (EVM, TSX-V), formerly Avaranta, which started trading on the Venture Exchange January 25…current oil prices should maintain Greencastle’s monthly cash flow of approximately $130,000 as it receives royalties from heavy crude production at Primate in Saskatchewan…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 required here…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 $8 million in working capital, three Gold properties (including land near Richfield’s 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 50% since we added it back in to the BMR model portfolio last October…

Sidon International (SD, TSX-V)

Still nothing new to report here though we’re working on trying to find a few things out…Sidon traded between 4.5 and 5 cents last week, closing Friday unchanged for the week at 4.5 cents…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…Sidon has yet to recover from a sharp drop in early March following disappointing assay results from its Morogoro East Gold Property…the six shallow holes drilled in December at Morogoro East did not 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 hope here for better days ahead for Sidon…from a technical standpoint, previous support between 9 and 10 cents will now provide resistance…the turnaround in the stock price will start once the 50-day SMA has reversed to the upside…Sidon off half a penny 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 $6.3  million…

Gold Bullion Development (GBB, TSX-V)

Gold Bullion has behaved as expected recently and climbed as high as 54 cents last week – the 100-day moving average (SMA) – before closing Friday at 47 cents, a 3-cent gain for the week…the stock’s 50-day moving average (SMA) flattened out over the last half of May and is now reversing to the upside, a very bullish development which also provides technical support at 45 cents…the 20-day SMA is rising strongly and is currently at 41 cents…John’s latest GBB chart shows a bullish “cup with handle” formation that is still in progress…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 more than three months of weakness…this comes prior to the release of the initial 43-101 for the LONG Bars Zone, 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 $75 million puts a value of just $25 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 continues to look very strong on the charts even though it pulled back slightly last week to close at 19.5 cents, a loss of 2.5 pennies from the previous Friday when it broke through resistance and closed at 22 cents…any loose stock is being gobbled up quickly and the Chaikin Money Flow (CMF) indicator shows consistently strong buying pressure over the last month…the 50-day moving average (SMA) has reversed to the upside and the 100-day SMA has flattened out and appears ready to start pointing north sometime next week (both are at 17.5 cents, providing excellent support)…these are all very encouraging signs and they suggest that a breakout through resistance in the 22 to 23 cent area is only a question of when, not if…from a fundamental perspective, news is likely just around the corner as the company gets set to start a major new drill program in northwest Tanzania where it holds some outstanding properties in the prolific Lake Victoria Greenstone Belt…of particular interest is Currie Rose’s Sekenke Project…Sekenke has “blue sky” written all over it and it’s why we decided to start following this company when it was trading around a dime last fall…CUI will be drilling Sekenke this summer for the very first time…it covers nearly 300 square kilometres and surrounds and runs in between two former high grade Gold mines including Tanzania’s original major producer…we should get an even better picture of the potential of Sekenke when Currie Rose releases results from a recent (and perhaps still ongoing) extensive ground-based and airborne geophysical program as well as satellite imagery…previous exploration work by Currie Rose has yielded excellent results…the company has already identified a highly prospective structure (12 km x 800 metres) within a shear zone on the margins of a large granite intrusion that hosts numerous quartz reefs of the same type and even larger than those that developed at the nearby historic mines…as often is the case, chances are that much was overlooked at and around the former mines which were in operation during the first half of the 20th century…in addition to Sekenke, which has to be regarded as its flagship project, Currie Rose’s Mabale Hills Project also holds considerable promise with the Mwamazengo, Sisu River and Dhahabu targets…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 continues to consolidate and was up half a penny last week, closing at 19.5 cents…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 for patient investors…GQC’s prospects remain solid as the company has an outstanding portfolio of projects in the Dominican Republic and Spain…GoldQuest announced May 27 that it’s proposing the election of Patrick Michaels and Florian Siegfried as new non-executive directors…both are with Precious Capital AG, a Zurich-based fund specializing in global mining investments…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 stock became extremely oversold recently based on a range of indicators…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 25 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 for probably another couple of months 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 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)

This stock appears to have turned the corner technically after a vicious decline of a whopping 83% (50 cents at the beginning of January to an intra-day low of 8.5 cents May 27)…however, the company has some work to do to prove to investors it’s capable of makings things happen at its “Wasa” Property which adjoins Richmont Mines Inc. (RIC, TSX) growing Wasamac deposit west of Rouyn-Noranda…CQX closed the week up a penny at 15 cents…volume has increased over the last six trading sessions but is still well off the high levels of last December and January…this is a company with tremendous potential given its property packages but management needs to “seize the moment” and take advantage of the opportunities they have been blessed with…we remain patient for now because the possibilities with CQX are still incredible, especially considering the current market cap which is just $3.8 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)

Volume has dried up somewhat on Abcourt which hasn’t enjoyed a one 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 12 and 13 cents over the last 18 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 15 cents…it’s going to take some significant news or bullish new overall market sentiment to drive ABI through resistance over the next couple of months, 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

The CDNX gave back 45 points last week on low volume to close at 2056.   Our bullish outlook for this market continues, however, and has even been reinforced with John’s Gold–CDNX comparative chart posted earlier today.  We have some additional very important points to make regarding what’s unfolding right now.

Our contention is that the 1957 low May 17 was the bottom of a 20.6% correction that spanned 51 trading days beginning March 7.  This was very much in line with the average major CDNX correction over the past decade in terms of both magnitude and duration. It was also remarkably similar to the 2005 correction and the behavior of the Index coming out of both corrections (2011 and 2005) is also almost identical so far.  In fact, on the ninth trading day after first closing above its 10-day moving average in 2005, the Index closed slightly below its rising 10-day SMA after retracing some of its gains.  Almost the same thing has happened now – seven days after first closing above its 10-day SMA, the CDNX has closed slightly below that moving average after some retracing.  If history continues to repeat itself (we’ve seen this trend after other major corrections and the start of new uptrends), the CDNX’s 10-day and 20-day SMA’s will provide reliable support.  The market closed just above the 20-day Friday.

There has been a major change of trend since mid-May in terms of the performance of the CDNX in relation to other markets and this has to be viewed as significant and bullish.  From March 7 through May 17, the CDNX grossly underperformed vs. the Dow,  the Nasdaq, the TSX and Gold.  The CDNX declined 19% on a closing basis during that period while the Dow actually gained 2.5%, the Nasdaq was unchanged, the TSX fell 5.7% and Gold climbed 3.8%.

Since May 17, the CDNX has risen 4.4%, Gold is up 3.7%, the Dow has dropped 2.6%, the Nasdaq has fallen 1.8% and the TSX is up 0.5%.  What this tells is that all the doomsayers right now are looking in their rear view mirrors – the world’s most speculative market would not be performing like it has over the past three weeks (12 trading sessions actually) if a “CRASH” was imminent and the sky was about to fall.  The CDNX’s steep drop in March, in retrospect, was advance warning of a slowdown or a soft patch in the U.S. and global recoveries.  What the CDNX is signalling now, we believe, is that there are better times ahead during the second half of the year (one interesting indicator being overlooked amid the current “doom and gloom” is rising iron ore prices, real world economic activity priced without financial speculation) which makes now the perfect time to be accumulating quality junior Gold and resource stocks.   Unfortunately, most investors make the mistake of being bearish when they should be bullish and vice-versa.

As we stated last week…

The average gain in the CDNX, measured by the year-end close, after eight major corrections in this market between 2002 through 2010 (excluding 2008) was an impressive 27% which would give us a potential year-end target of 2485 for the CDNX.  Investors cannot ignore this kind of statistical information over such a lengthy period – in a 30% gain by the CDNX, a good number of stocks will double, triple or even quadruple in value.  There will be some 10-baggers as well.

The fact the CDNX held up so well on Friday despite the weak U.S. jobs report and the nearly 150-point intra-day drop in the Dow was extremely encouraging.  Friday was an important test and the CDNX managed to pass that test.  It’s possible there could be another one on the way early next week.  Investors need to be patient.  This market has made a nice move since mid-May and the uptrend should gain traction soon enough.  The companies that will lead the CDNX higher are those with strong balance sheets, exciting projects, smart management, strong geological teams and encouraging charts.  Last fall, one could almost throw a dart to pick a stock and make money.  We’re not at that point again at the moment.  But there is money to be made in the right plays if you’re careful.

Gold

Gold was up $5.90 for the week, closing at $1,542.40.  Since March the yellow metal has found rock-solid support at its rising 30-day moving average (SMA), currently around $1,500.  Gold seems to have become very comfortable with the $1,500 price level and that has to be considered very bullish.

Silver, more sensitive to economic weakness because of its industrial uses, declined $1.67 last week to close at $36.29.

The U.S. Dollar Index continues to sputter and closed down more than half a point Friday to finish the week at 73.73 vs. the previous week’s close of 74.75.

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.

John: This morning I’m presenting a very interesting comparative chart of Gold (continuous contract) and the CDNX Index to show important relationships and repetitive patterns. Consider the attached 30-month weekly chart showing Gold as a single black line and the CDNX as a red line:

The first item of importance is that both Gold and the CDNX are trending upwards in parallel upsloping channels as noted on the chart. The main focus of this analysis are the “A” and “B” recurring patterns within the 2 large mauve circles.

Consider pattern “A” first. In 2010, the CDNX started a down move at the beginning of April and reversed 3 months later at the beginning of July. The CDNX (red line) crossed down over the Gold (black line) in May.

Now look at pattern “B”. We see that the CDNX started its decline near the end of February and 3 months later it’s very close to its support trendline. Note the gradients of both patterns are parallel.

The similarity of pattern “B” to “A” is additional evidence that now is the time to be bullish regarding the CDNX, not bearish.  We see great opportunity over the last half of the year as the Index likely climbs gradually until it reaches the top of its channel. Another point to note is that pattern “B” is approximately the same length as pattern “A” but has occurred 1 month earlier. The indicators shown, RSI, Slow Stochastics and ADX are for Gold and are bullish. This chart should be kept as a reference.

Conclusion: The relationship and repetitive patterns between Gold and the CDNX that we have gleaned from this chart give us valuable insight into what to expect for both Gold and the CDNX through the remainder of the 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

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Gold has traded between $1,523 and $1,548 so far today…the yellow metal strengthened following the weak U.S. jobs report this morning…as of 9:30 am Pacific, Gold is up $10 an ounce at $1,544…Silver is off 16 cents at $35.99 while the U.S. Dollar Index continues to sputter…it’s down over half a point at 73.76…crude oil is strengthening and is now off only 57 cents at $99.83…U.S. employers hired far fewer workers than expected in May and the jobless rate rose to 9.1% as high energy prices and the effects of Japan’s earthquake bogged down the economy…non-farm payrolls increased 54,000 last month, the weakest reading since September, according to Labor Department statistics released this morning…private employment rose just 83,000, the least since last June, while government payrolls dropped 29,000…economists had expected payrolls to rise 150,000 and private hiring to increase 175,000 in May…the government revised employment figures for March and April to show 39,000 fewer jobs created than previously estimated…the job creation slowdown confirmed the economic weakness already flagged by other data from consumer spending to manufacturing…this certainly confirms a slowdown in the U.S. recovery – the big question is, how long will this slowdown last and will the economy begin to re-accelerate in the second half of this year as some economists are suggesting?…we happen to be in “the sky is not falling” bullish camp but we’ll let the CDNX do the talking…it’s our contention the Venture Exchange ended a major correction May 17 by bottoming out at 1957…the market climbed as high as 2107 Tuesday before a normal pullback the last few days to the 10 and 20-day moving averages which we stated would likely provide support in this new uptrend…as of 9:30 am Pacific, the CDNX is at 2048, down 10 points in sympathy with the broader markets…this has the feel of a potential turnaround day but we’ll see what develops over the final few hours of trading…one of the situations we’ve been mentioning recently, beginning when it was trading around 50 cents, is iSign Media Solutions (ISD, TSX-V) which continues to show extremely bullish chart patterns…we seldom highlight non-resource plays but this one has really caught our attention partly because of some extremely bullish chart patterns that John recently identified…ISD has been a volatile trader and of course the stock is highly speculative – the success of this company will obviously hinge on securing contracts, generating cash flow and turning a profit – but this “play”, if one wishes to call it that, appears to have all the ingredients necessary to propel it higher…John updates the ISD chart below (the stock is currently up 3 pennies at 62 cents on CDNX volume of 1.6 million shares)…

On the resource front, Adventure Gold (AGE, TSX-V) gapped up this morning to 58 cents on an 80,000 share market buy order…the company released excellent results the other day from its Pascalis-Colombiere Gold Property near Val d’Or and a follow-up 5,000 metre Phase 2 program is now underway…AGE is currently 4 pennies higher at 54 cents…Currie Rose Resources (CUI, TSX-V) continues to show strong support and is unchanged at 19 cents…Visible Gold Mines (VGD, TSX-V) is up 2 pennies at 26 cents…we’ll have more on VGD early next week out of the Resource Show in Vancouver…we’ve had some inquiries regarding a chart update for Cadillac Mining (CQX, TSX-V), so John has provided one for us this morning…we’re still waiting for Cadillac to make things happen with regard to its property at Wasamac where it clearly has a Golden opportunity – but an opportunity that so far has not been capitalized on…