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Gold and Silver are about to enter March in very bullish fashion …as of 5:50 am Pacific, Gold is unchanged at $1,784 after climbing as high as $1,791 overnight…as John’s charts have shown, the yellow metal faces some important resistance around $1,800 – specifically, the November high just below $1,810 – so any move through the $1,810 area on a closing basis will open the door for a challenge of $1,900 and the all-time high…we believe the TSX Venture Exchange, as a very reliable leading indicator, is signaling that it’s just a matter of when, not if, Gold shoots decisively through $1,800…”when” is probably sometime in March…Silver hit a 5-month high yesterday – it has broken out as predicted – and is up another 19 cents at the moment to $37.12…Silver may hit some temporary resistance around $37.50 but it’s looking exceptionally bullish on the charts…Copper has added 4 pennies to $3.90…Crude Oil is up 34 cents to $106.89 while the U.S. Dollar Index is up slightly at 78.20…

The second round of the European Central Bank’s mass release of loans at its record low interest rate  into the European banking system was slightly higher than expectations today, helping commodities and giving European and Asian markets a lift…the ECB announced that its second long-term refinancing operation (LTRO) with a maturity of three years had a take-up of 529.5 billion euros ($713 billion) today, ahead of analysts’ predictions of around 500 billion euros…in December’s operation, 489 billion euros was taken up…this time, 800 banks around Europe took up the cheap funding offered by the LTRO, up from 523 last time round, indicating that the initial stigma surrounding the operation had been removed…the LTRO has been a major factor in driving commodities and stock markets higher since December…the world is being flooded with liquidity by central banks, so pay attention everyone – it’s “risk on” in the markets and many asset classes stand to benefit…

The U.S. economy grew a bit faster than initially thought in the fourth quarter on slightly firmer consumer and business spending…GDP expanded at a 3% annual rate, the quickest pace since the second quarter of 2010, the Commerce Department reported this morning in its second estimate…that was a step up from the 2.8% pace it reported in January…

Stock index futures as of 5:50 am Pacific are pointing toward a slightly positive open on Wall Street…we never like predicting daily moves but we do believe, based on technical factors, that there’s a very strong probability the Venture Exchange will finally bust through a resistance band today, tomorrow or Friday…position yourself accordingly for what has the potential to be an extremely bullish March…we put forward some outstanding situations for our readers’ due diligence Monday, and a few have made nice upside moves already…Wildcat Silver (WS, TSX) jumped 16 cents yesterday to $2.04 while Rainbow Resources‘ (RBW, TSX-V) bullish chart shows it’s drawing closer to another leg up…

Our “Sleeper” list includes GoldQuest Resources (GQC, TSX-V) which has commenced a 3,000-metre drill program at its La Escandalosa Project in the Dominican Republic…historically, GQC’s share price is resting in the “sweet spot” at 11 cents which makes the risk-reward ratio with this stock very attractive at the moment…there’s money to be made when you come across a chart like you see below…

Note: John, Jon and Terry do not hold positions in GQC.

A company we are adding to our “Watch” list (“B” Group) is Levon Resources (LVN, TSX)…our last look at Levon was on February 6 when we stated, “Now, however, is probably a good time for patient investors to consider accumulating LVN on any weakness – especially if it moves closer to the very strong symmetrical triangle support around 80 cents”…that’s indeed what has occurred as LVN successfully tested that support late last week/early this week…Levon has a lot going on in Mexico (check out their Feb. 13 news release regarding their Cordero Project) and over the short or medium term should be able to break out of the descending triangle as shown below…it closed yesterday at 95 cents…

Adventure Gold (AGE, TSX-V) continues to march forward…it gained 4 cents yesterday to close at 54 cents, its highest closing price since last September…John’s 4.5-year monthly chart below removes the “noise” from the daily chart and shows a very bullish overall picture and an important February breakout…AGE is one of one five companies on our “Strong Play” list (“A” Group) and while we believe Rainbow Resources (RBW, TSX-V) has the most immediate upside potential, we expect Adventure Gold to be a stellar performer in 2012 as it continues to develop Pascalis-Colombiere and other projects…AGE’s 100-day moving average (SMA) has reversed a slide that started last July…

Note: John, Jon and Terry do not hold positions in AGE.

Gold is surging higher this morning…as of 7:45 am Pacific, the yellow metal is up $16 an ounce at $1,784…Silver has gained 99 cents to $36.45…Copper is 3 pennies higher at $3.88…Crude Oil has slipped to $108.24 while the U.S. Dollar Index is also relatively unchanged at 78.48…this is a condensed version of Morning Musings today due to travel…

New orders for U.S. manufactured goods fell in January by the most in three years as demand fell across the board from machinery to aircraft, suggesting the economy started the year on weaker footing than expected…durable goods orders slipped 4%, the biggest drop since January, 2009, when the country was still mired in a deep recession, according to Commerce Department data released this morning…economists had forecast orders falling 1%…durable goods range from toasters to big-ticket items like aircraft which are meant to last three years and more…meanwhile, home prices fell in December for a fourth straight month in most major U.S. cities, as modest sales gains in the depressed housing market have yet to lift prices…the Standard & Poor’s/Case-Shiller home-price index shows prices dropped in December from November in 18 of the 20 cities tracked…the steepest declines were in Atlanta, Chicago and Detroit. Miami and Phoenix were the only cities to show an increase…the declines partly reflect the typical slowdown that comes in the fall and winter…don’t lose focus on the “big picture” with regard to the U.S. economy as the overall improvement trend is firmly intact…consumer confidence numbers just came out and have hit a one-year high, a very encouraging sign…

The Venture Exchange is up 4 points at 1683 as of 7:45 am Pacific as it continues to work through a resistance band…once 1700 is cleared, the CDNX should really begin to pick up some steam…yesterday, we provided our “Strong Play” lists, “Watch” lists and our “Sleeper” list…we’ll be going into more detail on those companies in the coming days…yes, our #1 pick, for both technical and fundamental reasons, is Rainbow Resources (RBW, TSX-V) which is making noise in the West Kootenay region of British Columbia…RBW has an impressive team and an approach to corporate development that is market-friendly…not only are we expecting a very strong 2012 overall out of RBW, but a potentially explosive March as more details of its plans and properties emerge…as of 7:45 am Pacific, RBW is unchanged at 26 cents…

Interesting news out of Richmont Mines (RIC, TSX) regarding the resignation of President and CEO Martin Rivard (“effective August 12”)…the language in the news release has us particularly curious and we’re checking with various sources to find out what the real story here might be…RIC is down 31 cents on the news to $11.39 but has been one of the best-performing stocks on the TSX over the last year…

Corvus Gold (KOR, TSX) has released very positive news this morning (initial North Bullfrog PEA) and the stock is up a dime at 94 cents…

John has charts on three companies we mentioned yesterday, and all are up in early trading today – CMC Metals (CMB, TSX-V), Wildcat Silver (WS, TSX) and Alexco Resources (AXR, TSX)…

Note: John, Jon and Terry do not hold positions in CMB.

Note: John, Jon and Terry do not hold positions in WS.

Note: John, Jon and Terry do not hold positions in AXR.

Gold is off slightly in overnight trading…as of 2:00 am Pacific, the yellow metal is off $7 an ounce at $1,767…Silver has lost 9 cents to $35.32…Copper is 2 pennies lower at $3.82…Crude Oil, which has advanced for 7 straight sessions, has shed $1.09 a barrel to $108.68 while the U.S. Dollar Index is up slightly at 78.49…

European shares are weaker in early trading while stock index futures in New York, several hours ahead of the opening bell, are pointing toward a marginally lower open on Wall Street…due to unexpected travel, tomorrow’s “Morning Musings” will be posted later than usual at approximately 8:30 am Pacific…

Saddle Up For The Silver Ride

Silver jumped over 5% last week and is on the cusp of a breakout…for many weeks now, we’ve been emphasizing how bullish the “big picture” is for Silver which is why we’ve been encouraging readers to perform their due diligence on numerous good quality Silver stocks (exploration companies plus producers)…below is another chart update from John on Silver (this was completed on Saturday, by “next week” he means this week) that clearly shows increasing momentum in this market…

“Strong Plays”, “Watch Lists” And The “Sleeper List”

We’ve mentioned a lot of good companies over the last few months, and since we started in the summer of 2009, so to provide some focus going forward (especially considering how bullish the markets could be) we’ve created five separate lists (the “BMR Group”) which include a total of 35 companies…the categories are as follows…

“Strong Play” Group A

“Strong Play” Group B

“Watch List” Group A

“Watch List” Group B

“Sleeper List”

The “Strong Play” groups are those companies that we believe (based on fundamental and technical considerations) have the best chance of superior market performance over the short to medium term and, in particular, over the next six to nine months…from a technical perspective, each of them also has a rising 300-day moving average (SMA) which shows they are already market leaders and out-performers…the “A” list is considered to be marginally superior to the “B” list in terms of potential price appreciation…

The “Watch Lists” (also separated into “A” and “B” levels) are excellent prospects for the balance of the year that should be watched closely for additional news and developments that may warrant an upgrade in our system…

The “Sleeper List” consists of companies whose market caps have been knocked down considerably for various reasons but could rebound abruptly and therefore offer excellent potential…as the saying goes, buy low and sell high…Cadillac Mining (CQX, TSX-V) was a great example of that recently…

We will periodically update our lists (perhaps once a week) and that may include deletions and/or additions…please read our disclaimer…we are not making “buy”, “hold” or “sell” recommendations…we are merely putting companies forward that we believe are worthy of our readers’ due diligence…we will be commenting on each of these 35 situations over the coming week…

Strong Play Group “A” (5)

Rainbow Resources (RBW, TSX-V), Wildcat Silver (WS, TSX), Cap-Ex Ventures (CEV, TSX-V), Focus Metals (FMS, TSX-V), Adventure Gold (AGE, TSX-V)…

Strong Play Group “B” (5)

Richmont Mines (RIC, TSX), Great Panther Silver (GPR, TSX), Scorpio Mining (SPM, TSX), Alexco Resources (AXR, TSX) and GoGold Resources (GGD, TSX-V)…

Watch List Group “A” (10)

Cascadero Copper (CCD, TSX-V), Gold Bullion Development (GBB, TSX-V), Abcourt Mines (ABI, TSX-V), Kaminak Gold (KAM, TSX-V), ATAC Resources (ATC, TSX-V), RJK Explorations (RJX.A, TSX-V), Corvus Gold (KOR, TSX), Gold Standard Ventures (GV, TSX-V), Canaco Resources (CAN, TSX-V), Sprylogics International (SPY, TSX-V…

Watch List “B”(15)

Spanish Mountain Gold (SPA, TSX-V), Arian Silver (AGQ, TSX-V), Geologix Explorations (GIX, TSX), St. Andrew Goldfields (SAS, TSX), Seafield Resources (SFF, TSX-V), Amarc Resources (AHR, TSX-V), Sunridge Gold (SGC, TSX), McEwen Mining (MUX, TSX), Volta Resources (VTR, TSX), Golden Predator (GPD, TSX), Hana Mining (HMG, TSX-V), Prodigy Gold (PDG, TSX-V), Encanto Potash (EPO, TSX-V), Huldra Silver (HDA, TSX-V), iSign Media Solutions (ISD, TSX-V)…

“Sleeper List” (5)

GoldQuest Mining (GQC, TSX-V), Currie Rose Resources (CUI, TSX-V), Greencastle Resources (VGN, TSX-V), Rackla Metals (RAK, TSX-V), CMC Metals (CMB, TSX-V)…

Comments…you’ll notice there are two non-resource companies on the above lists – Sprylogics International (SPY, TSX-V) and iSign Media Solutions (ISD, TSX-V)…yes, there are a number of companies we have probably overlooked but as we mentioned at the top, our system has some built-in flexibility for additions and deletions as the weeks go by…as always, perform your own due diligence…

John has two “Strong Play” company charts to share this morning…Great Panther Silver (GPR, TSX) has a growing production profile and will be a fabulous performer if Silver does what we believe it could do – hit a new all-time high – sometime over the next 12 months…at the moment, the technical action in GPR is bullish and suggests Silver could make a nice upside move in the very near future…

Note: John, Jon and Terry do not hold positions in GPR.

Adventure Gold (AGE, TSX-V) is a company with a strong management team that we have been following closely since it was trading in the low 20’s in September, 2010…AGE held up very well in a bad market last year…it holds a large portfolio of properties in Quebec and Ontario, some of which are very promising, but AGE’s “company builder” project in our view is Pascalis-Colombiere (Gold) near Val-d’Or…Pascalis is strategically located (immediately adjacent to Richmont’s Beaufor Mine) and the mineralized system keeps expanding – now believed to be over a 3-kilometre strike, up to 900 metres’ depth and 500 metres wide…we made a site visit to Pascalis last summer, which confirmed our bullishness on this project, and just recently AGE commenced a 15,000 metre Phase 3 drill program…we hope investors took note of a sentence in Richmont’s news release last Thursday on its 2011 financial results…President and CEO Martin Rivard stated, “I would also note that Richmont management continues to actively evaluate external sources of growth for the corporation through our strategic evaluations of potential acquisitions and partnerships”…we know Richmont is paying close attention to results at Pascalis…this is pure speculation on our part, but additional good results from Pascalis may convince Richmont to try to acquire the property or make a takeover offer for all of Adventure Gold…Pascalis encompasses the former producing (and very profitable) L.C. Beliveau Mine…Adventure Gold also holds a 100% interest in the Beaufor West and Beaufor North Properties which also may be of interest to Richmont…the AGE chart is looking strong and once resistance is cleared at 60 cents, look out…AGE has been waking up recently and closed Friday at 50 cents for a modest market cap of $31 million…we were impressed with the company’s completion in late December of a $1.75 million financing above the market (45 cents) and all in “hard” dollars…

A company not on any of our lists yet, though it probably should be, is Newstrike Capital (NES, TSX-V) which on Friday announced a $24.8 million bought deal financing…NES is having some great exploration success (Gold) in Mexico and could certainly still move higher (see John’s chart below) despite an already healthy market cap in excess of $300 million…

Note: John, Jon and Terry do not hold positions in NES.

Welcome to our site, or at least the initial version of it!  BMR has been online for more than 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 very much on the Gold and Silver markets 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 undiscovered junior exploration companies or small producers, mostly in the Gold and Silver 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 and entail considerable risk, volatility and unpredictability.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. Always perform your own due diligence and 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.  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 and entertainment 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.

Forward Looking Statements:

All statements in BMR’s reports, other than statements of historical fact, may be forward-looking statements. These statements relate to future events or future performance. Forward-looking statements are often but not always identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.

One of the reasons we’re so bullish on the Venture Exchange right now is the action we’re seeing across a broad range of commodities.  This morning, John examines charts for the CRB Index, Copper, Crude Oil and Natural Gas to give us a technical perspective on what’s happening in these markets (yesterday, John provided an updated Gold chart in the Week In Review and tomorrow morning he’ll be updating Silver).

1. CRB Index (Thomson Reuters/Jefferies)

For more than 50 years, this world-renowned index has served as the most widely recognized measure of global commodities markets.  And what the CRB chart is telling us right now is that commodities are heating up (breakout in February) and should finish the first quarter on a very strong note.

2.  Copper

Copper is a reliable leading indicator of the global economy, so the fact it has performed well so far this year is a very encouraging sign.  Copper recently found support at the EMA(20), as we had anticipated, and it’s likely just a matter of time before it breaks through the resistance band as shown below.  January-April is normally the seasonally strong period for Copper.  On the fundamental side, global end-user demand gained traction across the board in January and preliminary data for February showed further improvement in China and Europe.

3.  Crude Oil

U.S. light sweet Crude has posted its longest streak of daily gains (7) since a 10-day stretch starting in December, 2009.  The chart shows a technical breakout last week, so a move to John’s Fibonacci target of $121.45 seems very plausible before a correction sets in.  Unfortunately, the environmental cult – the one Obama is pandering to, built around the concept of “reverence for the Earth” as opposed to reverence for our Creator – loves higher oil prices as this misguided group believes this advances their radical Green Agenda.  Of course what we need to do is actually produce more oil – increase supply – and that includes aggressive drilling in the best jurisdictions and fast-tracking critically important projects such as Keystone.  The “Iran Factor” is certainly helping to put a premium on Crude at the moment but as evil as the Iranian regime is, its bark is worse than its bite.  Iran can be put into submission.

4.  Natural Gas

John’s 11-year monthly chart for Natural Gas shows there is likely money to be made in this market right now on the long side.  Higher prices are on the way.

TSX Venture Exchange and Gold

It was another solid week for the Venture Exchange which added 32 more points to close at 1690.  For the year, the CDNX is now up 14% but there’s a lot more upside to come.

First, we suggest to each of our readers that you do yourself a favor and take a few minutes to check out Frank Holmes’ weekly Investor Alert article (posted last night) at www.usfunds.com.  Holmes puts a lot of things into perspective regarding the current situation and why commodities are expected to do so well this year. The global liquidity boom that began in earnest in December has much to do with what’s unfolding in the markets.

In the near future, likely next week, we expect the CDNX to work its way through a resistance band which will then inject some high octane fuel into this bull market.  The signature pattern of a CDNX bull market is frequent injections of fresh fuel in the form of technical triggers/breakouts, exploration success, and rising commodity prices with periodic pullbacks to supporting moving averages.  That’s the environment we’re in right now and it should continue through the balance of the year.

When this market gets a little ahead of itself, it pulls back a few percentage points and smart money buys on weakness.  For now, the 10 and 20-day moving averages are providing excellent support as we’ve seen over the last two months.  That trend should continue in March.   The 100-day moving average (SMA) recently reversed to the upside – a very bullish development.  Interestingly, the 500-day SMA – which flattened out for a period of time – is now rising again and that’s also hugely bullish.  This SMA is currently sitting at about 1800, a level we expect this market to test and perhaps surpass next month.  At some point in the spring, a 10% correction is likely and will be necessary in order to unwind overbought conditions and set the stage for a major advance over the summer/early fall.

Overall market volume still needs to increase but we believe that will occur in the near future on a “reverse capitulation”.  A lot of investors are still sitting on the sidelines, scared to test the waters.  That’s a good sign.

Below is John’s updated CDNX chart.

Gold

Support for Gold held in the low 1700’s, as expected, and the yellow metal then took off to the upside this week ($50 an ounce) to close at $1,774.  It’s now right in the middle of a resistance band, so the next week or two are going to be really interesting.  Given the bullishness of the CDNX, a very reliable leading indicator, the odds seem very good that Gold will manage to bust through the $1,800 level sometime next month.

Silver, which is looking exceptionally bullish, gained $1.82 an ounce last week to close at $35.41.  Copper jumped 13 cents to $3.85.  Crude Oil climbed a whopping $6.53 a barrel to $109.77 while the U.S. Dollar Index fell a full point to 78.40.

The “Big Picture” View Of Gold

As Frank Holmes so effectively illustrates at www.usfunds.com, Gold is being driven by both the Fear Trade and the Love Trade.  The transfer of wealth from west to east, and the accumulation of wealth particularly in China and India, is having a huge impact on Gold.

The fundamental case for Gold remains incredibly strong – currency instability and an overall lack of confidence in fiat currencies, governments and world leaders in general, an environment of historically low interest rates and negative real interest rates that won’t end anytime soon (inflation is greater than the nominal interest rate even in parts of the world where rates are increasing), money supply growth, 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.

Back in January, we posted a fascinating 12-year chart from John that compared the speculative China Shanghai Composite Index with our favorite speculative market, the TSX Venture Exchange.  What it showed was a remarkable similarity in trading patterns between the two markets over the last several years.  And since we saw some very bullish signs in the Shanghai Index, trading at the time in the low-to-mid 2200’s, we felt even more confident with our analysis that the Venture Exchange bear market was over and a major new CDNX bullish phase was underway.

We’re now approaching the end of February and today the Shanghai Composite shot confidently past an important resistance band, gaining 30 points to finish at 2440, a 3.5% gain for the week and its highest close since mid-November.  The CDNX is currently working through a resistance band of its own which we expect it will clear next week.

The bullishness in the Shanghai Index – it has advanced for six straight weeks – is a clear sign that it’s “risk on” in the global markets and that the world economy, despite a few glitches, is going to fare better this year than many people had assumed just a few months ago.  Of course a major reason why is that central banks are printing money faster than rabbits can make bunnies.  The world will pay for that later.  In the meantime, we’ll all make bucket loads of money if we recognize that the trend is our friend.

Below is an updated chart from John on the Shanghai Index after this week’s important technical development, a decisive move past 2400. The Shanghai is going a lot higher this year – and so too is the CDNX.

Gold is steady this morning after climbing to a three-month high yesterday…as of 5:35 am Pacific, the yellow metal is unchanged at $1,780 an ounce…Silver is 6 cents higher at $35.43…Copper has gained 3 pennies to $3.83…Crude Oil is up another 55 cents to $108.38 while the U.S. Dollar Index is down marginally at 78.51…

Stock index futures as of 5:35 am Pacific are pointing toward a flat to positive open on Wall Street this morning…European markets are up while China’s Shanghai Composite closed 30 points higher today at 2440…the move through 2400 is technically significant as the Index has broken through a resistance band…we’ll be posting an updated chart on the Shanghai Composite by tomorrow…

Fraser Institute rankings for the world’s most attractive jurisdictions for mineral exploration and development (in the view of the international mining industry) are just out…top 10 jurisdictions are New Brunswick, Finland, Alberta, Wyoming, Quebec, Saskatchewan, Sweden, Nevada, Ireland, and the Yukon…

The TSX Venture Exchange is within shouting distance of 1700 as a breakout looms…it posted its sixth straight daily advance yesterday, closing up 9 points at 1694…over the past two months at BMR, we’ve written about 50 or so Venture companies…many have performed extremely well, from Rainbow Resources (RBW, TSX-V) to Arian Silver (AGQ, TSX-V) to Focus Metals (FMS, TSX-V) and Cap-Ex Ventures (CEV, TSX-V)…on Monday we’ll be pulling all of that coverage together so we can provide our readers with a “Strong Play” group and a “Watch List”…

Before we provide an interesting update on Rainbow, below is a chart from John that tracks the Venture Exchange and the CRB Index together (intermarket relationship chart)…first, notice the very bullish “W” formation on both (the CDNX is in black while the CRB is in red)…they are also both moving in tandem at the moment, as opposed to being in an inverse relationship, which is good…based on the patterns below, going back to 2005, now is the ideal time to be positioned in good quality Venture stocks…

Rainbow Resources (RBW, TSX-V) Update

A publicly available geological report from 2009 on Rainbow Resources‘ (RBW, TSX-V) International Property, found by one of our astute readers on the B.C. Mines and Energy web site, contains some impressive assay results and other revealing information that speaks to the potential of this 4,000 hectare property in the prolific West Kootenay region of British Columbia (just one of six RBW properties in the area)…if the December 16, 2009, report from Paul A. Hawkins and Associates Ltd. is any indication, the upcoming NI-43-101 compliant report from Rainbow’s resource consultant (Moose Mountain) should be a powerful document in terms of providing important geological details concerning RBW’s 7,000 overall “Big Strike” land package…highlights of the Hawkins report, which we caution is only an assessment report and not 43-101 compliant, and was completed more than two years ago (work on the property has occurred since then), include the following:

“Recent grab samples collected in 2008, returning an average 54.35% lead and 19.80 ounces per tonne Silver, confirmed the previous high-grade Pb-Ag mineralization present on the property…this material was likely representative of the material mined in the 1930’s from the property”…

“The earliest work recorded on the property was by Blue Lake Consolidated Mining Company…a sample taken at that time from a small streak of galena, about 10 cm wide and 4.6 m long, assayed 445.72 g/t Ag (14.3 opt), 37.7% Pb and 1.2% Zn (MEM & PR, 1918)…

“A trench exposing quartz veining and lenses in Horsethief Creek Group rocks was discovered outside the crown grants…the discovery of this trench indicates additional potential beyond the known mineralization on the crown grants…numerous other outcrop exposures were also noted during the soil sampling program”…

“A review of data for the property indicates it has never been comprehensively examined for economic mineral deposits…a review of the outcrop pattern for the ledge (mineralized vein) indicates it is unlikely to be just one vein responsible for all the mineral showings on the property…the actual situation is likely more complicated with faulting, folding and multiple zones”…

The International Property land package was assembled by Braveheart Resources, a privately-held Calgary company that was acquired by Rainbow last fall…Braveheart commenced exploration on the property in 2007 (no drilling has yet taken place) and also upgraded road access which is now excellent…Rainbow has conducted some groundwork and geophysics over the last few months in preparation for a major drill program…with PDAC just around the corner, we wouldn’t be surprised if Rainbow was pressing Moose Mountain to complete its full report by sometime next week…things could get much more interesting in a hurry with RBW…on Monday, we’ll have Part 2 of our report and interview with Rainbow President David Johnston who was carrying around an incredible 24-pound massive galena (Silver and Lead-rich) rock sample from the International Property at the recent Resource Show in Vancouver…below is the picture we took of Johnston with The Rock…

Rainbow hit a new all-time high of 27 cents earlier this week on record volume…it closed yesterday at 26 cents, half a penny above its previous high where this is now strong technical support…with a current market cap of just $8.3 million, the upside potential continues to significantly outweigh the downside risk in our view…based on the Hawkins’ 2009 assessment, and other historical information such as the work performed by Kaslo Mines of Spokane  in the 1930’s and 1940’s, Rainbow definitely appears to have a near-surface high-grade structure (albeit not fully defined yet) at the International to drill into…that excites us as well as Rainbow’s overall approach to its development in the junior exploration space…

Focus Metals (FMS, TSX-V)

John made a fabulous call on an FMS technical breakout early this month, and yesterday the stock jumped a dime on strong volume to close at $1.14…while it may need to briefly digest its recent gains, the overall chart continues to look very bullish with the next major resistance area at $1.40…yesterday, FMS announced a $6.5 million private placement financing (flow-through) at $1.30 per share that could increase up to $10 million…the offering, through Comark Securities and Byron Capital Markets Ltd., is expected to close by March 14…Focus is aiming to develop one of the lowest cost producers of industrial and technology-grade graphite in the world with its Lac Knife deposit in Quebec…below is John’s updated chart on FMS…notice the change in buying pressure this month…

Note: John, Jon and Terry do not hold positions in FMS.

McEwen Mining Inc. (MUX, TSX), formerly U.S. Gold Corp. (UXG, TSX), is up 36% since January 12 when John highlighted it in a chart as a stock in the early stages of a breakout…MUX closed at $5.76 yesterday and continues to look strong in this update…

Note: John, Jon and Terry do not hold positions in MUX.

Adventure Gold (AGE, TSX-V)

Adventure Gold continues to inch higher and closed yesterday at 48.5 cents…AGE remains one of our favorites and deserves more recognition for its Pascalis-Colombiere Gold Property near Val-d’Or where it has outlined a system over at least a three-kilometre strike and up to 900 metres depth and 500 metres wide…strategically, Pascalis is in an ideal location – immediately adjacent to Richmont’s (RIC, TSX) Beaufor Mine…AGE has commenced a 15,000 metre drill program, part of which will test a promising new zone (see picture below) to the north that was discovered through prospecting last summer…this is a fabulous property that the market should truly begin to appreciate in 2012…

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