CDNX
The CDNX bull market, underpinned by the surge in precious metals, powered ahead strongly this past week, blasting through its 52-week high as predicted and climbing 4.9% on the week to 1681. That was a 78-point gain. Our argument entering 2010 that the CDNX could jump to between 1950 and 2350 this year is looking more and more valid – that’s exactly what appears to be unfolding right now. On a very short term basis, the Index is overbought but that doesn’t mean it won’t become more overbought in the days ahead. Some minor pullbacks can be expected along the way to 2,000 but those are clearly buying opportunities. Given the power of this move in the CDNX, we believe gold is likely to run to new all-time highs and perhaps rather soon. All of gold’s moving averages are now in bullish alignment, and gold has broken through important resistance between $1,140 and $1,160. The current price of gold is particularly impressive considering how strong the U.S. dollar has been since the start of the year. What seems plausible in the near-term for gold is a test of its December, 2009, high of $1,225, a pullback, followed by another test and then perhaps a powerful new surge that takes gold into the $1,300’s or higher.
The BullMarketRun Portfolio
Gold Bullion Development (GBB, TSX-V)
Osisko (OSK, TSX) nearly doubled in price in September, 2005, when it put out its preliminary Block Model on the Canadian Malartic Property…Gold Bullion is getting close to releasing its Block Model on Granada, and we expect the news will be good…Gold Bullion closed the week on a very strong note Friday, jumping 2.5 cents to 28 cents on volume of nearly 1.3 million shares…technically, the stock is showing signs of a pending major breakout as explained in our article Friday…the closing and approval of the company’s $4 million private placement has lifted the reigns off the stock which could enjoy a very strong week as speculation builds regarding the Block Model, some new assay results and the resumption of drilling at Granada…after months of constant drilling (May through the summer), BullMarketRun believes there’s an excellent chance Gold Bullion could prove up a multi-million ounce deposit…they are working toward a preliminary 43-101 by year-end, so the market capitalization on GBB later in the year potentially and very easily could be 10 times where it is now – in the hundreds of millions – if a five million ounce plus gold deposit appears to be unfolding…we uncovered this gem at 7 cents last December when nobody wanted it…at 28 cents, the party we suspect has just begun…
Seafield Resources (SFF, TSX-V)
Seafield showed renewed strength this past week and also appears ready for another major move to the upside…Seafield was up 1.5 cents on the week to 28 cents and volume hit 2 million shares Wednesday…the company has a quality package of gold properties in Colombia and some initial exploration results (sampling, geophysics, etc.) from Quinchia should be coming out soon…drilling will commence in this second quarter…the stock is up 367% from last summer when we first uncovered it…we continue to hold and expect great things out of Seafield through the balance of the year…not only does the company have some excellent properties in Colombia, but they also hold the highly prospective Picachos Gold/Silver Property in Mexico and the promissing Elora Gold Property in Ontario…
Kent Exploration (KEX, TSX-V)
Kent enjoyed a terrific week, up 6 cents or 38% to 22 cents…Doray Minerals, an Australian-listed company, reported a significant gold discovery on its Andy Well Property in northern Murchison Province just 13 kilometres northeast of Kent’s Turnberry Prospect which was just recently drilled…Turnberry, of course, is part of Kent’s Gnaweeda Gold Property which has a strike length of 28 kilometres and will be vended in to Archean Star Resources which is expected to start trading on the TSX Venture Exchange in approximately one month…Kent shareholders as of April 30 will receive one share in Archean Star for every four shares of Kent they own…following the spinoff Kent’s flagship properties will be the Alexander River Gold Project in New Zealand – historical, non-compliant gold resources total 643,000 ounces at Alexander – and the Flagstaff Barite Property in northeastern Washington State…the production and sale of high grade barite at Flagstaff should commence this summer…Flagstaff has the potential to generate several million dollars a year in cash flow for Kent through the sale of high grade barite to Matovitch Mining Industries…Kent broke through important resistance at 21 cents Friday and appears ready to once again test its 52-week high of 24.5 cents…
Sidon International Resources (SD, TSX-V)
BullMarketRun readers have been accumulating Sidon between 5 and 7 cents over the last couple of weeks…the stock closed Friday at 6 cents, unchanged on the week…Sidon has signed a letter of intent for an option to purchase 80% of the Morogoro East Gold Property from Kokanee Placer Ltd. through its Tanzanian subsidiary…we are extremely bullish on this potential acquisition and the area in question, eastern Tanzania which is hugely under-explored…local miners have been pulling out significant quantities of gold from Morogoro and the reported grades are astronomical…this property is approximately 100 kilometres south of Canaco’s (CAN, TSX-V) Handeni Gold Project which has been delivering excellent results…we suggest further accumulation of Sidon for an expected move through resistance at 7 cents in the near future…
Richfield Ventures (RVC, TSX-V)
Richfield is back on track and enjoyed a solid week, climbing 25 cents to $1.98…drilling commences shortly at Richfield’s Blackwater Gold Project in central British Columbia…the stock got a little ahead of itself last month and has significantly “cleansed” its recent overbought condition as we had predicted…like Gold Bullion’s Granada Property, Blackwater is an extremely attractive bulk tonnage target and could quite possibily develop into a multi-million ounce deposit…
Colombian Mines Corporation (CMJ, TSX-V)
Colombian Mines has completed the first three holes of a 6-hole planned drill program at its Yarmualito Gold Property in Colombia…all three holes encountered alteration and mineralization typical of the gold-copper porphyry system mapped and sampled at the surface…assay results are expected by month-end…drilling continues at Yarmualito with two rigs…CMJ fell one penny on the week to $1.29…technically, the stock continues to look strong and any short-term weakness should be regarded as a buying opportunity…CMJ has a huge portfolio of grass roots properties in Colombia, so it is certainly not dependent on just Yarmulaito…
North Arrow Minerals (NAR, TSX-V)
We added this gem to our portfolio this past week at 20 cents, and it closed Friday at 24 cents for a 6-cent or 33% weekly gain…we are extremely bullish on North Arrow given the company’s geological expertise (Gren Thomas and Dr. Chris Jennings are mining legends), its solid and diverse portfolio of properties, and Thomas’ determination to come up with another major discovery…North Arrow has a very attractive lithium project (Beaverdam) in North Carolina along with diamond, base metal and gold properties…drilling will be commencing very shortly at Beaverdam…earlier drilling came up with very encouraging results…at Lac de Gras, the company has joint ventured its diamond properties with Jennings who took down an entire private placement in North Arrow recently at 18 cents…liquidity in this stock should start to increase as more eyes are put on this play…the company has hired a very experienced and capable IR firm, demonstrating its desire to “get the word out” on North Arrow…
Greencastle Resources (VGN, TSX)
Greencastle touched a low of 12 cents on the week and closed at 13, unchanged…it’s the only stock in the BullMarketRun portfolio which is actually down from the time we began covering it…we see every reason, however, to continue accumulating Greencastle as it has a very strong cash position, regular monthly cash flow from its Primate oil royalties, and some Nevada gold properties that could enter into the equation in a big way as the price of gold continues to climb…more importantly, we see a strong likelihood of CEO Tony Roodenburg doing something big with this company later in the year as he did with Seafield…he will not let Greencastle languish for a whole lot longer in our view, so it’s an excellent stock to accumulate on a gradual basis at current levels over the short to medium term…Greencastle is currently trading essentially at its cash value…the company should be releasing its updated financials shortly…
